Mitsubishi Electric Announces Consolidated and Non-Consolidated Financial Results for Fiscal 2006.TOKYO -- Mitsubishi Electric Mitsubishi Electric Corporation (三菱電機株式会社 Corporation (TOKYO:6503) (President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. : Setsuhiro Shimomura Shimomura is a common Japanese surname, it may refer to the following people: Kanzan Shimomura - the nihonga painter. Kotaro Shimomura - Japanese chemical engineer. Roger Shimomura - the American artist and a retired professor at Kansas University. ) announced today its consolidated and non-consolidated financial results for fiscal 2006 (April 1, 2005 - March 31, 2006).
Consolidated Financial Results
Net sales: 3,604.1 billion yen (6% increase from the same
period last year)
Operating income: 157.7 billion yen (31% increase from the same
period last year)
Income before (49% increase from the same
income taxes: 152.3 billion yen period last year)
Net income: 95.6 billion yen (34% increase from the same
period last year)
Non-consolidated Financial Results
Net sales: 2,217.0 billion yen (10% increase from the same
period last year)
Ordinary profit: 75.1 billion yen (26% increase from the same
period last year)
Net income: 48.5 billion yen (85% increase from the same
period last year)
The business environment in FY 2006 saw a general underlying strength in the global economy mainly in the U.S. and China, with European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. manufacturing and capital investment also picking up slightly in the latter half of the fiscal year. The Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and economy gradually broke away from its deflationary de·fla·tion n. 1. The act of deflating or the condition of being deflated. 2. A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. experiencing increased demands for capital investment than initially anticipated in addition to brisk Brisk as a proper name may refer to:
Meanwhile, the Mitsubishi Electric Group is involved in structural reforms that respond to changing operating circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or to increase and strengthen profitability in each business segment under its 'make strong businesses stronger' strategy. We also continue to strengthen production and sales systems both in domestic and overseas markets by establishing and reinforcing operating facilities as well as strengthening our competitive edge through business alliances, etc. In addition, we are involved in company-wide management renewal activities like reducing inventory and increasing productivity in addition to continuing our cost reducing A-Sigma program and Just In Time activities. We are also strengthening our competitive edge through HR investments and optimizing our HR structure. CONSOLIDATED FINANCIAL RESULTS BY BUSINESS SEGMENT
Energy and Electric Systems
Total sales: 868.7 billion yen (10% increase from the same
period last year)
Operating income: 25.2 billion yen (2.8 billion yen decrease from
the same period last year)
The social infrastructure systems business saw increases in both orders and sales from the same period last year from reintegration reintegration /re·in·te·gra·tion/ (-in-te-gra´shun) 1. biological integration after a state of disruption. 2. restoration of harmonious mental function after disintegration of the personality in mental illness. of electric transmission and distribution related business in addition to expansions in the overseas business for electric equipment for rolling stock rolling stock Any of various readily movable transportation equipment such as automobiles, locomotives, railroad cars, and trucks. Rolling stock generally makes good collateral for loans because the equipment is standardized and easily transportable among . Building system business experienced an increase in both orders and sales from the same period last year due to an increase in domestic large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. orders for elevators and escalators in addition to initiatives in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and the Middle East. As a result, total sales for this segment increased 10% from the previous fiscal year, and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. decreased 2.8 billion yen from the previous fiscal year due to price erosion, etc.
Industrial Automation Systems
Total sales: 860.1 billion yen (10% increase from the same
period last year)
Operating income: 95.9 billion yen (23.6 billion yen increase
from same period last year)
Factory automation systems business saw an increase in both orders and sales from the same period last year due to increases in investments in flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time related investments in Japan, Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. , and Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan and overseas and domestic automotive related investments, etc. The automotive equipment business saw an increase in both orders and sales from the same period last year with increases in alternators and starters etc. for both domestic and overseas automotive manufacturers. As a result, total sales for this segment increased by 10% compared to the same period last year. Operating income rose by 23.6 billion yen from the same period last year due to increase in sales, etc.
Information and Communication Systems
Total sales: 644.1 billion yen (5% increase from same period
last year)
Operating income: 20.6 billion yen (20.4 billion yen increase
from same period last year)
The telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment business saw an increase in both orders and sales due to increases in infrastructure equipment such as optical broadband access See broadband and wireless broadband. system products, etc. as well as 3rd generation mobile handsets for the domestic market. The information system service business saw an increase in sales from the same period last year due to expansion in the system integration business. The electronic systems business orders increased from the same period last year due to orders for the Superbird 7 satellite etc., however sales remained the same as the same period last year. As a result, total sales for this segment showed an increase of 5% from the same period last year. Operating income increased by 20.4 billion yen from the same period last year due to improvement in mobile handsets, etc.
