€¦ · Others 14.7% Net sales ¥609,416 million Home Appliances 22.3% Net sales ¥924,478 million...

X-X01-1-C8783-A　HQ1108〈MDOC〉

http://www.MitsubishiElectric.com

Contents

02 To Our Shareholders

03 Financial Highlights

04 Corporate Strategy

08 At a Glance

Fiscal 2011 Overview

10 Review of Operations

10 Energy and Electric Systems

11 Industrial Automation Systems

12 Information and Communication Systems

13 Electronic Devices

14 Home Appliances

15 Research and Development / Intellectual Property

18 Corporate Social Responsibility

21 Corporate Governance

22 Directors and Executive Officers

23 Organization

24 Major Subsidiaries and Affiliates

25 Financial Section

73 Corporate Data /Shareholder Information

2011 marks the year of Mitsubishi Electric’s 90th anniversary.

Looking ahead to our 100th anniversary, our continued aim is to help enrich society.

By enriching society, we mean creating a “people-friendly” society that ensures safety,

peace of mind, health and comfort for all, and a more “earth-friendly” society that recycles and

uses resources efficiently.

We at the Mitsubishi Electric Group provide a wide spectrum of products and services,

ranging from semiconductors to large-scale systems, with applications for homes, offices,

factories, social infrastructure and even space systems.

As we strive to become a global, leading green company that enriches society with technology,

we will increase cross-cooperation within the Group while providing advanced technologies and

engaging in a wide array of business pursuits.

For Japan, for the world, and for the future—the Mitsubishi Electric Group will continue

to make steady steps toward achieving this goal.

Aiming to become a global, leading green company, enriching society with technology.

MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2011 01

To Our Shareholders

To begin, Mitsubishi Electric would like to extend its deepest

condolences to all those affected by the Great East Japan

Earthquake, which occurred in March 2011. It is the sincerest

wish of the entire Mitsubishi Electric Group for the earliest

possible recovery of all stricken areas.

During the fiscal year ended March 31, 2011, although the

business environment saw such setbacks as rapid yen apprecia-

tion and soaring raw material prices, conditions continued to

improve overall on the back of a widespread recovery in the

global economy, particularly in emerging markets. However,

the business environment has been affected by the Great East

Japan Earthquake, resulting in partial suspensions of production

and, due to rolling blackouts and other factors, a decrease in the

capacity utilization ratio at some operational sites.

Under these circumstances, the Mitsubishi Electric Group

continued to emphasize Growth, Profitability and Efficiency, and

Soundness, the three key viewpoints of Balanced Corporate

Management. Accordingly, the Group placed greater emphasis

than ever before on promoting growth strategies rooted in its

competitive advantages as well as on Group efforts to boost its

competitiveness and strengthen its management structure in

accordance with the Balanced Corporate Management policy.

As a result, the Mitsubishi Electric Group recorded consolidated

net sales of ¥3,645.3 billion in the fiscal year ended March 31,

2011, up 9% compared with the previous fiscal year. Operating

income rose 2.5 times year-on-year to ¥233.8 billion, for a Group

operating income ratio of 6.4%. Meanwhile, net income jumped

4.4 times to ¥124.5 billion. Consequently, we achieved our oper-

ating income ratio, return on equity (ROE) and interest-bearing

debt to total assets targets (above 5%, above 10% and below

15%, respectively).

The entire Mitsubishi Electric Group will make wholehearted

efforts to contribute to future recovery activities in response to

the Great East Japan Earthquake, beginning with efforts to

restore social infrastructure. In addition, the Group is taking steps

to strengthen its initiatives in growing market segments. To that

end, we are engaging in activities that include: expanding busi-

ness activities globally, beginning with newly emerging markets;

promoting environment-related business strategies; bolstering the

social infrastructure systems business; and developing solutions

businesses by combining our wide array of technologies with

in-house expertise. Working to refine our robust management

structure to be even more resilient in today’s ever-fluctuating

business climate, the Mitsubishi Electric Group will further hone

the ”craftsmanship” capabilities integral to our operations.

We are confident that such endeavors shall help further

increase corporate value.

August 2011

President & CEO

Kenichiro Yamanishi

02 MITSUBISHI ELECTRIC CORPORATION ANNUAL REPORT 2011

Financial Highlights

Performance for the year ended March 31, 2011

Yen(millions)

U.S. dollars(thousands)

Years ended March 31 2011 2010 2009 2011

Net sales ¥3,645,331 ¥3,353,298 ¥3,665,119 $ 43,919,651

Operating income1 233,761 94,302 139,728 2,816,398

Net income attributable to Mitsubishi Electric Corp.2 124,525 28,278 12,167 1,500,301

Total assets 3,332,679 3,215,094 3,334,123 40,152,759

Interest-bearing debt 484,352 537,500 677,864 5,835,566

Mitsubishi Electric Corp. Shareholders’ equity 1,050,340 964,584 849,476 12,654,699

