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Mitsubishi Electric Corporation has begun shipping low-current 3.3kV/400A and 3.3kV/200A versions of a Schottky barrier diode (SBD) embedded silicon carbide (SiC) metal-oxide-semiconductor field-effect transistor (MOSFET) module for large industrial equipment, including rolling stock and electric power systems, from today, June 10.
Together with the existing 3.3kV/800A version, the newly named UnifullTM series comprises three modules to meet the growing demand for inverters capable of increasing power output and power conversion efficiency in large industrial equipment. The new modules will be exhibited at major trade shows, including Power Conversion Intelligent Motion (PCIM) Europe 2024 in Nuremberg, Germany from June 11 to 13.
Mitsubishi Electric’s SBD-embedded SiC-MOSFET modules, including the 3.3kV/800A version released on March 29, feature an optimized package structure to reduce switching loss and improve SiC performance. Compared to existing power modules, UnifullTM modules, significantly reduce switching loss and contribute to higher power output and efficiency in large industrial equipment, making them suitable for auxiliary power supplies in railcars and drive systems with relatively small capacities.
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced that it will launch a web-based service on June 28 to provide data on the design and validation of a proprietary prototype inverter equipped with a module containing three LV100 insulated gate bipolar transistors (IGBTs), aiming to help customers accelerate their development of high-power inverters for applications such as photovoltaic power-generation systems.
Customers involved in developing prototype inverter systems with LV100 packages are expected to use reference information provided by the service to reduce their design, manufacture and validation workloads. The service will be exhibited at major trade shows, including Power Conversion Intelligent Motion (PCIM) Europe 2024 in Nuremberg, Germany from June 11 to 13.
The prototype inverter includes a package of three parallel LV100 industrial IGBTs in a module measuring 100mm x 140mm module, typical of those used in high-power inverter systems. The reference data will include design data, such as geometry, component layout and electrical circuitry, as well as evaluation data such as temperatures, short-circuit protection, current balance and computer-aided engineering (CAE) validation results.Original – Mitsubishi Electric
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Power Integrations announced the launch of the SCALE-iFlex™ XLT family of dual-channel plug-and-play gate drivers for operation of single LV100 (Mitsubishi), XHP™ 2 (Infineon), HPnC (Fuji Electric) and equivalent semiconductor modules up to 2300 V blocking voltage for wind, energy storage and solar renewable energy installations.
This single-board driver enables active thermal management of inverter modules for improved system utilization and reduces the bill-of-material count for increased reliability.
Thorsten Schmidt, product marketing manager at Power Integrations commented: “It’s a real challenge to build a single-board gate driver for these ‘new dual’ style IGBT modules. Our compact new SCALE-iFlex XLT gate drivers fit inside the outline of the module, allowing the drivers to be mounted on the module, which gives converter system designers a high degree of mechanical design freedom.”
SCALE-iFlex XLT dual-channel gate drivers feature Negative Temperature Coefficient (NTC) data reporting – an isolated temperature measurement of the power module – which allows accurate thermal management of converter systems. This enables system designers to optimize thermal design and obtain a 25 to 30 percent converter power increase from the same hardware.
The isolated NTC readout also reduces hardware complexity, eliminating multiple cables, connectors and additional isolation barrier crossing circuits. The new gate drivers employ Power Integrations’ SCALE-2 chip set which minimizes component count, enhancing reliability. The gate driver board also protects the power switches in the event of a short-circuit.
Original – Power Integrations
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Mitsubishi Electric Corporation announced its consolidated financial results for fiscal 2024 (April 1, 2023 – March 31, 2024).
Consolidated Financial Results:
- Revenue: 5,257.9 billion yen (5% increase year-on-year)
- Operating profit: 328.5 billion yen (25% increase year-on-year)
- Profit before income taxes: 365.8 billion yen (25% increase year-on-year)
- Net profit attributable to Mitsubishi Electric Corp. stockholders: 284.9 billion yen (33% increase year-on-year)
The economy in fiscal 2024 continued to see moderate recovery in Japan, however, recovery in consumer spending came to a standstill recently. In the U.S., the economy continued to see recovery primarily in consumer spending despite monetary tightening and other factors.
In China, the economy showed weakness in recovery due to sluggish export as well as slower domestic demand resulting from the real estate recession and other factors. In Europe, both the corporate and household sectors were stagnant due primarily to monetary tightening.
In this environment, the Mitsubishi Electric Group has been working harder than ever to maximize profitability by accelerating business transformation and its business portfolio strategy under its business area management structure, while continuously implementing initiatives to bolster its competitiveness and business structure.
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced an organizational changes and changes in the executive officer structure, and division of duties effective April 1, 2024, pursuant to a resolution passed during a regular meeting of the Board of Directors held on February 20, 2024. The company also announces Executive Officers (Associate) to be appointed on the same date.
1. Organizational Changes (effective April 1, 2024)
(1) Establishment of Sustainability Innovation Group
Mitsubishi Electric intends to comprehensively and strategically promote the creation and strengthening of businesses that solve social issues and the upgrading of business foundations, and transform the company. For this purpose, the company will newly establish Sustainability Innovation Group by integrating Sustainability Planning Division, Corporate Environmental Sustainability Department, and commercialization projects related to Diversity & Inclusion as well as Sustainability.