Electronic Devices
Total sales: 170.3 billion yen (4% increase from same period
last year)
Operating income: 13.5 billion yen (7.4 billion yen increase from
same period last year)
The semiconductor business saw an increase in both orders and sales from the same period last year due to increases in power modules for hybrid cars hybrid car, hybrid vehicle hybrid n → Hybridfahrzeug nt or -auto nt and domestic industrial machinery as well as red laser diodes A semiconductor-based laser used to generate analog signals or digital pulses for transmission through optical fibers. Both laser diodes and LEDs (light-emitting diodes) are used for this purpose, but the laser diode generates a smaller beam that is easier to couple with the smaller core for recordable DVD See DVD-R, DVD-RW, DVD+RW and DVD-RAM. players. The liquid crystal business saw a decrease in orders and sales from the same period last year. Despite increases in small and medium sized products for industrial use, there were decreases in large sized products for PC monitors. As a result, total sales for this segment increased by 4% from the same period of the previous fiscal year, and operating income increased by 7.4 billion yen from the same period of the previous fiscal year due to increased sales, etc.
Home Appliances
Total sales: 896.4 billion yen (3% increase from same period
last year)
Operating income: 14.9 billion yen (10.7 billion yen decrease
from same period last year)
The home appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. business saw a 3% increase in sales from the same period last year due to increases in room and package air conditioners Conditioners used on leather take many shapes and forms. They are used mostly to keep leather from drying out and deteriorating. A very old and widely used conditioner is dubbin. etc. for both the foreign and domestic market in addition to residential home equipment such as solar power generation systems, electric water heaters, IH cooking heaters, etc. as well as refrigerators, and LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. televisions etc. Operating income decreased by 10.7 billion yen from the same period last year due to price erosion, etc.
Others
Total sales: 603.5 billion yen (4% increase from same period
last year)
Operating income: 13.3 billion yen (2.7 billion yen increase from
same period last year)
Sales increased 4% from the same period last year mainly in our material procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , engineering, etc. affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . Operating income increased by 2.7 billion yen from the same period last year due to increased sales, etc. Dividend With our financial standing and business performance continuing to improve, Mitsubishi Electric will pay a year-end dividend Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. of 5 yen per share for fiscal 2006. Adding the interim dividend of 3 yen per share, the total annual dividend is 8 yen per share. cf. Fiscal 2005 dividend was 6 yen per share (interim dividend of 2 yen per share and a year-end dividend of 4 yen per share) FINANCIAL CONDITION (CONSOLIDATED BASIS) Assets, Liabilities, and Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. The company's total assets increased from the end of the previous fiscal year by 151.2 billion yen to 3,313.7 billion yen. This increase is mainly attributable to such factors as increases in cash and cash equivalents by 57.9 billion yen, increases in trade receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed by 48.8 billion yen along with a 44.5 billion yen increase in inventories in response to increased orders and sales etc. The balance of outstanding debts and corporate bonds fell by 62.6 billion yen from the balance as of the end of the previous fiscal year to 693.1 billion yen, resulting in a reduction of its ratio against total assets down to 20.9% (an improvement of 3.0 points compared to the end of the previous fiscal year). Retirement and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when benefits decreased 164.2 billion yen due to an increase in pension assets leading to replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. of a shortage in pension reserve. Shareholders' equity increased 221.5 billion yen compared to the same period of the previous fiscal year to 942.2 billion yen. This was due to inclusion of total net income of 95.6 billion yen for this fiscal year in addition to reduced deductions from minimum pension liability adjustments that caused an increase in stock price as well as increased unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. from investment securities. The ratio of shareholders' equity to total assets was 28.4%, a 5.6-point improvement compared to the previous fiscal year. Cash Flow Cash flows from operating activities for this financial year increased 115.9 billion yen compared to the same period of the previous fiscal year to 304.8 billion yen (positive) due to improved earnings. Investment cash flow increased 55.0 billion yen to 156.2 billion yen (used) due to capital expenditures mainly in such business areas as automotive equipment and factory automation systems as well as payment in consideration of assets purchased for reintegration of electric transmission and distribution related businesses as a result of termination of a joint venture. Consequently, free cash flow was 148.6 billion yen (positive). Financial cash flow was 100.6 billion yen (used) due to continued debt repayment and bond redemption in order to improve financial standing.