Capital expenditures 107,638 109,069 141,434 1,296,843

R&D expenditures 151,779 133,781 144,444 1,828,663

Yen U.S. dollars

Per-Share Amounts

Net income attributable to Mitsubishi Electric Corp.2

Basic ¥58.00 ¥13.18 ¥5.67 $0.699

Diluted3 — 13.18 5.67 —

Cash dividends declared 12 4 6 0.145

%

Statistical Information

Operating income ratio 6.4% 2.8% 3.8% —

Return on equity (ROE) 12.4 3.1 1.3 —

Interest-bearing debt to total assets 14.5 16.7 20.3 —

See accompanying notes to consolidated financial statements.1 Operating income is presented as net sales less cost of sales, selling, general, administrative and R&D expenses, and loss on impairment of long-lived assets. 2 From the year ended March 31, 2010, the Company has applied FASB ASC Topic 810 “Consolidation”. Due to the adoption of ASC Topic 810, “Net Income” has been renamed

“Net income attributable to Mitsubishi Electric Corp.”.3 For the year ended March 31, 2011, diluted net income per share attributable to Mitsubishi Electric Corp. is not included in the above figure as no dilutive securities existed.

Net Sales Breakdown by Business Segment

Energy and Electric Systems 24.8% Net sales ¥1,027,749 million

Others 14.7% Net sales ¥609,416 million

Home Appliances 22.3% Net sales ¥924,478 million

Electronic Devices 4.2% Net sales ¥175,910 million

Industrial Automation Systems 22.3% Net sales ¥927,002 million

Information and Communication Systems 11.7% Net sales ¥487,915 million


Corporate Strategy

Pursuing Ever Higher GrowthIn fiscal 2011, the Mitsubishi Electric Group recorded an operat-

ing income ratio of 6.4%, return on equity (ROE) of 12.4% and

a ratio of interest-bearing debt to total assets of 14.5%.

Consequently, the Group achieved its management targets (which

must be continuously and stably achieved) for operating income

ratio, ROE and ratio of interest-bearing debt to total assets (above

5%, above 10% and below 15%, respectively).

Guided by its overarching policy of Balanced Corporate

Management, the Mitsubishi Electric Group will strive to continu-

ously and stably achieve the above indicators set as its manage-

ment targets, and aim to become a global, leading green

company, enriching society with technology. With these two

objectives in mind, the Group will strengthen its growth strate-

gies in each business in order to pursue ever higher growth from

three viewpoints: the environment and energy, social infrastruc-

ture systems and global business development.

Three Management Targets to be Continuously and Stably Achieved

Operating income ratio:

5% or more

ROE:

10% or more

Ratio of interest-bearing debt to total assets:

15% or less

Achieve Balanced Corporate Management

Emphasis on Growth Based on Strong

Profitability, Efficiency and Soundness

Establish a Robust Management Foundationand Ensure Sustainable Growth

Increase Corporate Value

ProfitabilityEfficiency

Soundness

Growth

Management Policy”Changes for the Better,” our corporate statement,

encapsulates all that we stand for and aspire to—a

brighter future for society, industry and everyday life

through innovation.

Supporting this commitment to innovation and

sustainable operations is a solid management structure

backed by balanced management initiatives that stem

from three key viewpoints: Growth; Profitability and

Efficiency; and Soundness.

In terms of its corporate social responsibility (CSR)

initiatives, the entire Mitsubishi Electric Group is steered

by its Corporate Mission and Seven Guiding Principles.

Putting particular emphasis on compliance with applicable

laws and high ethical standards, we are committed to

strengthening internal controls to ensure legal compliance

Group-wide, as well as thoroughly implementing educa-

tion and training. In addition, we continue to work

diligently to safeguard the environment. Among a host

of initiatives, we are striving to create a low-carbon,

recycling-based society as part of our Environmental

Vision 2021 program.

To ensure that we continue to meet the expectations

of shareholders, we have undertaken reforms that are

guiding our ongoing evolution into a network of highly

competitive, electric-electronic businesses while leverag-

ing synergies to further enhance corporate value.


Framework for Implementing Balanced Corporate ManagementThe Mitsubishi Electric Group undertakes management opera-

tions based on its Front-line Priority framework in the two areas

of customer contact and production. In the first front-line area of

customer contact, the Group enhances its competitiveness in

marketing and services. In the latter front-line area of production,

the objective of the Front-line Priority works to bolster the

Group’s ”craftsmanship” in the areas of quality, costs, production

engineering technologies, research and development, and

intellectual property (IP). In addition, by implementing its Strong

Synergistic Corporate Network framework, the Group is pursuing

integration synergies. Such synergies are achieved by strengthen-

ing four collaborative links—(1) between production and sales

divisions, (2) between business segments, (3) between business

segments and corporate divisions, and (4) globally, between

parent factories in Japan and overseas facilities—as well as by

harmonizing business, product and regional strategies.

Through the two aspects of the Front-line Priority framework

and the four collaborative links within the Strong Synergistic

Corporate Network framework, the Group is implementing

Balanced Corporate Management that involves promoting

growth strategies, strengthening its management foundation,

improving its financial standing and undertaking CSR- and

corporate governance-related initiatives.

