Contents
02 To Our Shareholders
03 Financial Highlights
04 Corporate Strategy
08 At a Glance
Fiscal 2012 Overview
10 Review of Operations
10 Energy and Electric Systems
11 Industrial Automation Systems
12 Information and Communication Systems
13 Electronic Devices
14 Home Appliances
15 Research and Development / Intellectual Property
18 Corporate Social Responsibility
21 Corporate Governance
22 Directors and Executive Officers
23 Organization
24 Major Subsidiaries and Affiliates
25 Financial Section
73 Corporate Data / Shareholder Information
Aiming to become a global,
leading green company,
enriching society with technology.
Looking ahead to our 100th anniversary in 2021, our continued aim is to help enrich society.
By enriching society, we mean creating a “people-friendly” society that ensures safety,
peace of mind, health and comfort for all, as well as a more “earth-friendly” society that
recycles and uses resources efficiently.
We at the Mitsubishi Electric Group provide a wide spectrum of products and services,
ranging from semiconductors to large-scale systems, with applications for homes, offices,
factories, social infrastructure and even space systems.
As we strive to become a global, leading green company that enriches society with technology,
we will increase cross-cooperation within the Group while providing advanced technologies and
engaging in a wide array of business pursuits.
For the earth and for the future—the Mitsubishi Electric Group will continue
to make steady steps toward achieving this goal.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 01
To Our Shareholders
Amid downturns in the European and East Asian economies, supply chain pressures
caused by flooding in Thailand and a slowdown in Japanese production and exports,
the business environment in the latter half of the fiscal year ended March 31, 2012
(hereinafter, fiscal 2012) worsened. Stalled recovery trends in Japan and overseas,
as well as the ongoing strength of the yen versus the US dollar and euro also made
for a challenging operating environment.
Under these circumstances, the Mitsubishi Electric Group continued to emphasize
Growth, Profitability and Efficiency, and Soundness, the three key viewpoints of
its Balanced Corporate Management. Accordingly, the Group placed greater
emphasis than ever before on promoting growth strategies rooted in its competitive
advantages as well as on efforts to boost its competitiveness and strengthen its
management structure.
As a result of these efforts, the Mitsubishi Electric Group recorded consolidated net
sales of ¥3,639.5 billion in the fiscal year ended March 31, 2012, virtually unchanged
from the previous fiscal year. Operating income decreased 4% to ¥225.4 billion, for
a Group operating income ratio of 6.2%. Meanwhile, net income fell 10% to ¥112.1
billion. Consequently, with regard to standing management targets, for operating
income ratio, return on equity (ROE) and interest-bearing debt to total assets (above
5%, above 10% and below 15%, respectively), we achieved the first two.
The Mitsubishi Electric Group is taking steps to strengthen its initiatives in growing
market segments. To that end, we are engaging in growth strategies that include:
promoting environment-related business strategies; expanding business activities in
China, India and other emerging economies; bolstering the social infrastructure sys-
tems business; and developing the solutions business by combining a wide array of
technologies with expertise gained in the security business and other fields.
To facilitate new growth, we aim to enhance corporate value by promoting robust
growth strategies based on renewed and meticulous efforts to bolster operations in
the area of Soundness—one of the three key viewpoints of Balanced Corporate
Management—with particular consideration given to corporate ethics and compli-
ance. The promotion of such growth strategies is also underpinned by a manage-
ment foundation realigned to be even stronger.
As we stride forward resolutely to achieve our goals, we ask for your continued
support and understanding.
July 2012
President & CEO
Kenichiro Yamanishi
02 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Financial Highlights
Performance for the year ended March 31, 2012
Years ended March 31
Net sales
Operating income2
Net income attributable to Mitsubishi Electric Corp.
Total assets
Interest-bearing debt
Mitsubishi Electric Corp. shareholders’ equity
Capital expenditures
R&D expenditures
Per-Share Amounts
2012
¥3,639,468
225,444
112,063
3,391,651
542,291
1,132,465
159,346
169,686
Yen
(millions)
2011
2010
¥3,645,331
233,761
124,525
3,332,679
484,352
1,050,340
107,638
151,779
¥3,353,298
94,302
28,278
3,215,094
537,500
964,584
109,069
133,781
U.S. dollars
(thousands)
2012
$ 44,383,756
2,749,317
1,366,622
41,361,598
6,613,304
13,810,549
1,943,244
2,069,341
Yen
U.S. dollars
Net income attributable to Mitsubishi Electric Corp.
Basic
Diluted3
Cash dividends declared
¥52.20
¥58.00
—
12
—
12
¥13.18
13.18
4
%
Statistical Information
Operating income ratio
Return on equity (ROE)
Interest-bearing debt to total assets
6.2%
6.4%
2.8%
10.3
16.0
12.4
14.5
3.1
16.7
$0.637
—
0.146
—
—
—
See accompanying notes to consolidated financial statements.
1 The Company prepares consolidated financial statements with procedures, accounting terms, forms, and preparation that are in conformity with accounting principles
generally accepted in the United States of America based on the rules and regulations applicable in Japan.
2 Operating income is presented as net sales less cost of sales, selling, general, administrative and R&D expenses, and loss on impairment of long-lived assets.
3 For the years ended March 31, 2011 and 2012, diluted net income per share attributable to Mitsubishi Electric Corp. is not included in the above figure as no dilutive
securities existed.
Net Sales Breakdown by Business Segment
14.6%
Others
Net sales ¥611,619 million
Energy and Electric Systems 24.6%
Net sales
¥1,027,115 million
Home Appliances 20.3%
Net sales ¥849,274 million
Industrial Automation Systems 23.4%
¥978,380 million
Net sales
Electronic Devices 4.8%
Net sales ¥200,799 million
Information and
Communication Systems 12.3%
¥516,354 million
Net sales
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 03
Corporate Strategy
“Changes for the Better,” our corporate statement,
encapsulates all that we stand for and aspire to—a
brighter future for society, industry and everyday life
through innovation.
Supporting this commitment to innovation and sus-
tainable operations is a solid management structure
backed by balanced management initiatives that stem
from three key viewpoints: Growth; Profitability and
Efficiency; and Soundness.
In terms of its corporate social responsibility (CSR)
initiatives, the entire Mitsubishi Electric Group is steered
by its Corporate Mission and Seven Guiding Principles.
Putting particular emphasis on compliance with applica-
ble laws and high ethical standards, we are committed
to strengthening internal controls to ensure legal com-
pliance Group-wide, as well as thoroughly implementing
education and training. In addition, we continue to
work diligently to safeguard the environment.
Among a host of initiatives, we are striving to create a
low-carbon, recycling-based society as part of our
Environmental Vision 2021 program.
To ensure that we continue to meet the expectations
of shareholders, we have undertaken reforms that are
guiding our ongoing evolution into a network of highly
competitive, electric-electronic businesses while leverag-
ing synergies to further enhance corporate value.
Management Policy
Achieve Balanced Corporate Management
Further Enhance Soundness,
Profitability, Efficiency and Growth
Growth
Profitability
Efficiency
Soundness
Establish a Robust Management Foundation
and Ensure Sustainable Growth
Increase Corporate Value
Pursuing Ever Higher Growth
In fiscal 2012, with regard to management targets (which must
be continuously and stably achieved) for operating income ratio,
return on equity (ROE) and ratio of interest-bearing debt to total
assets (above 5%, above 10% and below 15%, respectively), the
Mitsubishi Electric Group surpassed the targets for the first two,
achieving ratios of 6.2% and 10.3%, respectively. However, the
Group was unable to reach its target for ratio of interest-bearing
debt to total assets, recording a ratio of 16.0%.
Guided by its overarching policy of Balanced Corporate
Management, the Mitsubishi Electric Group will strive to continu-
ously and stably achieve the above indicators set as its manage-
ment targets, and aim to become a global, leading green
company, enriching society with technology. With these two
objectives in mind, the Group will strengthen its growth strate-
gies in each business in order to pursue ever higher growth from
three viewpoints: the environment and energy; social infrastruc-
ture systems; and global business development.
Three Management Targets to be
Continuously and Stably Achieved
Operating income ratio:
ROE:
5% or more
10% or more
Ratio of interest-bearing
debt to total assets:
15% or less
04 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Framework for Implementing Balanced
Corporate Management
The Mitsubishi Electric Group undertakes management operations
Growth Strategies
The Mitsubishi Electric Group promotes the VI Strategy, which
aims to make strong businesses stronger, and the AD Strategy,
based on its Front-line Priority framework in the two areas of
which is designed to reinforce solutions businesses centered on
customer contact and production. In the first front-line area of
strong businesses by promoting internal and external collabora-
customer contact, the Group enhances its competitiveness in
tion. In line with these growth strategies, in order to realize the
marketing and services. In the latter front-line area of production,
objective of ensuring growth compatible with profitability by
the objective of the Front-line Priority works to bolster the
making strong businesses stronger globally, the Group is promot-
Group’s “craftsmanship” in the areas of quality, costs, production
ing individual business strategies and bolstering regional strate-
engineering technologies, research and development, and intel-
gies, with a priority on Asia. Aiming at further growth, the Group
lectual property (IP). In addition, by implementing its Strong
is working to develop technologies that continuously enable its
Synergistic Corporate Network framework, the Group is pursuing
strong businesses to become even stronger, promoting compati-
integration synergies. Such synergies are achieved by strengthen-
bility between a low-carbon society and prosperous lifestyles.
ing four collaborative links—(1) between production and sales
As it moves forward, the Group is also pressing ahead in all
divisions, (2) between business segments, (3) between business
aspects of its efforts to strengthen global strategies with the
segments and corporate divisions, and (4) globally, between
purpose of maintaining sustainable growth as it strives for further
parent factories in Japan and overseas facilities—as well as by
global success.
harmonizing business, product and regional strategies.
Through the two aspects of the Front-line Priority framework
and the four collaborative links within the Strong Synergistic
Corporate Network framework, the Group is implementing
Balanced Corporate Management that involves promoting
growth strategies, strengthening its management foundation,
improving its financial standing and undertaking CSR-related
and corporate governance-related initiatives.
Essential Growth Strategies: Promoting the VI Strategy and the AD Strategy
VI1
Growth Strategy
Make Strong Businesses Stronger
Power Systems
Elevators and
Escalators
Transportation
Systems
Factory Automation
Products
Electric and Electronic
Products for Automobiles
Satellites
Optical Broadband
Access Systems
Power Devices
Network Security
Systems
Air Conditioning and
Housing Products
AD2
Growth Strategy
Reinforce Solutions Businesses Centered on Strong Businesses
by Promoting Internal and External Cooperation
Total Security
Solutions
Energy Conservation
Solutions
Smart Grids
Smart Communities
Visual Display
Solutions
1 “VI” derives from “VICTORY”
2 “AD” derives from “ADVANCE”
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 05
Strengthening Global Strategies
As part of its efforts to fortify its business systems to make strong
businesses stronger globally, the Mitsubishi Electric Group contin-
Compatibility between a Low-carbon Society and
Prosperous Lifestyles
The Mitsubishi Electric Group is actively working to realize an
ues to invest capital in existing business bases, for example, build-
“eco-electricity community,” one that aims to foster compatibility
ing a new transformer plant in the United States. In addition,
between a low-carbon society and safe, prosperous lifestyles.
the Group is establishing manufacturing companies—such as
To that end, the Group is combining its business expertise in all
factory automation systems and automotive equipment produc-
areas, from power systems to home appliances, to optimize energy
tion bases in China—to serve rapidly growing markets, and
usage community-wide based on the best possible mix of energy
setting up new sales companies to tap into new markets in India
sources, which includes maximizing the use of natural sources of
and Vietnam. Beyond this, the Group will continue to carry out
energy. Turning to future-oriented research and technological
M&A to create synergies and expand its businesses, as seen in
development measures, the Group is, in coordination with its
the acquisition in May 2012 of the Messung Group, a factory
Amagasaki, Wakayama and Ofuna facilities, constructing experi-
automation systems-related business.
mental smart grid equipment internally that anticipates the distri-
bution networks to be developed in the future. In the Ofuna
Promoting Global Business Strategies
Regarding the businesses within the Group that possess notewor-
facility, the Group will take steps to verify the concept of “painless
electricity conservation” by building a “smart house” equipped with
thy global growth potential (power systems, transportation sys-
a photovoltaic system, all-electric-powered home equipment and
tems, building systems, factory automation systems, automotive
a Home Energy Management System (HEMS), in order to demon-
equipment, space systems, power devices, air conditioning sys-
strate the viability of zero-emission, energy-saving residential
tems and other businesses), the Mitsubishi Electric Group will
housing that is comfortable, safe and secure.
expand such businesses to be a driving force of Group-wide
The Mitsubishi Electric Group has developed power devices
performance. This will be accomplished by implementing and
that use silicon carbide (SiC); these energy-saving key devices
augmenting global business promotion systems, while reinforcing
efficiently regulate power usage and help contribute to the real-
market strategies in priority markets. Through such actions, the
ization of a low-carbon society. Consequently, the Group became
Group is contributing to the improvement of corporate value.
the first in the world to successfully develop the Full SiC-IPM in
Bolstering Regional Strategies with Priority on Asia
The Mitsubishi Electric Group will bolster cross-business regional
February 2011, which achieves both low power loss and high
reliability. By continuing to utilize the capabilities of its devices to
the utmost extent while ensuring performance and reliability,
strategies with priority on Asia in response to newly emerging
the Group will strengthen the applications of its technologies in a
markets, which are anticipated to experience high growth rates.
wide array of power electronics products. Such products range
In the Chinese market, where it has already established numerous
from air conditioners, refrigerators and other home appliances to
businesses and built a solid foundation, the Group will apply its
photovoltaic systems, industrial equipment, electric/hybrid auto-
combined strength to the further expansion of its operations by
mobiles, railcars, and power equipment.
strengthening collaborative links between its operating bases as
well as its businesses. The Group will also take steps to augment
partnerships with leading business groups in China. In India,
where the time is ripe for full-scale business expansion, the
Group will tap into growing markets by leveraging strong global
businesses, particularly within the Energy and Electric Systems
and Industrial Automation Systems business segments.
06 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Strengthening Our Management Foundation
The Mitsubishi Electric Group consistently promotes Group-wide
Striving for Constant Improvement
Based on its Balanced Corporate Management policy, the
operational improvement measures, taking active steps to further
Mitsubishi Electric Group is steadily implementing the aforemen-
solidify its operational structure.
tioned management strategies, which are designed to enhance
To this end, we constantly strive to reinforce the “craftsman-
the formidable competitiveness of its individual businesses.
ship” that is integral to our foundations as a manufacturer. In
At the same time, we continue to implement reforms intended
order to achieve this objective, we are always looking to enhance
to guide our ongoing evolution into a network of highly competi-
productivity and quality, to promote prioritized development
tive, electric-electronic businesses while leveraging synergies to
rooted in growth strategies, to strengthen our R&D capabilities
further enhance corporate value and ensure sustainable growth.
and the development of strategic IP activities by promoting such
To accomplish these goals, it is increasingly important that we
initiatives as the development of key components, and to
strive for constant improvement, which puts into practice the
improve material procurement by bolstering value engineering
spirit that is embodied in our corporate statement, “Changes for
(VE) and other activities. Furthermore, we are working to improve
the Better.” The Mitsubishi Electric Group will continue to change
our financial standing through measures that include inventory
in order to create new value. We are confident these efforts will
reduction and striving to allocate human resources effectively,
yield even greater corporate value in the future.
underpinned by the aim to make strong businesses stronger.
The Mitsubishi Electric Group will continuously and resolutely
promote these initiatives and make every effort to strengthen
quality, cost efficiencies, production technology capabilities,
development capabilities, IP activities, and sales and services,
with the goal of further boosting profitability.
Improving Our Financial Standing
As of March 31, 2012, total interest-bearing debt, including
bonds, stood at ¥542.3 billion for a ratio of interest-bearing debt
to total assets of 16.0%.
The Mitsubishi Electric Group is implementing comprehensive
structural reforms to increase the competitiveness and earnings
of all Group businesses. To raise overall profitability, we are
striving to boost competitiveness in the areas of quality, costs,
production technology capabilities, development capabilities, IP,
marketing and services. In addition, in order to streamline asset
turnover and the efficiency of funding operations, we are reduc-
ing inventories, primarily through “just in time” activities, while
expanding our global cash management system. These initiatives
are aimed at generating stable cash flow.
With accumulated cash flow, we are taking a balanced
approach to invest in growth areas, provide returns to sharehold-
ers through increased dividends, and reduce interest-bearing debt.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 07
At a Glance
Energy and Electric Systems
Industrial Automation Systems
Information and Communication Systems
Net sales
Yen (billions)
1,200
1,000
800
600
400
200
0
1,058
1,044
1,040
1,028
1,027
Net sales
Yen (billions)
1,200
1,000
1,018
800
600
400
200
0
08
09
10
11
12
(Years ended March 31)
927
978
852
733
08
09
10
11
12
(Years ended March 31)
Net sales
Yen (billions)
1,200
1,000
800
600
400
200
0
644
582
526
488
516
08
09
10
11
12
(Years ended March 31)
Operating income
Operating income
Operating income
Yen (billions)
150
120
90
60
30
0
-30
69
75
75
83
85
08
09
10
11
12
(Years ended March 31)
Yen (billions)
150
129
120
90
60
30
0
-30
100
101
50
26
08
09
10
11
12
(Years ended March 31)
Yen (billions)
150
120
90
60
30
0
-30
25
19
14
21
2
08
09
10
11
12
(Years ended March 31)
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
Turbine generators, hydraulic turbine generators,
nuclear power plant equipment, motors,
transformers, power electronics equipment,
circuit breakers, gas insulated switches,
switch control devices, surveillance system
control and security systems, large display devices,
electrical equipment for locomotives and rolling
stock, elevators, escalators, building security
systems, building management systems,
particle beam treatment systems, and others
Programmable logic controllers, inverters,
servomotors, human-machine interface, motors,
hoists, magnetic switches, no-fuse circuit
breakers, short circuit breakers, transformers for
electricity distribution, time and power meters,
uninterruptible power supply, industrial fans,
computerized numerical controllers, electrical
discharge machines, laser processing machines,
industrial robots, clutches, automotive electrical
equipment, car electronics and car mechatronics,
car multimedia, and others
Wireless and wired communications systems,
surveillance cameras, satellite communications
equipment, satellites, radar equipment,
antennas, missile systems, fire control systems,
broadcasting equipment, data transmission
devices, network security systems, information
systems equipment, systems integration,
and others
Fiscal 2012 Overview
May
• Commenced testing of a smart grid compatible Home Energy
Management System (HEMS) at the Ofuna Smart House
• Announced an order for the world’s first TAT-14 Cable
Network project to upgrade the wavelength capacity of the
transatlantic 40 Gbps optical submarine cable network
• Successfully inserted into geostationary orbit the ST-2
The Ofuna Smart House
commercial communications satellite, which was built for Singapore Telecommunications
Limited (SingTel) and Taiwan’s Chunghwa Telecom Company Limited
ST-2 in orbit
July
• Opened the Mitsubishi Electric Automation Solution
Center in Shanghai to strengthen product sales and
services in China
• Received an order worth approximately ¥4.5 billion
for electrical equipment
for rolling stock to be
used in subway lines
serving Delhi, India
Delhi subway train
2011
June
• Established a new factory in China to
manufacture and sell AC servos and
numerical controllers (NCs)
• Established a comprehensive sales compa-
ny in Vietnam to sell air conditioning sys-
tems, home appliances and other products
Mitsubishi Electric
Automation Manufacturing
(Changshu) Co., Ltd.
• Received an order for 106 elevators (including three that are
the world’s fastest, traveling at 18 meters per second) to be
installed in the Shanghai Tower, China’s tallest building
Saigon Trade Center,
location of Mitsubishi
Electric Vietnam
Company Limited
August
• Established a power module manufacturing joint venture in
China to reinforce Mitsubishi Electric’s production system in
that country, and commenced production of consumer and
industrial power modules in January 2012
• Received an order to supply Narita
International Airport with Japan’s
largest digital signage system,
comprising approximately 100 user
stations and 340 display units
Rendition of large LCD display wall
September
• Established a joint
venture in China
to develop, design,
manufacture and
market car multi-
media products
08 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Electronic Devices
Home Appliances
Others
Net sales
Yen (billions)
1,200
1,000
800
600
400
200
0
192
167
139
176
201
08
09
10
11
12
(Years ended March 31)
Net sales
Yen (billions)
1,200
1,000
800
600
400
200
0
1,000
916
825
924
849
08
09
10
11
12
(Years ended March 31)
Net sales
Yen (billions)
1,200
1,000
800
600
400
200
0
661
596
553
609
612
08
09
10
11
12
(Years ended March 31)
Operating income (loss)
Operating income
Operating income
Yen (billions)
150
120
90
60
30
0
-30
8
-30
08
09
-7
10
6
4
11
12
(Years ended March 31)
Yen (billions)
150
120
90
60
30
0
-30
66
35
5
42
22
08
09
10
11
12
(Years ended March 31)
Yen (billions)
150
120
90
60
30
0
-30
17
12
3
14
20
08
09
10
11
12
(Years ended March 31)
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
MAIN PRODUCTS AND BUSINESS LINES
Power modules, high-frequency devices,
optical devices, LCD devices, microcomputers,
system LSIs, and others
LCD televisions, projection TVs, display monitors,
projectors, Blu-ray disc recorders, room air
conditioners, package air conditioners, air-to-water
heat pump boilers, refrigerators, electric fans,
ventilators, photovoltaic systems, hot water supply
systems, LED lamps, fluorescent lamps,
indoor lighting, compressors, chillers,
dehumidifiers, air purifiers, showcases, cleaners,
jar rice cookers, microwave ovens, IH cooking
heaters, and others
Procurement, logistics, real estate, advertising,
finance and other services
October
• Began full-scale testing of smart grid and smart community equip-
ment (total investment approximately ¥7.0 billion) and announced
the Group’s 2015 (overall) net sales target for related businesses:
¥1.3 trillion
• Established a parts supply and
engineering company in Thailand
for maintenance service of
elevators and escalators
installed overseas
January
• Announced the acquisition of the
Messung Group (an India-based
PLC/HMI equipment manufacturer
and FA products distribution partner)
through a merger with Mitsubishi
Electric India Private Ltd.
February
• Announced Mitsubishi Elevator Asia Co.,
Ltd.’s surpassing the 100,000 mark in 2011
with regard to elevator/escalator production
in Thailand
Meltec Parts & Engineering Co., Ltd.
Mitsubishi Elevator Asia Co., Ltd.
2012
December
• Announced the establishment of a
new joint venture in Xiamen, China,
to develop, manufacture and sell
low-voltage switchgear
March
• Developed the industry’s smallest EV
motor system with built-in SiC inverter
• Enhanced turbine generator facilities
while undertaking new plant construc-
tion at Mitsubishi Electric’s Kobe Works,
increasing production capacity approxi-
mately 30%
EV motor system with
built-in silicon carbide inverter
Newly built stator
outer frame plant
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 09
Review of Operations
Energy and
Electric Systems
Net Sales Breakdown by Business Segment
24.6%
Net Sales
¥1,027.1billion
(unchanged year on year)
Operating Income
¥84.9billion
(up ¥1.9 billion year on year)
The social infrastructure systems business
saw an increase in orders compared with
the previous fiscal year due to growth in
Japan as well as in orders received for large
projects overseas in the energy systems busi-
ness. However, sales decreased compared
with the previous fiscal year due to declines
in the Japanese public utility systems and
rolling-stock equipment businesses.
The building systems business experi-
enced increases in both orders and sales
compared with the previous fiscal year,
owing to growth in demand for elevators
and escalators in the Chinese and ASEAN
markets as well as for large projects record-
ed for China and Korea.
As a result, total sales in the Energy and
Electric Systems segment stood at ¥1,027.1
billion, virtually unchanged from the previ-
ous fiscal year. Operating income increased
¥1.9 billion year on year to ¥84.9 billion
mainly due to a shift in sales components.
10 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Next-generation SiC Inverter for Railcars
Mitsubishi Electric has developed a traction inverter for railcars
that incorporates silicon carbide (SiC), a new type of semicon-
ductor. This new inverter, with its energy-efficient, compact,
lightweight, low-maintenance and low-noise design,
is expected to play a major role in next-generation railcar
propulsion systems.
Diamond Vision OLED
Measuring six meters in diameter, this Diamond Vision OLED is
the world’s first large-scale spherical display system* to use
organic light-emitting diode (OLED) panels. This display system
has been used to create ”Geo-Cosmos,” an OLED display globe
developed by the National Museum of Emerging Science and
Innovation. Incorporating more than 10,000 of the most
advanced OLED panels, Geo-Cosmos is suspended in midair,
allowing viewers to see the constantly changing face of the Earth.
*As of June 3, 2011
Southern Tohoku Proton Therapy Cancer Center
Particle Beam Treatment System Proton Type
This cutting-edge system uses linear protons and heavy-
particle beams to target the affected areas. Easier on pa-
tients, this treatment method is expected to help improve
quality of life.
Power Plants
Mitsubishi Electric power plant installations are used both
by power utility companies and by companies in various
industries as in-house power generators. Owing to its
accumulated expertise and leading technological capabilities,
Mitsubishi Electric is able to provide optimal power plants
in various power generation fields.
AXIEZ Machine-room-less Elevators
Along with enhanced energy-saving functions, including all-
LED lighting, the AXIEZ’s variable-speed control elevator sys-
tem reduces waiting times thanks to advances in leading-edge
speed adjustment technology. This technology has evolved into
a super variable speed control system for improved conve-
nience and operational efficiency. The AXIEZ also features an
improved design.
Facima BA-System, an Open Integrated
Management System for Building Facilities
The Facima BA-System centrally controls building facilities and
equipment through open management integration that is com-
patible with facilities and equipment made by different manu-
facturers. Owing to its enhanced functions and support menu,
ranging from energy-saving to efficient building management
operations, the Facima BA-System offers a new style of build-
ing management.
Industrial
Automation Systems
Net Sales Breakdown by Business Segment
23.4%
Net Sales
¥978.4billion
(up 6% year on year)
Operating Income
¥101.2billion
(up ¥1.1 billion year on year)
The factory automation systems business
saw an increase in sales compared with the
previous fiscal year owing to stable demand
for smartphone- and tablet PC-related
investments, mainly in Asia. This result
occurred despite a year-on-year decrease in
orders for flat panel display-related invest-
ments in Korea and Taiwan.
The automotive equipment business
recorded increases in both orders and sales
compared with the previous fiscal year due
to expansions in emerging markets, includ-
ing China and India, as well as a recovery in
the North American market. These rises
took place in spite of the impact of the
Great East Japan Earthquake and flooding
in Thailand.
As a result, total sales in the Industrial
Automation Systems segment amounted to
¥978.4 billion, up 6% compared with the
previous fiscal year. Operating income
improved ¥1.1 billion year on year to
¥101.2 billion due primarily to this increase
in sales.
Programmable Logic Controllers
Mitsubishi Electric’s MELSEC series of programmable logic
controllers supports a wide array of production lines and social
infrastructure equipment, from control devices to safety assur-
ance, information provision and instrumentation operations.
Japan’s top brand, the MELSEC series contributes to the
construction of leading-edge systems, owing to its capabilities,
performance, product variety and high reliability.
AC Servos
The MELSERVO-J4 series features the world’s highest level of
performance and functionality. Designed as drive sources that
enhance the speed and precision of production equipment and
manufacturing devices, the MELSERVO-J4 series has applications
in numerous fields, including semiconductors, FPD (Flat Panel
Display) production and transport equipment, and industrial
machinery.
No-fuse Circuit Breakers and Earth Leakage
Circuit Breakers
No-fuse circuit breakers and earth leakage circuit breakers
are used for wiring protection and short-circuit protection in
low-voltage circuits. Mitsubishi Electric offers a wide variation
of products, including its brand new ”WS-V” series, for both
power distribution and OEM markets.
Electrical Discharge Machines (EDMs)
Beginning with the newly launched MV series, a strategic
product globally, Mitsubishi Electric provides a lineup of EDMs
that add value and improve the manufacturing productivity of
molds and precision components. Such equipment is indis-
pensable to the production of automobiles, home electronics
and IT-related devices.
