Mitsubishi Electric Corporation Business Report FY2010

Business Highlights

Financial Overview

(in million JPY)
  FY2010 FY2009 Rate of
Sales 3,645,331 3,353,298 8.7 -
233,761 94,302 147.9 -
Net income 124,525 28,278 340.4 -
Industrial automation systems division
Sales 927,002 733,132 26.4 -Sales at the Automotive Equipment Business increased year-on-year. Demand in Japan and some countries in Western Europe waned because of the end of sales incentives, while demand in other markets such as China and India, for example, increased.
100,089 26,138 282.9 -

Business Plan (Announced in June 2011)

 Automotive Equipment Business
-Develop more business in emerging-market countries such as China, India, and Brazil.
-Continue developing products designed to respond to regional needs.

Improving its competitive edge through enhanced development activities based on the following key phrases: "environment and energy-saving” and “information communication"

Alternators and starters:
The Company continues to work on timely R&D activities and market launches of products that designed to meet the need for ISS, energy regeneration, high efficiency, compactness, weight reduction, and enhanced fuel economy.

IPUs (Intelligent Power Units):
The Company will improve the competitive edge of its products by leveraging the synergy effects of its technology on semi-conductors and on-board features in the growing HEV and EV markets.

Motor controllers for EPS  (Electric Power Steering) systems:
The Company will develop a competitive product lineup that meets the needs for making vehicles more fuel efficient.

Car multimedia:
The Company will develop multimedia products with greater ability to communicate with on-board units. It will also develop exterior equipment so as to meet the needs for making car navigation systems on-board information centers.

Performance forecast

(in billion JPY)
- FY2011
Sales Operating
Sales Operating
Sales Operating
Overall 3,770.0 230.0 3,645.3 233.7 3,353.2 94.3
Industrial automation systems 980.0 94.0 927.0 100.0 733.1 26.1

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


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 Expenses

(in billion JPY)
- FY2010 FY2009 FY2008
Overall 1,517 133.7 144.4
Industrial automation systems 449 34.7 37.7
% 29.6% 26.0% 26.1%

R&D Activities

-The Company is poised to develop a motor without using rare earth materials for electric and hybrid vehicles to make it available as early as in the fiscal year of 2012. New structure based on the principle of electric magnet and adoption of high density coil wiring technology assure performance equivalent to that of conventional rare earth magnet motors.The Comopany expects production cost of the new motor will be held to the level equal to that of existing motors when its production goes into full operation. The electric products supplier will be proposing the new technology to automobile makers as it continues to be making product improvements, including measures against noise and vibration as well as increasing efficiency in output performance. (From an article in the Nikkan Jidosha Shimbun on February 21, 2011)

-The Company has set the target of downsizing a next-generation inverter module for use in hybrid vehicles by around 30 percent compared with the current model. The company is aiming to achieve the same level of downsizing it has realized for the current third generation by 30 percent in dimensions and 40 percent in weight. The Company is planning to put the new generation product onto the market within the next three years when it gets ready to get into mass production after testing of its performance and durability has been completed. The third generation of the inverter module for hybrids is installed on the Honda Insight that was launched in 2009. Electric-related components with a higher potential for improvement in performance than other auto parts are expected to attain substantial reduction in size, weight and cost. (From an article in the Nikkan Jidosha Shimbun on November. 30, 2010)

 Automotive Equipment for EVs and HEVs
1) IPUs
-The Company will continue to develop IPUs that are more compact and functional based on using power device technology that includes SiCs, and by developing more efficient heat-radiation technology.

2) EV-ECUs
-The Company is increasing the efficiency of both electrical power and electric consumption of EV-ECUs by applying high-level energy management technology.  
-The Company is establishing functional safety technology that will ensure the safety of vehicles.

3) Motors
-The Company is designing fundamental mechanics to make motors smaller, lighter in weight, and more efficient.
-The Company is designing standard platforms for motors that can be put to a wider range of uses.

4) BMUs
-In collaboration with car battery makers, the Company is developing battery discharge control units.

