Mitsubishi Electric_Business Report FY2007

Business Highlights

Highlights in FY2007 (ended Mar. 2008)
(in million
FY2007 FY2006 Rate of
Sales 4,049,818 3,855,745 5.0% Sales increased in its business areas of Energy and Electric Systems; Industrial Automation Systems; Electronic Devices; Home Appliances; and Other Products.
267,205 233,002 14.7% -
Net income 157,977 123,080 28.4% -
Industrial automation systems division
Sales 1,017,503 956,930 6.3% Thanks to strong performance by Japanese automakers in terms of global production volume, both orders and sales increased.
129,257 126,227 2.4% -

Business Strategy (announced in May, 2008)

-The Automotive Equipment Group will enhance its business in the areas of car multimedia, ETC, and other products.

-It will strengthen production operations in North America, Middle and Eastern Europe, Russia, Brazil and Asia (Thailand, Indonesia, the Philippines and India).

-Especially in Japan, it plans to strengthen production operations that manufacture alternators, starters, and other products.

-In Thailand, it will strengthen its eco-car business.

Financial targets

-The Company targets building a strong combination of electric and electronic businesses, making the best use of the synergy effects created.
-In the fiscal year that ended in March 2008, the Company achieved all its business goals.

- Target FY2007 Remarks
profit ratio
More than 5%  6.6%
(the target was met)
FY2004 : 3.5%
FY2005 : F4.4%
FY2006 : 6.0% (the target was met)
(Return on equity)
More than 10%  15.1%
(the target was met)
FY2004 : 10.8% (the target was met)
FY2005 : 11.5% (the target was met)
FY2006 : 12.3% (the target was met)
Ratio of debts payable Less than 15%(*) 15.8%
(the target was met)
FY2004 : 23.9%
FY2005 : 20.9%
FY2006 : 18.6% (the target was met)
* In April 2007, the target was raised from "less than 20%."


R&D Structure

- The Company conducts its development activities, which include areas from basic research, application research, product planning, up to production engineering at its research centers in Japan, the U.S., and Europe, and in addition, at the development divisions at its plants and consolidated subsidiaries. It also carries out joint development activities with universities and research organizations at home and abroad.

- The Industrial Automation Systems Division focuses its development activities in the areas of automotive electric equipment, electric power steering systems and related products, and car multimedia products. 

R&D facilities in Japan (Automotive business)
Facility Location Remarks
Automotive Electronics Development Center Himeji,
Hyogo Pref.
Application research
Himeji works Himeji,
Hyogo Pref.
Product development
Sanda works Sanda,
Hyogo Pref.
Product development
Fukuyama works Fukuyama,
Hiroshima Pref.
Product development

R&D expenses
(in billion JPY) FY2007 FY2006
Overall 148.7 132.7
Industrial automation systems 37.0 28.2
% 24.9% 21.3%

R&D Activities (FY2007)

-The Company developed new-generation (9G) alternators, EPS systems with high-output brushes, and technology for on-board receivers capable of receiving digital broadcasts.

Investment Activities

Capital Expenditure
(in million JPY) FY2007 FY2006
Overall 159,370 153,423
Industrial automation systems 50,230 43,358
% 31.5% 28.3%

The Industrial Automation Systems Division focused its investment activities on increasing production of automotive equipment, and on factory automation systems.

Capital investment projects for FY2008

(in million JPY) FY2008
Overall 170,000
Industrial automation systems 50,500
% 29.7%

The Industrial Automation Systems Division will continue its investment focus on expanding production at the Automotive Equipment Group and the Factory Automation Systems Group.