Memory Car Navigation System
Mitsubishi Electric’s memory car navigation system is equipped
with such leading technologies as a new LSI developed
specifically for navigation in order to realize high-definition,
easy-to-understand map displays, as well as numerous
functions that feature high processing speed. High-definition,
full-segment, terrestrial digital broadcasts and unique audio
technology allow users to fully enjoy high-quality and
immersive music playback.
ETC Equipment for Vehicles
To ease the insertion and extraction of ETC (Electronic Toll
Collection) cards in the relatively dim interior of a vehicle,
LED lighting has been combined into the indicator and card
insertion slot. With its strikingly delicate curves, this product
realizes a design that beautifully complements contoured
vehicle interiors.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 11
Information and
Communication Systems
Net Sales Breakdown by Business Segment
12.3%
Net Sales
¥516.4billion
(up 6% year on year)
Operating Income
¥21.3billion
(up ¥7.6 billion year on year)
The telecommunications equipment business
experienced increases in both orders and sales
compared with the previous fiscal year because
of higher demand for communications infra-
structure and other equipment and large
orders received for submarine line terminal
equipment used in fiber-optic cable networks.
The information systems and services busi-
ness saw increased sales compared with the
previous fiscal year due to growth in the sys-
tem integration as well as the network and
system operations businesses.
The electronic systems business recorded a
year-on-year decrease in orders because of a
reduction in the number of large projects in
the space systems business. In contrast, sales
increased compared with the previous fiscal
year owing to an increase in the electronics
business.
As a result, total sales in the Information and
Communication Systems segment amounted
to ¥516.4 billion, up 6% compared with the
previous fiscal year. Operating income
increased ¥7.6 billion year on year to
¥21.3 billion due primarily to higher sales.
12 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Information System Integrated Control Center
Specialist engineers are available 24/7 to remotely operate
and monitor client information systems and to analyze and
determine any problem that might occur using automated
tools, enabling a rapid response to any system malfunction.
(Mitsubishi Electric Information Network Corporation)
Server Integration Solution Using Virtualization
Technology
Utilizing virtualization technology to consolidate multiple server
assets onto a single hardware platform, this server integration
solution can easily incorporate servers widely scattered through-
out an office. As a ”Green IT” technology, it enables lower
operational costs and energy consumption, as well as more
efficient use of space.
(Mitsubishi Electric Information Technology Corporation)
DS2000 Standard Satellite Platform
The DS2000 is a standard satellite platform modeled after
JAXA’s ETS-VIII platform, which was designed to meet the
need for high-quality, low-cost satellites with shortened
delivery times. The DS2000 has maintained a competitive
edge internationally, and is employed in such satellites as
Himawari-7, 8, 9, Superbird-C2, ST-2 and Türksat-4A/4B.
Vehicle-mounted Stations for Satellite
Communications
Vehicle-mounted satellite communication equipment enables
transmission of video and audio for broadcast news (satellite
news gathering) and information for disaster management.
Mitsubishi Electric products have achieved Japan’s highest
market share in this field, and are employed by Japanese
broadcasters, the public sector and infrastructure companies
such as gas and electricity utilities.
Broadband Optical Access Systems
Mitsubishi Electric is progressively installing Gigabit Ethernet
Passive Optical Network (GE-PON) systems, which play a
central role in broadband services. The need for GE-PON
systems is steadily expanding due to high-capacity broadband
content, including the increased use of visual services.
Digital CCTV (Closed-circuit Television) System
This digital CCTV system meets the expanding range of needs
for video surveillance systems, which is achieved through new
digital technology incorporated into its high-resolution
megapixel camera and its high level of scalability, which can
accommodate even large-scale systems.
Electronic Devices
Net Sales Breakdown by Business Segment
4.8%
Net Sales
¥200.8billion
(up 14% year on year)
Operating Income
¥3.6billion
(down ¥2.3 billion year on year)
The semiconductor business saw a decrease
in orders compared with the previous fiscal
year due to a decline in demand mainly for
industrial-use power modules as well as
high-frequency and optical transmission
devices. However, sales rose thanks to
growth in demand for power modules for
industrial, commercial, automotive and rail-
car applications.
The LCD module business experienced
increases in both orders and sales year on
year amid higher demand for industrial and
automotive applications.
As a result, total sales in the Electronic
Devices segment totaled ¥200.8 billion, up
14% compared with the previous fiscal
year. Operating income fell ¥2.3 billion year
on year to ¥3.6 billion mainly because of
the stronger yen.
1,200-volt Large-type Transfer-mold Dual In-line
Package Intelligent Power Module (DIPIPM) Ver.4
Mitsubishi Electric’s DIPIPM incorporates a sixth-generation
LPT-CSTBT1 that cuts power loss by 15% compared with
conventional models, realizes an industry-leading2 current rating
of 50 amperes and has a built-in, high-precision temperature
sensor. These features make this power module suitable for
inverter drive system applications in package air conditioners
and industrial motors.
1. Light-punch-through Carrier Stored Trench-gate Bipolar Transistor
2. As of January 26, 2012; based on internal research
600V High-voltage Integrated Circuit (HVIC) for
Automotive Applications
Used mainly in such power semiconductors as the voltage
converters of electric vehicles (EVs) and hybrid electric vehicles
(HEVs), this highly reliable 600 V HVIC is suited to the demands
of automotive applications, achieving a wide guaranteed
operational temperature range of -40° to +125°C.
Gallium Nitride (GaN) High-electron Mobility
Transistor (HEMT) C-band (4-8GHz) Amplifiers
for Satellite Earth Stations
Employing GaN to enable high-voltage operation, these GaN
HEMT amplifiers boast an efficiency rate exceeding 43% when
output power is at a high 100 W, thereby contributing to
reductions in satellite earth station size.
10 Gbps EML1-TOSA2
EML operability at high temperatures allows for miniaturization
of thermo-electric coolers, enabling this 10 Gbps optical trans-
mission device to cut power consumption by 50% compared
with conventional models used for high-speed, large-volume
data transmission between data centers. In addition, this device
can transmit data up to 40 km due to higher signal quality.
1. Electro-absorption Modulator Laser
2. Transmitter Optical Sub Assembly
Industrial-use, Super-Wide Viewing Angle Color
TFT-LCD Modules
TFT-LCD modules feature high brightness, high contrast, and
wide 170° viewing angles to ensure excellent visibility, while
possessing a long operating life of 100,000 hours.1 The product
lineup includes units suitable for diverse installations ranging
from outdoor digital signage to devices installed on ships.
1. Standard value at normal temperatures of 25°C
Industrial-use, Super High Brightness
TFT-LCD Modules
TFT LCD modules are available in various sizes, boast excellent
visibility in bright environments (including outdoors) owing to
a super-high brightness of 1,500 cd/m2, have a long operating
life of 100,000 hours1, and can withstand severe outdoor
environments due to their ability to operate in a wide range
of temperatures.
1. Standard value at normal temperatures of 25°C
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 13
Home Appliances
Net Sales Breakdown by Business Segment
20.3%
Net Sales
Room Air Conditioners
In addition to KIRIGAMINE room air conditioners, Mitsubishi
Electric offers an extensive lineup of products with applications
extending from stores, offices and buildings to factories and
industrial facilities while featuring environmentally compatible,
energy-saving technologies. These qualities allow Mitsubishi
Electric to meet air conditioning needs globally.
Photovoltaic system
Smart All-electric Homes
Energy Generation
In-house Power Generation
Induction cooking
heater
Energy Savings
Heat Pump Technology
To ensure the comfort and convenience of all-electric-powered
homes, Mitsubishi Electric is proposing “smart all-electric
home” lifestyle ideas that improve energy creation via
photovoltaic generation and effective energy usage through
high-efficiency technologies such as heat pumps.
¥849.3billion
(down 8% year on year)
Built-in dishwasher
Heat pump hot water
supply system
Comfortable Lifestyle
Safe/Convenient
Hot water floor heating system
Mitsubishi Ecomist bath drying, heating,
and ventilation system with mist function
Operating Income
¥22.4billion
(down ¥19.7 billion year on year)
The home appliances business experienced
an 8% decrease in sales compared with the
previous fiscal year. This result is attributable
to such various factors as a change in the
eco-point incentive program during the
third quarter of fiscal 2011 that caused a
last-minute surge in demand for LCD televi-
sions in Japan, declining overseas sales of
photovoltaic systems mainly in Europe, and
lower domestic sales of hot water supply
and induction heating (IH) cooking systems.
As a result, total sales in the Home
Appliances segment were ¥849.3 billion,
down 8% compared with the previous fiscal
year. Operating income fell ¥19.7 billion
year on year to ¥22.4 billion due primarily
to a decrease in sales.
14 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Home Appliance Lineup
Mitsubishi Electric strives to provide an array of home
appliances that are highly attractive to consumers.
This is made possible through home appliances equipped
with “RakuRaku-UD” usability functions—which ensure high
performance and superior usability—and “Power-saving
Assist” functions that make ongoing energy conservation
easy and enjoyable.
LED Lighting
Currently seeing rapid development, LEDs possess outstanding
features that expand lighting possibilities, including longevity,
low power consumption, absence of mercury and the enabling
of more compact fixtures. LEDs also significantly contribute to
power conservation efforts.
Digital Signage
Mitsubishi Electric offers a full lineup of visual display
products, including high-brightness, high-resolution projectors,
large-screen LCD public displays and multiple large-screen
systems. Through these products, the Company is providing
solutions for meeting rooms, schools, retail stores and other
indoor venues, as well as for a wide range of businesses and
applications, such as train stations and public facilities.
Visual Equipment for Public and
Business Applications
Our high-quality image processing technologies deliver
exceptionally sharp color reproduction. Mitsubishi Electric
offers a range of products developed to suit a variety of
application needs. These systems are being used in Japan
and abroad for large-screen applications that display images,
data and information.
Research and Development / Intellectual Property
Research and Development
R&D Initiatives
The Mitsubishi Electric Group’s R&D network comprises the
Advanced Technology R&D Center, Information Technology R&D
Center and Industrial Design Center in Japan and laboratories
R&D Achievements in Fiscal 2012
The Industry’s Smallest1 EV/HEV Motor System with
Built-in Silicon Carbide (SiC) Inverter
Mitsubishi Electric has developed a motor system featuring a
in the United States and Europe. These centers operate under the
unique built-in inverter design that is 50% the size of existing
umbrella of the Corporate Research and Development Group,
motor systems with external inverters. In addition, the newly
working in collaboration with the development departments in
developed inverter reduces power loss by more than 50%
individual business groups.
compared with conventional silicon-based inverters due to the
R&D is essential for supporting Mitsubishi Electric’s ongoing
use of power semiconductor elements composed entirely of
growth. Based on a global standpoint, we are promoting
SiC materials.
cost-effective development activities—ranging from initial devel-
Mitsubishi Electric will promote further size reductions and
opment to manufacturing—that combine business, development,
greater efficiency to expand the battery installation space and
intellectual property and international standardization strategies.
passenger compartments of EVs/HEVs and improve fuel economy.
The Group promotes development activities that continually
1. As of January 31, 2012; based on internal research
create and foster the evolution of strong businesses and products.
In addition, we are moving ahead with efforts to bolster our
technological capabilities and thoroughly augment common,
forward-looking core technologies in areas indispensable to the
implementation of growth strategies. At the same time, we are
promoting international standardization activities, a source of our
competitive advantages in the global market. We are also pursu-
ing active collaboration with industry, academia and government
concerns mainly through joint research with leading Japanese
and international institutions.
Regarding R&D based on the VI Strategy—which makes strong
Conventional
system
Motor system with
built-in inverter
Inverter
Motor
businesses stronger in such areas as automotive equipment, car
The industry’s smallest EV/HEV motor system
multimedia, air conditioning systems, factory automation equip-
ment, power systems, and elevators and escalators—the
Mitsubishi Electric Group is enhancing its technological capabili-
ties in order to differentiate itself from other companies and
maintain its competitive edge in international markets. In addi-
tion, the Group is promoting activities that increase the number
of new, profitable businesses. Under the AD Strategy, which aims
at bolstering the solutions business centered on these strong
businesses, the Group will integrate various products and tech-
nologies related to smart community/smart grid, energy-efficient
buildings and digital signage as it moves forward with develop-
ment activities that create new solutions businesses.
From the standpoint of safeguarding the environment, the
Group is aggressively addressing technological challenges related
to the power device, heat pump application and other energy
and environmental businesses. Such initiatives are being under-
taken with the aim of realizing the Group’s Environmental Vision
2021. Through these efforts, Mitsubishi Electric is working to
achieve a sustainable society by combining leading technologies
from its wide array of business fields and by developing
energy-saving products and systems.
Compact 100kW Full SiC Inverter
Mitsubishi Electric has achieved a reduction in inverter power loss
even under high electrical current/high-voltage conditions.
This accomplishment is attributable to the complete use of SiC
semiconductor devices, including a SiC-MOSFET1 with a built-in
current sensor, along with short-circuit protection functions.2
The Company’s unique internal wiring structure further enhances
inverter capabilities under high electrical current conditions.
Mitsubishi Electric will contribute to energy savings in industrial
power electronics equipment and in automotive equipment as it
pursues further miniaturization utilizing this technology.
1. MOSFET: Metal Oxide Semiconductor Field Effect Transistor
2. Short-circuit protection function: A function that prevents damage to semiconductor
devices by turning off the transistors when excessive electrical current is detected.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 15
These advanced key technologies, including the emergency
safety system for the super high speed elevator, will be applied to
the world’s fastest elevator, which is to be installed in the 632m
tall Shanghai Tower, soon to be the highest building in China.
Moreover, the newly developed elevator system will also be
incorporated into other planned high-rise buildings.
1. Mitsubishi Electric survey carried out on Sept. 1, 2011
2. Compared with Mitsubishi Electric’s fastest conventional elevator
3. Compared with Mitsubishi Electric elevators without vibration control system
4. The car selection system selects from among several available cars to minimize
passenger waiting time on each floor.
Uses a unique wiring
configuration
Equipped with SiC-MOSFET
with a built-in current
sensor and short-circuit
protection functions
SiC inverter realizes energy savings
Control panel
Winch
Energy savings
Elevator Technologies for High-rise Buildings
Mitsubishi Electric has developed the world’s fastest1 elevator,
which can reach a speed of 1,080 meters per minute. Due to a
new noise reduction system, the elevator cage retains the quiet-
ness of conventional units.2 In addition, the newly developed
cage vibration control system, “new active roller guides,” reduces
Rope
vibration by more than half the amount a conventional unit is
Elevator car
able to.3 These technologies deliver superior ride comfort even
under high-speed conditions.
The new group-control system contributes to energy savings in
buildings where it is installed by dispatching the optimal car based
on each cars’ position and passenger load. The system realizes
the same level of traffic efficiency as conventional systems4.
Energy-saving
group-control system
Comfort
Active roller guides
System that produces
less internal noise
Safety/Security
Elevator car
enlargement
Emergency safety system
for high-rise buildings
Elevator technologies achieve ultra-high speed
operations, comfort, safety/security and energy savings
Intellectual Property
Essential to the Mitsubishi Electric Group’s pursuit of global
critical IP-related projects, and coordinates interaction with the
business development is the rigorous promotion and protection
patent office. At manufacturing facility, R&D center and affiliated
of intellectual property (IP) rights.
company levels, IP departments pursue specific objectives in line
Recognizing IP as a vital resource that underpins corporate
with the Group’s overall IP strategies.
strengths, the Mitsubishi Electric Group continues to integrate
its business, R&D and IP activities. With approximately 43,000
patents and about 12,000 new applications filed each year in
Japan and overseas, the Group’s extensive portfolio forms the
wellspring of its global competitive advantage.
Structure of the Intellectual Property Division
The Group’s IP-related operations are the direct responsibility of
the President and overseen by the IP Division at headquarters
handled by IP departments at relevant facilities, R&D centers and
affiliated companies. Focusing on integration as the means to
improve the structure and effectiveness of the IP network, the
Group coordinates activities at each level. The IP Division at head-
quarters formulates strategies for the entire Group, promotes
16 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Integrating Business, R&D and IP Activities
Integration
IP Network
IP Strategy
IP Division at
Headquarters
IP Departments at
Business Groups,
Facilities, Affiliates
Development
Strategy
R&D Centers
IP Departments
under an appointed IP executive officer. Day-to-day issues are
President
Business Strategy
IP Strategy
In all its IP-related activities, the Group strives to enhance IP capa-
international standardization of its technologies, as well as to
obtain standard patents. The securing of overseas IP rights is a
bilities in order to contribute to business based on the effective
critical issue in light of progress made by the Group as well as by
utilization of the IP creation cycle. Specifically, the IP Division and
its competitors to further globalize business activities. Moreover,
its departments identify critical IP-related themes in connection
in response to further business globalization, Group IP represen-
with mainstay businesses and important R&D projects. In strategi-
tatives in the United States, Europe and China actively work to
cally promoting IP activities, the Group further reinforces its
strengthen IP capabilities and to accelerate global IP activities.
global competitiveness.
At the same time, the Group is accelerating the globalization of
In the Group’s IP strategy of recent years, maintaining a close
its IP activities through such actions as filing patents prior to
correlation with international standards has been particularly
undertaking business development in emerging countries,
important. Therefore, the Group is working to ensure the
including India and Brazil.
Mitsubishi Electric Group’s Core Technologies and Patents
SEGMENT
FIELD
CORE TECHNOLOGY PRODUCTS/TECHNOLOGIES/PATENTS
Energy and
Electric Systems
Power Systems
Power generation systems, substation systems, power distribution systems, particle beam treatment
technology, insulation technology, large-current control systems, smart community, smart grids,
energy management systems
Transportation Systems
Propulsion control systems, transportation planning and control systems, train information systems,
train vision systems
Elevators/Escalators
Super high-speed elevators, machine-room-less elevators, high-speed elevators, high-efficiency group
control systems, escalators, elevator adjustable speed control technology, elevator electric safety technology,
high-efficiency group-control systems, low-vibration roller guide systems, low-noise elevator car systems
Supervisory Control Systems
Total security solution (DIGUARD: security network integration platform), multiple large-screen systems,
network visual monitoring systems, ozone generators
Industrial
Automation
Systems
Industrial Automation Products
and Systems
Programmable controllers, human machine interfaces, AC servo systems, inverters, low-voltage circuit
breakers, computerized numerical controllers, electrical discharge machines, laser processing machines,
micro spark coating technology, industrial robots
Measurement and Control Systems
Energy diagnosis technology, power meters, EcoMonitor, smart meters
Automotive Electric & Electronic
Products and Car Multimedia Systems
Electrical power steering, high-efficiency alternators, ISS1 starters, high-power starters, onboard ETC
equipment, car navigation technology, car multimedia technology, EV/HEV motors/inverters
Information and
Communication
Systems
Wireless Systems
Digital modulation and demodulation technology, wireless access control technology, error detection and
correction technology, amplifier circuit technology, super-compact base stations for femto-cells,
digital train radio systems
Closed Circuit Television Systems
Video storage technology, video encoding and decoding technology, sensor information processing
technology, speech coding technology
Space, Satellite Communication
Systems
Satellites, posture control technology, H-II transfer vehicle, optical sensor technology, synthetic aperture
radar (SAR)
Antennas and Radar Devices
Radar system technology, antenna technology, microwave and millimeter wave technology, tracking and
signal processing technology
Information Communications
Network Systems
Information security technology, quantum cryptography systems, data management technology,
information system construction technology, optical communication technology, optical access technology,
optical core/metro network technology, IP network technology, NGN2 home gateways, optical network
technology, optical transmission protocol
Power Devices
High-efficiency power devices/modules, (IGBT3, IPM4), transfer molds/power modules, SiC power devices
High Frequency and Optical Devices GaN HEMT power amplifiers/devices, amplifiers for mobile phones, optical devices (LD/PD modules)
LCD Displays
Curved displays, 3D LCDs
Air-Conditioning Systems
Photovoltaic Power Generation
Systems
TVs
Recorders and Players
Compressors, fans, heat exchangers, refrigerating cycle technology, next-generation refrigerants,
chlorofluorocarbon-free technology, hybrid nano-coating, IAQ5, energy-saving systems, Universal Design
High-efficiency photovoltaic cells, PV inverters
Laser light source technology, intelligent image/sound processing technology, super-resolution technology,
acoustic technology
Blu-ray disc recorders, digital terrestrial broadcasting receiver technology for automobiles,
image retrieval technology, high-resolution image compression coding technology
Electronic
Devices
Home
Appliances
1 ISS: Idle Start and Step
2 NGN: Next Generation Network
3 IGBT: Insulated Gate Bipolar Transistor
4 IPM: Intelligent Power Module
5 IAQ: Indoor Air Quality
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 17
Corporate Social Responsibility
The Mitsubishi Electric Group promotes its corporate social
responsibility (CSR) activities based on the conviction that all
business activities must take CSR into consideration. The
Group’s Corporate Mission and Seven Guiding Principles form
its basic CSR policies. We are vigilant in our enforcement of cor-
porate ethics and compliance and constantly work to improve
educational programs and strengthen our internal control
system. At the same time, we pursue initiatives related to
quality management, environmental preservation, philanthropy
and improved communication with all stakeholders.
Corporate Mission
The Mitsubishi Electric Group will continually improve its
technologies and services by applying creativity to all aspects
of its business. By doing so, we enhance the quality of life in
our society. To this end, all members of the Group will pursue
the following Seven Guiding Principles.
Seven Guiding Principles
Trust, Quality, Technology, Citizenship, Ethics, Environment, Growth
Mitsubishi Electric Group’s Corporate Social
Responsibility
The operating environment continues to undergo dramatic
Philanthropic Activities
To help create a society full of smiles, where caring and harmony
are a way of life, the Mitsubishi Electric Group carries out a vari-
changes, reflecting advances in globalization, revisions to legisla-
ety of philanthropic activities both in Japan and overseas in the
tion, and other factors. What must continue regardless of how
spirit of its corporate mission. This mission states that we “will
the times may change is a respect for corporate ethics and com-
continually improve our technologies and services by applying
pliance and a commitment to never compromise on environmen-
creativity to all aspects of our business” and thereby enhance
tal issues and product quality. This commitment of the Mitsubishi
quality of life in society.
Electric Group was first articulated in the Keiei no Yotei, or Keys
to Management, which was drawn up at the time of Mitsubishi
Electric’s founding in 1921. The spirit of this document, which
Promoting Activities Deeply Rooted in Local Communities
Emphasizing the three categories of social welfare, environmental
states our contributions in areas such as the prosperity of society,
preservation and the promotion of science and technology, our
product quality and customer satisfaction, lives on today in our
philanthropic activities in Japan are underpinned primarily by the
Corporate Mission and Seven Guiding Principles. With these
Mitsubishi Electric SOCIO-ROOTS Fund, a gift program in which
tenets as our core principles, the Group promotes various initia-
the Company matches any donation made by an employee to
tives in order to fulfill its corporate social responsibilities.
social welfare facilities; the “Satoyama” Woodland Preservation
In particular, our commitment to compliance has underpinned
Project, which involves employee volunteers participating in envi-
corporate management while forming the core of our efforts to
ronmental restoration activities in the areas surrounding our offic-
strengthen the Group’s internal control system and implement
es and production facilities; and science classes that encourage
employee training programs. Despite this commitment, it has
children to experience for themselves the appeal of science and
been revealed that in Mitsubishi Electric’s electronic systems busi-
thereby foster the development of the engineers of tomorrow.
ness there was some overcharging of expenses as well as inap-
Focusing on our philanthropic activities overseas, we imple-
propriate invoicing with regard to contracts involving its
ment a broad range of initiatives, including undertaking nature
defense- and space-related businesses. This has led to the
conservation activities with the help of employee volunteers,
Company’s suspension by Japanese authorities from participating
funding social welfare facilities and organizations, and offering
in further bidding. Taking this matter very seriously, we will con-
support for young musicians and sports teams.
duct a detailed investigation to determine details and causes
while further strengthening the Group’s compliance system in
order to prevent similar incidents from recurring. Through these
measures, we will make every possible effort to regain the trust
of all stakeholders as quickly as possible.
As a member of society, the Mitsubishi Electric Group is
responsible for upholding corporate ethics and compliance as
well as engaging in social contribution and environmental activi-
ties. The Group also recognizes its responsibility to contribute to
society through the technologies it has built up over the years.
In fiscal 2012, we began the full-scale testing of smart grid and
smart community equipment. By combining its own far-ranging
technological capabilities, the Mitsubishi Electric Group will work
to realize the full potential of these technologies and thereby
continue to contribute to the creation of a low-carbon society.
18 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Satoyama Woodland Preservation Project
participants (Japan)
A “Science Show” that helps
communicate the appeal of
science to children (Japan)
Environmental preservation
activity participants on National
Trust Day (United Kingdom)
Common to all of Mitsubishi Electric’s philanthropic initiatives is
environmental statement in Japan, “Eco Changes – from in the
a focus on activities deeply rooted in local communities. In this
home to outer space,” in June 2009. This statement expresses
way, we are promoting greater communication with all members
the Group’s stance and environmental management initiatives.
of society through actions that meet local needs.
Since June 2010, the Company has been promoting the environ-
Philanthropic Activities through Mitsubishi Electric’s
Overseas Foundations
The Mitsubishi Electric America Foundation and Mitsubishi
mental statement outside Japan as “Eco Changes – for a greener
tomorrow.” Mitsubishi Electric began promoting this environ-
mental statement in China in April 2012. Through the formulation
of this new environmental statement, the Group is emphasizing
Electric Thai Foundation, both founded in 1991, play leading
internally and externally its conviction that any product or business
roles in our social welfare activities and the promotion of science
activity that lacks the perspective of environmental performance
and technology. The Mitsubishi Electric America Foundation helps
or improvement should not exist and is also demonstrating its
young people with disabilities to participate more fully in society.
commitment to carry out activities around the world that are
The Mitsubishi Electric Thai Foundation provides scholarships to
grounded in local reality.
university students, supports a school lunch program for grade
Aiming to be a leading green company that continues to
school students, and promotes volunteer work in schools.
address the needs of a global society, the Mitsubishi Electric Group
Recipients of university scholarships and
Foundation representatives (Thailand)
In the school lunch program, students use
funds from the Foundation to grow crops
for school lunches. (Thailand)
An employee volunteer working with a
student on Disability Mentoring Day
(United States)
President (then Senator)
Barack Obama with a
2008 Congressional
intern (United States)
Environmental Activities
The Mitsubishi Electric Group’s Environmental Statement,
“Eco Changes”
Following the establishment of the Mitsubishi Electric Group’s
will strive to strengthen its corporate constitution (disciplining
itself to use less energy and fewer resources while manufacturing
in a responsible, self-regulated manner and increasing production
efficiency to its highest level) and contribute to society (striving to
ensure that an environmental benefit or improvement is delivered
when people use our products and services).
Strengthening Our Corporate Constitution
• Reducing CO2 from Production
The 6th Environmental Plan (fiscal 2010 – fiscal 2012) established
total CO2 emission targets for fiscal 2012 of 510,000 tons by
Mitsubishi Electric, 190,000 tons by affiliates in Japan and
260,000 tons by overseas affiliates. In order to achieve these
targets, the Group promoted CO2 reduction measures at its
production facilities and offices.