Growth StrategiesThe Mitsubishi Electric Group promotes the VI Strategy, which

aims to make strong businesses stronger, and the AD Strategy,

which is designed to reinforce solutions centered on strong

businesses. In line with these growth strategies, in order to realize

the objective of ensuring growth compatible with profitability

by making strong businesses stronger globally, the Group is

promoting individual business strategies and bolstering regional

strategies, with a priority on Asia. Aiming at further growth,

the Group is working to develop technologies that continuously

enable its strong businesses to become even stronger, promoting

compatibility between a low-carbon society and prosperous

lifestyles. As it moves forward, the Group is also pressing ahead

in all aspects of its efforts to strengthen global strategies with the

purpose of maintaining sustainable growth as it strives for further

global success.

Essential Growth Strategies: Promoting the VI Strategy and the AD Strategy

TransportationSystems

Power Devices

Elevators andEscalators

Optical BroadbandAccess Systems

Power Systems

Satellites

Factory AutomationProducts

Network SecuritySystems

Electric and ElectronicProducts for Automobiles

Air Conditioning andHousing Products

VI Growth Strategy1

Make Strong Businesses Stronger

AD Growth Strategy 2

Reinforce Solutions Businesses Centered on Strong Businesses

Display Solutions

Energy ConservationSolutions for Entire Buildings

Total SecuritySolutions

Smart CommunitiesSmart Grids

Low-carbonSolutions

1 “VI” derives from “VICTORY”2 “AD” derives from “ADVANCE”


Growth Strategy: Strengthening Global StrategiesAs part of its efforts to fortify its business systems to make strong

businesses stronger globally, the Mitsubishi Electric Group contin-

ues to invest capital in existing business bases, for example, build-

ing a new transformer plant in the United States. In addition, the

Group is establishing manufacturing companies—such as factory

automation systems and automotive equipment makers in

China—to serve rapidly growing markets, and setting up new

sales companies to tap into new markets in India and Vietnam.

Beyond this, the Group will continue to carry out M&A to create

synergies and expand its businesses, as seen in the acquisition of

the power device-related business, Vincotech Holdings S.a.r.l.,

in November 2010.

Growth Strategy: Promoting Individual Business StrategiesRegarding the businesses within the Group that possess notewor-

thy growth potential (power systems, transportation systems,

building systems, factory automation systems, automotive equip-

ment, space systems, power devices, air-conditioning systems

and photovoltaic systems), the Mitsubishi Electric Group will

expand such businesses to be a driving force of Group-wide

performance, by implementing and augmenting global business

promotion systems, while reinforcing market strategies in priority

markets. Through such actions, the Group is contributing to the

improvement of corporate value.

Direction of Growth Strategies: Pursuing ever higher growth through ongoing efforts to strengthen businesses

Power DevicesFactory Automation SystemsPower Systems

Air-conditioningSystems

AutomotiveEquipment

Transportation Systems

PhotovoltaicSystemsSpace SystemsBuilding Systems

India StrategyChina Strategy

Promoting technological development to continuously

make strong businesses stronger

Compatibility between a Low-carbon Society and

Prosperous Lifestyles

Achieving profitable growth by making strong businesses stronger globally

Promoting Individual Business Strategies

Bolstering Regional Strategies with a Priority on Asia

Bolstering Global Strategies

Smart CommunitiesSmart Grids

SiC Power Devices

Automotive Equipmentfor Electric &

Hybrid Electric Vehicles

Growth Strategy: Bolstering Regional Strategies with a Priority on AsiaThe Mitsubishi Electric Group will bolster cross-business

regional strategies with a priority on Asia in response to newly

emerging markets, which are anticipated to experience high

growth rates. In the Chinese market, where it has already

established numerous businesses and built a solid foundation,

the Group will apply its overall strength to the further expansion

of its operations by strengthening collaborative links between its

operating bases as well as its businesses. The Group will also take

steps to augment partnerships between leading business groups

in China. In India, where the time is ripe for a full-scale entry, the

Group will tap into growing markets by leveraging strong global

businesses, particularly within the Energy and Electric Systems

and Industrial Automation Systems business segments.

Growth Strategy: Compatibility between a Low-carbon Society and Prosperous LifestylesThe Mitsubishi Electric Group is actively working to realize an

”eco-electricity community,” one that aims to foster compatibility

between a low-carbon society and safe, prosperous lifestyles.

To that end, the Group is combining its business expertise in all

areas, from power systems to home appliances, to optimize

energy usage communitywide based on the best possible mix of

energy sources, which includes maximizing the use of natural

sources of energy. Turning to future-oriented research and


technological development measures, the Group is, in coordina-

tion with its Amagasaki, Wakayama and Ofuna facilities,

constructing experimental smart grid equipment internally that

anticipates the distribution networks to be developed in the

future. In the Ofuna facility, the Group will take steps to verify

the concept of ”painless electricity conservation” by building

a ”smart house” equipped with a photovoltaic system,

all-electric-powered home equipment and a Home Energy

Management System (HEMS), in order to demonstrate the

concurrent viability of zero-emission, energy-saving residential

housing that is comfortable, safe and secure.