FY '02 FY '03 FY '04 FY '05 FY '06
----------- ---------- ----------- ----------- ----------- -----------
Debt
repayment
period(1) 13.0 years 5.7 years 4.3 years 4.4 years 2.4 years
----------- ---------- ----------- ----------- ----------- -----------
Interest
coverage
ratio(2) 4.0 times 10.0 times 17.0 times 17.6 times 31.5 times
----------- ---------- ----------- ----------- ----------- -----------
(1) Debt repayment period: interest bearing debts(a) divided by cash
flow from operating activities
(2) Interest coverage ratio: cash flow from operating activities
divided by interest paid
(a) Interest-bearing debts are calculated as an average of the
year-end balances of two consecutive fiscal years (the present one
and the previous one)
CURRENT FORECAST FOR FISCAL 2007 The world economy is expected to slow down slightly from its recovery despite steady undertones similar to the previous fiscal year. The Japanese economy is also expected to slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. slightly in the later half of fiscal 2007 from its slight recovery centered on consumer demand. There are also concerns about the exchange rate and the direction of prices of things like oil and materials as well as increased feelings of uncertainty as to the direction of domestic demand in consumer spending and capital expenditure. This is in addition to concerns about the effects of increasing interest rates worldwide as well as risks from a fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. exchange rate, creating a not necessarily optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op management environment. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the Mitsubishi Electric Group will continue to increase and strengthen profitability in each business segment. In addition, we are committed to implementing various company wide measures toward improving business performance and financial standing. The growth strategies will be steadfastly adhered to in the interest of maintaining sustainable growth. Current forecast for fiscal 2007: consolidated Net sales 3,700.0 billion yen (3% increase from fiscal 2006) Operating income 175.0 billion yen (11% increase from fiscal 2006) Income before income taxes 160.0 billion yen (5% increase from fiscal 2006) Net income 105.0 billion yen (10% increase from fiscal 2006) Current forecast for fiscal 2007: non-consolidated Net sales 2,270.0 billion yen (2% increase from fiscal 2006) Ordinary profit 75.0 billion yen (same as fiscal 2006) Net income 50.0 billion yen (3% increase from fiscal 2006) MANAGEMENT POLICY Fundamental Management Policy Based on its corporate statement "Changes for the Better", the Mitsubishi Electric Group hopes to build a better tomorrow by contributing to the creation of new societies, industries and lifestyles. Keeping this corporate approach in mind, Mitsubishi Electric will establish a solid business foundation and implement sustainable growth through a three point balanced management of "Growth," "Profitability & Efficiency" and "Soundness". Mitsubishi Electric will also work to further enhance its corporate value by becoming a conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. of highly competitive electric-electronic businesses with a synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. unity, capable of responding to the expectations of customers, shareholders, and all of our stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . Fundamental Profit Distribution Policy With the ultimate objective of enhancing corporate value, Mitsubishi Mitsubishi: see zaibatsu. Electric's fundamental policy is to comprehensively improve shareholder profitability both in terms of profit distribution in response to earnings from the corresponding fiscal year and reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or of our financial standing by adding to our internal reserves. Policy on Reducing Minimum Stock Purchase Requirement Mitsubishi Electric recognizes that increasing corporate value to expand a base of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and stable investors as one of the most important managerial issues. Mitsubishi Electric has been considering the effects and expenses related to reducing the minimum stock purchase requirement and will continue to carefully study this issue. Criteria for Management Targets Measures to improve our business foundation and financial standing have resulted in the Mitsubishi Electric Group posting ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. of 11.5% in fiscal 2006, which fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. our original management target of "10% or more". In addition, the ratio of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid debts resulted in 20.9% in the Fiscal 2006, which was effectively less than the original target of "25% or less". The Group revised its targeted ratio of interest-bearing debts to 20% or less, and continue make effort to accomplish this targeted ratio of operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. to sales as well as ratio of interest-bearing debt to total assets. Management Target ----------------------------------- ---------------------------------- Ratio of operating profit to sales 5% or more ROE 10% or more Ratio of interest-bearing debt to total assets 25% or less to 20% or less ----------------------------------- ---------------------------------- Corporate Agenda Based on its three point balanced management of "Growth," "Profitability & Efficiency" and "Soundness", the Mitsubishi Electric Group will continuously improve by strengthening quality, cost competitiveness, and intellectual property as well as productivity, R&D, and sales capabilities. We will also strengthen our two tiered growth strategy VI(1) strategy, 'making strong businesses stronger', and AD(1) strategy, 'reinforcing solutions businesses centered on strong businesses'. While also restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). business segments in response to changing business environments, we strive to create a management base that will continue to strengthen and improve our business performance. Specifically, with an objective of strengthening our integrated "Craftsmanship Craftsmanship Alcimedon a first-rate carver in wood. [Rom. Lit.: Vergil Eclogues, iii. 37.] Argus skillful builder of Jason’s Argo. [Gk. Myth.: Walsh Classical, 29] Athena (Rom. ", we will improve our research and development for software and hardware, continue to streamline our productivity with measures like Just In Time production, promote cost reduction activities such as procurement structural reform and exert quality consciousness from the very first stages of design and development. Further, we are keenly aware of that our human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. are essential in enhancing competitiveness, and we will endeavor to reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of our human resources in an appropriate and optimized organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. so that we can properly coop COOP See Banks for Cooperatives (COOP). with the so called 'Year 2007'(2) problem. We will improve our financial standing by strengthening our productivity by further pursuing such measures as inventory reduction etc. Also, we will further promote 'Global Integration' to build an optimal business structure both in global terms and for the entire corporate Group. In business development in overseas markets, we will pay intensive attention on managing associated risks. Finally, we will enhance our operational structure to manage various businesses, through integration and coordination among various aspects, including research, development, procurement, production, sales and services etc. In addition, we will be committed to enhance Corporate Social Responsibility (CSR (1) (Customer Service Representative) A person who handles a customer's request regarding a bill, account changes or service or merchandise ordered. Agents in call centers are known as CSRs. See call center. ) efforts based on the Corporate Mission(3) and Seven Guiding Principles(4). We will also improve corporate value while responding to external environmental changes such as legislative reforms to the Commercial Code. (1) VI, the first two letters of 'Victory'; AD, the first two letters of 'Advance'. (2) The year in which the oldest of the baby boomers See generation X. who were born in 1947 will be reaching the age of 60, the mandatory retirement A mandatory retirement age is the age at which persons who hold certain jobs or offices are required by statute to step down, or retire. Typically, mandatory retirement ages are justified by the argument that certain occupations are either too dangerous (military personnel) age in the most of Japanese companies This is a list of companies from Japan. Note that 株式会社 can be (and frequently is) read both kabushiki kaisha and kabushiki gaisha (with or without a hyphen). See that article for more details. . This is causing various concerns such as sudden reduction in the labor force, inability to pass on professional skills, and rapid drop in office space demands. (3) Corporate Mission: The Mitsubishi Electric Group will continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improve its technologies and services through creativity, and at the same time contribute to society. (4) These principles are: Trust: Establish relationships with all stakeholders based on strong mutual trust and respect, Quality: Provide the best products and services with unsurpassed quality, Technology: Pioneer new markets by promoting research and development, Citizenship: As a global player, contribute to the development of communities and society as a whole, Ethics: Honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. high ethical standards in all endeavors, Environment: Respect nature, and strive to protect and improve the global environment, Growth: Assure fair earnings to build a foundation for future growth. Basic Policy for Corporate Governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and its Enforcement Basic Corporate Governance Policy Mitsubishi Electric strives to pursue continuous growth, by enhancing flexibility in operations and management transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. , and at the same time consistently endeavors to reinforce the supervisory functions of management. Our basic policy consists in establishment of an efficient corporate governance structure responsive to various expectations from various stakeholders (among others customers and shareholders) and, by this way, we aim further increase of our corporate value. Current Status of Implementation of Various Measures Relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Corporate Governance (1) Decision Making, Executive and Directorial Structure of Corporate Management and Other Corporate Governance Systems a) Company Organization and Development of Internal Control Systems In June June: see month. 2003, Mitsubishi Electric reformed its management structure when it changed to a company with committee system. The supervisory and executive powers of management were thus separated, with the board of directors handling supervisory decisions and executive officers handling executive decisions. The present board is comprised of twelve directors (five of whom are outside directors) offering advice and supervision to management from an objective standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the . The board of directors has three internal bodies: the Auditing, Nomination NOMINATION, This word has several significations. 1. An appointment; as, I nominate A B, executor of this my last will. 2. A proposition; the word nominate is used in this sense in the constitution of the United States, art. 2, s. and Compensation Committees. Each body has five members of which three are outside directors. The Auditing Committee has its own dedicated, independent staff, which supports the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together . A key feature of our management structure is the separation of the Chairman and CEO, with the Chairman as the head of the supervisory functions as a member of the board of directors and the President & CEO as the head of the executive officers. Neither the Chairman nor President is a member of the Nomination or Compensation Committees. This clear separation of supervising and execution powers makes our corporate governance more effective. To maintain compliance and secure management efficiency, each executive officer possesses responsibility for their individual scope of duties, with operating conditions being audited by internal auditors Internal auditor