The total amount of CO2 emitted by the Mitsubishi Electric
Group in fiscal 2012 was 933,000 tons, surpassing the Group’s
target of 960,000 tons. This success was primarily due to vigor-
ous CO2 reduction efforts undertaken mainly at the Company’s
operating bases in Japan. Particularly in 2011, there was social
demand to take measures in response to summer and winter
Environmental Vision 2021, Mitsubishi Electric formulated its
power shortages following the Great East Japan Earthquake,
Reduce CO2 emissions
from product usage by 30%
(Base year: fiscal 2001)
Reduce total emissions
from production by 30%
(Base year: fiscal 1991)
Aim to reduce CO2 emissions
from power generation
Environmental Vision 2021
Global Leading
Green Company
Promote product “3Rs”;
reduce, reuse and recycle
Reduce resource inputs
Aim for zero emissions
from manufacturing
Contribute to
Society
(through our products, services
and business activities)
Strengthen
our Constitution
(through boosting efficiency
and reducing waste)
Creating a
Low-Carbon
Society
Creating a
Recycling-Based
Society
Respecting Biodiversity
Ensuring harmony with nature and
fostering environmental awareness
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 19
which struck in March of that year. Taking full advantage of this
Company, while adopting a joint-use restriction scheme to
opportunity to improve its operations, Mitsubishi Electric redou-
coordinate and monitor peak energy demand at numerous sites.
bled its efforts to undertake Company-wide energy generation-
Aiming to reduce year-on-year energy use by 25% (surpassing
and conservation-related investments such as introducing
the Japanese government target) at all 18 operating bases, the
photovoltaic generation and upgrading to LED lighting. In addi-
Company successfully cut power use by as much as 27.6% at the
tion, with the aim of effectively curbing and regulating power
16 operating bases in the Tokyo Electric Power Company area.
use during peak demand periods in order to respond directly to
This system was introduced in the winter at our operating bases
power shortages, Mitsubishi Electric and its affiliates in Japan
located in areas covered by the Kansai Electric Power Company
introduced a demand management system while engaging in
and Kyushu Electric Power Company. In fiscal 2013, the Group is
intensive regional power management at the Company’s head-
scheduled to expand this system to all of its major electricity users
quarters. Owing to these initiatives, we have reduced the total
(68 operating bases).
amount of CO2 emitted Group-wide in spite of a significant
expansion of overseas production in recent years.
In the summer of 2011, Mitsubishi Electric introduced its
Contributing to Society
• Recovering Rare Earth Magnets from Used Room
demand management system at 16 of its operating bases located
Air Conditioners
in the area covered by Tokyo Electric Power Company and 2
The procurement of rare earth metals, which are indispensable to
operating bases in the area covered by Tohoku Electric Power
improving the energy-saving performance of room air condition-
Groupwide Plan to Reduce CO2 from Production
utilize rare earth metals, Mitsubishi Electric developed automatic
ers, has become increasingly difficult. In order to more effectively
Total emissions
(10,000 tons)
120
Base year
Environmental
Vision 2021
Goal (FY2021)
24
23
67
95
25
19
51
86
22
17
47
97
27
19
51
93
18%
27
16
50
80
30%
17
16
47
114
100
80
60
40
20
0
dismantling equipment for extracting rare earth magnets (neo-
dymium magnets) from the compressor rotors of used room air
conditioners (with assistance from the Ministry of Economy,
Trade and Industry’s program to support businesses that introduce
industrial facilities that use rare earth metals). In April 2012,
Mitsubishi Electric commenced rare earth magnet collection oper-
ations through its subsidiary, Green Cycle Systems Corporation
(GCS), which operates Japan’s first large-scale, high-purity plastic
1991
2009
2010
2011
2012
2021
(FY)
recycling system business. Recovered rare earth magnets are
Mitsubishi Electric (Base year: FY1991)
Affiliates in Japan (Base year: FY2001)
Overseas Affiliates (Base year: FY2006)
supplied to magnet manufacturers that recycle magnets in Japan.
Mitsubishi Electric Group’s Demand Management System
Demand monitoring system
Demand-related data is collected from all
relevant locations every 10 seconds and is
viewable via web browser
Energy conservation database server software
EcoManager II
Demand management software
Demand load curve
l
e
u
a
v
d
n
a
m
e
D
Projected value
Demand target
(maximum value)
Actual value
Fixed warning value
Prior warning limitation value
Time
Headquarters
Administrative computer
Transmit warning email
Collect data
Accumulate energy
conservation measures
Power input
Internal network
Electricity meter
Pulse detector
Demand monitor
E-Energy
Factories/offices (Contracted power over 500kW)
More information about the Mitsubishi Electric Group’s environmental and CSR initiatives is available on our website at the following URL.
http://www.MitsubishiElectric.com/company/csr/
20 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Corporate Governance
Basic Corporate Governance Policy
To realize sustained growth and increase corporate value,
Executive officers are responsible for ensuring compliance and
management efficiency in their assigned areas of operations.
Mitsubishi Electric works to maintain the flexibility of its operations
Internal auditors monitor executive officers’ performance of
while promoting management transparency. These endeavors are
duties. Internal auditors report on the results of such monitoring
supported by an efficient corporate governance structure that
to the executive officer in charge of auditing. And the executive
clearly defines and reinforces the supervisory functions of manage-
officer in charge of auditing and accounting auditors report on
ment while ensuring that the Company is responsive to the expec-
the results of such monitoring to the Audit Committee.
tations of customers, shareholders, and all of our stakeholders.
Mitsubishi Electric maintains a multi-dimensional risk manage-
Corporate Management and Governance
Structure
Corporate Management Structure
In June 2003, Mitsubishi Electric became a company with a
ment system in which all executive officers participate. Under this
system, executive officers are responsible for risk management in
their assigned areas of operation. In addition, executive officers
exchange information and participate in important management
initiatives and decisions through regularly scheduled executive
committee system. Key to this structure is the separation of
officers’ meetings.
supervisory and executive functions; the Board of Directors plays
a supervisory decision-making role and executive officers handle
the day-to-day running of the Company.
The Corporate Auditing Division and Audit Committee
Acting independently, Mitsubishi Electric’s Corporate Auditing
The present Board is comprised of 12 directors (five of whom
Division conducts internal audits of the Company from a fair and
are outside directors), who objectively supervise and advise the
impartial standpoint. In addition, the division’s activities are
Company’s management. The Board of Directors has three inter-
supported by auditors with profound knowledge of their particu-
nal bodies: the Audit, Nomination and Compensation commit-
lar fields, assigned from certain business units.
tees. Each body has five members, three of whom are outside
The Audit Committee is made up of five directors, three of
directors. The Audit Committee is supported by dedicated
whom are outside directors. In accordance with the policies and
independent staff.
Internal Control System
Further ensuring effective corporate governance, the roles of
assignments agreed to by the committee, the performances of
directors and executive officers as well as affiliated companies
are audited.
The Corporate Auditing Division, through the executive officer
Chairman and President & CEO are clearly defined and exclusive.
in charge of auditing, submits reports to the Audit Committee,
The Chairman heads the board of directors and the President &
which holds periodic meetings to exchange information and dis-
CEO heads the Company’s executive officers. Neither the Chair-
cuss auditing policies. In addition, the Audit Committee discusses
man nor the President & CEO is a member of the Nomination or
policies and methods of auditing with accounting auditors, who
Compensation Committees. This allows for the clear division of
furnish it with reports on the status and results of the audits of
executive and supervisory functions, thereby enabling Mitsubishi
the Company that they themselves conduct.
Electric to ensure effective corporate governance.
Decision Making and Execution
Report
Executive Officers
President & CEO
Executive Vice Presidents
Senior Vice Presidents
Executive Officers
Business/Administration Divisions
General Shareholders’ Meeting
Report
Appointment
Appointment/Dismissal/Supervision
Reporting to
Supervision
Board of Directors
Chairman
Nomination
Committee
Directors
Outside Directors (majority)
Audit
Committee
Directors
Outside Directors (majority)
Compensation
Committee
Directors
Outside Directors (majority)
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 21
Directors and Executive Officers
Directors (As of June 28, 2012)
Setsuhiro Shimomura ........................... Chairman
Kenichiro Yamanishi ............................ Representative Executive Officer, President & CEO
Masanori Saito ...................................... Chairman of the Audit Committee
Hiroki Yoshimatsu ................................ Member of the Compensation Committee, Executive Officer
Noritomo Hashimoto ........................... Member of the Nomination Committee, Senior Vice President
Ryosuke Fujimoto ................................. Member of the Audit Committee
Nobuyuki Okuma ................................. Chairman of the Nomination Committee, Chairman of the Compensation Committee,
Executive Officer
Hiroyoshi Murayama ............................ Member of the Nomination Committee, Member of the Audit Committee, Attorney-at-Law
Mikio Sasaki .......................................... Member of the Compensation Committee, Senior Corporate Advisor, Mitsubishi Corporation
Shigemitsu Miki .................................... Member of the Nomination Committee, Member of the Audit Committee,
Senior Advisor, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Fujiatsu Makino .................................... Member of the Audit Committee, Member of the Compensation Committee,
Certified Public Accountant, Registered Tax Accountant
Mitoji Yabunaka ................................... Member of the Nomination Committee, Member of the Compensation Committee,
Advisor, Nomura Research Institute, Ltd.
Executive Officers (As of April 1, 2012)
Representative Executive Officer
President & CEO:
Kenichiro Yamanishi
Representative Executive Officers
Executive Vice Presidents:
Mitsuo Muneyuki ................................. In charge of Export Control and Building Systems
Masaki Sakuyama ................................. In charge of Semiconductor & Device
Senior Vice Presidents:
Takashi Sasakawa ................................. In charge of Electronic Systems
Susumu Shikata .................................... In charge of Public Utility Systems
Noritomo Hashimoto ........................... In charge of Corporate Strategic Planning and Operations of Associated Companies
Executive Officers:
Hiroki Yoshimatsu ................................ In charge of Accounting and Finance
Shoichi Sakata ...................................... In charge of Purchasing
Kazuhiko Tsutsumi ............................... In charge of Research & Development
Yoshiaki Nakatani ................................ In charge of Energy & Industrial Systems
Tsuyoshi Nakamura .............................. In charge of Auditing, Legal Affairs, Export Control and Intellectual Property
Masaharu Moriyasu ............................. In charge of Total Productivity Management & Environmental Programs
Hiroyuki Umemura ............................... In charge of Living Environment & Digital Media Equipment
Yasuyuki Nakanishi .............................. In charge of Communication Systems
Takayuki Sueki ..................................... In charge of Global Strategic Planning & Marketing
Masayuki Ichige .................................... In charge of Government & External Relations, General Affairs and Public Relations
Isao Iguchi ............................................. In charge of Advertising and Domestic Marketing
Hideyuki Okubo ................................... In charge of Factory Automation Systems
Yutaka Ohashi ...................................... In charge of Automotive Equipment
Toru Yoshinaga ..................................... In charge of Information Systems & Network Service
Nobuyuki Okuma ................................. In charge of Human Resources
22 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Organization (As of June 28, 2012)
Board of Directors
Chairman
Nomination
Committee
Audit
Committee
Compensation
Committee
Audit Committee Office
Executive Officers’
Meeting
President & CEO
Executive Vice
Presidents
Senior Vice
Presidents
Executive
Officers
(cid:31) Corporate Auditing Div.
(cid:31) Corporate Marketing Group
(cid:31) Corporate Strategic
Planning Div.
(cid:31) Associated
Companies Div.
(cid:31) Government &
External Relations Div.
(cid:31) Corporate
Administration Div.
(cid:31) Global Strategic Planning &
Marketing Group
(cid:31) Corporate Total Productivity
Management & Environmental
Programs Group
(cid:31) Corporate Human
Resources Div.
(cid:31) Corporate Research and
Development Group
(cid:31) Corporate
Accounting Div.
(cid:31) Corporate Finance Div.
(cid:31) Information Systems &
Network Service Group
(cid:31) Public Utility Systems Group
(cid:31) Corporate
Purchasing Div.
(cid:31) Public Relations Div.
(cid:31) Energy & Industrial
Systems Group
(cid:31) Corporate
Advertising Div.
(cid:31) Legal Div.
(cid:31) Corporate Export
Control Div.
(cid:31) Building Systems Group
(cid:31) Corporate Licensing Div.
(cid:31) Electronic Systems Group
(cid:31) Corporate Intellectual
Property Div.
(cid:31) Communication Systems Group
(cid:31) Living Environment & Digital
Media Equipment Group
(cid:31) Factory Automation
Systems Group
(cid:31) Automotive Equipment Group
(cid:31) Semiconductor & Device Group
Business Planning Office
Market Planning & Administration Dept.
Marketing Research & Business Development Dept.
Branch Offices (Hokkaido, Tohoku, Kanetsu, Kanagawa,
Hokuriku, Chubu, Kansai, Chugoku, Shikoku, Kyushu)
Global Planning & Administration Div.
Global Strategy & Marketing Div.
Regional Corporate Offices
Americas (U.S.A.)
Europe (U.K.)
Asia (Singapore)
China
Taiwan
Corporate Productivity Engineering Dept.
Corporate Quality Assurance Planning Dept.
Corporate Environmental Sustainability Group
Corporate Logistics Dept.
Information Technology Center
Design Systems Engineering Center
Manufacturing Engineering Center
Planning & Administration Dept.
Advanced Technology R&D Center
Information Technology R&D Center
Industrial Design Center
Planning & Administration Dept.
Engineering Planning Dept.
Marketing Dept.
Planning & Administration Dept.
Engineering Planning Dept.
ITS Business Development Group
Public-Use Systems Marketing Div.
Transportation Systems Div.
Overseas Marketing Div.
Plant Engineering & Construction Div.
Branch Offices
Kobe Works, Itami Works, Nagasaki Works
Planning & Administration Dept.
Engineering Planning Dept.
Nuclear Power Plant Technical Supervisory Office
Power Systems Marketing Div.
Overseas Marketing Div.
Power Plant Engineering & Construction Center
Branch Offices
Energy Systems Center, Transmission & Distribution Systems Center,
Power Distribution Systems Center
Planning & Administration Dept.
Engineering Planning Dept.
Total Security Systems Dept.
Domestic Marketing Div.
Overseas Marketing Div.
Building Systems Field Operation Div.
Branch Offices
Inazawa Works
Electronic Systems Compliance Office
Planning & Administration Dept.
Defense Systems Div.
Space Systems Div.
IT Space Solutions Div.
Branch Offices
Communication Systems Center, Kamakura Works
Planning & Administration Dept.
Communication Systems Engineering Center
Telecommunication Systems Sales & Marketing Div.
NTT Projects Div.
Branch Offices
Communication Networks Center
Planning & Administration Dept.
Engineering Dept.
External Relations Dept.
Customer Satisfaction Promotion Dept.
Marketing & Operations Strategic Planning Dept.
Eco-Facility Systems Marketing Dept.
Air-Conditioning & Refrigeration Systems Div.
Lighting, Ventilation & Housing Systems Div.
PV Systems Div.
Home Appliances Div.
Digital Media Equipment Div.
Living Environment Systems Laboratory
Branch Offices
Nakatsugawa Works, Air-Conditioning & Refrigeration Systems Works,
Shizuoka Works, Kyoto Works, Gunma Works, Nagasaki Works
Planning & Administration Dept.
Industrial Products Marketing Div.
Industrial Automation Marketing Div.
Overseas Marketing Div.
Branch Offices
Nagoya Works, Fukuyama Works
Automotive Equipment Compliance Office
Planning & Administration Dept.
Automotive Equipment Marketing Div.
Automotive Equipment Overseas Marketing Div.
Automotive Electronics Development Center
Branch Offices
Himeji Works, Sanda Works
Planning & Administration Div.
Semiconductor & Device Marketing Div. A
Semiconductor & Device Marketing Div. B
LCD Div.
Branch Offices
Power Device Works, High Frequency & Optical Device Works
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 23
Major Subsidiaries and Affiliates (As of March 31, 2012)
Manufacturing
Sales/Installation/Services
Comprehensive Sales Companies
Energy and
Electric Systems
Toyo Electric Corporation
Tada Electric Co., Ltd.
Mitsubishi Electric Building Techno-Service Co., Ltd.
Mitsubishi Electric Plant Engineering Corporation
Mitsubishi Electric Power Products, Inc.
Mitsubishi Electric Control Software Corporation
Mitsubishi Elevator Asia Co., Ltd.
Ryoden Elevator Construction, Ltd.
Mitsubishi Electric Shanghai Electric Elevator Co., Ltd.
RYO-SA BUILWARE Co.,Ltd.
Toshiba Mitsubishi-Electric Industrial
Systems Corporation
Mitsubishi Elevator Hong Kong Co., Ltd.
Mitsubishi Elevator Korea Co., Ltd.
Mitsubishi Hitachi Home Elevator Corporation
ETA-Melco Elevator Co. L.L.C.
Shanghai Mitsubishi Elevator Co., Ltd.
Hitachi Mitsubishi Hydro Corporation
Industrial
Automation
Systems
DB Seiko Co., Ltd.
Meiryo Technica Co., Ltd.
Ryowa Corporation
Ryoden Koki Engineering Co., Ltd.
Mitsubishi Electric Automotive America, Inc.
Meldas System Engineering Corporation
Mitsubishi Electric Thai Auto-Parts Co., Ltd.
Mitsubishi Electric Mechatronics Software Corporation
Mitsubishi Electric Dalian Industrial Products Co., Ltd.
Mitsubishi Electric Automation (Hong Kong) Ltd.
Mitsubishi Electric Automation, Inc.
Mitsubishi Electric Automation Korea Co., Ltd.
Mitsubishi Electric Automotive Czech s.r.o.
Shizuki Electric Co., Inc.
Nippon Injector Corporation
Shihlin Electric & Engineering Corporation
Setsuyo Astec Corporation
Mitsubishi Electric TOKKI Systems Corporation
Mitsubishi Electric Information Systems Corporation
Chiyoda Mitsubishi Electric Co., Ltd. and
other regional comprehensive sales
companies (10 companies)
Mitsubishi Electric Europe B.V.
Mitsubishi Electric & Electronics USA, Inc.
Mitsubishi Electric Taiwan Co., Ltd.
Mitsubishi Electric (H.K.) Ltd.
Mitsubishi Electric Asia Pte. Ltd.
Mitsubishi Electric Australia Pty. Ltd.
Mitsubishi Electric & Electronics
(Shanghai) Co., Ltd.
Ryoden Trading Co., Ltd.
Kanaden Corporation
Mansei Corporation
Information and
Communication
Systems
Electronic
Devices
Mitsubishi Precision Co., Ltd.
SPC Electronics Corporation
Seiryo Electric Co., Ltd.
Miyoshi Electronics Corporation
Oi Electric Co., Ltd.
Melco Display Technology Inc.
IT Semicon Co., Ltd.
Mitsubishi Electric Metecs Co., Ltd.
Vincotech Holdings S.à r.l.
Renesas Electronics Corporation
Powerex, Inc.
Home Appliances
Mitsubishi Electric Home Appliance Co., Ltd.
Mitsubishi Electric Lighting Corporation
Mitsubishi Electric Consumer Products
(Thailand) Co., Ltd.
Shanghai Mitsubishi Electric & Shangling
Air-Conditioner and Electric Appliance Co., Ltd.
Mitsubishi Electric (Guangzhou) Compressor Co., Ltd.
Siam Compressor Industry Co., Ltd.
Mitsubishi Electric Visual Solutions America, Inc.
Osram Melco Ltd.
Kang Yong Electric Public Co., Ltd.
Others
Diamond Telecommunication Co., Ltd.
Mitsubishi Electric Information Network Corporation
Mitsubishi Electric Information Technology Corporation
Mitsubishi Space Software Co., Ltd.
Mitsubishi Electric Business Systems Co., Ltd.
Mitsubishi Electric Micro-Computer Application
Software Co., Ltd.
Itec Hankyu Hanshin Co., Ltd.
Melco Semiconductor Engineering Corporation
Mitsubishi Electric Living Environment
Systems Corporation
Mitsubishi Electric Life Network Co., Ltd.
Mitsubishi Electric Air Conditioning &
Refrigeration Equipment Sales Co., Ltd.
Mitsubishi Electric Osram Ltd.
Mitsubishi Electric Air Conditioning &
Refrigeration Systems Co., Ltd.
Melco Facilities Corporation
Mitsubishi Electric Kang Yong Watana Co., Ltd.
Mitsubishi Electric Ryoden Air-Conditioning &
Visual Information Systems (Hong Kong) Ltd.
Mitsubishi Electric Trading Corporation
Mitsubishi Electric Engineering Co., Ltd.
Mitsubishi Electric Logistics Corporation
Mitsubishi Electric System & Service Co., Ltd.
Mitsubishi Electric Life Service Corporation
The Kodensha Co., Ltd.
iPLANET Inc.
Mitsubishi Electric Credit Corporation
KITA KOUDENSHA Corporation
Notes:
1. Comprehensive sales companies include several companies that are responsible for selling products from a number of businesses, and therefore are put into their own separate
category rather than separating them by business segment.
2. Companies shaded in gray are consolidated subsidiaries, while others are equity-method affiliate companies.
24 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Financial Section
Contents
26 Five-Year Summary
27 Financial Review
36 Consolidated Balance Sheets
38 Consolidated Statements of Income
39 Consolidated Statements of Equity
40 Consolidated Statements of Cash Flows
41 Notes to Consolidated Financial Statements
72
Independent Auditors’ Report
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 25
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 25
Five-Year Summary
Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31
2012
2011
2010
2009
Yen (millions)
2008
U.S. dollars
(thousands)
2012
Summary of Operations
Net sales
Cost of sales
Selling, general, administrative
and R&D expenses
Loss on impairment of
long-lived assets
Operating costs
Operating income
Income before income taxes
Net income attributable
¥3,639,468
2,628,964
¥3,645,331
2,622,959
¥3,353,298
2,505,095
¥3,665,119
2,710,976
¥4,049,818
2,957,185
$44,383,756
32,060,537
781,278
784,606
736,959
783,673
825,428
9,527,780
3,782
4,005
16,942
30,742
3,189
46,122
3,414,024
3,411,570
3,258,996
3,525,391
3,785,802
41,634,439
225,444
224,080
233,761
210,237
94,302
64,259
139,728
43,933
264,016
244,137
2,749,317
2,732,683
to Mitsubishi Electric Corp.
¥ 112,063
¥ 124,525
¥ 28,278
¥ 12,167
¥ 157,977
$ 1,366,622
Financial Ratios
Return on sales (%)
Return on equity (%)
Return on assets (%)
Equity ratio (%)
Per-Share Amounts
Net income attributable
to Mitsubishi Electric Corp.
(yen/U.S. dollars)
Basic
Diluted
Cash dividends declared
(yen/U.S. dollars)
Statistical Information
Current assets
Current liabilities
Working capital
Mitsubishi Electric Corp.
shareholders’ equity
Cash dividends paid
Total assets
Capital expenditures
R&D expenditures
Depreciation
Employees
3.08
10.27
3.33
33.39
3.42
12.36
3.80
31.52
0.84
3.12
0.86
30.00
0.33
1.29
0.36
25.48
3.90
15.11
4.55
29.60
—
—
—
—
¥52.20
—
¥58.00
—
¥13.18
13.18
¥5.67
5.67
¥73.60
73.59
$0.637
—
¥ 12
¥ 12
¥ 4
¥ 6
¥ 13
$0.146
¥2,197,384
1,433,501
¥2,073,064
1,470,387
¥1,927,473
1,266,909
¥1,939,916
1,413,015
¥2,060,628
1,505,901
$26,797,366
17,481,720
763,883
602,677
660,564
526,901
554,727
9,315,646
1,132,465
27,910
3,391,651
159,346
169,686
1,050,340
19,315
3,332,679
107,638
151,779
¥ 127,244 ¥ 105,280
964,584
—
3,215,094
109,069
133,781
¥ 119,762
849,476
27,904
3,334,123
141,434
144,444
¥ 148,018
1,031,438
25,758
3,485,080
144,623
148,790
¥ 136,283
13,810,549
340,366
41,361,598
1,943,244
2,069,341
$ 1,551,756
(at the end of the year)
117,314
114,443
109,565
106,931
105,651
—
Notes: 1. The Company prepares consolidated financial statements with procedures, accounting terms, forms, and preparation that are in conformity with accounting
principles generally accepted in the United States of America based on the rules and regulations applicable in Japan.
2. Operating income is presented as net sales less cost of sales, selling, general, administrative and R&D expenses, and loss on impairment of long-lived assets. Total
operating income for each segment conforms to above mentioned operating income. Business restructuring expenses are shown as non-operating expenses.
3. R&D expenditures include elements spent on quality improvements, which constitute manufacturing costs.
4. U.S. dollar amounts are translated from yen at the rate of ¥82=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2012.
5. The Company has 161 consolidated subsidiaries and 40 equity-method companies as of March 31, 2012.
6. For the year ended March 31, 2010, the Company applies FASB ASC Topic 810 “Consolidation”. Due to the adoption of ASC Topic 810, “Net Income” is
renamed “Net income attributable to Mitsubishi Electric Corp.”. Also, income before income taxes includes equity in earnings (losses) of affiliated
companies, while excluding net income attributable to noncontrolling interests. Consequently, the Company has reclassified the figures for all prior periods.
7. For the years ended March 31, 2011 and 2012, diluted net income per share attributable to Mitsubishi Electric Corp. is not included in the above figure as
no dilutive securities existed.
26 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Financial Review
OVERVIEW
Fiscal 2012, the year ended March 31, 2012, saw the business environment in the latter half worsen amid setbacks in the
European and East Asian economies, tight supply of parts due to flooding in Thailand and a slowdown in Japanese production
and exports. Also affecting the business environment were stagnating recovery trends in Japan and overseas as well as the ongo-
ing strength of the yen against the U.S. dollar and euro.
Under these circumstances, the Mitsubishi Electric Group placed greater emphasis than ever before on promoting growth
strategies rooted in its own advantages as well as on Group efforts undertaken to date to boost its competitiveness and on
strengthening its business structure.
As a result, in fiscal 2012, the Mitsubishi Electric Group recorded net sales of ¥3,639.5 billion, operating income of ¥225.4
billion, income before income taxes of ¥224.1 billion, and ¥112.1 billion in net income attributable to Mitsubishi Electric Corp.
Net Sales
The Mitsubishi Electric Group recorded decreases in sales in the following business
segments: Energy and Electric Systems, and Home Appliances. In the fiscal year under
review, consolidated net sales fell by ¥5.9 billion year on year to ¥3,639.5 billion.
Cost of Sales, Expenses and Operating Income
The cost of sales increased by ¥6.0 billion compared with the previous fiscal year
to ¥2,629.0 billion, representing 72.2% of total net sales, a decrease of 0.2 points.
Selling, general and administrative (SG&A) expenses together with research and
development (R&D) expenses totaled ¥781.3 billion, down ¥3.3 billion year on year.
As a result, the ratio of SG&A and R&D expenses to net sales remained unchanged
at 21.5%. Loss on impairment of long-lived assets decreased by ¥0.2 billion year on
year to ¥3.8 billion. Accounting for the aforementioned factors, operating income
amounted to ¥225.4 billion, a decline of ¥8.3 billion compared with the previous
fiscal year. This decrease was primarily attributable to lower income in the Electronic
Devices and Home Appliances business segments.
Non-Operating Income and Expenses
Financial income, the sum of interest and dividend income less interest expenses,
amounted to ¥1.5 billion, an improvement of ¥1.1 billion year on year.
Equity in losses of affiliated companies totaled ¥3.4 billion, an improvement of
¥16.9 billion compared with the previous fiscal year.
Other income fell by ¥5.8 billion to ¥22.2 billion year on year due primar-
ily to reduced gain from sales of investment securities year on year. Other expenses
declined by ¥10.0 million year on year to ¥21.7 billion because of such factors as
lower foreign currency exchange losses. Also the Mitsubishi Electric Group recorded a
special cost required to restore damage caused by the Great East Japan Earthquake in
the previous fiscal year, which has resulted in comparatively less expenses.
Income before Income Taxes
Income before income taxes increased by ¥13.8 billion compared with the previous
Net sales / Operating income
4.05
3.67
3.65
3.35
264
3.64
234
225
140
94
08 09 10 11
12
08 09 10 11
12
Net sales
(Yen in trillions)
Operating income
(Yen in billions)
Net income attributable to Mitsubishi Electric Corp. /
Basic net income per share attributable to
Mitsubishi Electric Corp.
158
73.60
125
112
58.00
52.20
28
12
5.67
13.18
08 09 10 11
12
08 09 10 11
12
Net income attributable
to Mitsubishi Electric Corp.
(Yen in billions)
Basic net income per share
attributable to Mitsubishi
Electric Corp. (Yen)
fiscal year to ¥224.1 billion, for a ratio to net sales of 6.2%. Despite the aforementioned decrease in operating income of ¥8.3 billion,
this result was primarily due to a ¥22.2 billion improvement in non-operating income.
