Mitsubishi Electric Corporation Business Report FY ended Mar. 2017

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of change
(%)
Factors
Overall
Sales 4,238,666 4,394,353 3.5

-

Operating income 270,104 301,172 (10.3)

-

Net income before taxes and other adjustments 296,249 318,476 (7.0) -
Profit for the year attributable to owners of the parent 210,493 228,494 (7.9) -
Industrial automation systems
Sales 1,297,646 1,308,776 (0.9) -Despite the fact that new-car sales in Europe were strong, both product orders and sales decreased year-over-year on a consolidated basis because of lower sales in Japan of new mini/sub-compact vehicles and the effect of negative currency translation.
Operating
income
140,073 159,160 (12.0) -

Business Partnership

-The Company announced that it will jointly develop a new automotive receiving chip with u-blox AG (u-blox), a Swiss manufacturer of positioning and wireless communication semiconductors for automobiles. The new receiving chip will be compatible with Centimeter Level Augmentation Service (CLAS). In response to use of the Quasi-Zenith Satellite System in Japan, Mitsubishi Electric will deploy the new product for use in automotive areas such as advanced driver assistance systems and autonomous driving technologies. CLAS is scheduled to be launched as part of the Quasi-Zenith Satellite System service provision in the fiscal year ending in March 2019. CLAS uses positioning augmentation data (L6 signals) sent from quasi-zenith satellites. Mitsubishi Electric will provide support for u-blox's development of the L6 signal compatible automotive receiving chip. (From an article in the Nikkan Jidosha Shimbun on November 7, 2016)

-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, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 201,300 202,900 195,300
-Industrial automation systems 66,400 70,800 70,500

-The Company has plans to spend JPY 213,000 million in R&D expenses in the fiscal year ending in March 2018.

Product Development

Developed High-resolution, Three-dimensional Automated Mapping Technology and Landscape Extraction Technology
-The Company announced that it has developed technologies for automated mapping and extraction of transitions in mapping landscape based on artificial intelligence (AI) and the company's own Mobile Mapping System (MMS). Both technologies will be exhibited for the first time at CeBIT 2017 in Hannover, Germany. The Company plans to sell software utilizing this automated mapping and difference extraction technologies to map publishers including Dynamic Map Planning Corporation in October 2017. The software will be used for the creation of highly precise 3D maps of expressways in Japan. (From a press release on March 16, 2017)

Ultra-compact SiC Invertor for HEVs
-The Company announced that it developed an ultra-compact Sic invertor for HEVs, which will be used in electric vehicles, etc. The Company is now developing ways to launch commercial production, planning to commercialize it on or after the 2021fisal year. The following are the special features of this latest invertor.
・It works on strong HEVs equipped with two motors
・It’s the world’s smallest volume at 5L and the world’s highest level of power density at 86kVA/L.
・It reduces electric-power loss based on the use of a full SiC power semiconductor module, is compact, and improves the fuel efficiency of HEVs.
・The invertor was made smaller and more reliable based on its high heat-dissipating architecture made possible by welding together the power semiconductor module and a cooler.


Developed Automated Design Deep Learning Algorithm
-The Company announced that it has developed the world's first "Automated Design Deep Learning Algorithm," which automatically designs deep learning structures that learn data characteristics and perform inference processing. The algorithm enables the introduction of artificial intelligence without expert knowledge at low cost in a short time. It also realizes various kinds of high-level interference processing and equipment control according to the usage environment. The newly developed algorithm automatically designs deep learning structures using learning data. It exclusively extracts characteristic data from learning data to efficiently establish appropriate networks and reduce trials and error in the design process. (From an article in the Nikkan Jidosha Shimbun on October 26, 2016)

Developed Highly Accurate GPS-based Measuring System
-The Company announced on September 28 that it has developed a new version of its Mitsubishi Mobile Mapping System (MMS), the (MMS)-G220, a highly accurate measuring system that uses car-mounted GPS antennas. The system allows the creation of 3D maps needed to support autonomous driving. It is readily mountable on vehicles because of a new sensor box that integrates sensing devices like GPS antennas and cameras. The company will first introduce the new product in South Korea, where autonomous driving projects are under development. After the initial launch, the system will be introduced in Asia and Oceania in the future to strengthen Mitsubishi Electric's business foundation. The product is expected to be released in Japan in fiscal year 2017 (ending in March 2018). (From an article in the Nikkan Jidosha Shimbun on September 29, 2016)


Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 175,542 177,801 194,458
-Industrial automation systems 60,233 54,653 54,238


-The Company is making capital investments in the Industrial automation systems to increase production of both factory-automation facilities and automotive equipment and devices.。

Capital Investment in Japan

-The Company announced that it will build a new building at Himeji Works' Hirohata Factory to expand its automotive-related business by boosting production of motor generators and inverters for hybrid vehicles (HVs) and electric vehicles (EVs). The investment amount is about JPY 7 billion and the new building will become operational in May 2018. It will produce automotive equipment including motor generators that integrate start up and power generation functions, and inverters for HVs and EVs, which are enjoying brisk demand with the spread of electric-powered vehicles. (From an article in the Nikkan Jidosha Shimbun on March 13, 2017)


Planned Capital Investment

(In millions of JPY)
FY ending Mar. 31, 2018
(Plan)
Main investment and its purpose
Overall 210,000 -
-Industrial automation systems 74,000 Increased production of FA equipment and automotive devices

Outlook for FY ending Mar. 31, 2018

(in millions of JPY)
FY ending Mar. 31, 2018
(Forecast)
FY ended Mar. 31, 2017
(Actual Results)
Rate of Change
(%)
Sales 4,300,000 4,238,666 1.4
Operating income 280,000 270,104 3.7
Net income before taxes and other adjustments 300,000 296,249 1.3
Profit for the year attributable to owners of the parent 215,000 210,493 2.1


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