(2) Establishment of IT Solution Business & Business Process Reengineering Group
Mitsubishi Electric intends to provide a Circular Digital-Engineering management platform, further accelerate collaboration to strengthen the information systems and service businesses, and to strongly promote company-wide measures including business reform of Mitsubishi Electric Group through flexible management of resources. For this purpose, the company will merge Corporate Information Security Division, Corporate Process & Operation Reengineering Group, and Information Systems & Network Service Group to create IT Solution Business & Business Process Reengineering Group.
(3) Establishment of Corporate Strategic Planning Group, Corporate Human Resources Group, Corporate Finance & Accounting Group, and Corporate Legal & Risk Management Group
Mitsubishi Electric intends to establish several overseeing divisions that unite closely related divisions of the company to drive operational efficiency and organizational streamlining, as well as to speed up decisionmaking. For this purpose, the following overseeing divisions will be established: Corporate Strategic Planning Group, which will oversee Corporate Strategic Planning Division, Associated Companies Division, and Three Key Reforms Division; Corporate Human Resources Group, which will oversee divisions related to Human Resources & General Affairs; Corporate Finance & Accounting Group, which will oversee divisions related to Accounting & Finance; and Corporate Legal & Risk Management Group, which will oversee divisions related to Legal Affairs, Intellectual Property & External Relations, Risk Management, Economic Security, Export Control, and Government & External Relations.
2. Changes in Executive Officers (effective April 1, 2024)
Name Assignments and positions (as of April 1, 2024) Assignments and positions (as of February 20, 2024) Kei Uruma Representative Executive Officer, President & CEO Same as left Tadashi Matsumoto Representative Executive Officer, Executive Vice President, Life Business Area(*) Owner (Senior General Manager, Life BA Strategic Planning Office, Representative Director and Chairperson, Mitsubishi Electric Building Solutions Corporation), In charge of Export Control Representative Executive Officer, Executive Vice President, Life Business Area(*) Owner (Senior General Manager, Life BA Strategic Planning Office, Representative Director and President, Mitsubishi Electric Building Solutions Corporation), In charge of Export Control Kunihiko Kaga Representative Executive Officer, Senior Vice President, Industry and Mobility Business Area(*) Owner (Senior General Manager, Industry and Mobility BA Strategic Planning Office, Group President, Automotive Equipment, Representative Director and President, Mitsubishi Electric Mobility Corporation) Representative Executive Officer, Senior Vice President, Industry and Mobility Business Area(*) Owner (Senior General Manager, Industry and Mobility BA Strategic Planning Office), CTO (In charge of Technology Strategies(*)) Noriyuki Takazawa Senior Vice President, Infrastructure Business Area(*) Owner (Senior General Manager, Infrastructure BA Strategic Planning Office) Same as left Satoshi Kusakabe Senior Vice President, CRO (In charge of Legal Affairs & Intellectual Property & Eternal Relations, Risk Management, Economic Security, Export Control and Government & External Relations) Executive Officer, CRO (In charge of Legal Affairs & Compliance, Risk Management, Economic Security, and Export Control) Yoji Saito Executive Officer, CMO (In charge of Global Marketing(*) and Advertising, Vice President, Corporate Marketing) Executive Officer, CMO (In charge of Global Marketing(*) and Advertising, Vice President, Corporate Marketing), In charge of Government & External Relations Eiichiro Mitani Executive Officer, CIO & Business Platform Business Area(*) Owner (In charge of Information Security, Group President, IT Solution Business & Business Process Reengineering Group, Senior General Manager, Business Platform BA Strategic Planning Office) Executive Officer, Business Platform Business Area(*) Owner (Senior General Manager, Business Platform BA Strategic Planning Office, Group President, Information Systems & Network Service), CIO (In charge of Information Security and IT, Vice President, Corporate Process & Operation Reengineering) Kuniaki Masuda Executive Officer, CFO (In charge of Financial Strategy, Accounting, and Finance), In charge of IR and SR Executive Officer, CFO (In charge of Accounting and Finance) Tomonori Sato Executive Officer, CTO (In charge of Technology Strategies(*)), Group President, Defense & Space Systems Executive Officer, Group President, Defense & Space Systems Yoshikazu Nakai Executive Officer, CPO (In charge of Manufacturing(*)), CQO (Vice President, Corporate Quality Assurance Reengineering) Executive Officer, CPO (In charge of Manufacturing(*), Vice President, Corporate Total Productivity Management), CQO (Vice President, Corporate Quality Assurance Reengineering) Satoshi Takeda Executive Officer, CSO (In charge of Corporate Strategic Planning, Operations of Associated Companies, and Three Key Reforms(*)), CDO (In charge of DX, Vice President, Business Innovation) Executive Officer, CSO (In charge of Corporate Strategic Planning, IR and SR, Operations of Associated Companies, Three Key Reforms(*), and Sustainability), CDO (In charge of DX, Vice President, Business Innovation) Yasunari Abe Executive Officer, CHRO (In charge of Global Human Resources Strategy, Human Resources & General Affairs, Senior General Manager, Corporate Human Resources Group), In charge of Public Relations Executive Officer, CHRO (In charge of General Affairs and Human Resources, Senior General Manager, Corporate Human Resources Div.), In charge of Public Relations *Details of areas of responsibility
