Mitsubishi Electric Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of
Sales 3,567,184 3,639,468 (2.0) -
152,095 225,444 (32.5) -
Net income 69,517 112,063 (38.0) -
Industrial automation systems
Sales 918,123 967,779 (5.1) -Sales at the automotive electric device business were about the same level as they were the previous year. The Company received fewer orders this past fiscal year because of sluggish sales in Europe of new vehicles and the decrease in new-vehicle sales by Japanese OEMs in China. On the other hand, the economic recovery in North America and eco-car sales incentives in Japan helped support sales volumes.
60,592 101,192 (40.1) -

New Company

-The Company established a new Mexican subsidiary, Mitsubishi Electric Automotive de Mexico, S.A. de C.V., in the State of Queretaro, Mexico. The subsidiary will build a new plant to produce automotive electric equipment, planning to start production and sales in October 2014. In Mexico, global automakers are boosting production capacity or making new entries, as vehicle sales are growing in both the U.S. and Latin America. The Company is looking to win more orders from Japanese and U.S. carmakers through the new subsidiary, aiming to achieve annual sales of 30 billion yen in fiscal year 2017. (From an article in the Nikkan Jidosha Shimbun on Mar. 21, 2013)

Management Strategy (Announced in May 2013)

Automotive Equipment business
-Developing global operations and region-based strategies:
  • China & India: Develop strategies for global R&D activities and production operations, working toward enhancing competitive advantages in developing countries, which are basically low-price markets.
  • Japan, U.S.A., Europe: Launch highly efficient, advanced technology that can respond to the needs for increasing vehicle electrification, fuel efficiency, safety, and comfort.
-Enhancing Production Development
<Environmental and energy-saving issues>
  • Rotary devices: timely development and launch of products that respond to the demand for improved fuel efficiency such as ISS, energy recovery/regeneration, lighter, and smaller.
  • Electric power steering: Develop a range of competitive products that respond to the demand for improved fuel consumption.
  • Devices for electric and hybrid vehicles: Develop highly efficient systems by utilizing every aspect of technological expertise the Company has.
<Information/Communications Devices>
  • Auto multimedia devices: Develop devices enabling internal and external communication, which respond to the evolution taking place in terms of migrating from car-navigation systems to onboard information systems.

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 3,810,000 3,567,184 6.8
Operating income 205,000 152,095 34.8
Net income 110,000 69,517 58.2

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


R&D Expenses

(in millions of JPY)
FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 177,200 169,600 151,700
-Industrial automation systems 58,900 54,900 44,900

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.

-R&D activities at the Automotive Devices Business are conducted as follows:
1) Fundamental technologies: Information Technology R&D Center, Advanced Technology R&D Center, Design Research Center
2) Applied development: Automotive Devices R&D Center
3) Product development: Mitsubishi Electric Ehime Works, Mitsubishi Electric Mita Works, Mitsubishi Electric Fukuyama Works

R&D Activities

Industrial automation systems
-The Company is engaged in developing motors and related parts, mechatronics devices, FA control systems, automotive electric parts, electric power steering systems and parts, car multi-media devices, and other products.

-The Company successfully developed the following products during the fiscal year that ended March 2013.
  • Verification and testing of a smart-grid using an electric vehicle
  • Strengthened its joint-development structure based on a partnership with Volvo in the field of automotive devices.
  • DIATONE SOUND NAVI audio-navigation system
  • 9th generation alternator using regenerative energy technology.

Technological Alliance

-The Company announced that it has been chosen by Volvo Car Corporation as a partner to develop next-generation automotive infotainment systems for all Volvo vehicles launched from November 2013 onwards. Mitsubishi Electric Automotive Europe B.V.'s Gothenburg Technical Center in Gothenburg, Sweden will begin the development of car navigation systems, car audios and audio head units for Volvo in May 2012. (From a press release on May 22, 2012)

Product Development

Display system
-The Company developed a prototype car display system with an optical engine that can project images on curved, oval or triangular screens to suit a wide range of car interiors. The prototype system's single optical engine adapts to a wide range of surfaces, unlike conventional displays that require a designated optical engine designed for a screen's specific curves or shape. Natural, distortion-free images are projected on curved, oval or triangular surfaces through a screen distortion adjustment process that predicts the distortion of images caused by complex curves, and adjusts visual signal input. (From a press release on February 7, 2013)

Three-phase 400V output inverter with all-silicon carbide (SiC) power module
-The Company developed a prototype forced-air-cooled three-phase 400V output inverter with all-silicon carbide (SiC) power modules that has a power density of 50kVA per liter. The inverter is expected to contribute to smaller and lighter power-electronics equipment in automotive and industrial applications, among others. (From a press release on May 23, 2012)

Investment Activities

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 164,626 167,500 126,964
-Industrial automation systems 53,376 45,271 34,116

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

Planned Capital Investment

(In millions of JPY)
FY ending Mar. 31, 2014
Main investment and its purpose
Overall 170,000 -
-Industrial automation systems 55,000 -Increase production of FA and automotive equipment.