The Mitsubishi Electric Group has developed power devices

that use silicon carbide (SiC); these energy-saving key devices

efficiently regulate power usage and help contribute to the

realization of a low-carbon society. Consequently, the Group

became the first in the world to successfully develop the Full

SiC-IPM in February 2011, which achieves both low power loss

and high reliability. By continuing to utilize the capabilities of its

devices to the utmost extent while ensuring performance and

reliability, the Group will strengthen the applications of its tech-

nologies in a wide array of power electronics products. Such

products range from air-conditioners, refrigerators and other

home appliances to photovoltaic systems, industrial equipment,

electric/hybrid automobiles, railcars, and power equipment.

Strengthening Our Management FoundationThe Mitsubishi Electric Group consistently promotes Group-wide

operational improvement measures, taking active steps to further

solidify its operational structure.

To this end, we constantly strive to reinforce the ”craftsman-

ship” that is integral to our foundations as a manufacturer. In

order to achieve this objective, we are always looking to enhance

productivity and quality, to promote prioritized development

rooted in growth strategies, to strengthen our R&D capabilities

and the development of strategic IP activities by promoting such

initiatives as the development of key components, and to

improve material procurement by bolstering value analysis (VA)

and other activities. Furthermore, we are working to improve our

financial standing through measures that include inventory

reduction and striving to allocate human resources effectively,

underpinned by the aim to make strong businesses stronger.

The Mitsubishi Electric Group will continuously and resolutely

promote these initiatives and make every effort to strengthen

quality, cost efficiencies, production technology capabilities,

development capabilities, IP activities, and sales and services,

with the goal of further boosting profitability.

Improving Our Financial StandingAs of March 31, 2011, total interest-bearing debt, including

bonds, stood at ¥484.4 billion for a ratio of interest-bearing debt

to total assets of 14.5%.

The Mitsubishi Electric Group is implementing comprehensive

structural reforms to increase the competitiveness and earnings

of all Group businesses. To raise overall profitability, we are

striving to boost competitiveness in the areas of quality, costs,

production technology capabilities, development capabilities, IP,

marketing and services. In addition, in order to streamline asset

turnover and the efficiency of funding operations, we are reduc-

ing inventories, primarily through ”just in time” activities, while

expanding our global cash management system. These initiatives

are aimed at generating stable cash flow.

With accumulated cash flow, we are taking a balanced

approach to reduce interest-bearing debt, provide returns to

shareholders through increased dividends, and invest in

growth areas.

Striving for Constant ImprovementBased on its Balanced Corporate Management policy, the

Mitsubishi Electric Group is steadily implementing the aforemen-

tioned management strategies, which are designed to enhance

the formidable competitiveness of its individual businesses.

At the same time, we continue to implement reforms intended to

guide our ongoing evolution into a network of highly competi-

tive, electric-electronic businesses while leveraging synergies to

further enhance corporate value and ensure sustainable growth.

To accomplish these goals, it is increasingly important that we

strive for constant improvement, which puts into practice the

spirit that is embodied in our corporate statement, ”Changes for

the Better.” The Mitsubishi Electric Group will continue to change

in order to create new value. We are confident these efforts will

yield even greater corporate value in the future.


At a Glance

Energy and Electric Systems Industrial Automation Systems Information and Communication Systems

2010

MAIN PRODUCTS AND BUSINESS LINES

Turbine generators, hydraulic turbine generators, nuclear power plant equipment, motors, transformers, power electronics equipment, circuit breakers, gas insulated switches, switch control devices, surveillance system control and security systems, large display devices, electrical equipment for locomotives and rolling stock, elevators, escalators, building security systems, particle beam treatment systems, and others

0

1,200

1,000

800

600

400

200

07 08 09 10 11

1,058 1,044 1,0281,040

Yen (billions)

(Years ended March 31)

951

Net sales

0

1,200

800

1,000

600

400

200

1,018

852957

733

927

07 08 09 10 11

Yen (billions)


Net sales

-30

150

90

120

60

30

0

07 08 09 10 11

Yen (billions)


69 75 75

49

83

Operating income

-30

150

90

120

60

30

0

07 08 09 10 11

Yen (billions)


100

125 129

50

26

Operating income


Programmable logic controllers, inverters, servomotors, human-machine interface, motors, hoists, magnetic switches, no-fuse circuit breakers, short circuit breakers, transformers for electricity distribution, time and power meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical discharge machines, laser processing machines, industrial robots, clutches, automotive electrical equipment, car electronics and car mechatronics, car multimedia, and others


Wireless and wired communications systems, surveillance cameras, satellite communications equipment, satellites, radar equipment, antennas, missile systems, fire control systems, broadcasting equipment, data transmission devices, network security systems, information systems equipment, systems integration, and others

0

1,200

1,000

800

600

400

200

07 08 09 10 11

Yen (billions)


488

688 644582

526

Net sales

Yen (billions)