- Three Key Reforms: Quality assurance reform, organizational culture reform, governance reforms
- Technology Strategies: Intellectual Property, Corporate Research and Development
- Global Marketing: Overseas and Domestic Marketing
- Manufacturing: Corporate Quality Assurance Reengineering, Total Productivity Management
- Infrastructure Business Area: Public Utility Systems, Energy & Industrial Systems, Defense & Space Systems
- Industry and Mobility Business Area: Factory Automation Systems, Automotive Equipment
- Life Business Area: Building Systems, Living Environment & Digital Media Equipment
- Business Platform Business Area: IT Solution Business & Business Process Reengineering
*Details of Chief Officers- CEO: Chief Executive Officer
- CRO: Chief Risk Management Officer
- CMO: Chief Marketing Officer
- CIO: Chief Information Officer
- CFO: Chief Financial Officer
- CTO: Chief Technology Officer
- CPO: Chief Productivity Officer
- CQO: Chief Quality Officer
- CSO: Chief Strategy Officer
- CDO: Chief Digital Officer
- CHRO: Chief Human Resources Officer
3. Retiring Executive Officer (effective March 31, 2024)
Executive Officer Atsuhiro Yabu 4. Changes of Executive Officers (Associate) (effective April 1, 2024)
Name Assignments and positions (as of April 1, 2024) Positions (as of February 20, 2024) Yasumichi Tazunoki Executive Officer, Group President, Living Environment & Digital Media Equipment Same as left Shigeki Kawaji Executive Officer, In charge of Purchasing, Senior General Manager, Corporate Purchasing Div. Same as left Kenichiro Fujimoto Executive Officer, Senior General Manager, Corporate Finance & Accounting Group Executive Officer, Overseeing Accounting and Finance, Senior General Manager, Corporate Accounting Div. Masayoshi Takemi Executive Officer, Group President, Semiconductor & Device Same as left Hideto Negoro Executive Officer, Group President, Public Utility Systems Same as left Masahiro Oya Executive Officer, Vice President, Global Strategic Planning & Marketing Same as left Iwao Oda Executive Officer, Group President, Building Systems, Representative Director and President, Mitsubishi Electric Building Solutions Corporation Executive Officer, Group President, Building Systems, Representative Director and Vice President, Mitsubishi Electric Building Solutions Corporation Hiroshi Tsuchimoto Executive Officer, In charge of Auditing, Senior General Manager, Corporate Strategic Planning Group Executive Officer, In charge of Auditing, Senior General Manager, Corporate Strategic Planning Div. Toshie Takeuchi Executive Officer, Group President, Factory Automation Systems Same as left Soichi Hamamoto Executive Officer, Group President, Energy & Industrial Systems Same as left Toru Oka Executive Officer, In charge of Intellectual Property, Vice President, Corporate Research and Development Executive Officer, In charge of Intellectual Property, Vice President, Corporate Research and Development Michael Corbo Executive Officer, Representative of Americas, Global Strategic Planning & Marketing, President, Mitsubishi Electric US Holdings, Inc., President & CEO, Mitsubishi Electric US, Inc. Same as left Yusuke Sijiki Executive Officer, Vice President, Corporate Total Productivity Management Deputy Vice President, Corporate Total Productivity Management, Senior General Manager, Planning &Administration Dept. Norikazu Yamaguchi Executive Officer, Senior General Manager, Corporate Legal & Risk Management Group Senior General Manager, Legal Affairs & Compliance Div. Seiji Oguro Executive Officer, In charge of Sustainability, Vice President, Sustainability Innovation Group Deputy Senior General Manager, Corporate Strategic Planning Div. 5. Name and Career Summaries of New Officers (as of February 20, 2024) (1) Newly Appointed Executive Officers (Associate)
Yusuke Sijiki March 1989 Completed Master’s course in School of Aeronautics and Astronautics, Kyushu University April 1989 Joined the Company April 2017 Deputy Senior General Manager, Communication Systems Center April 2018 Senior General Manager, Kamakura Works April 2022 Deputy Vice President, Corporate Total Productivity Management April 2023 Deputy Vice President, Corporate Total Productivity Management, Senior General Manager, Planning & Administration Dept. (current position) Norikazu Yamaguchi March 1990 Graduated from Faculty of Law, Chuo University April 1990 Joined the Company October 2020 Deputy Senior General Manager, Legal Affairs & Compliance Div. April 2021 Senior General Manager, Legal Affairs & Compliance Div. (current position) Seiji Oguro March 1994 Graduated from Faculty of Economics, Keio University April 1994 Joined the Company April 2022 Deputy Senior General Manager, Corporate Strategic Planning Div. (current position) Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced its consolidated financial results for the first 9 months and third quarter, ended December 31, 2023, of the current fiscal year ending March 31, 2024 (fiscal 2024).