5) Automotive batteries
-The Company is in the pursuit of creating more efficient automotive batteries that incorporate graduated control and the Company's proprietary power exchange technology.
-The Company is optimizing complete systems, aiming to achieve a greater level of compactness and weight reduction.

Product Development

1) Upgraded SiC-IPM
-In February 2011, the Company held a press meeting to make a presentation of its recent development achievements at its headquarters in Tokyo. The company's president Mr. Kenichiro Yamanishi said, "We are now expecting increasing business opportunities in the global market, as requirements for environmentally friendly products are on the rise and infrastructure development in emerging countries is accelerating. The focus of our growth strategy is set on areas with high efficiency such as the environment and energy division, including the automotive equipment business, as well as the social infrastructure-related products division". The company said, "We are planning to spend around 150 billion yen in R&D activities during the business year 2010, while increasing the amount we invest in fast growing areas". One of the company's major technical breakthroughs is the Silicon Carbide (SiC) intelligent power module, a semiconductor device made 100 percent from SiC and integrated with driving circuit and protection circuit. According to the Company, the power module is the first of its kind in the world. Compared with a conventional intelligent module made from ordinary silicon, the SiC intelligent power module can reduce inverter loss by 70 percent, while halving the module volume. In addition to using the new product in general industrial equipment and elevators, the Company intends to work on its application development for automotive use. (From an article in the Nikkan Jidosha Shimbun on February 17, 2011)

2) Motor control unit for electric power steering systems
-The Company announced on Nov. 4 development of the world's smallest, lightest motor controller unit for automotive electric power steering (EPS). It is half in volume and 70% in weight compared to the company's current products thanks to the improved internal structure. The Company has also upgraded the output performance of the motor by 30% through its original technology and optimization of the electromagnetic design. To achieve higher fuel efficiency of automobiles and easier installation of EPS, smaller, lighter motors and controllers of EPS systems are in demand. The company has developed this new motor controller unit to meet these needs. (From an article in the Nikkan Jidosha Shimbun on November. 5, 2010)

3) Car navigation systems with memory function

4) Onboard Diatone speaker, DS-G50, using carbon nanotube.

Investment Activities

Capital Expenditure

(in million JPY)
- FY2010 FY2009 FY2008
Overall 126,964 102,767 150,128
Industrial automation systems 34,116 22,911 44,655
% 26.9% 22.3% 29.7%

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


Investment Activities

In Japan
-The Company announced on January 19 that it will expand the Hirohata Factory at its Himeji Works (Himeji City, Hyogo Prefecture) for manufacture of electric power steering (EPS) products. The Company will establish a new facility to start producing motor control units and other components in August 2012. Once the new operations begin, the company will partly integrate production handled at its existing lines into the new facility to enhance its productivity. The Company is planning to increase its production capacity for EPS products from the current 7 million units to 12 million units a year. (From an article in the Nikkan Jidosha Shimbun on January 20, 2011)

Outside Japan
-The Company announced that it will establish a new subsidiary in China in the middle of April to manufacture and sell electric power steering equipment and car multimedia products. The headquarters and the plant of the new company, Mitsubishi Electric Automotive (China) Co., Ltd., will be situated in the Changshu Southeast Economic Development Zone (CSDZ) in Jiangsu Province. The subsidiary, which will become Mitsubishi Electric's second supply hub in China, will be capitalized at 30 million dollars (approximately 2,450 million yen), of which 90 percent will be invested by Mitsubishi Electric and 10 percent by Mitsubishi Electric (China) Co., Ltd. The plant will have a total floor space of approximately 20,000 square meters on 50,000 square meters of land. The initial investment is expected to reach around the amount of the capital, with operations scheduled to begin in 2012. By business year 2015, the Company aims to boost sales of automotive products in China to about 50 billion yen, which is three to four times the current level. (From an article in the Nikkan Jidosha Shimbun on March 10, 2011)

Capital investment projects for FY2011

- FY2011 Main investment and its purpose
Overall 200,000 -
Industrial automation systems 45,000 -Increase and ratonalize production of FA and automotive equipment.
% 22.5% -