Net Income Attributable to Mitsubishi Electric Corp.
Net income attributable to Mitsubishi Electric Corp. fell by ¥12.5 billion year on year to ¥112.1 billion (a ratio to net sales of 3.1%).
This was largely due to the recording of ¥32.0 billion tax costs relating to an adjustment on deferred tax assets and liabilities caused by
lower corporate tax rates coming into force from April 2012 onward, by virtue of promulgation of the “Act for Partial Revision of the
Income Tax Act etc. for the Purpose of Creating Taxation System Responding to Changes in Economic and Social Structures” (Act No.
114 of 2011) and “Act of Special Measures for Securing Financial Resources Necessary to Implement Measures for Restructure follow-
ing the Great East Japan Earthquake” (Act No. 117 of 2011).
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 27
Business Risks
The Mitsubishi Electric Group engages in the development, manufacture and sale of products in the Energy and Electric Systems,
Industrial Automation Systems, Information and Communication Systems, Electronic Devices, Home Appliances and Other busi-
ness fields in Japan as well as North America, Europe, Asia and other overseas regions. As a result, the Group’s financial standing
and business performance may be affected by a variety of factors.
Factors that may affect the financial standing and business performance of the Mitsubishi Electric Group include but are not
limited to the following. As such, additional factors may arise at any given time.
(1) Important trends
The Mitsubishi Electric 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 Mitsubishi Electric’s sales of exported products and purchases of import-
ed 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 marketable securities or cause an
increase in retirement benefit obligations in accordance with a decline in the fair value 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 in costs due to
a worsening of material and component procurement conditions may adversely affect the Mitsubishi Electric Group’s
performance.
(5) Fund raising
An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric’s interest expenses.
(6) Significant intellectual property matters
Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.
(7) Environmental legislation or relevant issues
Mitsubishi Electric may incur losses or expenses owing to changes in environmental legislation or the occurrence of envi-
ronmental issues. Such changes in legislation or the occurrence of environmental issues may also affect the Group’s overall
operations, including manufacturing activities.
(8) Flaws or defects in products or services
Mitsubishi Electric may incur losses or expenses relating to flaws or defects in products or services. A decrease in the general
assessment of the quality of Group products and services may also impact overall operations.
(9) Lawsuits and other legal proceedings
Lawsuits and/or other legal proceedings against the Mitsubishi Electric Group may affect its overall operations.
(10) Disruptive changes
Disruptive changes in the technology, development and manufacturing of products using new technology and timing of
market introduction may adversely affect the Mitsubishi Electric Group’s performance.
(11) Business restructuring
The Mitsubishi Electric Group may record losses due to restructuring measures.
(12) Natural disasters
The Mitsubishi Electric Group’s operations, particularly manufacturing activities, may be affected by the occurrence of earth-
quakes, typhoons, tsunami, fires and other large-scale disasters.
(13) Other significant factors
The Mitsubishi Electric 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.
28 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
RESULTS BY BUSINESS SEGMENT
Net Sales by Business Segment
Years ended March 31
2012
2011
2010
2009
Yen (millions)
2008
U.S. dollars
(thousands)
2012
Energy and Electric Systems
Industrial Automation Systems
Information and
Communication Systems
Electronic Devices
Home Appliances
Others
Subtotal
Eliminations
Consolidated total
¥1,027,115
978,380
¥1,027,749
927,002
¥1,039,669
733,132
¥1,043,633
851,688
¥1,057,935
1,017,503
$12,525,793
11,931,463
516,354
200,799
849,274
611,619
4,183,541
(544,073)
¥3,639,468
487,915
175,910
924,478
609,416
4,152,470
(507,139)
¥3,645,331
526,161
138,985
824,679
552,981
3,815,607
(462,309)
¥3,353,298
582,146
166,969
915,710
596,091
4,156,237
(491,118)
¥3,665,119
644,388
192,087
1,000,258
660,822
4,572,993
(523,175)
¥4,049,818
6,297,000
2,448,768
10,357,000
7,458,769
51,018,793
(6,635,037)
$44,383,756
Operating Income (Loss) by Business Segment
Years ended March 31
2012
2011
2010
2009
Energy and Electric Systems
Industrial Automation Systems
Information and
Communication Systems
Electronic Devices
Home Appliances
Others
Subtotal
Eliminations
Consolidated total
¥ 84,920
101,192
¥ 83,055
100,089
¥ 74,727
26,138
¥ 74,539
49,934
21,312
3,585
22,358
20,348
253,715
(28,271)
¥225,444
13,743
5,901
42,008
14,475
259,271
(25,510)
¥233,761
18,672
(7,141)
4,809
3,204
120,409
(26,107)
¥ 94,302
24,869
(29,807)
34,706
12,341
166,582
(26,854)
¥139,728
Yen (millions)
2008
¥ 68,543
129,257
2,352
8,395
65,754
16,916
291,217
(27,201)
¥264,016
U.S. dollars
(thousands)
2012
$1,035,610
1,234,049
259,902
43,720
272,659
248,145
3,094,085
(344,768)
$2,749,317
Energy and Electric Systems
The social infrastructure systems business saw an increase in orders compared with
the previous fiscal year due to growth in Japan as well as in orders received for
large projects overseas in the energy systems business. However, sales decreased
compared with the previous fiscal year due to declines in the Japanese public utility
systems and rolling-stock equipment businesses.
The building systems business experienced increases in both orders and sales
compared with the previous fiscal year, owing to growth in demand for elevators
and escalators in the Chinese and ASEAN markets as well as for large projects
recorded for China and Korea.
Net sales and Operating income of
Energy and Electric Systems
1,058
1,044
1,040
1,028 1,027
83 85
75
75
69
As a result, total sales in the Energy and Electric Systems segment amounted
to ¥1,027.1 billion, virtually unchanged from the previous fiscal year. Operating
income increased by ¥1.9 billion year on year to ¥84.9 billion mainly due to a shift
08 09 10 11
12
08 09 10 11
12
Net sales
(Yen in billions)
Operating income
(Yen in billions)
in sales components.
Industrial Automation Systems
The factory automation systems business saw an increase in sales compared
with the previous fiscal year owing to stable demand for smartphone- and tablet
PC-related investments, mainly in Asia. This result occurred despite a year-on-
year decrease in orders for flat panel display-related investments in Korea and
Taiwan.
The automotive equipment business recorded increases in both orders and
sales compared with the previous fiscal year due to expansions in emerging
markets, including China and India, as well as a recovery in the North American
Net sales and Operating income of
Industrial Automation Systems
1,018
852
978
927
129
733
100 101
50
26
market. These rises took place in spite of the impact of the Great East Japan
08 09 10 11
12
08 09 10 11
12
Earthquake and flooding in Thailand.
As a result, total sales in the Industrial Automation Systems segment amounted
Net sales
(Yen in billions)
Operating income
(Yen in billions)
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 29
to ¥978.4 billion, up 6% compared with the previous fiscal year. Operating
income increased by ¥1.1 billion year on year to ¥101.2 billion due primarily to
Net sales and Operating income of
Information and Communication Systems
this increase in sales.
Information and Communication Systems
The telecommunications equipment business experienced increases in both
orders and sales compared with the previous fiscal year because of higher
demand for communications infrastructure and other equipment and large
orders received for submarine line terminal equipment used in fiber-optic cable
networks.
The information systems and services business saw increased sales compared
with the previous fiscal year due to growth in the system integration as well as
the network and system operations businesses.
The electronic systems business recorded a year-on-year decrease in orders
because of a reduction in the number of large projects in the space systems busi-
ness. In contrast, sales increased compared with the previous fiscal year owing to
an increase in the electronics business.
As a result, total sales in the Information and Communication Systems seg-
ment amounted to ¥516.4 billion, up 6% compared with the previous fiscal year.
Operating income increased by ¥7.6 billion year on year to ¥21.3 billion due pri-
marily to higher sales.
Electronic Devices
The semiconductor business saw a decrease in orders compared with the previ-
644
582
526
516
488
25
21
19
14
2
08 09 10 11
12
08 09 10 11
12
Net sales
(Yen in billions)
Operating income
(Yen in billions)
Net sales and Operating income (loss) of
Electronic Devices
192
201
176
167
139
8
6
-7
4
-30 -7
ous fiscal year due to a decline in demand mainly for industrial-use power mod-
08 09 10 11
12
08 09 10 11
12
ules as well as high-frequency and optical transmission devices. However, sales
Net sales
rose thanks to growth in demand for power modules for industrial, commercial,
(Yen in billions)
Operating income (loss)
(Yen in billions)
automotive and railcar applications.
Net sales and Operating income of Home Appliances
The LCD module business experienced increases in both orders and sales
year on year amid higher demand for industrial and automotive applications.
As a result, total sales in the Electronic Devices segment totaled ¥200.8 bil-
lion, up 14% compared with the previous fiscal year. Operating income fell by
¥2.3 billion year on year to ¥3.6 billion mainly because of the stronger yen.
1,000
916
825
924
849
66
Home Appliances
The home appliances business experienced an 8% decrease in sales compared
with the previous fiscal year. This result is attributable to such various factors as
42
35
22
5
a change in the eco-point incentive program in the third quarter of fiscal 2011
08 09 10 11
12
08 09 10 11
12
that caused a last-minute surge in demand for LCD televisions in Japan, declin-
Net sales
ing overseas sales of photovoltaic systems mainly in Europe, and lower domestic
(Yen in billions)
Operating income
(Yen in billions)
sales of hot water supply and induction heating (IH) cooking systems.
Net sales and Operating income of Others
As a result, total sales in the Home Appliances segment were ¥849.3 bil-
lion, down 8% compared with the previous fiscal year. Operating income fell by
¥19.7 billion year on year to ¥22.4 billion due primarily to a decrease in sales.
661
596
553
609 612
17
20
Others
Net sales amounted to ¥611.6 billion, virtually unchanged compared with the
previous fiscal year, and were carried out mainly by affiliated companies involved
in materials procurement and engineering.
Operating income increased by ¥5.9 billion year on year to ¥20.3 billion,
largely because of cost improvements.
30 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
14
12
3
08 09 10 11
12
08 09 10 11
12
Net sales
(Yen in billions)
Operating income
(Yen in billions)
RESULTS BY GEOGRAPHIC SEGMENT
Net Sales by Geographic Segment
Years ended March 31
Japan
North America
Asia (excluding Japan)
Europe
Others
Eliminations
Consolidated total
Yen (millions)
2008
U.S. dollars
(thousands)
2012
2012
2011
2010
2009
¥3,186,719
222,543
582,888
309,997
40,184
¥3,176,605
229,958
583,827
293,952
38,200
¥2,886,502
205,713
445,722
282,822
33,140
¥3,178,807
240,589
461,549
321,501
34,107
¥3,468,792
275,579
561,759
386,113
31,905
(702,863)
¥3,639,468
(677,211)
¥3,645,331
(500,601)
¥3,353,298
(571,434)
¥3,665,119
(674,330)
¥4,049,818
$38,862,427
2,713,939
7,108,390
3,780,451
490,049
(8,571,500)
$44,383,756
Operating Income (Loss) by Geographic Segment
Years ended March 31
Japan
North America
Asia (excluding Japan)
Europe
Others
Eliminations
Consolidated total
2012
2011
¥179,452
3,339
34,220
6,319
3,905
(1,791)
¥225,444
¥177,354
1,363
43,734
7,830
4,329
(849)
¥233,761
2010
¥49,673
5,531
27,337
3,091
1,949
6,721
¥94,302
2009
¥ 89,293
(3,599)
32,072
10,727
1,020
10,215
¥139,728
Yen (millions)
2008
¥194,413
5,861
49,088
16,044
1,321
(2,711)
¥264,016
U.S. dollars
(thousands)
2012
$2,188,439
40,719
417,317
77,061
47,622
(21,841)
$2,749,317
Japan
Sales totaled ¥3,186.7 billion virtually on par with the previous fiscal year, and operating income rose by ¥2.1 billion to ¥179.5
billion. Despite the negative impact of downturns in such businesses as photovoltaic and visual equipment, increases in such
businesses as the power systems, factory automation, and automotive equipment brought about the above referred growth.
North America
Sales fell by 3% year on year to ¥222.5 billion primarily due to lower sales of visual equipment. However, operating income
increased by ¥2.0 billion to ¥3.3 billion owing primarily to cost improvements.
Asia
Sales totaled ¥582.9 billion, remaining virtually unchanged from the previous fiscal year mainly because of lower sales of air
conditioners. This result occurred despite increased sales in such businesses as the elevators and escalators, and semiconductor.
Operating income declined by ¥9.5 billion to ¥34.2 billion, as a result of deteriorating cost conditions caused by the flooding
damage in Thailand.
Europe
Sales increased by 5% year on year to ¥310.0 billion mainly because of higher sales in the automotive equipment- and semicon-
ductor-related businesses. Operating income decreased by ¥1.5 billion to ¥6.3 billion due to a drop in prices and other factors.
Others
Sales in other regions, including figures for Mitsubishi Electric’s Australian subsidiary, amounted to ¥40.2 billion, while operating
income was ¥3.9 billion.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 31
RESEARCH AND DEVELOPMENT
R&D Expenditures
Years ended March 31
2012
2011
2010
2009
Yen (billions)
2008
U.S. dollars
(millions)
2012
Energy and Electric Systems
¥ 30.5
¥ 27.1
¥ 23.5
¥ 24.0
¥ 21.1
$ 372.0
Industrial Automation Systems
Information and Communication Systems
Electronic Devices
Home Appliances
Others
Consolidated total
54.9
16.2
9.4
30.4
28.3
45.0
14.9
8.6
30.7
25.5
34.7
12.5
7.3
29.6
26.1
37.8
15.1
8.3
32.4
26.9
37.1
25.2
8.6
29.6
27.2
669.7
197.3
114.1
371.2
345.0
¥169.7
¥151.8
¥133.8
¥144.4
¥148.8
$2,069.3
Note: Figures for each segment and the consolidated total are rounded to the nearest unit.
The Mitsubishi Electric Group actively promotes R&D initiatives that cover fundamental and advanced applications as well as
product commercialization and manufacturing technologies. Carrying out these initiatives are various Group facilities, including
corporate laboratories in Japan and laboratories in the United States and Europe as well as the R&D departments of factories and
consolidated subsidiaries. Moreover, we pursue advanced and wide-ranging R&D activities in partnership with universities and
research institutions both in Japan and overseas.
In fiscal 2012, total R&D expenditures, including quality improvement expenses constituting manufacturing costs, amounted
to ¥169.7 billion. Mitsubishi Electric reports R&D activities by business segment according to purpose, type, result and expendi-
ture. However, expenditure on fundamental and basic research that does not fall under the purview of a specific business seg-
ment is accounted for under Others.
In the Energy and Electric Systems segment, our research is directed at boosting the competitiveness of such core products
as rotating machines for generators, electric motors and other machinery, switches and transformers; other power transmission/
distribution/reception equipment and systems; transportation systems; and elevators and escalators. Other R&D areas include
IT-application systems for supervision and control, power information systems and building management systems. Notable
among Mitsubishi Electric’s recent R&D achievements are commercialized SiC inverter for railcars; a next-generation SCADA sys-
tem for public systems; MLCNET-G200 series, metal line IP modem; an image processing-based traffic monitoring system with
traffic flow and incident detection; PreSerV, an information software facilitating management over the facilities by geographic
location; commercialized compact particle beam treatment system proton type; the commencement of full-scale operation of the
experiment equipment for verifying the effectiveness of smart grid and relevant smart community technologies; the announce-
ment of achievement of joint comprehensive research into next-generation proton cancer treatment system; ultra-high-speed
elevator technologies for high-rise buildings; AXIEZ Mitsubishi standard elevator; and, the EleFine®*1 modernizing existing hydrau-
lic elevators into traction type machine-room-less elevators. R&D expenditures in this segment totaled ¥30.5 billion.
In the Industrial Automation Systems segment, R&D activities are aimed at enhancing the competitiveness of our lineup,
which includes motors and related products; mechatronics equipment; FA control equipment and systems; automotive elec-
tric and electronic components; electric power steering (EPS) and related products; and car multimedia systems. Mitsubishi
Electric’s important R&D successes include MELSEC-FX3GC series, programmable
controllers; MELSERVO-J4 series, servo amplifiers & motors; FREQUPS FW-S
R&D expenditures
R&D expenditures ratio
series, small-capacity UPS; MV series, wire-cut electrical discharge machines;
ML3015NX-60XF, CO2 laser two-dimensional processing machines; a memory car
navigation system; DSRC on-board unit; DIATONE speaker SW-G50 for automo-
bile; a display system for curved surfaces; and, Blu-ray disc player for automobile.
R&D expenditures in this segment totaled ¥54.9 billion.
In the Information and Communication Systems segment, Mitsubishi Electric
pursues research related to the development of information and communication
technology (ICT) systems, which include network systems for telecommunication
operators and network solutions equipment, as well as space systems, includ-
170
149
144
152
134
4.7
4.2
3.9
4.0
3.7
ing satellites, ground systems and large telescopes. Notable R&D successes for
08 09 10 11
12
08 09 10 11
12
Mitsubishi Electric include NGN Home Gateway; 10G-EPON system; MELOOK μ
II digital CCTV system; an increased transmission design capacity using 40Gbps
R&D expenditures
(Yen in billions)
R&D expenditures /
Net sales (%)
32 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
upgrades for the AAG (Asia America Gateway) Cable Network Consortium; an increased transmission design capacity using
40Gbps upgrades for the TAT-14 Cable Network Upgrade Purchasing Consortium; the large capacity GE-PON system; the IPTV set
top box; a small color camera for car vision system; digital watermarking solution for HDTV; airport information display system;
iDcenter®*2 Version 4.0, integrated ID management solution; AnalyticMart®*3 AQL Base Express, BI/data analysis system for small
and medium-sized businesses; and, Software as a Service “Internet-S 3cube®*4 on Demand.” R&D expenditures in this segment
totaled ¥16.2 billion.
In the Electronic Devices segment, our R&D focuses on semiconductor and other electronic devices that are themselves
vital components used in all our business segments. Major R&D achievements include GaN HEMT C-band amplifier for satellite
communication; uncooled 25Gbps direct-modulation LD; the path switching-type W-CDMA high-efficiency transmission power
amplifier; DIAFINE®*5, industrial TFT20 LCD module; J series automotive power semiconductor modules; MOSFET installed DIPIPM;
and, 1200V HVIC for inverter systems. R&D expenditures in this segment totaled ¥9.4 billion.
In the Home Appliances segment, Mitsubishi Electric is directing its R&D efforts toward environment-conscious products that
focus on energy conservation, recycling, reducing environmental impact, universal design, and digital imaging systems. Notable
results include home appliances with “Setsuden Assist” home appliances; KIRIGAMINE Move Eye series with a built-in hybrid
system that save electricity by intelligent combination of cooling operation and fan mode controlled by sensed temperature;
five-part, multi-coil and heating control technology for IH cooking heaters; RAIJIN TC-BXA series paper bag-type vacuum clean-
ers; REAL MDR2 series LCD television with built-in carbon nanotube speakers; the launch of a business to collect rare earth metal
magnets from used room air conditioners; and, “Ofuna Smart House”, a smart grid experimental house. R&D expenditures in
this segment totaled ¥30.4 billion.
In Others, fundamental technology R&D that benefits the entire Group is carried out at the Corporate Research and
Development Group and the Corporate Total Productivity Management & Environmental Programs Group research centers, which
strive to enhance Group competitiveness and create new businesses. In our main areas of R&D we have developed a motor sys-
tem with a built-in SiC inverter; a robot system aligning bulk components; and, a multi-band power amplifier for automatic band
switching and seamless roaming. R&D expenditures in this area amounted to ¥28.3 billion.
1. EleFine is a registered trademark of Mitsubishi Electric Building Techno-Service Co., Ltd.
2. iDcenter is a registered trademark of Mitsubishi Electric Information Technology Corporation
3. AnalyticMart is a registered trademark of Mitsubishi Electric Information Technology Corporation
4. Internet-S 3cube is a registered trademark of Mitsubishi Electric Information Network Corporation
5. DIAFINE is a registered trademark of Mitsubishi Shindoh Co., Ltd.: Mitsubishi Electric is licensed to use this technology during a term of 10 years from
January 17, 2008
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 33
FINANCIAL POSITION
Total assets amounted to ¥3,391.7 billion as of March 31, 2012, an increase of
Interest-bearing debt
Debt ratio
¥59.0 billion compared with the previous fiscal year-end. Cash and cash equiva-
lents fell by ¥79.9 billion. Other assets decreased by ¥64.2 billion mainly due
678
to an adjustment to deferred tax assets accompanying the promulgation of the
551
538
542
20.3
“Act for Partial Revision of the Income Tax Act etc. for the Purpose of Creating
484
Taxation System Responding to Changes in Economic and Social Structures” (Act
No. 114 of 2011) and ”Act of Special Measures for Securing Financial Resources
Necessary to Implement Measures for Restructure following the Great East Japan
Earthquake” (Act No. 117 of 2011). The total amount of trade receivables and
long-term trade receivables increased by ¥158.7 billion.
16.7 16.0
15.8
14.5
Under liabilities, the outstanding balance of debt and corporate bonds rose
08 09 10 11
12
08 09 10 11
12
by ¥57.9 billion compared with the end of the previous fiscal year to ¥542.3 bil-
lion. As a result, the ratio of interest-bearing debt to total assets was 16.0%, a
increase of 1.5 points year on year. Trade payables grew by ¥2.5 billion. At the
same time, retirement and severance benefits fell by ¥46.9 billion largely because
of an increase in pension plan assets in line with higher share prices, while
accrued income taxes declined by ¥31.6 billion. As a result of these and other
factors, total liabilities dropped by ¥23.0 billion to ¥2,200.6 billion.
Interest-bearing debt
(Yen in billions)
Interest-bearing debt /
Total assets (%)
Total assets /
Mitsubishi Electric Corp.
shareholders’ equity
Shareholders’
equity ratio
Mitsubishi Electric Corp. shareholders’ equity rose by ¥82.1 billion compared
with the previous fiscal year-end to ¥1,132.5 billion and the ratio of Mitsubishi
3,485
3,334 3,215
3,333
3,392
33.4
31.5
29.6
30.0
Electric Corp. shareholders’ equity to total assets was 33.4%, up 1.9 points year
on year. The principal contributor to these increases was ¥112.1 billion in net
income attributable to Mitsubishi Electric Corp. and the payment of cash divi-
dends totaling ¥27.9 billion.
25.5
1,031
849
1,050
965
1,132
08 09 10 11
12
08 09 10 11
12
Total assets
(Yen in billions)
Mitsubishi Electric Corp.
shareholders’ equity
(Yen in billions)
Shareholders’ equity ratio
(%)
34 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
CAPITAL EXPENDITURES
In line with its policy of improving performance by implementing the Balanced
Capital expenditures
Depreciation
Corporate Management Policy while pursuing further growth, the Mitsubishi
Electric Group aims to realize its growth strategies as it increases profitability. To
that end, the Group directed its capital investment mainly toward the areas of
145
141
energy and electric systems, factory automation equipment, automotive products
and power devices. At the same time the Group continued to reinforce its solid
109
108
159
148
136
120
127
105
business platform through the careful selection and concentration of investments.
On an individual business segment basis, investments were made in Energy
and Electric Systems (including power systems, electric equipment for rolling
stock and elevators/escalators) aimed at increasing production capacity, stream-
lining and enhancing quality. In Industrial Automation, capital expenditures were
used primarily for boosting production capacity for factory automation systems
and automotive equipment operations. In Information and Communication
Systems, funds were appropriated for bolstering research and development capa-
08 09 10 11
12
08 09 10 11
12
Capital expenditures
(Yen in billions)
Depreciation
(Yen in billions)
bilities, while in Electronic Devices, Mitsubishi Electric directed investment mainly toward augmenting production in the power
device business. In Home Appliances, expenditures focused largely on increasing the production capacity of air-conditioning
equipment, streamlining operations and enhancing quality. In Common and Others, investments mainly went toward boosting
research and development capabilities.
Capital expenditures are derived from cash on hand and funds from operations. During the consolidated fiscal year under
review, production capacity was not materially affected by the sale, disposal, damage or loss due to natural disaster of property,
plant and equipment.
CASH FLOWS
In the year ended March 31, 2012, net cash provided by operating activities
Cash flows
amounted to ¥75.2 billion, while net cash used in investing activities was ¥156.2
billion. As a result, free cash flow was an outflow of ¥81.0 billion, a ¥263.0 bil-
330
328
lion turnaround from the inflow recorded in the previous fiscal year. Taken into
account along with net cash provided by financing activities of ¥7.0 billion, fiscal
259
181
year-end cash and cash equivalents amounted to ¥392.2 billion, a decrease of
75
196
182
127
¥79.9 billion year on year.
Net cash provided by operating cash flows decreased by ¥252.5 billion
compared with the previous fiscal year to ¥75.2 billion. This was mainly due to a
decline in net income attributable to noncontrolling interests along with a rise in
trade receivables.
Net cash used in investing activities increased by ¥10.5 billion year on year
to ¥156.2 billion. This was mainly the result of higher purchases of property,
plant and equipment.
Net cash provided by financing activities was ¥7.0 billion, a ¥96.3 billion
turnaround from the outflow recorded in the previous fiscal year. This reflected
an increase in funds procured from borrowings.
-132
-134
-146
-156
-34
-215
08 09 10 11
12
08 09 10 11
-81
12
Net cash provided by
operating activities
(Yen in billions)
Net cash used in investing
activities (Yen in billions)
Free cash flows
(Yen in billions)
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 35
Consolidated Balance Sheets
Mitsubishi Electric Corporation and Subsidiaries
March 31, 2012 and 2011
2012
Yen (millions)
2011
U.S. dollars
(thousands)
(note 2)
2012
Assets
Current assets:
Cash and cash equivalents
¥ 392,181
¥ 472,067
$ 4,782,695
Short-term investments (notes 3, 19 and 20)
Trade receivables (notes 4, 6 and 16)
Inventories (note 5)
Prepaid expenses and other current
assets (notes 9, 15 and 20)
Total current assets
2,995
950,736
576,179
10,031
790,991
527,504
275,293
272,471
2,197,384
2,073,064
36,524
11,594,342
7,026,573
3,357,232
26,797,366
Long-term receivables and investments:
Long-term trade receivables (note 19)
Investments in securities and other (notes 3, 15, 19 and 20)
Investments in and advances to affiliated
companies (notes 6 and 20)
Total long-term receivables and investments
1,017
240,463
179,039
420,519
2,090
259,164
189,789
451,043
12,402
2,932,476
2,183,402
5,128,280
Property, plant and equipment (notes 7, 20, 21 and 22):
Land
Buildings
Machinery and equipment
Construction in progress
Less accumulated depreciation
Net property, plant and equipment
102,298
624,495
99,438
611,574
1,541,239
1,475,820
41,365
2,309,397
1,752,552
556,845
26,862
2,213,694
1,686,241
527,453
1,247,537
7,615,793
18,795,597
504,451
28,163,378
21,372,585
6,790,793
Other assets (notes 9, 10 and 20)
216,903
281,119
2,645,159
Total assets
¥3,391,651
¥3,332,679
$41,361,598
See accompanying notes to consolidated financial statements.