Consolidated First 9 Months Results (April 1, 2023 – December 31, 2023)
Revenue: 3,782.4 billion yen (6% increase year-on-year) Operating profit: 222.3 billion yen (36% increase year-on-year) Profit before income taxes: Net profit attributable to 249.0 billion yen (32% increase year-on-year) Mitsubishi Electric Corp. stockholders: 186.0 billion yen (34% increase year-on-year) The economy in the first 9 months of fiscal 2024, from April through December 2023, continued to see moderate recovery in Japan, however, recovery in consumer spending and capital expenditures came to a standstill recently. In the U.S., the economy continued to see recovery primarily in consumer spending despite monetary tightening and other factors. In China, the economy showed weakness in recovery due to sluggish export as well as slower domestic demand resulting from the real estate recession and other factors. In Europe, there were slowdowns in the corporate and household sectors due primarily to monetary tightening.
Revenue
Revenue increased by 217.1 billion yen year-on-year to 3,782.4 billion yen due primarily to the weaker yen and price hike. The Life segment saw an increase in the building systems business in Asia (excluding China), Japan and Europe, and the air conditioning systems & home products business also increased primarily in the first half of fiscal 2024 due to robust demand for air conditioners.
The Industry & Mobility segment saw a decrease in the factory automation systems business due mainly to a decline in demand for digital equipment and for products in the decarbonization area such as lithium-ion batteries, while the automotive equipment business saw increases primarily in electric vehicle-related equipment and electrical components.
In the Infrastructure segment, the public utility systems business saw increases in the transportation systems and public utility businesses worldwide. The energy systems business saw increases in the power distribution business worldwide and the power generation business outside Japan, and the defense & space systems business also increased due to large-scale projects for the defense systems and space systems businesses.
The Semiconductor & Device segment increased due to robust demand for power modules. The Business Platform segment saw increases in the system integrations and IT infrastructure service businesses.
Operating profit
Operating profit increased by 59.1 billion yen year-on-year to 222.3 billion yen due to increases in the Life, Industry & Mobility, Infrastructure and Business Platform segments, despite a decrease in the Semiconductor & Device segment. Operating profit ratio improved by 1.3 points year-on-year to 5.9% due mainly to an improvement in cost ratio.
The cost ratio improved by 1.9 points year-on-year due primarily to the weaker yen and price hike. Selling, general and administrative expenses increased by 66.4 billion yen year-on-year, and the selling, general and administrative expenses to revenue ratio deteriorated by 0.4 points year-on-year. Other profit (loss) decreased by 6.1 billion yen year-on-year, and other profit (loss) to revenue ratio deteriorated by 0.2 points year-on-year.
Profit before income taxes
Profit before income taxes increased by 59.9 billion yen year-on-year to 249.0 billion yen due primarily to an increase in operating profit. The profit before income taxes to revenue ratio was 6.6%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 46.7 billion yen year-onyear to 186.0 billion yen due mainly to an increase in profit before income taxes. The net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 4.9%.
Consolidated Financial Results by Business Segment (First 9 Months, Fiscal 2024)
Infrastructure
Revenue: 659.7 billion yen (7% increase year-on-year; recorded 614.6 billion yen) Operating profit: 2.1 billion yen (14.4 billion yen improvement year-on-year; recorded a loss of 12.2 billion yen) The market for the public utility systems business continued to see recovery in the global demand for the transportation systems area and robust investment in the public utility area worldwide. In this environment, orders won by the business increased year-on-year due primarily to increases in the transportation systems business worldwide and the public utility business outside Japan. Revenue also increased year-on-year due primarily to the weaker yen and increases in transportation systems and public utility businesses worldwide.
The market for the energy systems business continued to see capital expenditures of power companies in Japan and robust demand mainly for power supply stabilization worldwide in the expansion of renewable energy. In this environment, orders won by the business increased year-on-year due primarily to increases in the power generation business in Japan and the power distribution business worldwide. Revenue also increased year-on-year due primarily to the weaker yen and increases in the power distribution business worldwide and the power generation business outside Japan.
The defense & space systems business saw an increase in orders year-on-year due to an increase in large-scale projects for the defense systems business. Revenue also increased year-on-year due to an increase in largescale projects for the defense systems and space systems businesses.
As a result, revenue for this segment increased by 7% year-on-year to 659.7 billion yen. Operating profit improved by 14.4 billion yen year-on-year to 2.1 billion yen due primarily to a shift in project portfolios and the deterioration in profitability in the defense & space systems business in the previous fiscal year.
Industry & Mobility
- Revenue: 1,272.8 billion yen (5% increase year-on-year; recorded 1,212.2 billion yen)
- Operating profit: 94.7 billion yen (16.3 billion yen increase year-on-year; recorded 78.4 billion yen)
The market for the factory automation systems business saw a decrease in global demand for digital equipment such as semiconductors as well as for the decarbonization area such as lithium-ion batteries. In this environment, the business saw decreases in both orders and revenue year-on-year.
The market for the automotive equipment business saw a year-on-year increase in sales of new cars due mainly to an improvement in the supply of some semiconductor parts, and robust demand primarily for electric vehicle-related equipment in line with the expansion of the market centering on electric vehicles. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to increases in electric vehicle-related equipment such as motors and inverters, electrical components and advanced driver assistance system (ADAS)-related products in addition to the weaker yen and price hike.
As a result, revenue for this segment increased by 5% year-on-year to 1,272.8 billion yen. Operating profit increased by 16.3 billion yen year-on-year to 94.7 billion yen due primarily to the weaker yen and price hike, despite a shift in product mix, increased costs and other factors.
