Mitsubishi Electric Corporation Business Report FY ended Mar. 2016
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of change (%) |
Factors | |
| Overall | ||||
| Sales | 4,394,353 | 4,323,041 | 1.6 |
-Performance improved because of higher sales at Industrial automation systems, Energy and Electric Systems, information and communication systems, and home-appliance business. |
| Operating income | 301,172 | 317,604 | (5.2) |
-Performance was lower due to a drop in profit at Energy and Electric Systems, information and communication systems, and electronic devices business. |
| Net income before taxes and other adjustments | 318,476 | 322,968 | (1.4) | - |
| Profit for the year attributable to owners of the parent | 228,494 | 234,694 | (2.6) | - |
| Industrial automation systems | ||||
| Sales | 1,308,776 | 1,268,858 | 3.1 | -The volume of orders and sales were both higher y/y due to strong demand in the new-car markets in North America and Europe, and favorable currency translation due to the weak yen. |
| Operating income |
159,160 | 145,982 | 9.0 | - |
R&D Activities
Industrial Automation Systems
-The Company is conducting R&D activities in the following areas: factory-automation (FA) control systems; drive systems such as servo motors; power-distribution control devices, industrial robots, electric automotive systems such as electric power steering systems; automotive multi-media devices/equipment; and automatic preventative safety and driver assistance systems.
Autonomous driving
＜EMIRAI3 xAUTO＞
The Company announced that it has developed an automated driving concept car called EMIRAI3 xAUTO. The concept car features a forward-looking camera, a perimeter monitoring camera, a quasi-zenith antenna, ultrasonic sensors, a millimeter-wave radar, and an infrared camera. (From a press release on October 14, 2015)
＜EMIRAI3 xDAS＞
The Company announced that it has developed a new concept car called EMIRAI3 xDAS. The concept car features next-generation driving assistance technologies such as human machine interface (HMI), driver sensing, telematics, and light control. (From a press release on October 8, 2015)
-The Company has developed a new collision-avoidance technology that detects cargo or any obstacles falling from a vehicle ahead and helps apply emergency evasive steering while ensuring safety. The Company also developed a compact AI that can be easily implemented on vehicle equipment, and is planning to put it into practical use from around 2017. (From an article in the Nikkan Jidosha Shimbun on February 20, 2016)
-The Company has developed an indoor positioning system that utilizes wireless LAN communication and acoustic ranging. The system achieves accuracy of less than 1 meter and is expected to be used for applications such as walking navigation in an underground parking lot or warehouse management in locations where GPS signals are not available. The company aims to turn this technology into a practical business solution by April 2017. (From a press release on February 12, 2016)
The Company has developed a technology to detect absent-mindedness in drivers using a machine-learning algorithm. The technology detects drivers' cognitive distractions by analyzing vehicle information and driver's biological patterns, contributing to preventing traffic accidents. A driver sensing unit is expected to incorporate technologies for detecting visually distracted driving due to drowsiness and inattentiveness as well as cognitive distraction. The company aims to commercialize the unit from 2019 or beyond. The system uses a machine-learning technology to analyze time-series data including vehicle information (steering, etc.) and driver information (heart rate, facial orientation, etc.) to warn appropriate driver actions in real time. The driver is alerted about their potentially dangerous driving if his/her actions differ drastically from the algorithm-based prediction of what would be appropriate. (From an article in the Nikkan Jidosha Shimbun on November 4, 2015)
Infotainment (IVI) system
-The Company is introducing an advanced Active Noise Control (ANC) system that cancels less predictable and harmonically unrelated road sounds. Named FLEXConnect.ANC, the system uses XSe ANC technology developed by Mentor Graphics, a U.S.-based provider of electronic design automation software, minimizing engine and road noise to provide a quiet, comfortable environment in the cabin of the vehicle. The new FLEXConnect.ANC with the Mentor Graphics electronic noise cancellation software also allows automakers to reduce cost by removing heavy, noise-dampening materials. FLEXConnect.ANC joins Mitsubishi Electric's existing Ethernet-enabled architectures: FLEXConnect.RSE and FLEXConnect.IVI. (From a press release on May 18, 2015)
R&D Structure
-The R&D centers in Japan, the USA, and Europe, along with the R&D functions at production plants and affiliated companies, conduct basic and applied research, product development activities, and R&D activities on production technology.