-30

150

90

120

60

30

0

07 08 09 10 11(Years ended March 31)

21

219 14

25

Operating income

Fiscal 2011 Overview

July•Reachedanagreementtoconsolidatethehydroelectric

powergenerationsystemoperationsofHitachi,MitsubishiElectricandMitsubishiHeavyIndustries

•Delivered14,368PVcellmodules(approximately2.7MW)toButteCollegeinCalifornia

•Completedconstructionofanewplantforproducingcompressorsusedinindustrialairconditionersandchillers

September•Receivedanorderforheavyparticlebeam

cancertreatmentequipmentfromtheSAGAHeavyIonMedicalAcceleratorinTosu(SAGAHIMAT),thefirstprivatefacilityinJapantointroducethisequipment

May•Investedapproximately¥7billionoverthetwo-yearfiscal

2011–2012periodfortheconstructionofexperimentalsmartgridfacilitieswithintheCompany’sproductionsitesandannouncedthecommencementofrelatedtesting

•EstablishedtheMitsubishiElectricGroupBiodiversityActionGuidelines

•Developedtheworld'sfirstinjectorwithoutmagnets,basedontheProtonAlternativePhaseFocusing(APF)systemforparticlebeamtreatmentsystem(ProtonType) Newcompressorfactory ImageofthecompletedSAGAHIMAT

June•CommencedoperationofJapan’sfirst

large-scale,high-purityplasticrecyclingsystem•Announced“EcoChanges-foragreener

tomorrow,”theoverseasexpansionoftheGroup’senvironmentalstatement,“EcoChanges,”whichcommencedinJuly2010

August•Deliveryofanozonetreatment

systemtotheHanshinWaterSupplyAuthority’sAmagasakiWaterPurificationFacility

GreenCycleSystemsCorporation’sheadquartersandplant


Electronic Devices Home Appliances Others

2011


Power modules, high-frequency devices, optical devices, LCD devices, microcomputers, system LSIs, and others


LCD televisions, projection TVs, display monitors, projectors, DVD players and recorders, room air conditioners, package air conditioners, air-to-water heat pump boilers, refrigerators, electric fans, ventilators, photovoltaic systems, hot water supply systems, LED lamps, fluorescent lamps, indoor lighting, compressors, chillers, humidifiers, dehumidifiers, air purifiers, showcases, cleaners, jar rice cookers, microwave ovens, IH cooking heaters, and others


Procurement, logistics, real estate, advertising, finance and other services

Net sales

0

1,200

1,000

800

600

400

200

07 08 09 10 11

Yen (billions)


1,000

825922 916 924

Net sales

0

1,200

1,000

800

600

400

200

07 08 09 10 11

Yen (billions)


609631 661596 553

Net sales

-30

150

90

120

60

30

0

07 08 09 10 11

12 8-30 -7 6

Yen (billions)


Operating income (loss)

-30

150

90

120

60

30

0

07 08 09 10 11

Yen (billions)


42

66

35

523

Operating income

Yen (billions)


-30

150

90

120

60

30

0

07 08 09 10 11

1415 17 123

Operating income

FebruaryCelebrated the Company’s 90th anniversary

•AnnouncedtheestablishmentofanewplantattheU.S.subsidiaryMitsubishiElectricPowerProducts,Inc.alongwithaninvestmentofapproximately¥18.0billiontoaugmentthatcompany’selectrictransformerbusiness

•DisclosedtheCompany’slatestR&Dresultstothepressandsecuritiesanalysts(SiCpowerdevices,smartgridsetc.;18itemsincluding5newitems)

•ConcludedanagreementwithShanghaiElectricGroupCompanyLimitedtoestablishajointventuretoengageinthedevelopmentanddesignofenergy-savingandfactoryautomationsystems

November•Deliveredatotalof

approximately23,500LEDspotlightsforuseinall254storesofKonaka,aJapaneseclothingchain

•MitsubishiElectricandTheGoresGroupenteredintoasharepurchaseagreementontheacquisitionofVincotechHoldingsS.a.r.l.,amanufacturerofelectroniccomponentsbasedinGermany.

LEDspotlight(EL–S600L / W–K)

January•Announcedtheaimof

“Becomingaglobal,leadinggreencompany,enrichingsocietywithtechnology”inanticipa-tionoftheCompany’s100thanniversary

March•DeliveredoneofShikoku'slargesthigh-definitionvideodisplays

(DiamondVision)toNarutoOtsukaSportsParkPocariSweatStadium,homeoftheJ.LeaguesoccerclubTOKUSHIMAVORTIS

•ReceivedordersfortheTurkishcommunicationsatellites,Türksat–4AandTürksat–4B,fromTürksatSatelliteCommunication,CableTVandOperationA. .

•Announcedtheestablishmentofanewcompanytomanufactureandsellequipmentforelectricpowersteering,carmultimediaproductsandotherautomotiveequipmentinChina

October•Establishedthecomprehensivesales

companyMitsubishiElectricIndiaPvt.Ltd.,whichincorporatestheGurgaonandBangalorebranchesheldbyMitsubishiElectricAsiaPte.Ltd.