Life
Revenue: 1,519.4 billion yen (6% increase year-on-year; recorded 1,430.6 billion yen) Operating profit: 104.4 billion yen (33.6 billion yen increase year-on-year; recorded 70.7 billion yen) The market for the building systems business continued to see recovery in the global demand. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to the weaker yen and increases in Asia (excluding China), Japan and Europe.
The market for the air conditioning systems & home products business saw robust global demand for air conditioners due to decarbonization trends worldwide mainly in the first half of fiscal 2024. In this environment, the business saw an increase in revenue year-on-year due mainly to the weaker yen and price hike in addition to an increase in air conditioners in Europe and Asia.
As a result, revenue for this segment increased by 6% year-on-year to 1,519.4 billion yen. Operating profit increased by 33.6 billion yen year-on-year to 104.4 billion yen due primarily to the weaker yen, price hike and an improvement of logistics costs.
Business Platform
Revenue: 96.3 billion yen (5% increase year-on-year; recorded 91.4 billion yen) Operating profit: 5.4 billion yen (0.1 billion yen increase year-on-year; recorded 5.2 billion yen) The market for the information systems & network service business saw robust demand due to updates to legacy systems and digital transformation-related efforts. In this environment, the business saw an increase in orders due to increases in the system integrations and IT infrastructure service businesses. Revenue also increased by 5% year-on-year to 96.3 billion yen.
Operating profit increased by 0.1 billion yen year-on-year to 5.4 billion yen due mainly to an increase in revenue.
Semiconductor & Devices
- Revenue: 214.3 billion yen (3% increase year-on-year; recorded 208.8 billion yen)
- Operating profit: 24.6 billion yen (1.0 billion yen decrease year-on-year; recorded 25.7 billion yen)
The market for the semiconductor & device business saw robust demand for power modules used in railway & power transmission applications. In this environment, the business saw an increase in orders year-on-year due mainly to an increase in power modules used in railway & power transmission applications. Revenue for this segment also increased by 3% year-on-year to 214.3 billion yen due mainly to the weaker yen and an increase in power modules used in industrial and railway & power transmission applications.
Operating profit decreased by 1.0 billion yen year-on-year to 24.6 billion yen due mainly to increased costs.
Others
Revenue: 615.6 billion yen (1% increase year-on-year; recorded 609.4 billion yen) Operating profit: 21.9 billion yen (1.5 billion yen decrease year-on-year; recorded 23.4 billion yen) Revenue increased by 1% year-on-year to 615.6 billion yen due primarily to increases in materials procurement and software. Operating profit decreased by 1.5 billion yen year-on-year to 21.9 billion yen due mainly to a shift in project portfolios.
Consolidated Third-quarter Results (October 1, 2023 – December 31, 2023)
Revenue: 1,243.9 billion yen (1% increase year-on-year) Operating profit: 86.4 billion yen (5% increase year-on-year) Profit before income taxes: Net profit attributable to 89.2 billion yen (4% increase year-on-year) Mitsubishi Electric Corp. stockholders: 65.8 billion yen (2% increase year-on-year) Revenue
Revenue increased by 18.2 billion yen year-on-year to 1,243.9 billion yen due primarily to the weaker yen and price hike. In the Infrastructure segment, the public utility systems business saw an increase in the public utility business worldwide. The energy systems business saw increases in the power distribution business worldwide and the power generation business outside Japan, and the defense & space systems business also increased due to large-scale projects for the defense systems business.
The Industry & Mobility segment saw a decrease in the factory automation systems business due mainly to a decline in demand for digital equipment and for products in the decarbonization area such as lithium-ion batteries, while the automotive equipment business increased due to robust demand primarily for electric vehicle-related equipment and electrical components. The Business Platform segment saw increases in the system integration and IT infrastructure service businesses.
The Semiconductor & Device segment remained substantially unchanged year-on-year. The Life segment saw an increase in the building systems business in Japan, Asia (excluding China) and North America, while the air conditioning systems & home products business decreased due to a decline in demand for air conditioners.
Operating profit
Operating profit increased by 3.7 billion yen year-on-year to 86.4 billion yen due to increases in the Industry & Mobility, Infrastructure and Business Platform segments despite decreases in the Life and Semiconductor & Device segments. Operating profit ratio improved by 0.3 points year-on-year to 7.0% due mainly to an improvement in cost ratio.
The cost ratio improved by 1.4 points year-on-year due primarily to the weaker yen and price hike. Selling,
general and administrative expenses increased by 17.4 billion yen year-on-year, and the selling, general and administrative expenses to revenue ratio deteriorated by 1.1 points year-on-year. Other profit (loss) decreased by 2.2 billion yen year-on-year, and other profit (loss) to revenue ratio remained substantially unchanged year-on-year.
Profit before income taxes
Profit before income taxes increased by 3.2 billion yen year-on-year to 89.2 billion yen due primarily to an increase in operating profit. The profit before income taxes to revenue ratio was 7.2%.
Net profit attributable to Mitsubishi Electric Corporation stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 1.3 billion yen year-onyear to 65.8 billion yen due mainly to an increase in profit before income taxes. The net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 5.3%.