An employee of a company who analyzes the company's accounting records to that the company is following and complying with all regulations. (Audit Department). The internal auditors (Audit Department) and outside auditors report their audit results to the Audit Committee and executive officers in charge. b) Development of Risk Management System The risk management system is constructed so that each executive officer possesses responsibility for his assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. duties. In addition, important management implementations are discussed and decided by all the executive officers in the executive officers meetings. The synergistic effect Synergistic effect A violation of value-additivity in that the value of a combination is greater than the sum of the individual values. of all executive officers participating in management and information creates a multi-dimensional risk management system. c) Internal Audit and Inspections by Audit Committee, Independent Auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. The Audit Department conducts its internal audits from a fair and impartial Favoring neither; disinterested; treating all alike; unbiased; equitable, fair, and just. standpoint by having its own dedicated staff in addition to supporting auditors that represent the special interests of relevant departments. The Auditing Committee consists of five directors of which three are outside directors. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the policies and assignments agreed to by the committee, inspections are conducted by competent members, into the performance of the directors and executive officers as well as affiliated companies. The Auditing Committee receives reports from the internal auditors (Audit Department) and exchanges information from one another through a series of periodical periodical, a publication that is issued regularly. It is distinguished from the newspaper in format in that its pages are smaller and are usually bound, and it is published at weekly, monthly, quarterly, or other intervals, rather than daily. meetings and discussions on auditing policies. Also the Auditing Committee has chances to discuss with independent auditors policies and methods of audits, and it will receive accounts on status and results of the audit as well as mutual exchanges of opinion. KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen AZSA & Co. has been retained as the independent auditor. KPMG AZSA & Co. appoints partners in charge, and the firm has designated Mr. Yoshihiko Nakamura Nakamura may refer to:
Kaneko Seisakusho (also called Kaneko Co. Ltd.) was a video game publisher based in Suginami, Tokyo, Japan that published a number of games both under its brand and , and Mr. Ryoji Fujii Fujii (藤井 as the partners in charge handling auditing for Mitsubishi Electric. Support staff for handling auditing will consist of appropriate CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. and JA from KPMG AZSA & Co. Mitsubishi Electric will maintain an environment in which fair and impartial audits can be conducted, such as providing relevant management information to KPMG AZSA & Co. d) Detail of Remuneration REMUNERATION. Reward; recompense; salary. Dig. 17, 1, 7. Paid to Directors and Auditors (i) Detail of Remuneration Paid to Directors
Description Number Paid in the current Remark
Fiscal Year
------------ ------- ------------------------ ------------------------
Directors 9 144 million yen Remuneration under the
------------ ------- ------------------------ Article 21-11-3-1 of
Officers 20 443 million yen Special Rules to the
------------ ------- ------------------------ Commercial Code
Total 29 587 million yen
------------ ------- ------------------------ ------------------------
Note: The above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. number of payees includes 1 directors and 5 officers who have retired during the Fiscal Year 2006. 1. The number does not include 4 directors acting as officers on an interlocking interlocking /in·ter·lock·ing/ (-lok´ing) closely joined, as by hooks or dovetails; locking into one another. interlocking Obstetrics A rare complication of vaginal delivery of twins; the 1st basis. 2. The payment shown above does not include (i) the incentive amount of 206 million yen paid (for 20 officers) in commensuration com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the operating result and (ii) the premium of retirement amounting to 154 million yen (for 1 director and 2 officers) 3. The Payment above does not include 201 million yen (including 81 million yen of bonus), which is a salary equivalent portion allocable al·lo·ca·ble adj. Capable of being allocated. Adj. 1. allocable - capable of being distributed allocatable, apportionable distributive - serving to distribute or allot or disperse to their functions and qualities as employee for those officers assuming certain functions as employees. (ii) Detail of Fees Paid to the Independent Auditors In the subject fiscal year, the remuneration payable by the consolidated corporate group of Mitsubishi Electric to KPMG AZSA & Co, along with concerned member firms associated thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. , which is the auditing firm under Special Rules to the Commercial Code and Security Exchange Law, has amounted 512 million yen in consideration of creating audit reports and 95 million yen in other services than the audit. (2) External Special Interests with outside directors No special interest, personal, investor, trade or otherwise, exists between any of the outside directors and the company. Additionally, outside director Minoru Minoru is a male Japanese given name. Minoru is the name of King Edward VII's horse that won the English derby. Possible Writings
UFJ Upper Flex Joint , and both of these companies do have a banking and operating trade relationship. (3) Corporate Governance reinforcement in the fiscal year 2006. In this fiscal year 2006, committees have been convened for purposes of nominating directorial candidates as well as auditing business execution by directors/officers and determining remuneration of board members and executives: annual total of holding meetings by respective committee are as follows, 2 times by the Nomination Committee, 8 times by the Auditing Committee, and 3 times by the Compensation Committee.
CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS
1. CONSOLIDATED FINANCIAL RESULTS
(in billions of yen)
FY '06 FY '05 A/B
(A) (B) (%)
---------------------------------- ----------- ----------- -----------
Net sales 3,604.1 3,410.6 106
Operating income 157.7 120.6 131
Income before income taxes 152.3 102.3 149
Net income 95.6 71.1 134
Basic net income per share (in
yen) 44.64 33.16 135
---------------------------------- ----------- ----------- -----------
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
2. NON-CONSOLIDATED FINANCIAL RESULTS
(in billions of yen)
FY '06 FY '05 A/B
(A) (B) (%)
---------------------------------- ----------- ----------- -----------
Net sales 2,217.0 2,022.0 110
Ordinary profit 75.1 59.4 126
Net income 48.5 26.2 185
Dividend per share (in yen)
Annual dividend 8 6 133
Interim dividend 3 2
Term-end biannual dividend 5 4
Net income per share (in yen) 22.66 12.22 185
---------------------------------- ----------- ----------- -----------
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
CONSOLIDATED PROFIT AND LOSS STATEMENT
(in millions of yen)
Comparison
FY '06 % of FY '05 % of to A/B
(A) total (B) total previous (%)
year
(A - B)
------------------ ---------- ------ ---------- ------ ---------- ----
Net sales 3,604,185 100.0 3,410,685 100.0 193,500 106
Cost of sales 2,694,985 74.8 2,559,499 75.1 135,486 105
Selling, general
and
administrative
expenses 751,482 20.8 730,544 21.4 20,938 103
Operating income 157,718 4.4 120,642 3.5 37,076 131
Other income 45,980 1.3 36,390 1.1 9,590 126
Interest and
Dividends 9,492 0.3 7,437 0.2 2,055 128
Other 36,488 1.0 28,953 0.9 7,535 126
Other expenses 51,372 1.5 54,716 1.6 (3,344) 94
Interest 9,648 0.3 10,868 0.3 (1,220) 89
Other 41,724 1.2 43,848 1.3 (2,124) 95
Income before
income taxes 152,326 4.2 102,316 3.0 50,010 149
Income taxes 69,701 1.9 48,170 1.4 21,531 145
Equity in earnings
of affiliated
companies 13,067 0.4 17,029 0.5 (3,962) 77
Net income 95,692 2.7 71,175 2.1 24,517 134
------------------ ---------- ------ ---------- ------ ---------- ----
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
CONSOLIDATED BALANCE SHEET
(in millions of yen)
FY '06 FY '05
(A) (B) A - B
(ending (ending
March 31, March 31,
2006) 2005)
-------------------------------------- ---------- ---------- ---------
(Assets)
Current assets 1,886,779 1,740,333 146,446
-------------------------------------- ---------- ---------- ---------
Cash and cash equivalents 304,514 246,563 57,951
Short-term investments 7,991 23,719 (15,728)
Trade receivables 843,600 789,463 54,137
Inventories 491,950 447,382 44,568
Prepaid expenses and other current
assets 238,724 233,206 5,518
-------------------------------------- ---------- ---------- ---------
Long-term receivables 4,378 9,700 (5,322)
-------------------------------------- ---------- ---------- ---------
Investments 584,871 483,547 101,324
-------------------------------------- ---------- ---------- ---------
Net property, plant and equipment 589,998 570,660 19,338
-------------------------------------- ---------- ---------- ---------
Other assets 247,716 358,232 (110,516)
-------------------------------------- ---------- ---------- ---------
Total assets 3,313,742 3,162,472 151,270
====================================== ========== ========== =========
(Liabilities and shareholders' equity)
Current liabilities 1,440,133 1,277,662 162,471
-------------------------------------- ---------- ---------- ---------
Bank loans and current portion of
long-term debt 247,595 234,242 13,353
Trade payables 714,455 636,829 77,626
Other current liabilities 478,083 406,591 71,492
-------------------------------------- ---------- ---------- ---------
Long-term debt 445,583 521,542 (75,959)
-------------------------------------- ---------- ---------- ---------
Retirement and severance benefits 420,348 584,601 (164,253)
-------------------------------------- ---------- ---------- ---------
Other fixed liabilities 13,081 11,307 1,774
-------------------------------------- ---------- ---------- ---------
Minority interests 52,395 46,723 5,672
-------------------------------------- ---------- ---------- ---------
Shareholders' equity 942,202 720,637 221,565
-------------------------------------- ---------- ---------- ---------
Common Stock 175,820 175,820 -
Capital surplus 210,938 210,687 251
Retained earnings 528,240 447,548 80,692
Accumulated other comprehensive
income (loss) 27,718 (113,022) 140,740
Treasury stock at cost (514) (396) (118)