DiamondVisiondisplayinoperation

AnimageoftheTürksat–4AandTürksat–4B

0

1,200

1,000

800

200

400

600

07 08 09 10 11

Yen (billions)


186 192 167 139 176


Review of Operations

Train Vision SystemIntegratingthemostadvancedinformationtechnologies,MitsubishiElectricintroduceditsTrainVisionSystemforthebenefitandcomfortofrailpassengers.Offeringsharpandvibrantpicturequality,LCDunitsinstalledabovecarriagedoorsdisplayvideo,advertisements,destinationguidesandotherdata.Thissubstantialvolumeofdataispresentedseam-lessly,withtheunitsbeingupdatedfromremotebasestations.

Diamond Vision OLEDMeasuringsixmetersindiameter,thisDiamondVisionOLEDistheworld’sfirstlarge-scalesphericaldisplaysystem*touseorganiclight-emittingdiode(OLED)panels.Thisdisplaysystemhasbeenusedtocreate”Geo-Cosmos,”anOLEDdisplayglobedevelopedbytheNationalMuseumofEmergingScienceandInnovation.Incorporatingmorethan10,000ofthemostadvancedOLEDpanels,Geo-Cosmosissuspendedinmidair,allowingviewerstoseetheconstantlychangingfaceoftheEarth.*AsofJune3,2011

Southern Tohoku Proton Therapy Cancer Center Particle Beam Treatment System Proton TypeThiscutting-edgesystemuseslinearprotonsandheavy-parti-clebeamstotargettheaffectedareas.Easieronpatients,thistreatmentmethodisexpectedtohelpimprovequalityoflife.

Power PlantsMitsubishiElectricpowerplantinstallationsareusedbypowercompaniesandasin-housepowergeneratorsinvariousindustries.Proveninthefield,theyareoptimalpowerplantsforhydroelectric,thermalandnuclearapplications.

AXIEZ Machine-room-less ElevatorsAlongwithenhancedenergy-savingfunctions,includingall-LEDlighting,theAXIEZ’svariable-speedcontrolelevatorsys-temreduceswaitingtimesthankstoadvancesinleading-edgespeedadjustmenttechnology.Thistechnologyhasevolvedintoasupervariablespeedcontrolsystemforimprovedconve-nienceandoperationalefficiency.TheAXIEZalsofeaturesanimproveddesign.

Facima BA-System, an Open Integrated Management System for Building FacilitiesTheFacimaBA-Systemcentrallycontrolsbuildingfacilitiesandequipmentthroughopenmanagementintegrationthatiscom-patiblewithfacilitiesandequipmentmadebydifferentmanu-facturers.Owingtoitsenhancedfunctionsandsupportmenu,rangingfromenergysavingtoefficientbuildingmanagementoperations,theFacimaBA-Systemoffersanewstyleofbuild-ingmanagement.

The social infrastructure systems business

saw year-on-year decreases in orders and

sales mainly due to a fall in large-scale proj-

ects in energy systems businesses, despite

growth in the electrical equipment for

rolling stock business in Japan and abroad.

The building systems business experi-

enced an increase in orders and sales

compared with the previous fiscal year due

to a gradual recovery in demand for

elevators and escalators in Japan and

increasing demand for the same products

in China and ASEAN countries.

As a result, total sales in the Energy and

Electric Systems segment amounted to

¥1,027.7 billion, a 1% dip from the previ-

ous fiscal year, but operating income rose

by ¥8.3 billion year on year to ¥83.1 billion,

owing primarily to cost improvements.

Net Sales

¥1,027.7billion

(down 1% year on year)

Operating Income

¥83.1billion

(up ¥8.3 billion year on year)

Energy and Electric Systems

24.8%



Industrial Automation Systems

Programmable Logic ControllersMitsubishiElectric’sMELSECseriesofprogrammablelogiccontrollerssupportsawidearrayofproductionlinesandsocialinfrastructureequipment,fromcontroldevicestosafetyassur-ance,informationprovisionandinstrumentationoperations.Japan’stopbrand,theMELSECseriescontributestotheconstructionofleading-edgesystems,owingtoitscapabilities,performance,productvarietyandhighreliability.

AC ServosTheMELSERVO-J3seriesfeaturestheindustry’sfastestACservoamplifiers,boastinghighperformanceandcapability.Functioningasdrivesourcesthatcontributetohigherlevelsofspeedandprecisioninproductionequipmentandmanufactur-ingdevices,theMELSERVO-J3serieshasapplicationsinnumerousfields,includingsemiconductors,FPDproductionandtransportequipment,andindustrialmachinery.

Computerized Numerical ControllersTheworld’sfirstequipmentforeffectivecontrolatthenano-meterlevel,enablingfasterandmorepreciseprocessing.Theycontributetohigherproductivityinautomotive,ITandotherindustries.