36 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Liabilities and Equity
Current liabilities:
Bank loans (note 7)
Current portion of long-term debt (notes 7, 19 and 22)
Trade payables (notes 6 and 8)
Accrued expenses (note 17)
Accrued income taxes (note 9)
Other current liabilities (notes 10, 15 and 20)
2012
Yen (millions)
2011
U.S. dollars
(thousands)
(note 2)
2012
¥ 111,670
¥ 64,905
$ 1,361,829
88,832
700,262
350,740
15,866
166,131
137,856
697,789
367,995
47,418
154,424
1,083,317
8,539,780
4,277,317
193,488
2,025,989
Total current liabilities
1,433,501
1,470,387
17,481,720
Long-term debt (notes 7, 19 and 22)
Retirement and severance benefits (note 10)
Other liabilities (notes 9, 15, 17 and 20)
341,789
372,082
53,259
281,591
419,008
52,668
4,168,158
4,537,585
649,501
Total liabilities
2,200,631
2,223,654
26,836,964
Mitsubishi Electric Corp. shareholders’ equity
Common stock (note 11):
Authorized 8,000,000,000 shares;
issued 2,147,201,551 shares in 2012 and in 2011
Capital surplus (note 11)
Legal reserve
Retained earnings
Accumulated other comprehensive
175,820
206,343
61,040
905,086
175,820
208,669
59,223
822,750
2,144,146
2,516,379
744,390
11,037,634
income (loss) (notes 3, 9, 10, 13 and 15)
(215,603)
(215,919)
(2,629,305)
Treasury stock, at cost
285,390 shares in 2012 and
264,421 shares in 2011
(221)
(203)
(2,695)
Total Mitsubishi Electric Corp. shareholders’ equity
1,132,465
1,050,340
13,810,549
Noncontrolling interests
Total equity
58,555
58,685
1,191,020
1,109,025
714,085
14,524,634
Commitments and contingent liabilities (note 17)
Total liabilities and equity
¥3,391,651
¥3,332,679
$41,361,598
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 37
Consolidated Statements of Income
Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2012, 2011 and 2010
Revenues:
Net sales (note 6)
Interest and dividends (note 6)
Other (notes 3, 13, 15 and 21)
Total revenues
Costs and expenses:
Cost of sales (notes 10 and 22)
Selling, general and administrative
(notes 10, 21 and 22)
Research and development
Loss on impairment of long-lived assets
(notes 20 and 21)
Interest
Equity in losses of affiliated companies
(notes 6 and 20)
Other (notes 3, 13, 15, 16 and 21)
2012
2011
Yen (millions)
2010
U.S. dollars
(thousands)
(note 2)
2012
¥3,639,468
¥3,645,331
¥3,353,298
$44,383,756
8,332
22,196
8,162
28,035
8,921
18,277
101,610
270,683
3,669,996
3,681,528
3,380,496
44,756,049
2,628,964
2,622,959
2,505,095
32,060,537
625,283
155,995
645,779
138,827
614,062
122,897
7,625,402
1,902,378
3,782
6,818
3,366
21,708
4,005
7,749
20,285
31,687
16,942
9,345
34,801
13,095
46,122
83,146
41,049
264,732
Total costs and expenses
3,445,916
3,471,291
3,316,237
42,023,366
Income before income taxes
224,080
210,237
64,259
2,732,683
Income taxes (note 9):
Current
Deferred
42,187
63,628
105,815
54,309
22,788
77,097
23,958
7,432
31,390
514,476
775,951
1,290,427
Net income
118,265
133,140
32,869
1,442,256
Net income attributable to
noncontrolling interests
Net income attributable to
Mitsubishi Electric Corp.
6,202
8,615
4,591
75,634
¥ 112,063
¥ 124,525
¥ 28,278
$ 1,366,622
Net income per share attributable to Mitsubishi Electric Corp. (note 14):
Basic
Diluted
See accompanying notes to consolidated financial statements.
¥52.20
—
¥58.00
—
Yen
¥13.18
13.18
U.S. dollars
(note 2)
$0.637
—
38 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Consolidated Statements of Equity
Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2012, 2011 and 2010
Balance at March 31, 2009
Comprehensive income (loss):
Net income attributable to Mitsubishi Electric Corp.
Net income attributable to noncontrolling interests
Other comprehensive income (loss), net of tax (note 13):
Foreign currency translation adjustments
Pension liability adjustments (note 10)
Unrealized gains (losses) on securities (note 3)
Unrealized gains (losses) on derivative instruments
(note 15)
Transfer to legal reserve
Equity transactions with noncontrolling interests
and other
Dividends paid to Mitsubishi Electric Corp.
shareholders’ equity
Purchase of treasury stock
Reissuance of treasury stock
Balance at March 31, 2010
Comprehensive income (loss):
Net income attributable to Mitsubishi Electric Corp.
Net income attributable to noncontrolling interests
Other comprehensive income (loss), net of tax (note 13):
Foreign currency translation adjustments
Pension liability adjustments (note 10)
Unrealized gains (losses) on securities (note 3)
Unrealized gains (losses) on derivative instruments
(note 15)
Transfer to legal reserve
Equity transactions with noncontrolling interests
and other
Dividends paid to Mitsubishi Electric Corp.
shareholders’ equity
Purchase of treasury stock
Reissuance of treasury stock
Balance at March 31, 2011
Comprehensive income (loss):
Net income attributable to Mitsubishi Electric Corp.
Net income attributable to noncontrolling interests
Other comprehensive income (loss), net of tax (note 13):
Foreign currency translation adjustments
Pension liability adjustments (note 10)
Unrealized gains (losses) on securities (note 3)
Unrealized gains (losses) on derivative instruments
(note 15)
Transfer to legal reserve
Equity transactions with noncontrolling interests
and other
Dividends paid to Mitsubishi Electric Corp.
shareholders’ equity
Purchase of treasury stock
Reissuance of treasury stock
Balance at March 31, 2012
Balance at March 31, 2011
Comprehensive income (loss):
Net income attributable to Mitsubishi Electric Corp.
Net income attributable to noncontrolling interests
Other comprehensive income (loss), net of tax (note 13):
Foreign currency translation adjustments
Pension liability adjustments (note 10)
Unrealized gains (losses) on securities (note 3)
Unrealized gains (losses) on derivative instruments
(note 15)
Transfer to legal reserve
Equity transactions with noncontrolling interests
and other
Dividends paid to Mitsubishi Electric Corp.
shareholders’ equity
Purchase of treasury stock
Reissuance of treasury stock
Balance at March 31, 2012
Accumulated
other
comprehensive
income (loss)
¥(285,066)
Total Mitsubishi
Electric Corp.
shareholders’
equity
¥ (644) ¥ 849,476
Treasury
stock
Non-
controlling
interests
Total
equity
¥52,464 ¥ 901,940
Yen (millions)
Common
stock
Legal
reserve
¥175,820 ¥210,881 ¥57,225
Capital
surplus
Retained
earnings
¥691,260
28,278
5,975
61,699
20,699
184
1,056
(1,056)
(868)
(7)
¥175,820 ¥210,006 ¥58,281
¥718,482
¥(196,509)
124,525
(17,876)
9,284
(10,643)
(175)
942
(942)
(19,315)
(1,516)
179
¥175,820 ¥208,669 ¥59,223
¥822,750
¥(215,919)
112,063
(8,254)
2,234
6,285
51
1, 817
(1,817)
28,278
5,975
61,699
20,699
184
116,835
—
4,591
1,226
51
8
5,876
28,278
4,591
7,201
61,699
20,750
192
122,711
—
(868)
(1,730)
(2,598)
(872)
20
(872)
13
¥(1,496) ¥ 964,584
(872)
13
¥56,610 ¥1,021,194
124,525
(17,876)
9,284
(10,643)
(175)
105,115
—
8,615
(3,337)
(36)
(8)
5,234
124,525
8,615
(21,213)
9,284
(10,679)
(183)
110,349
—
(1,516)
(3,159)
(4,675)
(19,315)
(46)
1,518
¥ (203) ¥1,050,340
(46)
1,339
(19,315)
(46)
1,518
¥58,685 ¥1,109,025
112,063
(8,254)
2,234
6,285
51
112,379
—
6,202
(589)
13
3
5,629
112,063
6,202
(8,843)
2,234
6,298
54
118,008
—
(2,326)
(2,326)
(5,759)
(8,085)
(27,910)
¥175,820 ¥206,343 ¥61,040
¥905,086
¥(215,603)
(27,910)
(20)
2
¥ (221) ¥1,132,465
(20)
2
(27,910)
(20)
2
¥58,555 ¥1,191,020
U.S. dollars (thousands) (note 2)
Accumulated
other
comprehensive
Legal
income (loss)
reserve
$2,144,146 $2,544,744 $722,231 $10,033,537 $(2,633,159)
Common
stock
Retained
earnings
Capital
surplus
Total Mitsubishi
Electric Corp.
shareholders’
equity
Non-
controlling
interests
Treasury
stock
Total
equity
$(2,475) $12,809,024 $715,671 $13,524,695
1,366,622
(100,658)
27,244
76,646
622
22,159
(22,159)
1,366,622
(100,658)
27,244
76,646
622
1,370,476
—
75,634
(7,183)
158
37
68,646
1,366,622
75,634
(107,841)
27,244
76,804
659
1,439,122
—
(28,365)
(28,365)
(70,232)
(98,597)
(340,366)
$2,144,146 $2,516,379 $744,390 $11,037,634 $(2,629,305)
(340,366)
(244)
24
$(2,695) $13,810,549 $714,085 $14,524,634
(340,366)
(244)
24
(244)
24
See accompanying notes to consolidated financial statements.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 39
Consolidated Statements of Cash Flows
Mitsubishi Electric Corporation and Subsidiaries
Years ended March 31, 2012, 2011 and 2010
2012
2011
Yen (millions)
2010
U.S. dollars
(thousands)
(note 2)
2012
¥ 118,265
¥ 133,140
¥ 32,869
$ 1,442,256
127,244
105,280
119,762
1,551,756
3,367
3,538
16,425
41,061
834
63,628
(1,682)
6,961
3,366
(166,091)
(55,737)
(17,553)
9,113
(61,108)
(7,311)
51,884
75,180
(463)
22,788
(1,300)
3,979
20,285
(14,594)
(65,512)
2,493
66,177
(29,019)
43,653
37,196
327,641
(1,056)
7,432
(946)
3,099
34,801
(16,170)
56,358
10,977
45,373
(13,047)
7,069
27,295
330,241
10,171
775,951
(20,512)
84,890
41,049
(2,025,500)
(679,720)
(214,061)
111,134
(745,219)
(89,159)
632,732
916,829
(159,346)
(107,638)
(109,069)
(1,943,244)
5,085
4,504
6,347
62,012
(11,766)
(51,640)
(46,107)
(143,488)
15,961
90
(6,198)
(156,174)
138,283
(139,775)
46,630
(27,910)
(20)
2
(10,182)
18,895
(19)
(9,732)
(145,630)
100
(62,248)
(5,114)
(19,315)
(46)
5
(2,610)
20,145
831
(6,638)
(134,491)
92,711
(106,584)
(146,487)
—
(872)
13
(3,988)
194,646
1,098
(75,585)
(1,904,561)
1,686,378
(1,704,573)
568,659
(340,366)
(244)
24
(124,171)
7,028
(89,228)
(165,207)
85,707
(5,920)
(79,886)
472,067
¥ 392,181
(11,834)
80,949
391,118
¥ 472,067
1,959
32,502
358,616
¥ 391,118
(72,195)
(974,220)
5,756,915
$ 4,782,695
Cash flows from operating activities:
Net income
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation
Impairment losses of property, plant and
equipment
Loss (gain) from sales and disposal of
property, plant and equipment, net
Deferred income taxes
Loss (gain) from sales of securities and
other, net
Devaluation losses of securities and other, net
Equity in losses of affiliated companies
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase in trade payables
Increase (decrease) in accrued expenses and
retirement and severance benefits
Increase (decrease) in other liabilities
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
Proceeds from sale of short-term
investments and investment securities
Decrease (increase) in loans receivable
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from long-term debt
Repayment of long-term debt
Increase (decrease) in short-term debt, net
Dividends paid
Purchase of treasury stock
Reissuance 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 (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
See accompanying notes to consolidated financial statements.
40 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Notes to Consolidated Financial Statements
Mitsubishi Electric Corporation and Subsidiaries
(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Description of Business
The Company evaluates Variable Interest Entities (VIEs)
Mitsubishi Electric Corporation (the “Company”) is a
whether it has a controlling financial interest in an entity
multinational organization which develops, manufactures,
through means other than voting rights and whether it should
sells and distributes a broad range of electrical and electronic
consolidate the entity as the primary beneficiary when the
equipments in the fields as diverse as home appliances and
Company has a controlling financial interest.
space electronics.
The Company and its subsidiaries’ principal lines of
business are: (1) Energy and Electric Systems, (2) Industrial
Automation Systems, (3) Information and Communication
Systems, (4) Electronic Devices, (5) Home Appliances and (6)
Others.
Each line’s sales as a percentage of total consolidated
sales, before elimination of internal sales, for the year ended
March 31, 2012 are as follows: Energy and Electric Systems
– 25%, Industrial Automation Systems – 23%, Information
and Communication Systems – 12%, Electronic Devices – 5%,
Home Appliances – 20% and Others – 15%.
Majority of the operations of the Company and its sub-
sidiaries is mainly conducted in Japan. Net sales for the year
ended March 31, 2012 comprises of the following geo-
graphical locations: Japan – 67%, North America – 7%, Asia
(excluding Japan) – 16%, Europe – 8% and Others – 2%.
Our manufacturing operations are conducted principally at
the Parent company with 22 manufacturing sites located in
Japan as well as overseas manufacturing sites located in the
United States, United Kingdom, Thailand, Malaysia, China and
other countries.
(b) Basis of Presentation
The Company and its subsidiaries maintain their books of
account in conformity with financial accounting standards in
the countries of their domicile.
The Company prepares the consolidated financial state-
ments with reflecting the adjustments which are considered
necessary to conform with accounting principles generally
accepted in the United States of America.
(c) Consolidation
The Company prepares the consolidated financial statements
including the accounts of the parent company and those
of its majority-owned subsidiaries, whether directly or indi-
rectly controlled. All significant intercompany transactions,
accounts, and unrealized gains or losses have been eliminated.
Investments in corporate joint ventures and affiliated
companies with the ownership interest of 20% to 50%, in
which the Company does not have control, but has the abil-
ity to exercise significant influence, are accounted for by the
equity method of accounting. Investments of less than 20%
or where the Company does not have significant influence are
accounted for by the cost method.
(d) Use of Estimates
The Company makes estimates and assumptions to prepare
the consolidated financial statements in conformity with
generally accepted accounting principles, and those estimates
and assumptions affect the reported amounts of assets and
liabilities as well as the disclosed amounts of contingent assets
and liabilities at the date of the consolidated financial state-
ments and the reported amounts of revenues and expenses
during the reporting period. Significant items subject to such
estimates and assumptions include valuation allowances for
receivables, inventories and deferred tax assets; the carrying
amount of property, plant and equipment; and assets and
obligations related to employee benefits. Actual results could
differ from those estimates.
(e) Cash and Cash Equivalents
The Company considers all highly liquid debt instruments with
original maturities of three months or less to be cash equiva-
lents for the consolidated cash flow statements.
(f) Short-Term Investments and Investment Securities
The Company classifies investments in debt and equity secu-
rities into trading, available-for-sale, or held-to-maturity
securities.
Trading securities are bought and held principally for the
purpose of selling them in the near term. Held-to-maturity
securities are those securities in which the Company has the
ability and intent to hold the security until maturity. All securi-
ties not included in trading or held-to-maturity are classified
as available-for-sale.
Trading and available-for-sale securities are recorded at
fair value. Held-to-maturity securities are recorded at amor-
tized cost, adjusted for the amortization or accretion of pre-
miums or discounts. Unrealized holding gains and losses on
trading securities are included in earnings. Unrealized holding
gains and losses, net of the related tax effect, on available-for-
sale securities are excluded from earnings and are reported as
a separate component of other comprehensive income (loss)
until realized. Realized gains or losses from the sale of securi-
ties are determined on the average cost of the particular secu-
rity held at the time of sale.
A decline in the fair value of any available-for-sale security
below costs that is other-than-temporary results in a reduction
in carrying amount to the fair value, which becomes the new
cost basis for the security.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 41
To determine whether an impairment of equity security
is other-than-temporary, the Company considers whether it
(k) Income Taxes
The Company recognizes deferred tax assets and liabilities
has the ability and intent to hold the security until a market
for the future tax consequences attributable to differences
price recovery and considers whether evidence indicating
between the financial statement carrying amounts of existing
the market price of the security is recoverable to the carrying
assets and liabilities and their respective tax basis, operating
amount outweighs the counter evidence. Evidence considered
loss and tax credit carryforwards. Deferred tax assets and
in this assessment includes the reasons for the impairment,
liabilities are measured using enacted tax rates expected to
the severity and duration of the impairment, changes in value
apply to taxable income in the years in which the temporary
subsequent to year-end, and forecasted performance of the
differences are expected to be recovered or settled. The effect
investee.
on deferred tax assets and liabilities of a change in tax rates
To determine whether an impairment of debt security is
is recognized in income in the period that includes the enact-
other-than-temporary, the Company considers whether it has
ment date.
the intent to sell the equity investment and more likely than
Valuation allowances are established to reduce deferred
not where the Company is required to sell until a market price
tax assets to their net realizable value if it is more likely than
of the investment is recoverable to the amortized cost.
not that some portion or all of the deferred tax asset will not
Other investments are stated at cost. The Company rec-
be realized.
ognizes a loss when there is other-than-temporary decline in
The Company recognizes the financial statement effects
value of other investments, using the same policy as described
of unrecognized tax benefits only if those positions are more
above for available-for-sale security impairments.
likely than not of being sustained.
(g) Allowance for Doubtful Receivables
The Company records an allowance for doubtful receiv-
(l) Product Warranties
The Company generally offers warranties on its products
ables based on credit loss history and evaluation of specific
against certain manufacturing and other defects for the spe-
doubtful receivables.
(h) Inventories
In work-in-process, the Company records the ordered prod-
ucts at the acquisition cost and the regular purchased prod-
ucts at the average production costs. Those products are
cific periods of time and/or usage of the product depending
on the nature of the product, the geographic location of its
sale and other factors. The Company recognizes accrued war-
ranty costs based primarily on historical experience of actual
warranty claims as well as current information on repair costs.
recorded at the lower of cost or market. Net costs in excess
of billings on long-term contracts are included in inventories.
(m) Retirement and Severance Benefits
The Company recognizes the funded status (i.e., the dif-
Raw material and finished product inventories are gener-
ference between the fair value of plan assets and the
ally recorded using the average-cost method, and evaluated
projected benefit obligations) of its pension plans in the con-
at the lower of cost or market. In accordance with the general
solidated balance sheet at the end of the year, and records
practice in the heavy electrical industry, inventories related to
the corresponding amount to Accumulated other compre-
Energy and Electric Systems include items with long manufac-
hensive income (loss), net of tax. The adjustment items for
turing periods which are not realizable within one year.
Accumulated other comprehensive income (loss) are unrecog-
(i) Property, Plant and Equipment
The Company records property, plant and equipment at cost.
Depreciation of property, plant and equipment is generally
nized prior service cost and unrecognized net gain or loss. The
amounts of these adjustments are recognized as net periodic
pension cost in future fiscal years.
calculated by the declining-balance method, except for certain
assets which are depreciated by the straight-line method, over
(n) Revenue Recognition
The Company recognizes revenue when persuasive evidence
the estimated useful life of the assets according to general
of an arrangement including title transfer exists, delivery has
class, type of construction, and use of these assets.
occurred, the sales price is fixed or determinable, and collect-
The estimated useful life of buildings is 3 to 50 years,
ibility is probable. These criteria are met for mass-merchandis-
while machinery and equipment is 2 to 20 years.
ing products such as consumer products and semiconductors
(j) Leases
The Company records capital leases at the inception of the
lease at the lower of the discounted present value of future
minimum lease payments or the fair value of the leased
assets. The amortization of the leased assets is calculated in
accordance with the Company’s normal depreciation policy.
at the time when the product is received by the customer,
and for products with acceptance provisions such as heavy
machinery and industrial products at the time when the prod-
uct is received by the customer and the specific criteria of the
product are demonstrated by the Company with only certain
inconsequential or perfunctory work left to be performed
by the customer. Revenue from maintenance agreements is
42 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
recognized over the contract term when the maintenance is
age market price of the Company’s common stock).
provided and the cost is incurred. Also, the Company applies
the percentage of completion method for long-term con-
struction contracts. The Company measures the percentage
of completion by comparing expenses recognized through
the current year to the aggregate amount of estimated cost.
Any anticipated losses on fixed price contracts are charged
to operations when such losses can be estimated. Provisions
are made for contingencies in the period when they become
known pursuant to specific contract terms and conditions and
are estimable.
The contract which may consists of any combination of
products, equipment, installation and maintenance is allo-
cated revenue to each accounting unit based on its relative
fair value, when each deliverable is accounted for separate
accounting unit.
Starting this Year, the Company applies Financial
Accounting Standards Boards (FASB) Accounting Standards
Update (ASU) 2009-13 “Multiple-Deliverable Revenue
Arrangements-a consensus of the FASB Emerging Issues Task
Force” (An Amendment of Accounting Standards Codification
(ASC) Topic 605 “Revenue Recognition”). ASU 2009-13
requires the selling price used for each deliverable will be
based on estimated selling price (ESP) if neither vender specific
objective evidence nor third party evidence is available, and
that arrangement consideration be allocated at the inception
of the arrangement to all deliverables using the relative sell-
ing price method regardless of the selling price is determined
biased on VSOE, TPE, or ESP. As a result, the residual method
of allocating arrangement consideration will no longer be per-
mitted. The adoption of ASU 2009-13 does not have a mate-
rial effect on the Company’s consolidated financial position
and results of operation.
(o) Research and Development and Advertising
The Company accounts for the costs of research and devel-
opment and advertising as expense when those costs are
incurred.
(p) Shipping and Handling Costs
The Company records shipping and handling costs mainly as
selling, general and administrative expenses.
(r) Foreign Currency Translation
The Company translates receivables and payables in foreign
currency at the prevailing rates of exchange at the balance
sheet date. Gains and losses resulting from translation of
receivables and payables are recognized in current earnings.
Assets and liabilities of the Company’s overseas consolidating
subsidiaries are translated into Japanese yen at the prevail-
ing rates of exchange at the balance sheet date. Income and
expense items are translated at the average exchange rate
prevailing during the year. Gains and losses resulting from
translation of financial statements are recognized as foreign
currency translation adjustments in other comprehensive
income (loss).
(s) Derivatives
The Company recognizes all derivatives as either assets or lia-
bilities in the consolidated financial statements and measures
them at fair value. For derivatives designated as fair value
hedges, changes in fair value of the hedged item and the
derivative are recognized in current earnings. For derivatives
designated as cash flow hedges, fair value changes of the
effective portion of the hedging instruments are recognized as
a component of other comprehensive income (loss) until the
hedged item is recognized in earnings. The ineffective portion
of all hedges is recognized in earnings immediately.
The Company discloses the use and purpose of derivative
instruments, accounting for derivative instruments and related
hedged items. The Company also discloses the effects on the
entity’s financial position, financial performance, and cash
flows by the derivative instruments and hedging activities.
(t) Securitizations
The Company accounts for the securitization of the accounts
receivables as a sale, if it is determined based on the
Company’s evaluation that it has surrendered control over the
transferred receivables.
Accordingly, the receivables sold under these facilities are
excluded from Trade receivables in the accompanying con-
solidated balance sheets. Gain or loss on sale of receivables
is calculated based on the allocated carrying amount of the
receivables sold. When a portion of accounts receivables is
(q) Net Income per Share
The Company calculates basic net income per share attribut-
transferred, the participating interest that continues to be
held is recorded at the allocated carrying amount of the assets
able to Mitsubishi Electric Corp. divided net income attribut-
based on their relative fair values at the date of the transfer.
able to Mitsubishi Electric Corp. by the weighted-average
The Company estimates fair value based on the present value
number of common shares outstanding during each year.
of future expected cash flows less credit losses.
Diluted net income per share attributable to Mitsubishi Electric
Corp. reflects the potential dilution and is calculated on the
basis that dilutive securities were converted at the beginning
of the year or at time of issuance (if later), and that dilutive
stock option were exercised (less the number of treasury stock
assumed to be purchased from the proceeds using the aver-
(u) Impairment of Long-Lived Assets
The Company reviews for impairment of long–lived assets
such as property, plant, and equipment and purchased intan-
gibles subject to amortization, to be held and used whenever
events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 43
assets to be held and used is measured by a comparison of
ment exists, to perform Step 2 of the goodwill impairment
the carrying amount of an asset to estimated undiscounted
test and calculate the amount of impairment loss by compar-
future cash flows expected to be generated by the asset. If
ing the implied fair value of reporting unit’s goodwill with the
the carrying amount of an asset exceeds its estimated future
carrying amount of goodwill. ASU 2011-08 permits an entity
cash flows, an impairment loss is recognized by the amount
to make a qualitative assessment of whether it is more likely
by which the carrying amount of the asset exceeds the fair
than not that a reporting unit’s fair value is less than its car-
value of the asset. Long-lived assets to be disposed of other
rying amount before applying the two-step goodwill impair-
than sale continue to be classified as held and used until they
ment test. If an entity concludes it is not more likely than not
are disposed.
that the fair value of a reporting unit is less than its carrying
Long-lived assets classified as held-for-sale are separately
amount, it need not perform the two-step impairment test.
presented in the balance sheet and reported at the lower of
The adoption of ASU 2010-28 and ASU 2011-08 does not
the carrying amount or fair value less costs to sell, and are
have a material effect on the Company’s consolidated finan-
no longer depreciated. The assets and liabilities of a disposed
cial position and results of operation.
group classified as held-for-sale are presented separately in
the appropriate asset and liability sections of the consolidated
balance sheets.
(v) Stock-based Compensation
When the Company grants stock-option to employees and
(x) Cost Associated with Exit or Disposal Activities
The Company recognizes the costs associated with exit or dis-
posal activities as liability only when it meets the definition of
a liability in the Statements of Financial Accounting Concepts
No. 6, “Elements of Financial Statements”. The Company
others, the Company recognizes the cost of employee services
uses fair value for initial measurement of liabilities related to
received in exchange for stock compensation based on the
exit or disposal activities.
grant-date fair value of the employee stock options and incre-
mental compensation costs arising from subsequent modifica-
tions of awards after the grant date.
(y) Guarantees
The Company recognizes the guarantees and indemnifica-
tion arrangements as liability measured at fair value as they
(w) Goodwill and Other Intangible Assets
The Company accounts for business combinations using the
are issued or modified by the Company, and discloses the
guarantees that the Company has undertaken, including a
acquisition method. The Company recognizes at fair value the
rollforward of the Company’s product warranty liabilities. The
assets acquired, the liabilities assumed, any noncontrolling
Company continually monitors the conditions of the guaran-
interests in the acquiree, and acquired goodwill at the acquisi-
tees and indemnifications to identify occurrence of probable
tion date. The Company discloses the nature of business com-
losses, and when such losses are identified and if estimable,
bination to enable the readers to evaluate the effects of such
they are recognized in current earnings.
transaction on the consolidated financial statements.
The Company does not amortize goodwill but tests it for
impairment at least annually. Also other intangible assets with
indefinite useful life are not amortized, but instead tested for
impairment until its useful life is determined. On the other
hand, other intangible assets determined to have useful life
are amortized over their respective estimated useful life and
tested for impairment.
Starting this year, the Company applies FASB ASU 2010-
28 ”When to Perform Step 2 of the Goodwill Impairment Test
for Reporting Units with Zero or Negative Carrying Amounts”
(An Amendment of ASC Topic 350 “Intangibles-Goodwill and
Other”) and ASU 2011-08 “Testing Goodwill for Impairment”
(An Amendment of ASC Topic 350 “Intangibles-Goodwill and
Other”). ASU 2010-28 modifies Step 1 of the goodwill impair-
ment test which required an entity to compare the fair value
of reporting unit with its carrying amount including goodwill
for reporting units with zero or negative carrying amounts,
and requires the entity, if there are any adverse qualitative
factors indicating that it is more likely than not that an impair-
(z) Asset Retirement Obligations
The Company recognizes legal obligations associated with the
retirement of long-lived assets that result from an acquisition,
construction and development, and (or) from a normal opera-
tion of a long-lived asset, except for certain lease obligations.
The Company recognizes a liability for an asset retirement
obligation at fair value in the period which it is incurred if a
reasonable estimate of fair value can be made. The associated
asset retirement costs are capitalized as part of the carrying
amount of the long-lived asset and subsequently allocated to
expense over the asset’s useful life. Subsequent to the initial
measurement of the asset retirement obligation, the obliga-
tion is adjusted at the end of each period to reflect the pas-
sage of time and changes in the estimated future cash flows
underlying the obligation.