Pursuing Synergy Effects
-Masaki Sakuyama, president of the Company, held a corporate strategy briefing for FY 2016 (ending in March 2017) at the Company’s headquarters in Tokyo. During the briefing, Sakuyama announced the Company’s plan to combine its autonomous driving technologies with the group’s existing technologies, businesses, and products in order to produce more synergies. As for the automotive equipment business, one of the company’s eight growth-leading businesses, the Company aims to enhance new areas such as electrification, driver assistance systems, and autonomous driving systems, in addition to alternators, starters, electric power steering systems and its other existing products. The Company also intends to develop advanced autonomous driving technologies that no other company can achieve by utilizing sensing technologies such as vehicle control technologies and millimeter-wave radars, high-precision 3D maps, and quasi-zenith satellites. As for millimeter-wave radars that the company has particular strength in, Sakuyama said, “we are currently upgrading our existing products in order to meet requirement for future model changes.” The Company intends to enhance its development capabilities so that, “our products can be offered for adoption by as wide a range of firms as possible.” (From an article in the Nikkan Jidosha Shimbun on May 30, 2016)
Establishment of Active Safety System Development Group
-The Company has established a new "active safety system development group." The new group will comprehensively oversee the company's research and development activities related to technologies such as active safety and autonomous driving, and issue instructions to the various development teams. The Company established the new organization to increase its R&D capability level and shorten development times for preventative safety systems. The new group, which was established within the Company's automotive component development center on February 16, comprehensively manages the company's work for active safety, autonomous driving, general systems, and more. It carries out coordination and control by presenting target specifications, times for completion, and other details to the company's development teams for various components and subsystems. The new group's R&D activities largely cover four fields: sensors and actuators, Human Machine Interface, communications and information systems. It employs more than 20 people and the Company plans to increase personnel. (From an article in the Nikkan Jidosha Shimbun on March 25, 2016)
New Company to Engage in High-precision Three-dimensional Maps
-Six companies including the Company and nine automakers announced that they will establish "Dynamic Map Planning Co., Ltd." The new company will move forward on the development, verification, and operation of high-precision three-dimensional maps required for autonomous driving and safe driving assistance systems. Dynamic Map Planning will be established in June 2016, and capitalized at JPY 300 million. The Company will own 18%, Zenrin Co., Ltd. and Pasco Corporation 17% each, and Aisan Technology Co., Ltd., Increment P Corporation and Toyota Mapmaster Incorporated 6% each. Isuzu Motors Limited and Suzuki Motor Corporation, Toyota Motor Corporation, Nissan Motor Co., Ltd., Hino Motors, Ltd., Fuji Heavy Industries Ltd. (the maker of Subaru automobiles), Honda Motor Co., Ltd., Mazda Motor Corporation, and Mitsubishi Motors Corporation will each own 3.3%. (From an article in the Nikkan Jidosha Shimbun on May 20, 2016)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Overall | 202,900 | 195,300 | 178,900 |
| -Industrial automation systems | 70,800 | 70,500 | 63,400 |
-The Company has plans to spend JPY 213,000 million in R&D expenses in the fiscal year ending in March 2017.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Overall | 177,801 | 194,458 | 173,968 |
| -Industrial automation systems | 54,653 | 54,238 | 48,550 |
-The Company is making capital investments in the Industrial automation systems to increase production of both factory-automation facilities and automotive equipment and devices.。
Planned Capital Investment |
(In millions of JPY) |
| FY ending Mar. 31, 2017 (Plan) |
Main investment and its purpose | |
| Overall | 260,000 | - |
| -Industrial automation systems | 78,000 | Increase production of factory-automation facilities and automotive equipment and devices |
Outlook for FY ending Mar. 31, 2017 |
(in millions of JPY) |
| FY ending Mar. 31, 2017 (Forecast) |
FY ended Mar. 31, 2016 (Actual Results) |
Rate of Change (%) |
|
| Sales | 4,280,000 | 4,394,353 | (2.6) |
| Operating income | 260,000 | 301,172 | (13.7) |
| Net income before taxes and other adjustments | 280,000 | 318,476 | (12.1) |
| Profit for the year attributable to owners of the parent | 200,000 | 228,494 | (12.5) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Targets and Management Indices
-Targets for the fiscal year ending in March 2021: consolidated sales of JPY 5 trillion or above; operating income of 8% or above
-Management indices: ROE of 10% or above; debt ratio of 15% or lower15%以下」
Major initiatives and business expansions
| Business | Major initiatives for 2014 and after | Details開 |
| Automotive equipment | Released motor generator in August 2014 |
Development was based on environmental concerns, safety, ease of mind, and comfort achieved through high-efficiency equipment/devices and high-level control technology |
| Mitsubishi Electric Automotive de Mexico, S.A. de C.V. (MEAM), a manufacturing and sales company, launched operations. | ||
Production of motors for electric power-steering systems broke the 100 million unit-production mark in December 2014. |
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| High-efficiency alternator was recognized by the European Commission in February 2015 as an innovative technology | ||
| Made additions to and expanded plant building at Mitsubishi Electric Automotive America, Inc. in March 2015. | ||
| Developed the EMIRAI3 xAUTO, a safe, self-driving concept car in October 2015. |