No-fuse Circuit Breakers and Earth Leakage Circuit BreakersNo-fusecircuitbreakersandearthleakagecircuitbreakersareusedforwiringprotectionandshort-circuitprotectioninlow-voltagecircuits.MitsubishiElectricoffersawidevariationofproducts,includingitsbrandnew”WS-V”series,forbothpowerdistributionandOEMmarkets.

Memory Car Navigation SystemMitsubishiElectric’smemorycarnavigationsystemallowsuserstoexperiencehigh-definition,full-segmentterrestrialdigitalbroadcastswhilebeingeasytooperate.Navigationandaudiooperationshavebeencombinedintotouchpaneliconsthatmakethesystemsimpletouse.Inaddition,thesystemdelivershigh-definitionmapdisplaysthathaveevolvedfromtheCompany’scoreHDDnavigationfunctions.

ETC Equipment for VehiclesToeasetheinsertionandextractionofETC(ElectronicTollCollection)cardsintherelativelydiminteriorofavehicle,LEDlightinghasbeencombinedintotheindicatorandcardinsertionslot.Withitsstrikinglydelicatecurves,thisproductrealizesadesignthatbeautifullycomplementscontouredvehicleinteriors.

Net Sales

¥927.0billion

(up 26% year on year)

Operating Income

¥100.1billion


The factory automation systems business

experienced an increase in orders and sales

compared with the previous fiscal year

thanks to expanded demand in the Asian

market, beginning with industrial machinery

in China as well as rising flat panel display-

and semiconductor-related capital expendi-

tures in South Korea and Taiwan.

The automotive equipment business saw

rises in excess of those of the previous fiscal

year both in orders and sales due to

increased demand in individual markets,

including China and India. This occurred

despite indications of decreasing demand

following the termination of promotional

incentives in certain markets in Japan and

Western Europe.

As a result, total sales in the Industrial

Automation Systems segment were ¥927.0

billion, a 26% increase year on year. Owing

to this rise and other factors, operating

income improved ¥74.0 billion to ¥100.1

billion.


22.3%


Information System Integrated Control CenterSpecialistengineersareavailable24/7toremotelyoperateandmonitorclientinformationsystemsandtoanalyzeanddetermineanyproblemthatmightoccurusingautomatedtools,enablingarapidresponsetoanysystemmalfunction.(MitsubishiElectricInformationNetworkCorporation)

DS2000 Standard Satellite PlatformTomeetincreasingdemandfordiversifiedhigh-speed,large-capacitycommunications,theCompanydevelopedtheDS2000standardsatelliteplatformbasedonadesignorigi-nallycreatedforJAXA’sETS-VIIIplatform.Todate,thistech-nologyhasmaintainedacompetitiveedgeinternationally,havingbeenemployedinsuchsatellitesasHimawari-7,Superbird-C2,ST-2andTürksat-4A/4B.

Vehicle-mounted Stations for Satellite CommunicationsVehicle-mountedsatellitecommunicationequipmentenablestransmissionofvideoandaudioforbroadcastnews(satellitenewsgathering)andinformationfordisastermanagement.MitsubishiElectricproductshaveachievedJapan’shighestmarketshareinthisfield,andareemployedbyJapanesebroadcasters,thepublicsectorandinfrastructurecompaniessuchasgasandelectricityutilities.

Optical Broadband Access SystemsMitsubishiElectric’sPassiveOpticalNetwork(PON)systemsletcommunicationscarriersestablisheconomicalaccessnetworksthatsatisfythegrowingdemandforbroadbandservices.Asdatavolumeexpandswiththeincreaseofinternet&videocontentservices,PONhelpscontributetotheachievementofafullynetworkedsociety.

The telecommunications equipment busi-

ness experienced reductions in orders and

sales due to decreased demand for optical

broadband access systems and other com-

munication infrastructure components in

spite of increased sales of home broadband

equipment.

The information systems and services

business recorded a year-on-year decline in

sales because of lower sales in the systems

integration and other businesses.

In the electronic systems business, orders

remained on par with those recorded for

the previous fiscal year. However, sales

decreased year on year due primarily to the

reduction in large-scale projects in the

electronic business.

As a result, total sales in the Information

and Communication Systems segment

amounted to ¥487.9 billion, down 7% year

on year. Because of this decrease and other

factors, operating income declined by

¥4.9 billion to ¥13.7 billion.

Net Sales

¥487.9billion

(down 7% year on year)

Operating Income

¥13.7billion

(down ¥4.9 billion year on year)

Information and Communication Systems


Server Integration Solution Using Virtualization TechnologyUtilizingvirtualizationtechnologytoconsolidatemultipleserverassetsontoasinglehardwareplatform,thisserverintegrationsolutioncaneasilyincorporateserverswidelyscatteredthrough-outanoffice.Asa”GreenIT”technology,itenablesloweroperationalcostsandenergyconsumption,aswellasmoreefficientuseofspace.(MitsubishiElectricInformationTechnologyCorporation)

Digital Surveillance Camera SystemThisdigitalCCTV(closed-circuittelevision)systemmeetstheexpandingrangeofneedsforvideosurveillancesystems,withnewdigitaltechnologyincorporatedintoitshigh-resolutionmegapixelcamera,andthroughitshighlevelofscalabilitytoaccommodateevenlarge-scalesystems.