Consolidated Financial Results by Business Segment (Third Quarter, Fiscal 2024)
Infrastructure
Revenue: 233.5 billion yen (10% increase year-on-year; recorded 212.6 billion yen) Operating profit: 11.0 billion yen (7.9 billion yen increase year-on-year; recorded 3.1 billion yen) The market for the public utility systems business continued to see recovery in the global demand for the transportation systems area and robust investment in the public utility area worldwide. In this environment, orders won by the business increased year-on-year due primarily to increases in the transportation systems business worldwide and the public utility business outside Japan. Revenue also increased year-on-year due primarily to the weaker yen and an increase in the public utility business worldwide.
The market for the energy systems business continued to see capital expenditures of power companies in Japan and robust demand primarily for power supply stabilization worldwide in the expansion of renewable energy. In this environment, orders won by the business decreased year-on-year due primarily to a decrease in the power generation business outside Japan, while revenue increased year-on-year due primarily to the weaker yen and increases in the power distribution business worldwide and the power generation business outside Japan.
The defense & space systems business saw increases in both orders and revenue year-on-year due to an increase in large-scale projects for the defense systems business. As a result, revenue for this segment increased by 10% year-on-year to 233.5 billion yen. Operating profit increased by 7.9 billion yen year-on-year to 11.0 billion yen due primarily to a shift in project portfolios and an increase in revenue.
Industry & Mobility
Revenue: 429.0 billion yen (3% increase year-on-year; recorded 417.2 billion yen) Operating profit: 44.8 billion yen (10.4 billion yen increase year-on-year; recorded 34.4 billion yen) The market for the factory automation systems business saw a decrease in global demand for digital equipment such as semiconductors as well as for the decarbonization area such as lithium-ion batteries. In this environment, the business saw decreases in both orders and revenue year-on-year.
The market for the automotive equipment business saw a year-on-year increase in sales of new cars due mainly to an improvement in the supply of semiconductor parts, and robust demand primarily for electric vehicle-related equipment in line with the expansion of the market centering on electric vehicles. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to increases in electric vehicle-related equipment such as motors and inverters, electrical components and ADAS-related products in addition to the weaker yen and price hike.
As a result, revenue for this segment increased by 3% year-on-year to 429.0 billion yen. Operating profit in the factory automation systems business decreased due mainly to a decrease in revenue, while operating profit in the automotive equipment business improved due primarily to an increase in revenue and the price hike. As a result, operating profit for this segment increased by 10.4 billion yen yearon-year to 44.8 billion yen.
Life
Revenue: 472.2 billion yen (4% decrease year-on-year; recorded 490.4 billion yen) Operating profit: 25.8 billion yen (10.8 billion yen decrease year-on-year; recorded 36.6 billion yen) The market for the building systems business continued to see recovery in the global demand. In this environment, the business saw increases in both orders and revenue year-on-year due primarily to the weaker yen and increases in Japan, Asia (excluding China) and North America.
The market for the air conditioning systems & home products business saw a decrease in demand for air conditioners mainly in Europe and North America due primarily to stagnation in capital expenditures and housing starts. In this environment, the business saw a decrease in revenue year-on-year due mainly to a decrease in air conditioners in North America and Europe.
As a result, revenue for this segment decreased by 4% year-on-year to 472.2 billion yen. Operating profit decreased by 10.8 billion yen year-on-year to 25.8 billion yen due primarily to a decrease in revenue.
Business Platform
Revenue: 30.5 billion yen (5% increase year-on-year; recorded 29.0 billion yen) Operating profit: 1.5 billion yen (Substantially unchanged year-on-year; recorded 1.4 billion yen) The market for the information systems & network service business saw robust demand due to updates to legacy systems and digital transformation-related efforts. In this environment, the business saw a decrease in orders year-on-year due mainly to a decrease in the system integrations business, while revenue increased by 5% year-on-year to 30.5 billion yen due to increases in the system integrations and IT infrastructure service businesses.
Operating profit remained substantially unchanged year-on-year to 1.5 billion yen due mainly to a shift in project portfolios.
Semiconductor & Devices
- Revenue: 69.8 billion yen (1% decrease year-on-year; recorded 70.5 billion yen)
- Operating profit: 8.2 billion yen (2.6 billion yen decrease year-on-year; recorded 10.9 billion yen)
The market for the semiconductor & device business saw an increase in demand for power modules used in railway & power transmission applications, while demand for power modules used in consumer applications decreased. In this environment, the business saw a decrease in orders year-on-year due mainly to a decrease in power modules used in industrial and consumer applications, and revenue for this segment also decreased by 1% year-on-year to 69.8 billion yen.
Operating profit decreased by 2.6 billion yen year-on-year to 8.2 billion yen due mainly to a decrease in revenue and increased costs.
Others
Revenue: 207.0 billion yen (1% decrease year-on-year; recorded 209.7 billion yen) Operating profit: 8.3 billion yen (Substantially unchanged year-on-year; recorded 8.3 billion yen) Revenue decreased by 1% year-on-year to 207.0 billion yen due primarily to a decrease in logistics. Operating profit remained substantially unchanged year-on-year to 8.3 billion yen due mainly to a shift in project portfolios.
Financial Standing
An analysis on the status of assets, liabilities and equity on a consolidated basis
Total assets as of the end of this fiscal quarter increased by 212.6 billion yen compared to the end of the previous fiscal year to 5,795.2 billion yen. The change in balance of total assets was mainly attributable to increases in inventories by 129.1 billion yen and other financial assets by 101.3 billion yen.