-------------------------------------- ---------- ---------- ---------
Total liabilities and shareholders'
equity 3,313,742 3,162,472 151,270
====================================== ========== ========== =========
Balance of Debt 693,178 755,784 (62,606)
Accumulated other comprehensive income
(loss):
Foreign currency translation
adjustments 9,426 (10,722) 20,148
Minimum pension liability
adjustments (58,695) (138,658) 79,963
Unrealized gains on securities 76,970 36,358 40,612
Unrealized gains on derivative
instruments 17 - 17
CONSOLIDATED CASH FLOW
(in millions of yen)
FY '06 FY '05 A - B
(A) (B)
----------------------------------------- --------- --------- --------
I Cash flows from operating activities
----------------------------------------- --------- --------- --------
1 Net income 95,692 71,175 24,517
2 Adjustments to reconcile net income to
net cash provided by operating
activities
(1) Depreciation of tangible fixed
assets and other 135,821 111,330 24,491
(2) Decrease in deferred income taxes 22,796 17,001 5,795
(3) Decrease (increase) in trade
receivables (19,359) (29,665) 10,306
(4) Decrease (increase) in inventories (9,379) (41,223) 31,844
(5) Decrease (increase) in prepaid
expenses and other assets (3,308) 18,855 (22,163)
(6) Increase in trade payables 60,170 14,927 45,243
(7) Increase in other liabilities 35,346 34,480 866
(8) Other, net (12,938) (7,956) (4,982)
Net cash provided by operating
activities 304,841 188,924 115,917
----------------------------------------- --------- --------- --------
II Cash flows from investing activities
----------------------------------------- --------- --------- --------
1 Capital expenditure (134,413) (125,657) (8,756)
2 Proceeds from sale of property, plant
and equipment 5,374 16,492 (11,118)
3 Purchase of short-term investments and
investment securities (33,590) (52,489) 18,899
4 Proceeds from sale of short-term
investments and investment securities 32,937 58,978 (26,041)
5 Other, net (26,517) 1,541 (28,058)
Net cash used in investing activities (156,209) (101,135) (55,074)
----------------------------------------- --------- --------- --------
I + II Free cash flow 148,632 87,789 60,843
----------------------------------------- --------- --------- --------
III Cash flows from financing activities
----------------------------------------- --------- --------- --------
1 Proceeds from long-term debt 62,675 49,590 13,085
2 Repayment of long-term debt (100,024) (116,698) 16,674
3 Increase (decrease) in bank loans, net (43,794) (94,214) 50,420
4 Dividends paid (15,000) (12,877) (2,123)
5 Purchase of treasury stock (4,583) (58) (4,525)
6 Reissuance of treasury stock 125 50 75
Net cash provided by (used in)
financing activities (100,601) (174,207) 73,606
----------------------------------------- --------- --------- --------
IV Effect of exchange rate changes on
cash and cash equivalents 9,920 2,385 7,535
----------------------------------------- --------- --------- --------
V Net increase (decrease) in cash and
cash equivalents 57,951 (84,033) 141,984
----------------------------------------- --------- --------- --------
VI Cash and cash equivalents at beginning
of period 246,563 330,596 (84,033)
----------------------------------------- --------- --------- --------
VII Cash and cash equivalents at end of
period 304,514 246,563 57,951
----------------------------------------- --------- --------- --------
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
CONSOLIDATED SEGMENT INFORMATION
1. Sales and Operating Income by Business Segment
(in millions of yen)
FY '06 FY '05 A/B
(%)
--------- --------------------------- ---------------------------
Business Sales % of Operating Sales % of Operating
Segment (A) total income (B) total income
--------- --------------------------- ---------------------------
Energy
and
Electric
Systems 868,789 21.5 25,296 791,925 20.8 28,150 110
Indu-
strial
Auto-
mation
Systems 860,111 21.3 95,967 781,867 20.6 72,362 110
Infor-
mation &
Commun-
ication
Systems 644,111 15.9 20,677 614,091 16.2 238 105
Elec-
tronic
Devices 170,394 4.2 13,531 164,383 4.3 6,130 104
Home
Appli-
ances 896,437 22.2 14,958 866,428 22.8 25,692 103
Others 603,585 14.9 13,342 581,685 15.3 10,597 104
Subtotal 4,043,427 100.0 183,771 3,800,379 100.0 143,169 106
Elimi-
nations
and
other (439,242) - (26,053) (389,694) - (22,527) -
Total 3,604,185 - 157,718 3,410,685 - 120,642 106
--------- ---------- ------ --------- ---------- ------ --------- ----
-- Note: Inter-segment sales are included in the above chart.