(aa) Reclassifications
The Company has made certain reclassifications of the previ-
ous fiscal years’ consolidated financial statements to conform
to the presentation used for the year ended March 31, 2012.
44 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
(bb) Future Application of New Accounting Standards
income. The Company is required to adopt ASU 2011-05 and
In June 2011, the FASB issued ASU 2011-05
ASU 2011-12 on April 1, 2012 retrospectively. The adoption
“Presentation of Comprehensive Income” (An Amendment
of ASU 2011-05 and ASU 2011-12 will not have a material
of ASC Topic 220 “Comprehensive Income”). Under ASU
effect on the Company’s consolidated financial position and
2011-05, an entity will have the option to present the com-
results of operation.
ponents of net income and comprehensive income in either
In December 2011, the FASB issued ASU 2011-11
one or two consecutive financial statements. The ASU elimi-
“Disclosures about Offsetting Assets and Liabilities” (An
nates the option to present other comprehensive income in
Amendment of ASC Topic 210 “Balance Sheet”). ASU 2011-
the consolidated statement of equity. In December 2011,
11 requires to disclose both gross information and net infor-
the FASB issued ASU 2011-12 “Deferral of the Effective Date
mation about both instruments and transactions eligible
for Amendments to the Presentation of Reclassifications of
for offset in the statement of financial position and instru-
Items Out of Accumulated Other Comprehensive Income in
ments and transactions subject to an agreement similar to
Accounting Standards Update No. 2011-05” (An Amendment
a master netting arrangement. The Company is required to
of ASC Topic 220 “Comprehensive Income”). ASU 2011-
adopt ASU 2011-11 on April 1, 2013 retrospectively. The
12 defers the effective date of the requirement to present
adoption of ASU 2011-11 will not have a material effect on
separate line items for reclassification adjustments of items
the Company’s consolidated financial position and results of
out of accumulated other comprehensive income into net
operation.
(2) U.S. DOLLAR AMOUNTS
The Company has presented the consolidated financial state-
exchange rate prevailing on the Tokyo Foreign Exchange
ments in Japanese yen, and solely for the convenience of the
Market at the end of March 2012. This translation should not
reader, has provided translated amounts in United States dol-
be construed as a representation that the amounts shown
lars at the rate of ¥82=U.S.$1, which was the approximate
could be converted into United States dollars at such rate.
(3) SECURITIES
Marketable securities included in short-term investments and
unrealized holding losses and fair value for such securities by
investments in securities and other consist of available-for-
equity securities and debt securities at March 31, 2012 and
sale securities. The cost, gross unrealized holding gains, gross
2011 were as follows:
2012:
Available-for-sale:
Equity securities
Debt securities
2011:
Available-for-sale:
Equity securities
Debt securities
Gross
unrealized
holding
gains
Gross
unrealized
holding
losses
Yen (millions)
Fair value
¥28,533
783
¥29,316
Gross
unrealized
holding
gains
¥27,900
2,714
¥30,614
¥4,891
4,315
¥9,206
¥119,054
42,573
¥161,627
Gross
unrealized
holding
losses
Yen (millions)
Fair value
¥ 9,946
9,478
¥19,424
¥120,563
52,689
¥173,252
Cost
¥ 95,412
46,105
¥141,517
Cost
¥102,609
59,453
¥162,062
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 45
2012:
Available-for-sale:
Equity securities
Debt securities
Gross
unrealized
holding
gains
Gross
unrealized
holding
losses
Cost
Fair value
U.S. dollars (thousands)
$1,163,561
562,256
$1,725,817
$347,963
9,549
$357,512
$ 59,646
52,622
$1,451,878
519,183
$112,268
$1,971,061
Debt securities consist of Japanese government debt securi-
In the year ended 2011, net unrealized gains on available-
ties, corporate debt securities and others.
for-sale securities, net of taxes and noncontrolling interests,
In the years ended March 31, 2012 and 2010, net unre-
decreased by ¥10,643 million.
alized gains on available-for-sale securities, net of taxes and
As of March 31, 2012 and 2011, the cost of non-market-
noncontrolling interests, increased by ¥6,285 million ($76,646
able equity securities were ¥14,627 million ($178,378 thou-
thousand) and ¥20,699 million, respectively.
sand) and ¥13,779 million, respectively.
Maturities of marketable securities classified as available-for-sale at March 31, 2012 were as follows:
Due within one year
Due after one year through five years
Due after five years
Marketable equity securities
Cost
¥ 3,149
4,292
38,664
95,412
¥141,517
Yen (millions)
Fair value
¥ 2,995
4,793
34,785
119,054
¥161,627
Cost
$ 38,402
52,342
471,512
1,163,561
U.S. dollars
(thousands)
Fair value
$ 36,525
58,451
424,207
1,451,878
$1,725,817
$1,971,061
Gross unrealized losses on available-for-sale securities and the fair value of the related securities, aggregated by length of time
that individual securities have been in a continuous unrealized loss positions, at March 31, 2012 were as follows:
Available-for-sale:
Equity securities
Debt securities
Available-for-sale:
Equity securities
Debt securities
Less than 12 months
Fair
value
Unrealized
losses
12 months or more
Fair
value
Unrealized
losses
Yen (millions)
Total
Fair
value
Unrealized
losses
¥12,326
892
¥13,218
¥1,807
108
¥1,915
¥20,916
32,301
¥53,217
¥3,084
4,207
¥7,291
¥33,242
33,193
¥66,435
¥4,891
4,315
¥9,206
Less than 12 months
Fair
value
Unrealized
losses
12 months or more
Fair
value
Unrealized
losses
U.S. dollars (thousands)
Total
Fair
value
Unrealized
losses
$150,317
10,878
$22,037
1,317
$255,073
393,915
$37,609
51,305
$405,390 $ 59,646
52,622
404,793
$161,195
$23,354
$648,988
$88,914
$810,183 $112,268
The Company did not recognize an impairment loss from the
sonable period of time sufficient for a recovery of fair value,
decline in the fair value of the marketable securities includ-
the Company does not consider those securities to be other-
ing the unrealized losses. Based on that evaluation and the
than-temporarily impaired.
Company’s ability and intent to hold those securities for a rea-
46 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Proceeds from the sale of available-for-sale securities and gross realized gains and losses on those sales in the years ended March
31, 2012, 2011 and 2010 were as follows:
Proceeds
Gross realized gains
Gross realized losses
2012
¥1,460
486
5
2011
¥3,955
1,157
11
Yen (millions)
2010
¥1,406
672
27
U.S. dollars
(thousands)
2012
$17,805
5,927
61
For the years ended March 31, 2012, 2011 and 2010 the Company recognized loss on impairment of marketable securities
¥6,912 million ($84,293 thousand),¥3,679 million and ¥2,864 million due to other-than-temporary declines in fair value.
(4) TRADE RECEIVABLES
Trade receivables are summarized as follows:
Notes receivable
Accounts receivable
Allowance for doubtful receivables
(5) INVENTORIES
Inventories are comprised of the following:
Work in process
Less accumulated billings on long-term contracts
Raw materials
Finished products
2012
¥ 61,745
897,332
(8,341)
¥950,736
Yen (millions)
2011
¥ 58,931
740,433
(8,373)
¥790,991
U.S. dollars
(thousands)
2012
$ 752,988
10,943,073
(101,719)
$11,594,342
2012
¥277,017
24,220
252,797
90,471
232,911
Yen (millions)
2011
¥249,173
16,198
232,975
79,334
215,195
¥576,179
¥527,504
U.S. dollars
(thousands)
2012
$3,378,256
295,366
3,082,890
1,103,305
2,840,378
$7,026,573
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 47
(6) INVESTMENTS IN AFFILIATED COMPANIES
Summary of combined financial information relating to affiliated companies accounted for by the equity method of accounting
(Renesas Electronics Corp., Toshiba Mitsubishi-Electric Industrial Systems Corp., etc.) as of March 31, 2012 and 2011, and for the
years ended March 31, 2012, 2011 and 2010 are as follows:
Yen (millions)
2011
U.S. dollars
(thousands)
2012
Financial Position
Current assets
Property, plant and equipment
Other assets
Total assets
Current liabilities
Long-term debt
Total liabilities
Shareholders’ equity
2012
¥1,431,161
403,553
204,841
¥2,039,555
¥1,213,890
285,338
1,499,228
540,327
¥1,570,042
438,814
252,402
¥2,261,258
¥1,270,234
387,360
1,657,594
603,664
Total liabilities and shareholders’ equity
¥2,039,555
¥2,261,258
$17,453,183
4,921,378
2,498,061
$24,872,622
$14,803,536
3,479,732
18,283,268
6,589,354
$24,872,622
Results of Operations
Sales
Net income (loss) attributable to affiliated companies
¥1,956,596
(36,010)
¥2,181,546
(69,818)
¥1,614,702
(37,851)
$23,860,927
(439,146)
2012
2011
Yen (millions)
2010
U.S. dollars
(thousands)
2012
The balances and transactions with affiliated companies accounted for by the equity method of accounting as of March 31, 2012
and 2011, and for the years ended March 31, 2012, 2011 and 2010 are as follows:
Trade receivables
Trade payables
Sales
Purchases
Dividends
2012
¥ 76,720
144,502
2012
¥314,740
184,766
6,945
2011
¥314,174
160,188
8,963
Yen (millions)
2011
¥ 69,625
146,925
Yen (millions)
2010
¥281,043
148,308
7,558
U.S. dollars
(thousands)
2012
$ 935,610
1,762,220
U.S. dollars
(thousands)
2012
$3,838,293
2,253,244
84,695
Investments in affiliated companies accounted for by the equity method of accounting include the shares of 10 publicly quoted
affiliates (10 publicly quoted affiliates existed in 2011), which are summarized as follows:
Investments at equity
Quoted market value
2012
¥75,783
92,453
Yen (millions)
2011
¥ 95,177
107,758
U.S. dollars
(thousands)
2012
$ 924,183
1,127,476
Due to an affiliated company accounted for by the equity
Renesas offered allocation of new stocks which is
method of accounting named Renesas Technology Corp.
merged with NEC Electronics Corp., Renesas Electronics Corp.
total amounts of ¥134,600 million to the Company, NEC
Corporation and Hitachi, Ltd. The Company was accepted
(Renesas) was established on April 1, 2010. The Company
¥35,235 million to new stocks allocation. As a result of its
was allocated 20.5 shares of Renesas per share of Renesas
merger, the Company’s ownership interest for Renesas is
Technology Corp. at the effective date of its merger.
25.05% and the Company accounts for by equity method to
48 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
investment on Renesas. The Company includes the amounts
goodwill related to equity investment on consolidated balance
of $13,785 million which is difference between the costs of
sheets.
investments $98,472 million and the amounts of net assets
At March 31, 2012 and 2011, the Company recognizes
which is after fair value measurements at effective date
that no impairment exists on its goodwill.
$84,687 million in investments in affiliated companies as
(7) BANK LOANS AND LONG-TERM DEBT
Bank loans consisted of the following:
Borrowings from banks and others
Commercial paper
2012
¥111,450
220
¥111,670
Yen (millions)
2011
¥64,555
350
¥64,905
U.S. dollars
(thousands)
2012
$1,359,146
2,683
$1,361,829
The weighted average interest rates on borrowings from
At March 31, 2012, the Company had unused committed
banks and others outstanding as of March 31, 2012 and 2011
lines of credit that can provide short-term funds from sub-
were 1.04% and 0.74%, respectively.
scribing financial institutions amounting to ¥114,000 million
($1,390,244 thousand).
Long-term debt consisted of the following:
Borrowings from banks and other companies,
due 2012 to 2022 with bearing interest rate
ranging from 0.40% to 4.70% at March 31, 2012:
due 2011 to 2021 with bearing interest rate
ranging from 0.42% to 8.00% at March 31, 2011:
Secured
Unsecured
1.76% Japanese yen bonds due 2011
1.70% Japanese yen bonds due 2012
1.40% Japanese yen bonds due 2012
1.17% Japanese yen bonds due 2014
0.58% Japanese yen bonds due 2013
1.38% Japanese yen bonds due 2011
0.94% Japanese yen bonds due 2012
Capital lease obligations
Less amount due within one year
2012
Yen (millions)
2011
U.S. dollars
(thousands)
2012
¥ 935
290,439
—
10,000
40,000
30,000
30,000
—
—
29,247
430,621
88,832
¥341,789
¥ 1,305
253,532
25,000
10,000
40,000
30,000
30,000
14
200
29,396
419,447
137,856
¥281,591
$ 11,402
3,541,939
—
121,951
487,804
365,854
365,854
—
—
356,671
5,251,475
1,083,317
$4,168,158
The aggregate annual maturities of long-term debt outstanding at March 31, 2012 were as follows:
Year ending March 31:
2013
2014
2015
2016
2017
Thereafter
Total
Yen (millions)
U.S. dollars
(thousands)
¥ 88,832
102,192
82,119
55,787
44,811
56,880
¥430,621
$1,083,317
1,246,244
1,001,451
680,329
546,476
693,658
$5,251,475
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 49
Substantially all of the loans with banks and others have basic
Certain of the secured loan agreements contain provi-
written agreements. With respect to all present or future
sions that permit the lenders to require additional collateral,
loans, these agreements state that the Company would need
and substantially all of the unsecured loan agreements permit
to provide collateral or guarantors immediately upon the
the lenders to require collateral or guarantors. Property, plant
banks’ request and that any collateral furnished pursuant to
and equipment carried at ¥1,170 million ($14,268 thousand)
such agreements will be used against repayment of debts in
are pledged as security for long-term loans from banks and
case of default.
others.
(8) TRADE PAYABLES
Trade payables are summarized as follows:
Notes payable
Accounts payable
(9) INCOME TAXES
Total income taxes were allocated as follows:
Income before income taxes
Shareholders’ equity—accumulated other
comprehensive income (loss):
Foreign currency translation adjustments
Pension liability adjustments
Unrealized gains (losses) on securities
Unrealized gains (losses) on derivative instruments
2012
¥ 19,653
680,609
¥700,262
Yen (millions)
2011
¥ 21,781
676,008
¥697,789
U.S. dollars
(thousands)
2012
$ 239,670
8,300,110
$8,539,780
2012
¥105,815
2011
¥77,097
Yen (millions)
2010
¥31,390
U.S. dollars
(thousands)
2012
$1,290,427
(135)
(144)
2,777
37
(1,978)
(1,651)
(6,886)
(7)
550
45,284
12,652
(8)
(1,646)
(1,756)
33,866
451
¥108,350
¥66,575
¥89,868
$1,321,342
The significant components of deferred tax expense attributable to income taxes are as follows:
Change in valuation allowance related
to deferred tax assets
Other
2012
2011
Yen (millions)
2010
¥ (6,686)
70,314
¥63,628
¥ (9,232)
32,020
¥22,788
¥1,633
5,799
¥7,432
U.S. dollars
(thousands)
2012
$ (81,537)
857,488
$775,951
The Company is subjected to a number of income taxes. The
reduced corporation tax rate effective in the fiscal years begin-
statutory tax rate is approximately 41% for the years ended
ning after April 1, 2012. As a result, the Company adjusted
March 31, 2012, 2011 and 2010.
the statutory tax rates to be applied in the calculation of
The “Act for Partial Revision of the Income Tax Act etc.
deferred tax assets and liabilities arising from temporary differ-
for the Purpose of Creating Taxation System Responding
ences expected to be recovered or settled after April 1, 2012.
to Changes in Economic and Social Structures”(Act
No.114 of 2011) and the “Act on Special Measures for
After the adjustment, the statutory tax rates are reduced from
the current approximately 41% to approximately 38% for the
Securing Financial Resources Necessary to Implement
fiscal years from April 1, 2012 to March 31, 2015 and approx-
Measures for Reconstruction following the Great East Japan
imately 35.5% for the subsequent fiscal years after April 1,
Earthquake”(Act No.117 of 2011) were enacted in November
2015.
2011 and promulgated in December 2011, resulting in
For the year ended March 31, 2012, ¥31,967 million
50 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
($389,841 thousand) of income tax expense is included in
Income, as a result of the adjustment of deferred tax assets
“Income taxes – Deferred” in Consolidated Statements of
and liabilities.
The effective tax rate for the years ended March 31, 2012, 2011 and 2010 is reconciled with the Japanese statutory tax rate in
the following table:
Japanese statutory tax rate
Change in valuation allowance
Expenses permanently not deductible for tax purposes
International tax rate difference
Tax credits
Tax effect attributable to investments at equity
Effect of income tax rate change
Other
Effective tax rate
2012
41.0%
(0.3)
1.0
(5.1)
(3.3)
0.9
14.3
(1.3)
47.2%
2011
41.0%
(0.9)
1.0
(6.9)
(4.2)
4.0
—
2.7
36.7%
2010
41.0%
0.7
3.2
(16.5)
(4.1)
23.5
—
1.0
48.8%
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities
at March 31, 2012 and 2011 are as follows:
Yen (millions)
2011
U.S. dollars
(thousands)
2012
Deferred tax assets:
Retirement and severance benefits
Accrued expenses
Property, plant and equipment
Inventories
Pension liability adjustments
Tax loss carryforwards
Other
Total gross deferred tax assets
Valuation allowance
Deferred tax assets, less valuation allowance
Deferred tax liabilities:
Securities contributed to employee
retirement benefit trust
Property, plant and equipment
Net unrealized gains on securities
Other
Total gross deferred tax liabilities
Net deferred tax assets
2012
¥ 93,206
101,762
33,172
41,234
106,170
7,652
70,108
453,304
(55,904)
397,400
30,404
12,135
7,407
33,236
83,182
¥122,238
113,118
40,517
42,699
121,765
7,687
85,216
533,240
(62,590)
470,650
32,856
15,284
4,630
25,576
78,346
¥314,218
¥392,304
$1,136,659
1,241,000
404,537
502,854
1,294,756
93,317
854,975
5,528,098
(681,756)
4,846,342
370,780
147,988
90,329
405,318
1,014,415
$3,831,927
The valuation allowance for deferred tax assets as of April
temporary differences become deductible. Management
1, 2010 was ¥71,822 million. The net change in the total
considers the scheduled reversal of deferred tax liabilities, pro-
valuation allowance for the year ended March 31, 2011 was
jected future taxable income, and tax planning strategies in
a decrease of ¥9,232 million. The net change in the total
making this assessment.
valuation allowance for the year ended March 31, 2012 was
At March 31, 2012, the Company and certain subsidiar-
a decrease of ¥6,686 million ($81,537 thousand). In assessing
ies had net operating loss carryforwards of ¥14,937 million
the realizability of deferred tax assets, management considers
($182,159 thousand) and ¥40,044 million ($488,341 thou-
whether it is more likely than not that some portion or all of
sand) for corporate and local income tax purposes, respective-
the deferred tax assets will be realized. The ultimate realiza-
ly, which were available to offset future taxable income, if any.
tion of deferred tax assets is dependent upon the generation
A significant portion of the net operating loss carryforwards
of future taxable income during the periods in which those
will expire in the years ending March 31, 2017 and 2016.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 51
Net deferred tax assets and liabilities at March 31, 2012 and 2011 are reflected in the accompanying consolidated balance sheets
under the following captions:
Prepaid expenses and other current assets
Other assets
Other liabilities
2012
¥146,077
172,204
(4,063)
¥314,218
Yen (millions)
2011
¥159,559
237,459
(4,714)
¥392,304
U.S. dollars
(thousands)
2012
$1,781,427
2,100,049
(49,549)
$3,831,927
Deferred tax liabilities have not been recognized for undis-
of income. Both interest and penalties accrued as of March
tributed earnings of domestic subsidiaries and some affili-
31, 2012 and 2011, and interest and penalties for the years
ated companies as such income, if distributed in the form of
ended March 31, 2012, 2011 and 2010 are not material.
dividends, is either not taxable under present circumstances
The Company and its subsidiaries file income tax returns
or is not material. Deferred tax liabilities for the undistributed
in Japan and various foreign tax jurisdictions. The tax years
income of foreign subsidiaries and affiliated companies have
that remain subject to examination by major tax jurisdictions
been recognized.
Although the Company believes that there are no sig-
nificant unrecognized tax benefits as of March 31, 2012 and
2011, future determination by tax authorities could affect the
effective tax rate in the future periods.
The Company records interest and penalties related to
additional income tax, etc. in the consolidated statements
are as follows:
Location
Japan
United States
Thailand
Europe
(10) RETIREMENT AND SEVERANCE BENEFITS
Open tax years
2005-2012
2009-2012
2007-2012
2008-2012
The Company has non-contributory and contributory defined
2005, and established a defined contribution plan on April
benefit plans covering substantially all of its employees who
1, 2005. In addition, the Company amended its contributory
meet eligibility requirements.
defined benefit plan and introduced a cash balance pension
Under the non-contributory plans, employees with less
plan. Under the cash balance pension plan, each participant
than twenty years of service are entitled to lump-sum sever-
has a notional account which is credited yearly based on the
ance indemnities at date of severance, and employees with
current rate of contribution and market-related interest rate.
twenty or more years of service are entitled to annuity pay-
The domestic consolidated subsidiaries sponsor various
ments subsequent to retirement, determined by the current
pension plans, which are partially or entirely employees’ pen-
basic rate of pay, length of service and termination condi-
sion fund plan, and/ or corporate pension fund plan, based on
tions. In addition, certain employees who meet the eligibility
each subsidiaries’ respective pension policies.
requirements are entitled to additional lump-sum payments
In addition, the foreign consolidated subsidiaries that
at the date of retirement based on the retirement age. Under
have adopted pension policy mainly sponsors defined contri-
the contributory plans, employees are entitled to annuity
bution pension plan.
payments at a certain age. The assets of certain of the non-
The Company measures the fair value of plan assets and
contributory plans and the contributory plans are combined in
the projected benefit obligation at the end of the year, and
accordance with the regulations and administered by a board
recognizes the funded status (i.e., the difference between the
of trustees comprised equally of employer and employee
fair value of plan assets and the projected benefit obligations)
representatives. An employee retirement benefit trust is estab-
of pension in consolidated balance sheets with the amount of
lished for certain of the non-contributory plans.
The Company amended its benefit plan under labor and
management agreement during the year ended March 31,
corresponding adjustment to Accumulated other comprehen-
sive income（loss（, net of tax.
52 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Obligations and funded status
Reconciliations of beginning and ending balances of the benefit obligations and the fair value of the plan assets are as follows:
Change in benefit obligations:
Benefit obligations at beginning of year
Service cost
Interest cost
Plan participants’ contributions
Amendments
Actuarial loss
Benefits paid
Acquisitions and divestitures, etc.
Benefit obligations at end of year
Change in plan assets:
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contributions
Plan participants’ contributions
Benefits paid
Acquisitions and divestitures, etc.
Fair value of plan assets at end of year
2012
¥1,072,082
29,222
21,838
1,108
—
11,147
(82,476)
49
1,052,970
655,586
15,024
46,238
1,108
(34,456)
(242)
683,258
Yen (millions)
2011
U.S. dollars
(thousands)
2012
¥1,095,652
28,925
22,346
1,129
(576)
82
(74,651)
(825)
1,072,082
637,716
(10,465)
63,243
1,129
(35,579)
(458)
655,586
$13,074,171
356,366
266,317
13,512
—
135,939
(1,005,805)
598
12,841,098
7,994,951
183,220
563,878
13,512
(420,195)
(2,951)
8,332,415
Funded status at end of year
¥ (369,712)
¥ (416,496)
$ (4,508,683)
Amounts recognized in the consolidated balance sheet at March 31, 2012 and 2011 consist of:
Other assets
Other current liabilities
Retirement and severance benefits
2012
¥ 7,912
(5,542)
(372,082)
¥(369,712)
Yen (millions)
2011
¥ 8,192
(5,680)
(419,008)
¥(416,496)
Amounts recognized in accumulated other comprehensive income (loss) at March 31, 2012 and 2011 consist of:
Actuarial gain or loss
Prior service benefit (gain)
2012
¥ 395,639
(100,219)
¥ 295,420
Yen (millions)
2011
¥ 414,793
(117,263)
¥ 297,530
U.S. dollars
(thousands)
2012
$ 96,488
(67,586)
(4,537,585)
$(4,508,683)
U.S. dollars
(thousands)
2012
$ 4,824,866
(1,222,183)
$ 3,602,683
The accumulated benefit obligations for all defined benefit plans were as follows:
Accumulated benefit obligations
2012
¥1,046,736
Yen (millions)
2011
¥1,066,581
U.S. dollars
(thousands)
2012
$12,765,073
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 53
Components of net periodic retirement and severance costs and other amounts recognized in other comprehensive
income (loss)
Net periodic retirement and severance costs for the years ended March 31, 2012, 2011 and 2010 consisted of the following
components:
Service cost
Interest cost on projected benefit obligation
Expected return on plan assets
Amortization of prior service benefit (gain)
Amortization of actuarial loss
Plan participants’ contributions
2012
¥ 30,330
21,838
(12,834)
(17,044)
27,904
50,194
(1,108)
2011
¥ 30,054
22,346
(12,057)
(16,996)
35,107
58,454
(1,129)
Yen (millions)
2010
¥ 32,526
23,108
(10,373)
(15,529)
42,220
71,952
(1,168)
Net periodic retirement and severance costs
¥ 49,086
¥ 57,325
¥ 70,784
U.S. dollars
(thousands)
2012
$ 369,878
266,317
(156,512)
(207,854)
340,293
612,122
(13,512)
$ 598,610
Other changes in plan assets and projected benefit obligations recognized in other comprehensive income (loss) for the years
ended March 31, 2012 and 2011 were summarized as follows:
Actuarial gain or loss
Amortization of actuarial loss (gain)
Prior service benefit (gain)
Amortization of prior service benefit
2012
¥ 8,750
(27,904)
—
17,044
¥ (2,110)
Yen (millions)
2011
¥ 22,785
(35,107)
(576)
16,996
¥ 4,098
U.S. dollars
(thousands)
2012
$ 106,707
(340,293)
—
207,854
$ (25,732)
The estimated actuarial gain or loss and prior service benefit for the defined benefit pension plans that will be amortized from
accumulated other comprehensive income (loss) into net periodic benefit cost over the next year are summarized as follows:
Actuarial gain or loss
Prior service benefit (gain)
Yen (millions)
¥ 21,083
(21,748)
U.S. dollars
(thousands)
$ 257,110
(265,220)
Actuarial assumptions
Actuarial assumptions used to determine benefit obligations at March 31, 2012 and 2011 were as follows:
Discount rate
Assumed rate of increase in future compensation levels
2012
2.0%
1.7%
2011
2.0%
1.7%
Actuarial assumptions used to determine net periodic retirement and severance costs for the years ended March 31, 2012, 2011
and 2010 were as follows:
Discount rate
Assumed rate of increase in future compensation levels
Expected long-term rate of return on plan assets
2012
2.0%
1.7%
2.5%
2011
2.0%
1.7%
2.5%
2010
2.0%
1.7%
2.5%
The expected long-term rate of return is based on actual historical returns and the expectations for future returns of each plan
asset category in which the Company invests.
54 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Plan Assets
The fair values of the Company’s pension plan assets at March 31, 2012 and 2011 were as follows:
Equity securities
Marketable equity securities
Pooled funds
Debt securities
Government, municipal and corporate debt securities
Pooled funds
Other assets
Life insurance company general accounts
Other
2012
Yen (millions)
Level 1
Level 2
Level 3
Total
¥137,940
—
¥ —
141,103
¥ —
—
¥137,940
141,103
3,410
—
22,548
248,523
—
—
25,958
248,523
—
—
83,287
31,296
—
15,151
83,287
46,447
¥141,350
¥526,757
¥15,151
¥683,258
Notes: 1. Marketable equity securities include mainly domestic stocks.