Inventories increased due primarily to the weaker yen and a change in demand for the Industry & Mobility and Life segments as well as progress in job orders under pertinent contracts.
Total liabilities increased by 42.2 billion yen compared to the end of the previous fiscal year to 2,261.5 billion yen due primarily to an increase in bonds, borrowings and lease liabilities by 163.3 billion yen, despite a decrease in trade payables by 84.6 billion yen. Bonds and borrowings increased by 168.1 billion yen compared to the end of the previous fiscal year to 420.3 billion yen, with the ratio of bonds and borrowings to total assets recording 7.3%, representing a 2.8 point increase compared to the end of the previous fiscal year.
Mitsubishi Electric Corporation stockholders’ equity increased by 165.5 billion yen compared to the end of the previous fiscal year to 3,404.5 billion yen due mainly to net profit attributable to Mitsubishi Electric Corporation stockholders of 186.0 billion yen and an increase in accumulated other comprehensive income of 103.8 billion yen, mainly reflecting the weaker yen and rise in stock prices, despite a decrease due primarily to a dividend payment of 96.9 billion yen. The stockholders’ equity ratio was 58.7%, representing a 0.7 point increase compared to the end of the previous fiscal year.
An analysis on the status of cash flow on a consolidated basis
Cash flows from operating activities for the first 9 months of fiscal 2024 were 198.9 billion yen (cash in), while cash flows from investing activities were 199.0 billion yen (cash out). As a result, free cash flow was 0.0 billion yen. Cash flows from financing activities were 22.0 billion yen (cash out), and cash and cash equivalents at the end of the period decreased by 0.2 billion yen compared to the end of the previous fiscal year to 645.6 billion yen.
Net cash provided by operating activities increased by 230.6 billion yen year-on-year due primarily to an increase in profit and a decrease in payment for inventories.
Net cash used in investing activities increased by 73.1 billion yen year-on-year due mainly to increases in purchase of investment securities and others and purchase of property, plant and equipment despite an increase in proceeds from sale of investment securities and others.
Net cash used in financing activities increased by 22.8 billion yen year-on-year due primarily to an increase in purchase of treasury stock and a decrease in proceeds of short-term borrowings, despite an increase in the proceeds of bonds and long-term borrowings.
Forecast for Fiscal 2024
The consolidated earnings forecast for fiscal 2024, ending March 31, 2024, is unchanged from the announcement on April 28, 2023 as stated below.
Current consolidated forecast for fiscal 2024
Revenue: 5,200.0 billion yen (4% increase year-on-year) Operating profit: 330.0 billion yen (26% increase year-on-year) Profit before income taxes: Net profit attributable to Mitsubishi Electric Corp. 355.0 billion yen (22% increase year-on-year) stockholders: 260.0 billion yen (22% increase year-on-year) Exchange rates for this forecast in the fourth quarter are 145 yen to the U.S. dollar (5 yen weaker than the previous forecast), 155 yen to the euro (5 yen weaker than the previous forecast) and 20.0 yen to the Chinese yuan (unchanged from the previous forecast).
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced the coming release of six new J3-Series power semiconductor modules for various electric vehicles (xEVs), featuring either a silicon carbide metal-oxide semiconductor field-effect transistor (SiC-MOSFET) or a RC-IGBT (Si), with compact designs and scalability for use in the inverters of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). All six J3-Series products will be available for sample shipments from March 25.
The new power modules will be exhibited at the 38th Electronics R&D, Manufacturing and Packaging Technology Expo (NEPCON JAPAN 2024) from January 24 to 26 at Tokyo Big Sight, Japan, as well as other exhibitions in North America, Europe, China and additional locations.
As power semiconductors capable of efficiently converting electricity expand and diversify in response to decarbonization initiatives, the demand is increasing for SiC power semiconductors offering significantly reduced power loss. In the xEV sector, power semiconductor modules are used widely in power conversion devices such as inverters for xEV drive motors.
In addition to extending the cruising range of xEVs, compact, high-power, high-efficiency modules are needed to further downsize batteries and inverters. But due to the high safety standards set for xEVs, power semiconductors used in drive motors must be more reliable than those used in general industrial applications.
Development of these SiC products was partially supported by Japan’s New Energy and Industrial Technology Development Organization (NEDO).
Original – Mitsubishi Electric
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Coherent Corp. announced that it has closed the $1 billion aggregate investment by DENSO CORPORATION and Mitsubishi Electric Corporation in Coherent’s silicon carbide semiconductor business.
Under the terms of the transaction announced on October 10, 2023, DENSO and Mitsubishi Electric each invested $500 million in exchange for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Coherent has separated and contributed the Business to a new subsidiary that will operate the Business. Going forward, all operating and capital expenses of the Business will be funded by the Business. Coherent will control and operate the Business, which will continue to be led by Sohail Khan, Executive Vice President, Wide-Bandgap Electronics.
In connection with the transaction, the Business has entered into arm’s-length long-term supply arrangements with DENSO and Mitsubishi Electric that support their demand for 150 mm and 200 mm silicon carbide (SiC) substrates and epitaxial wafers.
“As I mentioned in October, we are excited to expand our strategic relationships with DENSO and Mitsubishi Electric to capitalize on the significant demand for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair and CEO, Coherent.