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
2. Sales and Operating Income by Location
(in millions of yen)
FY '06 FY '05 A/B
(%)
----------------------- -------------------- --------------------
Operating Operating
Location Sales (A) income Sales (B) income
(loss) (loss)
----------------------- ---------- --------- ---------- --------- ----
Japan 3,131,472 123,578 2,927,605 93,118 107
North America 251,717 (4,100) 217,369 (1,006) 116
Asia (excluding Japan) 430,976 29,205 459,363 29,277 94
Europe 228,993 8,148 235,188 2,334 97
Others 27,567 945 23,255 767 119
Subtotal 4,070,725 157,776 3,862,780 124,490 105
Eliminations (466,540) (58) (452,095) (3,848) -
Total 3,604,185 157,718 3,410,685 120,642 106
----------------------- ---------- --------- ---------- --------- ----
-- Note: Inter-segment sales are included in the above chart.
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
3. Overseas Sales
(in millions of yen)
FY '06 FY '05 A/B
(%)
---------------------------- ------------------ -----------------
% of % of
Location Sales (A) total Sales (B) total
net net
sales sales
---------------------------- ---------- ------- ---------- ------ ----
North America 281,502 7.8 318,376 9.3 88
Asia (excluding Japan) 426,579 11.9 380,544 11.2 112
Europe 270,761 7.5 263,417 7.7 103
Others 69,727 1.9 73,335 2.2 95
Total overseas sales 1,048,569 29.1 1,035,672 30.4 101
---------------------------- ---------- ------- ---------- ------ ----
FY '06: Apr. 1, 2005 - Mar. 31, 2006
FY '05: Apr. 1, 2004 - Mar. 31, 2005
Cautionary Statement The expectation of operating results herein and any associated statement to be made orally with respect to the Company's current plans, estimates, strategies and beliefs and any other statements that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Words such as "expects", "anticipates", "plans", "believes", "scheduled", "estimated", "targeted" along with any variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person that the Company trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that actual operating results are subject to change due to any of the factors as contemplated hereunder Adv. 1. hereunder - in a subsequent part of this document or statement or matter etc.; "the landlord demises unto the tenant the premises hereinafter called the demised premises"; "the terms specified hereunder" hereafter, hereinafter 2. and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. any additional factor unforeseeable Un`fore`see´a`ble a. 1. Incapable of being foreseen. Adj. 1. unforeseeable - incapable of being anticipated; "unforeseeable consequences" unpredictable - not capable of being foretold as of the date of this announcement. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following: (1) Any change in worldwide economic and social conditions as well as laws, regulations, taxation and other legislation (2) Changes in foreign currency exchange rates, especially yen/dollar rates (3) Changes in stock markets, especially in Japan (4) Changes in balance of demand and supply of products that may affect prices and volume, as well as material procurement conditions (5) Changes in the ability to acquire financing, especially in Japan (6) Changes in any patent and its licensing, including any dispute involving patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. , that may affect operations (7) Technological change, the development of products using new technology, manufacturing and time-to-market (8) Business restructuring (9) Damage from earthquakes Earthquakes See also geology. bathyseism an earthquake occurring at very deep levels of the earth. bradyseism the slow upward and downward motion of the earth’s crust. — bradyseismic, adj. , typhoons, tsunami, fires and other large scale disasters (10) Social and political tumult caused by terrorism or war, etc. About Mitsubishi Electric With over 80 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TOKYO:6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The company recorded consolidated group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. of 3,604 billion yen (US$ 30.8 billion(b)) in the fiscal year ended March 31, 2006. For more information visit http://global.mitsubishielectric.com. (b) At an exchange rate of 117 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2006. |
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