2. Pooled funds of equity securities include approximately 30% domestic stocks and 70% foreign stocks.
3. Pooled funds of debt securities include approximately 70% domestic bonds and 30% foreign bonds.
4. Government, municipal and corporate debt securities of level1 include government debt securities.
Equity securities
Marketable equity securities
Pooled funds
Debt securities
Government, municipal and corporate debt securities
Pooled funds
Other assets
Life insurance company general accounts
Other
2011
Yen (millions)
Level 1
Level 2
Level 3
Total
¥139,744
—
¥ —
164,206
¥—
—
¥139,744
164,206
2,334
—
20,876
207,468
—
—
77,383
43,575
—
—
—
—
23,210
207,468
77,383
43,575
¥142,078
¥513,508
¥—
¥655,586
Notes: 1. Marketable equity securities include mainly domestic stocks.
2. Pooled funds of equity securities include approximately 40% domestic stocks and 60% foreign stocks.
3. Pooled funds of debt securities include approximately 60% domestic bonds and 40% foreign bonds.
4. Government, municipal and corporate debt securities of level 1 include government debt securities.
Equity securities
Marketable equity securities
Pooled funds
Debt securities
Government, municipal and corporate debt securities
Pooled funds
Other assets
Life insurance company general accounts
Other
U.S. dollars (thousands)
2012
Level 1
Level 2
Level 3
Total
$1,682,195
—
$ —
1,720,768
$ — $1,682,195
1,720,768
—
41,586
—
274,976
3,030,768
—
—
316,562
3,030,768
—
—
1,015,695
381,659
—
184,768
1,015,695
566,427
$1,723,781
$6,423,866
$184,768
$8,332,415
The Company’s investment policies are designed to ensure
adequate plan assets are available to provide future pay-
ments of pension benefits to eligible participants. Taking into
account the expected long-term rate of return on plan assets,
the Company formulates an investment portfolio comprised
of the optimal combination of equity and debt securities.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 55
Plan assets are invested in individual equity and debt securi-
ties using the guidelines of the investment portfolio in order
to produce a total return that will match the expected return
on a mid-term to long-term basis. The Company evaluates the
gap between expected return and actual return of invested
plan assets on an annual basis. In addition, taking into the
consideration the management environment and the revision
of regulations, the Company revises the investment portfolio
when and to the extent considered necessary to achieve the
expected long-term rate of return on plan assets based on the
pension asset and liability management method.
The Company’s investment portfolio consists of three
major components: approximately 30% is invested in equity
securities, approximately 65% is invested in debt securities
and investments in life insurance company general accounts,
and approximately 5% is invested in hedge funds. As for
selection of plan assets, the Company has examined the con-
tents of investment, and appropriately diversified investments.
See note 20 which shows categorized input for fair value
measurements by the valuation technique into a three-level
hierarchy.
Each level into which assets are categorized is based on
inputs used to measure the fair value of the assets.
Level 1 assets are comprised principally of equity securi-
ties and government bonds, which are valued using unad-
justed quoted market prices in active markets with sufficient
volume and frequency of transactions. Level 2 assets are
comprised principally of pooled funds that invest in equity
and debt securities, corporate bonds and investments in life
insurance company general accounts. Pooled funds are valued
at their net asset values that are calculated by the sponsor of
the fund. Corporate bonds are valued using quoted prices for
identical assets in markets that are not active. Investments in
life insurance company general accounts are valued at the
amounts that are the conventional interest adding to the
principle amounts calculated by life insurance company. Level
3 assets comprise hedge funds, which are valued based on
unobservable inputs.
An analysis of the changes in Level 3 assets measured at fair value for the year ended March 31, 2012 is as follows:
Balance at beginning of year
Actual return:
Relating to assets sold
Relating to assets still held
Purchases , sales and settlements
Transfers in and/or out of Level 3
Balance at end of year
Yen (millions)
Hedge funds
¥ —
—
(51)
14,000
1,202
¥15,151
U.S. dollars
(thousands)
Hedge funds
$ —
—
(622)
170,732
14,658
$184,768
Cash Flows
The Company expects to contribute ¥47,561 million ($580,012 thousand) to its pension plan in the year ending March 31, 2013.
Estimated future benefit payments are as follows:
Year ending March 31:
2013
2014
2015
2016
2017
2018—2022
Yen (millions)
U.S. dollars
(thousands)
¥ 72,013
68,275
65,585
65,654
59,297
258,452
$ 878,207
832,622
799,817
800,659
723,134
3,151,854
The amount of cost recognized for the Company and certain subsidiaries’ defined contribution plans for the years ended March
31, 2012, 2011 and 2010 were ¥6,938 million ($84,610 thousand), ¥6,709 million and ¥6,225 million, respectively.
(11) SHAREHOLDERS’ EQUITY
Changes in common stock for the years ended March 31, 2012 and 2011 were as follows:
Number of common shares issued:
Balance at beginning of year
Balance at end of year
2012
Shares
2011
2,147,201,551
2,147,201,551
2,147,201,551
2,147,201,551
56 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Conversions into common stock of convertible debenture
issued subsequent to October 1, 1982 and exercise of warrants
were accounted for in accordance with the provisions of the
Japanese Commercial Code by crediting one-half of the con-
version price and exercise price to each of the common stock
account and the capital surplus account.
The Japanese Corporate Law enforced on May 1, 2006
requires that an amount equal to 10% of dividends and other
distributions paid in cash by the Company and its domestic sub-
sidiaries be appropriated as a legal reserve until the aggregated
amount of additional paid-in capital and the legal reserve equal
to 25% of the common stocks. The additional paid-in capital
and the legal reserve may be used to reduce a deficit or trans-
ferred to common stock with a resolution of the shareholders’
meeting.
The amount available for dividends under the Japanese
Corporate Law is based on the amount recorded in the
Company’s books of account in accordance with accounting
standards of Japan. The adjustments included in the accompa-
nying consolidated financial statements to have them conform
with accounting principles generally accepted in the United
States of America, but not recorded in the books of account,
have no effect on the determination of retained earnings avail-
able for dividends under the Japanese Corporate Law. Retained
earnings available for dividends shown in the Company’s books
of account amounted to ¥231,947 million ($2,828,622 thou-
sand) at March 31, 2012.
Cash dividends and appropriations to the legal reserve
charged to retained earnings during the years ended March 31,
2012, 2011 and 2010 represent dividends paid out during the
years and the related appropriations to the legal reserve.
(12) STOCK OPTION PLANS
The Company had granted stock options to directors, execu-
tive officers and senior employees. Under the stock option
plan, options to purchase common stock, granted at the
exercise prices not less than market value at date of grant,
become exercisable in two years after the date of grant and
expire within four years after the date of grant.
The stock option plan activity for the years ended March 31, 2012, 2011 and 2010 is shown as follows:
Outstanding at March 31, 2009
Exercised
Outstanding at March 31, 2010
Outstanding at March 31, 2011
Outstanding at March 31, 2012
(13) OTHER COMPREHENSIVE INCOME (LOSS)
Shares
Weighted average exercise price
Yen
U.S. dollars
16,000
16,000
—
—
—
¥437
437
—
—
¥ —
$ —
$ —
Change in accumulated other comprehensive income (loss) is as follows:
2012
2011
Yen (millions)
2010
U.S. dollars
(thousands)
2012
Foreign currency translation adjustments:
Balance at beginning of year
Adjustments for the year
Balance at end of year
Pension liability adjustments:
Balance at beginning of year
Adjustments for the year
Balance at end of year
Unrealized gains (losses) on securities:
Balance at beginning of year
Adjustments for the year
Balance at end of year
Unrealized gains (losses) on derivative instruments:
Balance at beginning of year
Adjustments for the year
Balance at end of year
Total accumulated other comprehensive income (loss):
Balance at beginning of year
Adjustments for the year
Balance at end of year
¥ (59,400)
(8,254)
(67,654)
¥ (41,524)
(17,876)
(59,400)
¥ (47,499)
5,975
(41,524)
(162,390)
2,234
(160,156)
5,957
6,285
12,242
(86)
51
(35)
(171,674)
9,284
(162,390)
16,600
(10,643)
5,957
89
(175)
(86)
(233,373)
61,699
(171,674)
(4,099)
20,699
16,600
(95)
184
89
$ (724,391)
(100,658)
(825,049)
(1,980,366)
27,244
(1,953,122)
72,647
76,646
149,293
(1,049)
622
(427)
(215,919)
316
¥(215,603)
(196,509)
(19,410)
¥(215,919)
(285,066)
88,557
¥(196,509)
(2,633,159)
3,854
$(2,629,305)
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 57
Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments are as follows:
Before-tax amount
Tax (expense)
or benefit
Yen (millions)
Net-of-tax amount
2012:
Foreign currency translation adjustments:
Amount arising during the year on investments in
foreign entities held at end of year
¥(8,379)
¥ 135
¥(8,244)
Less reclassification adjustments for gains (losses)
included in net income
Net change in foreign currency translation
adjustments during the year
Pension liability adjustments:
Amount arising during the year on pension
liability adjustments
Less reclassification adjustments for gains (losses)
included in net income
Net change in pension liability adjustment
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the year
Less reclassification adjustments for gains (losses)
included in net income
Net change in unrealized gains (losses) on securities
Unrealized gains (losses) on derivative instruments:
Unrealized holding gains (losses) arising during the year
Other comprehensive income (loss)
(10)
(8,389)
—
135
(10)
(8,254)
(8,770)
4,597
(4,173)
10,860
2,090
3,536
5,526
9,062
88
¥ 2,851
(4,453)
144
(654)
(2,123)
(2,777)
6,407
2,234
2,882
3,403
6,285
(37)
¥(2,535)
51
¥ 316
Before-tax amount
Tax (expense)
or benefit
Yen (millions)
Net-of-tax amount
2011:
Foreign currency translation adjustments:
Amount arising during the year on investments in
foreign entities held at end of year
¥(22,684)
¥ 1,948
¥(20,736)
Less reclassification adjustments for gains (losses)
included in net income
Net change in foreign currency translation
adjustments during the year
Pension liability adjustments:
Amount arising during the year on pension
liability adjustments
Less reclassification adjustments for gains (losses)
included in net income
Net change in pension liability adjustment
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the year
Less reclassification adjustments for gains (losses)
included in net income
Net change in unrealized gains (losses) on securities
Unrealized gains (losses) on derivative instruments:
Unrealized holding gains (losses) arising during the year
Other comprehensive income (loss)
58 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
2,830
30
2,860
(19,854)
1,978
(17,876)
(23,921)
9,077
(14,844)
31,554
7,633
(7,426)
1,651
24,128
9,284
(22,250)
8,864
(13,386)
4,721
(17,529)
(182)
¥(29,932)
(1,978)
6,886
7
¥10,522
2,743
(10,643)
(175)
¥(19,410)
2010:
Foreign currency translation adjustments:
Amount arising during the year on investments in
foreign entities held at end of year
¥ 6,100
¥ (550)
¥ 5,550
Before-tax amount
Tax (expense)
or benefit
Yen (millions)
Net-of-tax amount
Less reclassification adjustments for gains (losses)
included in net income
Net change in foreign currency translation
adjustments during the year
Pension liability adjustments:
Amount arising during the year on pension
liability adjustments
Less reclassification adjustments for gains (losses)
included in net income
Net change in pension liability adjustment
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the year
Less reclassification adjustments for gains (losses)
included in net income
Net change in unrealized gains (losses) on securities
Unrealized gains (losses) on derivative instruments:
Unrealized holding gains (losses) arising during the year
Other comprehensive income (loss)
425
6,525
—
(550)
425
5,975
80,292
(34,341)
45,951
26,691
106,983
(10,943)
(45,284)
15,748
61,699
29,832
(11,214)
18,618
3,519
33,351
176
¥147,035
(1,438)
(12,652)
8
¥(58,478)
2,081
20,699
184
¥88,557
Before-tax amount
U.S. dollars (thousands)
Tax (expense)
or benefit
Net-of-tax amount
2012:
Foreign currency translation adjustments:
Amount arising during the year on investments in
foreign entities held at end of year
$(102,183)
$ 1,647
$(100,536)
Less reclassification adjustments for gains (losses)
included in net income
Net change in foreign currency translation
adjustments during the year
Pension liability adjustments:
Amount arising during the year on pension
liability adjustments
Less reclassification adjustments for gains (losses)
included in net income
Net change in pension liability adjustment
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the year
Less reclassification adjustments for gains (losses)
included in net income
Net change in unrealized gains (losses) on securities
Unrealized gains (losses) on derivative instruments:
Unrealized holding gains (losses) arising during the year
Other comprehensive income (loss)
(122)
—
(122)
(102,305)
1,647
(100,658)
(106,951)
56,061
(50,890)
132,439
25,488
(54,305)
1,756
78,134
27,244
43,122
(7,976)
35,146
67,390
110,512
1,073
$ 34,768
(25,890)
(33,866)
41,500
76,646
(451)
622
$(30,914)
$ 3,854
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 59
(14) NET INCOME PER SHARE ATTRIBUTABLE TO MITSUBISHI ELECTRIC CORP.
A reconciliation of the numerators and denominators of the basic and diluted net income per share attributable to Mitsubishi
Electric Corp. calculations is as follows:
Net income attributable to
Mitsubishi Electric Corp.
Effect of dilutive securities
Diluted net income attributable to
Mitsubishi Electric Corp.
Average common shares outstanding
Effect of dilutive securities:
Stock option
Diluted common shares outstanding
Net income per share attributable to
Mitsubishi Electric Corp.:
Basic
Diluted
2012
2011
Yen (millions)
2010
U.S. dollars
(thousands)
2012
¥112,063
—
¥124,525
—
¥28,278
—
$1,366,622
—
¥112,063
¥124,525
¥28,278
$1,366,622
2012
2,146,926,221
—
2,146,926,221
2011
2,146,959,471
—
2,146,959,471
Shares
2010
2,146,133,669
826
2,146,134,495
2012
2011
2010
2012
Yen
U.S. dollars
¥52.20
—
¥58.00
—
¥13.18
13.18
$0.637
—
Diluted net income per share attributable to Mitsubishi Electric Corp. is not presented as no dilutive securities existed as of and
for the year ended March 31, 2012 and 2011.
(15) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Foreign Exchange Risk Management and Interest Rate
Risk Management
The Company and its subsidiaries operate internationally, giv-
ing rise to significant exposure to market risks from changes
in foreign currencies and interest rates. Derivative financial
instruments are comprised principally of foreign exchange
contracts, foreign currency swaps and interest rate swaps uti-
lized by the Company and certain of its subsidiaries to reduce
these risks. The Company and its subsidiaries do not hold or
issue financial instruments for trading purposes.
Contract Amounts, Notional Principal Amounts and
Credit Risk
The Company and its subsidiaries are exposed to risk of credit-
related losses in the event of nonperformance by counterpar-
ties to foreign exchange contracts, foreign currency swaps
and interest rate swaps. The Company believes such risk is
minimal due to the high credit ratings of these counterparties.
Other derivative instruments are debt securities that contain
embedded derivatives with intention to hold for a certain
period. The Company believes that no material risks exist on
its debt securities because the principal of those debt securi-
ties are guaranteed.
Information with Respect to Fair Value Hedge
Certain subsidiaries have entered into foreign currency swaps to
60 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
hedge currency exposure and designate them as fair value hedges.
Information with Respect to Cash Flow Hedges
The Company and certain of its subsidiaries have entered into
forward foreign exchange contracts mainly with forecasted
transactions to hedge against market risks from changes
in foreign currencies and interest rate swap agreements to
modify the interest rate characteristics of a portion of its long-
term debt from a variable to a fixed rate. The Company and
certain of its subsidiaries designate them as cash flow hedges.
The maximum period for cash flow hedges is 15 months. The
Company expects that the amounts of net gain of ¥44 mil-
lion ($537 thousand) in accumulated other comprehensive
income (loss) will be reclassified into earnings over the next
12 months with transactions such as collection of foreign cur-
rency receivables and payment of foreign currency payables
and interests on long-term debt.
Derivatives not designated as hedging Instruments
The Company and certain of its subsidiaries enter into foreign
exchange contracts and certain of foreign currency swaps and
interest rate swaps that are not designated as hedging instru-
ments to hedge against certain foreign currency and interest
rate exposures. The Company and certain of its subsidiaries
recognize the changes in unrealized gains and losses on such
instruments in earnings.
Contract amounts of foreign exchange contracts and foreign currency swaps and notional principal amounts of interest rate
swaps and other derivative instruments at March 31, 2012 and 2011 are as follows:
Foreign exchange contracts:
Forwards to sell foreign currencies
Forwards to buy foreign currencies
Foreign currency swaps
Interest rate swaps
Other derivative instruments
2012
¥91,946
47,207
23,651
7,000
29,800
Yen (millions)
2011
¥129,398
57,395
13,121
7,000
29,800
U.S. dollars
(thousands)
2012
$1,121,293
575,695
288,427
85,366
363,415
The estimated fair values of foreign exchange contracts, foreign currency swaps, interest rate swaps and other derivative instru-
ments at March 31, 2012 and 2011 are as follows:
Derivatives designated as hedging instruments
Consolidated balance sheet line item
2012
Yen (millions)
2011
Asset derivatives
Estimated fair value
U.S. dollars
(thousands)
2012
Foreign exchange contracts
Prepaid expenses and
other current assets
¥72
¥ —
$878
Derivatives designated as hedging instruments
Consolidated balance sheet line item
Foreign exchange contracts
Interest rate swaps
Total
Other current liabilities
Other liabilities
Derivatives not designated as hedging instruments
Consolidated balance sheet line item
Foreign exchange contracts
Foreign currency swaps
Interest rate swaps
Total
Prepaid expenses and
other current assets
Prepaid expenses and
other current assets
Investments in securities
and other
Derivatives not designated as hedging instruments
Consolidated balance sheet line item
Foreign exchange contracts
Foreign currency swaps
Other derivative instruments
Total
Other current liabilities
Other current liabilities
Other fixed liabilities
2012
¥ 16
115
¥131
Yen (millions)
2011
¥ 16
163
¥179
2012
Yen (millions)
2011
Liability derivatives
Estimated fair value
U.S. dollars
(thousands)
2012
$ 195
1,403
$1,598
Asset derivatives
Estimated fair value
U.S. dollars
(thousands)
2012
¥2,339
¥ 580
$28,525
21
108
¥2,468
816
128
¥1,524
2012
¥3,682
27
3,909
¥7,618
Yen (millions)
2011
¥2,208
784
—
¥2,992
256
1,317
$30,098
Liability derivatives
Estimated fair value
U.S. dollars
(thousands)
2012
$44,902
329
47,671
$92,902
The effect of foreign exchange contracts and interest rate swaps designated as cash flow hedges on the consolidated statements
of income for the years ended March 31, 2012 and 2011 are as follows:
Derivatives in cash flow hedging relationships
Foreign exchange contracts
Interest rate swaps
Total
2012
¥ 68
45
¥113
Amount of gain or (loss) recognized in OCI on derivative
(effective portion)
U.S. dollars
(thousands)
Yen (millions)
2011
¥(224)
25
¥(199)
2012
$ 829
549
$1,378
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 61
Derivatives in cash flow hedging relationships
Line item of gain or (loss) recognized
from accumulated OCI into income
(effective portion)
Amount of gain or (loss) recognized from accumulated OCI into income
(effective portion)
U.S. dollars
(thousands)
Yen (millions)
2011
2012
2012
Foreign exchange contracts
Other revenues
(cost and expenses)
¥(16)
¥213
$(195)
The effect of foreign exchange contracts, foreign currency swaps, interest rate swaps and other derivative instruments not desig-
nated as hedging instruments on the consolidated statements of income for the years ended March 31, 2012 and 2011 are set
forth below:
Derivatives not designated as hedging instruments
Line item of gain or (loss) recognized
in income on derivative
Foreign exchange contracts
Foreign currency swaps
Interest rate swaps
Other derivative instruments
Total
(16) SECURITIZATIONS
Other revenues
Other revenues
(cost and expenses)
Other revenues
(cost and expenses)
Other revenues
(cost and expenses)
2012
¥ 3,130
(945)
(20)
(3,909)
¥(1,744)
Amount of gain or (loss) recognized in income on derivative
U.S. dollars
(thousands)
Yen (millions)
2011
¥5,817
2012
$ 38,171
(159)
(11,524)
5
—
¥5,663
(244)
(47,671)
$(21,268)
The Company sells its accounts receivable under several secu-
these receivables.
ritization programs.
The Company recognized losses of ¥450 million ($5,488
When the Company retains subordinated interests in the
thousand), ¥643 million and ¥783 million on the securitiza-
certain accounts receivables after the sale of these receiv-
tions of receivables for the years ended March 31, 2012, 2011
ables, a portion of these, where the Company retains sub-
and 2010, respectively.
ordinated interests, is not taken off the balance sheet and is
Subsequent to securitization, the Company retains collec-
recorded at their fair value. Such carrying value is adjusted to
tion and administrative responsibilities for the receivables. The
reflect the portion that is not expected to be collectible. As of
Company has not recorded a servicing asset or liability since
March 31, 2012, the Company did not retain subordinated
the cost of collection effort is similar to the amount of com-
interests in the certain accounts receivables after the sale of
mission income.
Certain cash flows received from special purpose entities (SPEs) and banks on the above transactions for the years ended March
31, 2012, 2011 and 2010 are as follows:
Proceeds from new securitizations
2012
¥383,396
2011
¥413,959
Yen (millions)
2010
¥366,112
U.S. dollars
(thousands)
2012
$4,675,561
Quantitative information about trade receivables including securitized receivables as of March 31, 2012 and 2011 are as follows:
Trade receivables
Less: Securitized receivables
Total receivables
2012
¥1,039,731
88,995
¥ 950,736
Yen (millions)
2011
¥923,510
132,519
¥790,991
U.S. dollars
(thousands)
2012
$12,679,647
1,085,305
$11,594,342
As of March 31, 2012 and 2011, delinquencies and credit losses of trade receivables including securitized receivables are
immaterial.
62 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
(17) COMMITMENTS AND CONTINGENT LIABILITIES
At March 31, 2012, commitments outstanding for the pur-
chase of property, plant and equipment were ¥15,986 million
($194,951 thousand).
It is common practice in Japan for companies, in the ordi-
nary course of business, to receive promissory notes in settle-
ment of accounts receivable and to subsequently discount
such notes at banks. At March 31, 2012, certain subsidiaries
were contingently liable to trade notes discounted in the
amount of ¥810 million ($9,878 thousand). Certain subsidiar-
ies account for the discounted notes as sale of receivables.
As of March 31, 2012, the Company had no significant
concentrations of credit risk.
While the Company and certain of its subsidiar-
ies are defendants and co-defendants in various lawsuits
and legal actions, based upon the advice of legal counsel,
the Company’s management is of the opinion that dam-
ages, if any, would not have a material adverse effect on
the Company’s consolidated financial position and results of
operations, except for the following cases.
The Company and certain of its subsidiaries move toward
reconciliation with some DRAM purchasers in relation to the
possibility of the violation of competition law concerning
DRAM sales.
In January 2007, the Company received a decision ren-
dered by the European Commission imposing fines for an
infringement of EU Competition Law against its sales of
certain gas-insulated switchgears in Europe. However, there
was a significant inconsistency on recognition of the mate-
rial underlying facts between the European Commission and
the Company. Therefore, the Company had appealed to
the European General Court and was challenging the deci-
sion. In July 2011, the Company received the judgment from
the European General Court which upheld the European
Commission’s decision on the underlying facts while annul-
ling the fine imposed on the Company on the basis that the
European Commission applied inconsistent methods of calcu-
lation to different companies. In September 2011, since there
is still a significant inconsistency on recognition of the material
underlying facts between the European Commission and the
Company, the Company has appealed to the European Court
of Justice and is challenging the decision. On June 27, 2012,
the Company received a part of decision re-rendered by the
European Commission.
Since July 2011, the Company has been subject to inves-
tigation conducted by Japan Fair Trade Commission for a
suspected infringement of Antimonopoly Act in connection
with the sales of certain automotive parts in Japan. Also, the
Company and certain of its subsidiaries have been cooperating
with Competition Law investigations and inquiries conducted
by the United States Department of Justice and the European
Commission regarding the sales of certain automotive parts in
the United States of America and European countries.
As of March 31, 2012, the Company recorded reasonably
estimated amount of ¥21,375 million ($260,671 thousand)
as a reserve for various competition-law-related expenses in
“Other liabilities” relating to the DRAM case in the United
States and in Europe, and the gas-insulated switchgears case
in Europe. The Company is unable to estimate the impact on
the Company’s consolidated financial position and results of
operation as to be arising out of the other legal proceedings.
The following table provides the undiscounted maximum amount of potential future payments for each major group of guaran-
tees at March 31, 2012:
Guarantees of bank loan:
Employees
Affiliated and other companies
Other
Total
Yen (millions)
U.S. dollars
(thousands)
¥ 6,841
1,348
6,368
¥14,557
$ 83,427
16,439
77,658
$177,524
The guarantees for the employees are principally made for
nies are made to enhance their credit, and the term of guar-
their housing loans, and the term of guarantees is 1 year to
antees is 1 year to 3 years.
25 years. The guarantees for the affiliated and other compa-
Change in accrued product warranty for the years ended March 31, 2012 and 2011 is summarized as follows:
Balance at beginning of year
Addition
Utilization
Foreign currency translation adjustments
Balance at end of year
2012
¥49,392
35,690
43,613
(362)
¥41,107
Yen (millions)
2011
¥45,904
44,363
40,420
(455)
¥49,392
U.S. dollars
(thousands)
2012
$602,341
435,244
531,866
(4,414)
$501,305
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 63
(18) MATERIAL OBLIGATIONS
For electronic systems business, it was revealed in January
cooperating with investigations conducted by each of afore-
2012 that the Company had been billing improperly over-
said entities, information over accurate past man-hours has
charged project costs by transferring man-hours among
not been clarified yet. In addition, calculation methods to
different contracts which the Company entered into with
estimate the overcharged man-hour by contract, scope of
the Japanese Ministry of Defense (MOD), Cabinet Satellite
calculation and the factors to estimate the amount of refunds
Intelligence Center (CSICE), Japan Aerospace Exploration
are still under the verification process with these entities, and
Agency (JAXA), National Institute of Information and
it will still take time. Therefore, despite the Company recog-
Communications Technology (NICT) and Ministry of Internal
nizes its obligations concerning refunds, contract penalties and
Affairs and Communications (MIC). Also similar incidents
interest as a result of these overcharges, the Company has not
were identified concerning contracts between four of the
recorded any provision since the amount of liability cannot be
Company’s affiliates and MOD. Consequently, since January
reasonably estimated.
2012, the Company and the aforementioned affiliates have
For the future fiscal years, it may cause material effects
been suspended by those entities from nomination, nor partici-
on the Company’s consolidated results of operation when it
pating in further bidding.
becomes possible to reasonably estimate the amount of such
As of March 31, 2012, although the Company has been
refunds and associated payments.
(19) FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company uses the following methods and assumptions
to estimate the fair value of each class of financial instrument
(c) Long-term trade receivables
The fair value of the Company’s long-term trade receivables is
for which it is practical to estimate its value:
calculated under income approach using market interest rates,
(a) Cash and cash equivalents, Trade receivables, Bank
loans, Trade payables, Accrued expenses and Other
current liabilities
therefore, it is classified in level 2.
(d) Long-term debt
The fair value of the Company’s corporate bonds is calculated
The carrying amount approximates fair value because of the
under market approach using quoted published price, there-
short term nature of these instruments.
fore, it is classified in level 2. The fair value of the Company’s
(b) Short-term investments and Investments in securities
and other
The fair values of most short-term investments and invest-
ments in securities and other are estimated based on quoted
long-term debt is calculated under income approach using
market interest rates, therefore, it is classified in level 2. The
Company excludes the financial instruments relating to lease
activities because its carrying amount approximates fair value.
market prices for these instruments. For other investments
for which there are no quoted market prices, a reasonable
(e) Derivative financial instruments
The fair values of derivative financial instruments, consisting
estimate of fair value could not be made without incurring
principally of foreign exchange contracts, foreign currency
excessive costs.
swaps and interest rate swaps are estimated by obtaining
quotes from brokers. (See note 15 about estimated fair value.)