“I believe that such a close relationship with two leaders in SiC power devices and modules is the best path forward to maximize shareholder value and position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while ensuring the development of a robust and scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”
“Through this strategic relationship with Coherent, we will secure a stable procurement of SiC wafers, which are critical for battery electric vehicles, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs in all regions around the world,” said Shinnosuke Hayashi, President & COO, Representative Member of the Board at DENSO.
Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device for Mitsubishi Electric, said, “We are pleased that this investment has been successfully completed. Going forward, we will further strengthen our collaboration with Coherent, leveraging their capabilities in development and manufacturing of SiC substrates, to achieve solid growth of our SiC power device business and contribute to a more sustainable world through decarbonization.”
When incorporated into electric vehicles and industrial infrastructure, SiC-based power electronics have demonstrated the potential to significantly reduce carbon dioxide emissions and accelerate the transition to a cleaner and more energy-efficient world.
Market estimates indicate that the SiC total addressable market will grow from $3 billion in 2022 to $21 billion in 2030, representing a 28% compound annual growth rate.
The transaction builds on Coherent’s more than two decades of demonstrated leadership in SiC materials. In recent years, the Company has aggressively invested to scale its manufacturing of 150 mm and 200 mm substrates to address this underserved market.
Over the past two years, Coherent has invested aggressively in capital and R&D for SiC. The closing of this $1 billion combined investment into the Business will accelerate the Company’s capital plans in the coming years. Specifically, the investment will fund the manufacturing expansion of the Business and, in combination with the concurrent supply agreements, enhance its position in the market.
The transaction enables Coherent to increase its available free cash flow to provide greater financial and operational flexibility to execute its capital allocation priorities, as it expects the aggregate $1 billion investment will be used to fund future capital expenditure requirements of the Business.
Original – Coherent
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Mitsubishi Electric Corporation announced that it will enter into a strategic partnership with Nexperia B.V. to jointly develop silicon carbide (SiC) power semiconductors for the power electronics market. Mitsubishi Electric will leverage its wide-bandgap semiconductor technologies to develop and supply SiC MOSFET chips that Nexperia will use to develop SiC discrete devices.
The electric vehicle market is expanding worldwide and is helping to drive the exponential growth of SiC power semiconductors, which offer lower energy loss, higher operating temperatures and faster switching speeds than conventional silicon power semiconductors. The high efficiency of SiC power semiconductors is expected to contribute significantly to global decarbonization and green transformation.
Mitsubishi Electric has established leading positions in applications such as high-speed trains, high-voltage industrial applications and home appliances. The company launched the world’s first SiC power modules for air conditioners in 2010 and became the first supplier of an all-SiC power module for Shinkansen bullet trains in 2015. Mitsubishi Electric has accumulated superior expertise for the development and manufacture of SiC power modules, which are known for their advanced performance and high reliability.
Going forward, Mitsubishi Electric expects to strengthen its partnership with Nexperia, a global leader with decades of experience in the design, manufacture, quality assurance and supply of diverse discrete devices. Nexperia’s devices are used in the automotive, industrial, mobile and consumer markets, contributing to decarbonization and a more sustainable future. Mitsubishi Electric will continue to improve the performance and quality of its SiC chips and focus on the development of power modules using proprietary module technologies.
Mark Roeloffzen, SVP & General Manager Business Group Bipolar Discretes at Nexperia, said: “This mutually beneficial strategic partnership with Mitsubishi Electric represents a significant stride in Nexperia’s silicon carbide journey. Mitsubishi Electric has a strong track record as a supplier of technically proven SiC device and modules. Combined with Nexperia’s high-quality standards and expertise in discrete products and packaging, we will certainly generate positive synergies between both companies – ultimately enabling our customers to deliver highly energy efficient products in the industrial, automotive or consumer markets they serve.”
Masayoshi Takemi, Executive Officer and Group President, Semiconductor & Device at Mitsubishi Electric, said: “Nexperia is a leading company in the industrial sector with proven technologies for high quality discrete semiconductors. We are delighted to enter into this co-development partnership that will leverage the semiconductor technologies of both companies.”
Original – Mitsubishi Electric
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Mitsubishi Electric Corporation announced its consolidated financial results for the first half and second quarter, ended September 30, 2023, of the current fiscal year ending March 31, 2024 (fiscal 2024).
Consolidated Half-year Results (April 1, 2023 – September 30, 2023)
- Revenue: 2,538.4 billion yen (9% increase year-on-year)
- Operating profit: 135.8 billion yen (69% increase year-on-year)
- Profit before income taxes: 159.7 billion yen (55% increase year-on-year)
- Net profit attributable to Mitsubishi Electric Corp. stockholders: 120.2 billion yen (61% increase year-on-year)
The economy in the first half, from April through September 2023, of fiscal 2024 continued to see recovery primarily in consumer spending despite monetary tightening and other factors in the U.S. In Japan, the economy continued to see moderate recovery due to robust consumer spending and an increase in inbound tourists.
In China, the economy showed weakness in recovery due to sluggish export as well asslower domestic demand resulting from the real estate recession and other factors. In Europe, there were slowdowns in the corporate and household sectors due to monetary tightening and other factors.
Original – Mitsubishi Electric
