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Mitsubishi Electric_Business Report FY2007
Business Highlights
Highlights in FY2007 (ended Mar. 2008)
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.
* In April 2007, the target was raised from
"less than 20%."
| (in million JPY ) |
FY2007 | FY2006 | Rate of change |
Factors |
| Overall | ||||
| 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. |
| Operating income |
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. |
| Operating income |
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 |
| Operating profit ratio |
More than 5% | 6.6% (the target was met) |
FY2004 : 3.5% FY2005 : F4.4% FY2006 : 6.0% (the target was met) |
| ROE (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) |
R&D
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)
R&D expenses
- 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
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
The Industrial Automation Systems Division will continue its investment focus on expanding production at the Automotive Equipment Group and the Factory Automation Systems Group.
| (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.
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