The estimated fair values of the Company’s financial instruments at March 31, 2012 and 2011 are summarized as follows:
2012
Carrying
amount
Yen (millions)
2011
Estimated
fair value
Carrying
amount
Estimated
fair value
U.S. dollars
(thousands)
Estimated
fair value
2012
Carrying
amount
Nonderivatives:
Assets:
Marketable securities and other
Long-term trade receivables
¥166,824
1,017
¥166,824
1,056
¥173,252
2,090
¥173,252
2,142
$2,034,439
12,402
$2,034,439
12,878
Liabilities:
Long-term debt, including
current portion
401,374
403,718
390,051
392,774
4,894,805
4,923,390
64 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Limitations
Fair value estimates are made at a specific point in time based
and involve uncertainties and matters of significant judgment
on relevant market information and information about the
and therefore cannot be determined with precision. Changes
financial instrument. These estimates are subjective in nature
in assumptions could significantly affect the estimates.
(20) FAIR VALUE MEASUREMENTS
The Company defines fair value as “the price that would be
the asset or liability.
received to sell an asset or paid to transfer a liability in an orderly
Level 3 : Unobservable inputs for the asset or liability.
transaction between market participants at the measurement
date”. On that basis, the Company has categorized the inputs for
Starting in the fourth quarter of this year, the Company applies
fair value measurement by the valuation technique into a three-
FASB ASU 2011-04 ”Amendments to Achieve Common Fair
level hierarchy, and placed the order of priority.
Level 1 : Quoted prices in active markets for identical assets
Value Measurement and Disclosure Requirements in U.S. GAAP
and IFRSs”. ASU 2011-04 intends to align the fair value mea-
or liabilities.
surement and disclosure in U.S. GAAP and IFRSs, and expands
Level 2 : Inputs other than quoted prices included within
Level 1 that are directly or indirectly observable for
the disclosure requirements of ASC Topic 820.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as
of March 31, 2012 and 2011. The Company measures the fair value of those assets and liabilities in accordance with the require-
ments of FASB ASC for those assets and liabilities.
Assets:
Equity securities
Marketable equity securities
Debt securities
Government, municipal and corporate debt securities, and others
Investment trusts
Derivatives
Liabilities:
Derivatives
Assets:
Equity securities
Marketable equity securities
Debt securities
Government, municipal and corporate debt securities, and others
Investment trusts
Derivatives
Liabilities:
Derivatives
Assets:
Equity securities
Marketable equity securities
Debt securities
Government, municipal and corporate debt securities, and others
Investment trusts
Derivatives
Liabilities:
Derivatives
Level 1
Level 2
Level 3
Total
2012
Yen (millions)
¥119,054
¥ —
¥—
¥119,054
—
—
—
—
44,288
3,482
2,540
7,749
—
—
—
—
44,288
3,482
2,540
7,749
Yen (millions)
Level 1
Level 2
Level 3
Total
2011
¥120,563
¥ —
¥—
¥120,563
1,506
—
—
47,505
3,678
1,524
—
3,171
—
—
—
—
49,011
3,678
1,524
3,171
U.S. dollars (thousands)
Level 1
Level 2
Level 3
Total
2012
$1,451,878
$ —
$— $1,451,878
—
—
—
—
540,098
42,463
30,976
94,500
—
—
—
—
540,098
42,463
30,976
94,500
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 65
Level 1 equity securities are marketable equity securities,
and frequency of transactions. Level 2 debt securities are
which are valued using unadjusted quoted market prices in
valued based on market approach, using quoted prices for
active markets with sufficient volume and frequency of trans-
identical assets in markets that are not active. Level 2 deriva-
actions. Debt securities are comprised of government, munici-
tives are comprised principally of foreign exchange contracts,
pal and corporate debt securities and others, and investment
which are valued based on market approach, using quotes
trusts. Level 1 debt securities are valued using unadjusted
obtained from counterparties or third parties.
quoted market prices in active markets with sufficient volume
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
At March 31, 2012, in accordance with the requirements of
FASB ASC Topic 360 “Property, Plant and Equipment”, long-
lived assets were written down to their fair value of ¥6,423
million ($78,329 thousand), resulting in an impairment charge
of ¥3,782 million ($46,122 thousand), which was included
in loss on impairment of long-lived assets for the year ended
March 31, 2012. The impaired long-lived assets are clas-
sified as Level 3 assets, because they are measured based
on the unobservable inputs such as estimated future cash
flows under income approach or net sale price under market
approach.
The valuation process of long-lived assets is docu-
mented in “Notes to Consolidated Financial Statements (1)
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (u)Impairment of Long-Lived Assets”.
At December 31, 2010, equity securities with an equity
method were written down to their fair value of ¥8,348 mil-
lion, resulting in an other-than-temporary impairment charge
of ¥8,414 million, which was included in equity in earnings
(losses) of affiliated companies for the year ended March 31,
2011. The impaired equity securities were classified as Level
1 instruments, because they were measured by the quoted
prices in active markets.
At March 31, 2011, long-lived assets were written down
to their fair value of ¥6,040 million, resulting in an impair-
ment charge of ¥4,005 million, which was included in loss on
impairment of long-lived assets for the year ended March 31,
2011. The impaired long-lived assets were classified as Level
3 assets, because they were measured by the unobservable
inputs, based on income approach.
(21) SUPPLEMENTARY INCOME AND EXPENSE INFORMATION
Advertising expenses
Shipping and handling costs
Exchange gains (losses)
Business restructuring costs
Loss on disaster
Loss on impairment of long-lived assets
2012
¥(18,372)
(73,283)
(2,000)
—
—
(3,782)
2011
¥(17,053)
(74,782)
(10,174)
(2,501)
(5,456)
(4,005)
Yen (millions)
2010
¥(16,462)
(63,198)
68
—
—
(16,942)
U.S. dollars
(thousands)
2012
$(224,049)
(893,695)
(24,390)
—
—
(46,122)
Advertising expenses are included in “Costs and expenses—
Selling, general and administrative”.
Shipping and handling costs represents the costs included
in “Costs and expenses—Selling, general and administrative”.
Exchange gains (losses) are included in “Revenues—
Other” and “Costs and expenses—Other”.
Business restructuring costs are included in “Costs and
expenses—Other”.
For the year ended March 31, 2011, the Company rec-
ognized business restructuring costs of ¥2,501 million for the
after-sale service expense and retirement benefits and others
associated with the restructuring of the visual equipment busi-
nesses in North America.
Loss on disaster is included in “Costs and expenses
—Other”.
For the year ended March 31, 2011, the Company rec-
ognized disaster losses of ¥5,456 million for the repair and
removal of facilities, the disposal and inspection of inventories
and restoration support for counterparties which is suffered
from an earthquake associated with the recovery from dam-
age suffered from the Great East Japan Earthquake.
Loss on impairment of long-lived assets is included in
“Costs and expenses—Loss on impairment of long-lived
assets.”
For the year ended March 31, 2012, the Company and
certain of its subsidiaries recognized impairment losses of
¥3,367 million ($41,061 thousand) for tangible assets such as
buildings and machinery as well as ¥415 million ($5,061 thou-
sand) for intangible assets. The impairment losses included
¥2,429 million ($29,622 thousand) for the Electronic Devices
business related assets and ¥1,110 million ($13,537 thousand)
for the Home Appliances business related assets due to a
decline in the profitability. The impairment losses were mainly
measured based on the fair value less cost to sell.
66 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
For the year ended March 31, 2011, the Company and
certain of its subsidiaries recognized impairment losses of
¥3,538 million for tangible assets such as buildings and
machinery as well as ¥467 million for intangible assets. The
impairment losses included ¥1,879 million for the Home
Appliances business related assets due to a decline in the
profitability and ¥1,908 million for the welfare related assets.
The impairment losses were mainly measured based on the
fair value less cost to sell.
For the year ended March 31, 2010, the Company and
certain of its subsidiaries recognized impairment losses of
¥16,425 million for tangible assets such as buildings and
machinery as well as ¥517 million for intangible assets. The
impairment losses included ¥11,053 million for the Home
Appliances business related assets due to a decline in the
profitability and ¥5,436 million for the welfare related assets.
The impairment losses were mainly measured based on the
fair value of the discounted present value of expected future
cash flow.
(22) LEASES
The Company and certain of its subsidiaries enter into
capital lease and operating lease agreements with Mitsubishi
Electric Credit Corporation, an equity method investee. The
leased assets, which are committed under capital lease agree-
ments, are capitalized.
The Company and certain of its subsidiaries lease machin-
ery and equipments. At March 31, 2012, the aggregated cost
and accumulated depreciation of leased assets under capital
leases amounted to ¥48,606 million ($592,756 thousand) and
¥25,281 million ($308,305 thousand), respectively.
Future minimum lease payments under capital and non-cancelable operating leases as of March 31, 2012 are as follows:
Year ending March 31:
2013
2014
2015
2016
2017
Thereafter
Total minimum lease payments
Less: Estimated executory costs
Net minimum lease payments
Less: Amount representing interest
Present value of net minimum capital lease payments
Less: Current portion of obligations under capital leases
Obligations under capital leases, excluding current portion
Yen (millions)
U.S. dollars
(thousands)
Capital leases Operating leases
Capital leases Operating leases
¥ 4,510
3,229
2,357
1,366
812
677
¥12,951
¥11,050
9,506
5,380
3,004
812
76
29,828
278
29,550
303
29,247
10,712
¥18,535
$ 55,000
39,378
28,744
16,659
9,902
8,256
$157,939
$134,756
115,927
65,610
36,634
9,902
927
363,756
3,390
360,366
3,695
356,671
130,634
$226,037
Rental expenses related to operating leases for the years
ended March 31, 2012, 2011 and 2010 amounted to
¥42,076 million ($513,122 thousand), ¥41,007 million and
¥40,760 million, respectively. These operating leases are for
office space, warehouses, employee facilities and computer
equipment, and are customarily renewed.
(23) SUPPLEMENTARY CASH FLOW INFORMATION
Cash paid during the year for:
Interest
Income taxes
2012
2011
Yen (millions)
2010
¥ 6,413
65,901
¥ 7,722
34,166
¥ 8,748
17,596
U.S. dollars
(thousands)
2012
$ 78,207
803,671
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 67
(24) SEGMENT INFORMATION
Starting from financial results for the fiscal year ended March
The Company conducts business through 6 reportable
31, 2010, the Company discloses its segment information in
business segments, Energy and Electric Systems, Industrial
accordance with FASB ASC Topic 280 “Segment Reporting”.
Automation Systems, Information and Communication
Operating segment presented below is identified based
Systems, Electronic Devices, Home Appliances, and Others,
on the segments for which separate financial information
based on types and characteristics of products, production
is available, and is periodically used for decision of business
method, and similarity in market.
resources allocation and evaluation of business operation by
the Company’s management.
Principal businesses of each segment are as follows:
Energy and
Electric Systems
Industrial
Automation
Systems
Turbine generators, hydraulic turbine generators, nuclear power plant equipment, motors, transformers, power
electronics equipment, circuit breakers, gas insulated switches, switch control devices, surveillance-system control
and security systems, large display devices, electrical equipment for locomotives and rolling stock, elevators,
escalators, building security systems, building management systems, particle beam treatment systems, and others
Programmable logic controllers, inverters, servomotors, human-machine interface, motors, hoists, magnetic
switches, no-fuse circuit breakers, short-circuit breakers, transformers for electricity distribution, time and power
meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical-discharge
machines, laser processing machines, industrial robots, clutches, automotive electrical equipment, car electronics
and car mechatronics, car multimedia, and others
Information and
Communication
Systems
Wireless and wired communications systems, surveillance cameras, satellite communications equipment, satellites,
radar equipment, antennas, missile systems, fire control systems, broadcasting equipment, data transmission
devices, network security systems, information systems equipment, systems integration, and others
Electronic Devices
Power modules, high-frequency devices, optical devices, LCD devices, microcomputers, system LSIs, and others
Home Appliances
LCD televisions, projection TVs, display monitors, projectors, blu-ray disc recorders, room air conditioners, package air
conditioners, air-to-water heat pump boilers, refrigerators, electric fans, ventilators, photovoltaic power generation sys-
tems, hot water supply systems, LED lamps, fluorescent lamps, indoor lighting, compressors, chillers, dehumidifiers, air
purifiers, showcases, cleaners, rice cookers, microwave ovens, IH cooking heaters, and others
Others
Procurement, logistics, real estate, advertising, finance and other services
Intersegment transactions are conducted generally at the price that the Company’s management recognizes as approximate
arm's length price. Operating income (loss) in Segment Information is measured in a manner consistent with consolidated oper-
ating income.
Segment Information
Segment information in the years ended March 31, 2012, 2011 and 2010 are as follows:
As of and for the year ended March 31, 2012
Yen (millions)
Energy and
Electric Systems
Industrial
Automation
Systems
Information and
Communication
Systems
Electronic
Devices
Home
Appliances
Others
Subtotal
Eliminations
and other
Total
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets, depreciation
and amortization,
loss on impairment of
long-lived assets, and
capital expenditures
Assets
Depreciation and
amortization
Loss on impairment of
long-lived assets
Capital expenditures
¥1,018,949
8,166
1,027,115
942,195
¥ 84,920
¥967,779
10,601
978,380
877,188
¥101,192
¥489,824
26,530
516,354
495,042
¥ 21,312
¥170,412
30,387
200,799
197,214
¥ 3,585
¥821,270
28,004
849,274
826,916
¥ 22,358
¥171,234
440,385
611,619
591,271
¥ 20,348
¥3,639,468
544,073
4,183,541
3,929,826
¥ 253,715
¥ — ¥3,639,468
—
3,639,468
3,414,024
¥ 225,444
(544,073)
(544,073)
(515,802)
¥ (28,271)
¥1,064,369
¥855,710
¥477,646
¥147,926
¥636,835
¥191,056
¥3,373,542
¥ 18,109
¥3,391,651
24,365
43,380
29,036
11,207
26,678
5,480
140,146
—
30,269
—
56,487
—
22,116
2,429
21,424
1,110
35,160
243
5,620
3,782
171,076
—
—
—
140,146
3,782
171,076
68 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
As of and for the year ended March 31, 2011
Yen (millions)
Energy and
Electric Systems
Industrial
Automation
Systems
Information and
Communication
Systems
Electronic
Devices
Home
Appliances
Others
Subtotal
Eliminations
and other
Total
As of and for the year ended March 31, 2010
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets, depreciation
and amortization,
loss on impairment of
long-lived assets, and
capital expenditures
Assets
Depreciation and
amortization
Loss on impairment of
long-lived assets
Capital expenditures
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income (loss)
II Assets, depreciation
and amortization,
loss on impairment of
long-lived assets, and
capital expenditures
Assets
Depreciation and
amortization
Loss on impairment of
long-lived assets
Capital expenditures
¥1,019,270
8,479
1,027,749
944,694
¥ 83,055
¥921,667
5,335
927,002
826,913
¥100,089
¥465,688
22,227
487,915
474,172
¥ 13,743
¥149,623
26,287
175,910
170,009
¥ 5,901
¥911,788
12,690
924,478
882,470
¥ 42,008
¥177,295
432,121
609,416
594,941
¥ 14,475
¥3,645,331
507,139
4,152,470
3,893,199
¥ 259,271
¥ — ¥3,645,331
—
3,645,331
3,411,570
¥ 233,761
(507,139)
(507,139)
(481,629)
¥ (25,510)
¥1,030,968
¥806,494
¥369,813
¥139,333
¥695,730
¥164,719
¥3,207,057
¥ 125,622
¥3,332,679
21,076
40,193
16,123
10,414
25,280
5,616
118,702
—
22,582
—
35,989
42
12,123
—
15,130
1,879
29,139
2,084
3,323
4,005
118,286
—
—
—
118,702
4,005
118,286
Yen (millions)
Energy and
Electric Systems
Industrial
Automation
Systems
Information and
Communication
Systems
Electronic
Devices
Home
Appliances
Others
Subtotal
Eliminations
and other
Total
¥1,029,573
10,096
1,039,669
964,942
¥ 74,727
¥714,145
18,987
733,132
706,994
¥ 26,138
¥505,192
20,969
526,161
507,489
¥ 18,672
¥119,531
19,454
138,985
146,126
¥ (7,141)
¥813,862
10,817
824,679
819,870
¥ 4,809
¥170,995
381,986
552,981
549,777
¥ 3,204
¥3,353,298
462,309
3,815,607
3,695,198
¥ 120,409
¥ — ¥3,353,298
—
(462,309)
3,353,298
(462,309)
3,258,996
(436,202)
¥ 94,302
¥ (26,107)
¥1,051,406
¥758,993
¥403,024
¥110,978
¥669,638
¥164,873
¥3,158,912
¥ 56,182
¥3,215,094
22,041
48,256
20,477
6,331
29,878
6,055
133,038
6
20,882
—
36,442
50
11,162
397
12,835
11,053
32,380
5,436
5,402
16,942
119,103
—
—
—
133,038
16,942
119,103
U.S. dollars (thousands)
As of and for the year ended March 31, 2012
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets, depreciation
and amortization,
loss on impairment of
long-lived assets, and
capital expenditures
Assets
Depreciation and
amortization
Loss on impairment of
long-lived assets
Capital expenditures
Energy and
Electric Systems
Industrial
Automation
Systems
Information and
Communication
Systems
Electronic
Devices
Home
Appliances
Others
Subtotal
Eliminations
and other
Total
$12,426,207 $11,082,183
129,280
11,931,463
10,697,414
$ 1,035,610 $ 1,234,049
99,586
12,525,793
11,490,183
$5,973,463 $2,078,195
370,573
2,448,768
2,405,048
$ 259,902 $ 43,720
323,537
6,297,000
6,037,098
$10,015,488 $2,088,220 $44,383,756 $ — $44,383,756
—
6,635,037
44,383,756
51,018,793
41,634,439
47,924,708
$ 272,659 $ 248,145 $ 3,094,085 $ (344,768) $ 2,749,317
(6,635,037)
(6,635,037)
(6,290,269)
341,512
10,357,000
10,084,341
5,370,549
7,458,769
7,210,624
$12,980,110 $10,435,488
$5,824,951 $1,803,976
$ 7,766,280 $2,329,951 $41,140,756
$ 220,842
$41,361,598
297,134
529,024
354,098
136,671
325,341
66,830
1,709,098
—
369,134
—
688,866
—
269,707
29,622
261,268
13,537
428,781
2,963
68,537
46,122
2,086,293
—
—
—
1,709,098
46,122
2,086,293
Notes: 1 The amount of unallocatable R&D expenditure included in “Eliminations and other” on “Operating costs” for the years ended March 31, 2012, 2011 and
2010 are ¥28,271 million ($344,768 thousand), ¥25,510 million and ¥26,107 million, respectively.
2 The amount of company-wide shared assets included in “Eliminations and other” on “Assets” for the years ended March 31, 2012, 2011 and 2010 are
¥211,012 million ($2,573,317 thousand), ¥267,159 million and ¥204,551 million, respectively, and those amounts are mainly the Company’s deposit in
bank.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 69
Geographical Information
Sales to external customers by the location of customers, and long-lived assets by the location of the Company and its subsidiar-
ies as of and for the years ended March 31, 2012, 2011 and 2010 are as follows:
As of and for the year ended March 31, 2012
Yen (millions)
Overseas
Sales to external customers
% of total net sales
Long-lived assets
Japan
¥2,419,275
North
America
¥239,566
Asia
(excluding
Japan)
¥590,890
66.5%
6.6%
505,529
12,550
16.2%
66,488
Europe
¥304,233
8.4%
13,127
Others
¥85,504
Overseas total
¥1,220,193
Consolidated
total
¥3,639,468
2.3%
2,235
33.5%
94,400
100.0%
599,929
As of and for the year ended March 31, 2011
Yen (millions)
Overseas
Sales to external customers
% of total net sales
Long-lived assets
Japan
¥2,416,090
66.3%
488,524
North
America
¥251,071
Asia
(excluding
Japan)
¥603,261
6.9%
8,055
16.6%
57,465
Europe
¥289,440
7.9%
13,481
Others
¥85,469
Overseas total
¥1,229,241
Consolidated
total
¥3,645,331
2.3%
2,154
33.7%
81,155
100.0%
569,679
As of and for the year ended March 31, 2010
Yen (millions)
Overseas
Sales to external customers
% of total net sales
Long-lived assets
Japan
¥2,262,834
North
America
¥236,409
Asia
(excluding
Japan)
¥488,613
67.5%
7.0%
467,367
10,182
14.6%
62,647
Europe
¥286,284
8.5%
11,534
Others
¥79,158
Overseas total
¥1,090,464
Consolidated
total
¥3,353,298
2.4%
2,110
32.5%
86,473
100.0%
553,840
As of and for the year ended March 31, 2012
U.S. dollars (thousands)
Overseas
Sales to external customers
% of total net sales
Long-lived assets
Japan
$29,503,354
North
America
$2,921,536
Asia
(excluding
Japan)
$7,205,976
Europe
$3,710,158
Others
$1,042,732
Overseas total
$14,880,402
Consolidated
total
$44,383,756
66.5%
6.6%
16.2%
8.4%
2.3%
33.5%
100.0%
6,164,988
153,049
810,829
160,085
27,256
1,151,219
7,316,207
Notes: The major countries and regions included in each segments are as follows:
(1) North America : United States, and Canada
(2) Asia (excluding Japan) : China, South Korea, Thailand, Malaysia, Singapore, and Indonesia
(3) Europe : United Kingdom, France, Germany, the Netherlands, Spain, and Italy
In addition to the disclosure requirement of FASB ASC Topic 280 “Segment Reporting”, the Company discloses the following
information as supplement.
Geographical Information Based on the Location of the Company and Its Subsidiaries
As of and for the year ended March 31, 2012
Yen (millions)
Japan
North
America
Asia
(excluding
Japan)
Europe
Others
Subtotal
Eliminations
Total
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets
¥2,675,473
511,246
3,186,719
3,007,267
¥ 179,452
¥2,594,841
¥206,359
16,184
222,543
219,204
¥ 3,339
¥177,694
¥416,574
166,314
582,888
548,668
¥ 34,220
¥448,911
¥300,891
9,106
309,997
303,678
¥ 6,319
¥169,676
¥40,171
13
40,184
36,279
¥ 3,905
¥28,783
¥3,639,468
702,863
4,342,331
4,115,096
¥ 227,235
¥3,419,905
¥ —
(702,863)
(702,863)
(701,072)
¥ (1,791)
¥ (28,254)
¥3,639,468
—
3,639,468
3,414,024
¥ 225,444
¥3,391,651
70 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
As of and for the year ended March 31, 2011
Yen (millions)
Japan
North
America
Asia
(excluding
Japan)
Europe
Others
Subtotal
Eliminations
Total
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets
¥2,685,219
491,386
3,176,605
2,999,251
¥ 177,354
¥2,552,679
¥216,536
13,422
229,958
228,595
¥ 1,363
¥155,972
¥419,557
164,270
583,827
540,093
¥ 43,734
¥430,965
¥285,862
8,090
293,952
286,122
¥ 7,830
¥183,427
¥38,157
43
38,200
33,871
¥ 4,329
¥26,958
¥3,645,331
677,211
4,322,542
4,087,932
¥ 234,610
¥3,350,001
¥ —
(677,211)
(677,211)
(676,362)
¥ (849)
¥ (17,322)
¥3,645,331
—
3,645,331
3,411,570
¥ 233,761
¥3,332,679
As of and for the year ended March 31, 2010
Yen (millions)
Japan
North
America
Asia
(excluding
Japan)
Europe
Others
Subtotal
Eliminations
Total
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets
¥2,531,542
354,960
2,886,502
2,836,829
¥ 49,673
¥2,527,697
¥189,927
15,786
205,713
200,182
¥ 5,531
¥130,586
¥325,730
119,992
445,722
418,385
¥ 27,337
¥391,891
¥272,993
9,829
282,822
279,731
¥ 3,091
¥162,568
¥33,106
34
33,140
31,191
¥ 1,949
¥22,101
¥3,353,298
500,601
3,853,899
3,766,318
¥ 87,581
¥3,234,843
¥ —
(500,601)
(500,601)
(507,322)
¥ 6,721
¥ (19,749)
¥3,353,298
—
3,353,298
3,258,996
¥ 94,302
¥3,215,094
As of and for the year ended March 31, 2012
U.S. dollars (thousands)
Japan
North
America
Asia
(excluding
Japan)
Europe
Others
Subtotal
Eliminations
Total
I Net sales and
operating income
Sales:
(1) External customers
(2) Intersegment
Net sales
Operating costs
Operating income
II Assets
6,234,707
38,862,427
36,673,988
$32,627,720 $2,516,573 $5,080,171 $3,669,402 $489,890 $44,383,756 $ — $44,383,756
—
44,383,756
41,634,439
$ 2,188,439 $ 40,719 $ 417,317 $ 77,061 $ 47,622 $ 2,771,158 $ (21,841) $ 2,749,317
$31,644,403 $2,167,000 $5,474,524 $2,069,220 $351,012 $41,706,159 $ (344,561) $41,361,598
(8,571,500)
(8,571,500)
(8,549,659)
8,571,500
52,955,256
50,184,098
2,028,219
7,108,390
6,691,073
111,049
3,780,451
3,703,390
197,366
2,713,939
2,673,220
159
490,049
442,427
Notes: 1 The Company has identified 5 location segments based on geographical proximity, similarity in market, and interconnectedness within business activities.
2 The major countries and regions included in each segments are as follows:
(1) North America : United States, and Canada
(2) Asia (excluding Japan) : China, South Korea, Thailand, Malaysia, Singapore, and Indonesia
(3) Europe : United Kingdom, France, Germany, the Netherlands, Spain, and Italy
3 The amount of company-wide shared assets included in “Eliminations and other” on “Assets” for the years ended March 31, 2012, 2011 and 2010 is
¥211,012 million ($2,573,317 thousand), ¥267,159 million and ¥204,551 million, respectively, and those amounts are mainly the Company’s deposit in
bank.
(25) SUBSEQUENT EVENT
On June 28, 2012, the date the consolidated financial statements were issued, there are no incidence of subsequent events that
would give material effects on the Company’s consolidated financial position and results of operations.
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 71
Independent Auditors’ Report
72 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012
Corporate Data / Shareholder Information (As of March 31, 2012)
Corporate Data
Mitsubishi Electric Corporation
Tokyo Building, 2-7-3, Marunouchi,
Chiyoda-ku, Tokyo 100-8310, Japan
Tel: +81(3)3218-2111
Established: January 15, 1921
Paid-in Capital: ¥175,820 million
Shares issued: 2,147,201,551 shares
Employees: 117,314
Major Shareholders
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
State Street Bank and Trust Company
Meiji Yasuda Life Insurance Company
Nippon Life Insurance Company
Mitsubishi Electric Group Employees Shareholding Union
SSBT OD05 OMNIBUS ACCOUNT-TREATY CLIENTS
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Japan Trustee Services Bank, Ltd. (Trust Account 4)
The Chase Manhattan Bank, NA. London SL Omnibus Account
Annual Meeting
The annual meeting of shareholders of the Corporation is normal-
ly held in June each year. In addition, the Corporation may hold a
special meeting of shareholders as necessary, giving at least two
weeks advance notice to shareholders.
Stock Exchange Listings
Japan: Tokyo
Europe: London
Number of Shares
(thousands)
Percentage of
Total
156,653
129,439
102,025
81,862
72,439
50,303
48,905
36,849
35,428
33,899
7.3%
6.0%
4.8%
3.8%
3.4%
2.3%
2.3%
1.7%
1.7%
1.6%
Distribution of Shareholders
Other Corporations
6.4%
Traders of Financial Instruments
1.6%
Foreign Corporations
30.0%
Financial Institutions 44.2%
Individuals and Others 17.8%
Stock Price (Yen)
1,500
1,200
900
600
300
0
’09/4
’10/4
’11/4
The Nikkei Stock Average is based on information copyrighted by Nihon Keizai Shimbun, Inc.
20,000
15,000
10,000
5,000
’12/4
Nikkei Stock Average
(Yen)
MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2012 73
Please address inquiries for further information to:
Mitsubishi Electric Corporation, Corporate Finance Div.
Tokyo Building, 2-7-3, Marunouchi, Chiyoda-ku, Tokyo 100-8310, Japan
Phone: 81-3-3218-2391
X-X01-2-C9000-A HQ1207〈MDOC〉