11.7%


Electronic DevicesJ-Series Power Modules for VehiclesCurrentlyunderdevelopment,theJ-SeriesIPM1,designedforoptimumperformanceandsafety,andtheJ-SeriesT-PM2(showninphoto),whichincorporatesMitsubishiElectric’suniqueDLB3constructionforhighreliability,provideoptimalmotordriveperformanceforhybridandelectricvehicles.1IntelligentPowerModule:Apowermodulethatfeaturesdriveand

protectionfunctions2TransferMoldedPowerModule3DirectLeadBonding:Internalconnectiontechnologyinvolvingsolderingthe

mainterminaltothepowerchip

V1 Series High-output IPMs for Motor Drive and Control EquipmentFeaturingIGBT1switchingelementsthatincorporatethelow-power-lossCSTBT™2,V1Serieshigh-outputIPMsreducepowerlosscomparedtoconventionalinverters,andimproveprotectionagainstoverheatingwhilerealizingsizereductionsandhighercapacityforgeneralindustrialequipmentmotordrivesandcontrollers.1InsulatedGateBipolarTransistor:Apowerswitchingsemiconductor2CarrierStoredTrench-GateBipolarTransistor:AtrademarkedMitsubishi

ElectricIGBTthatincorporatestheCompany’saccumulatedcarrierexpertise

40Gbps DQPSK Quad PD ModuleThe40GbpsDQPSK*QuadPDmoduleisanopticalcommuni-cationsmoduleoptimizedforsendinglargevolumesofdatabetweendistantmetropolitanareas.Itboastsreductionsinsizeandpowerconsumptionwhilemaintainingtransmissionquality.ThesefeaturesaremadepossiblebyintegratingallthenecessaryelementsforDQPSKformatcommunicationsintoonepackage.*DifferentialQuadraturePhaseShiftKeying

GaN HEMT High-output Amplifier for C-band SatelliteMitsubishiElectrichasdevelopedaGaN1HEMT2high-outputamplifierthathasachievedtheworld’shighestpowerefficiencyratingof67%byincorporatingtheworld’sfirstharmonictuningcircuits3inGaNHEMTcells.Thisamplifierisexpectedtoenablesmaller,lighterandmoreenergy-efficienttransmittersforcommunicationsatellites,launchesofwhichareincreasingduetoreneweddemand.1GalliumNitride2HighElectronMobilityTransistor3AsofMay26,2011;basedoninternalresearchonthesatellite-mounted

GaNHEMThigh-outputamplifier

5.0-inch WVGA Color TFT LCD ModulesBeingtheworld’sfirst5.0-inchWVGAColorTFTLCDmodule*torealizealuminanceof800cd/m2(standardvalue,assuminganormal25°Cambienttemperature),thiscolorTFTLCDmoduleensuresgoodvisibilityoutdoors,featuresa170-degree(horizontal/vertical)super-wideviewingangle,andisoptimalforsmalloutdoor-usemobiledevices.*AsofApril,2011;basedoninternalresearch

9.0-inch QHD Color TFT LCD ModuleThe9.0-inchQHDcolorTFTLCDmoduleachievesquarterhighdefinition(QHD)(960x540)format,whichprovideshalftheresolutionoffullHD*screensbothhorizontallyandvertically.ThemoduleminimizesdegradationoffullHDresolutionandisoptimalformonitorsinbroadcastingstationsthatusefullHD.*Full-sizehigh-definitionresolution:horizontal1920xvertical1080pixels

Net Sales

¥175.9billion


Operating Income

¥5.9billion

(up ¥13.0 billion year on year, profitable)

The semiconductor business experienced

year-on-year increases in orders and sales

owing to a rise in demand for industrial-,

commercial-, railway-, and automotive-use

power modules as well as optical transmis-

sion devices.

Orders and sales in the LCD module busi-

ness were above those of the previous fiscal

year thanks to expanded demand for indus-

trial-use and vehicle-mounted products.

As a result, total sales in the Electronic

Devices segment stood at ¥175.9 billion,

up 27% year on year. Owing primarily to

this increase in sales, operating income

improved by ¥13.0 billion to ¥5.9 billion.


4.2%


Uni & Eco ChangesInworkingtowardthegoalofcreatingasustainablesociety,MitsubishiElectricendeavorstocreatehomeappliancesthatareenergysavingandecologicallycompatible(’Eco’),withadvancedrecyclability.TheCompanyalsoutilizesuniversaldesignprinciples(’Uni’),includingitsownunique”RakuRaku-UD”(universaldesignforgreatereaseandcomfort)features,andappliesitsmanufacturingknow-howtodevelopproductsthatdelivereaseofuseforallages.Theseprinciplesarereferredtocollectivelyas”Uni&Eco.”

Customers

Home Appliances Used Home Appliances

Metals, Glass Plastics

Single-materialPlastic

Mixed Plastic

MaterialsManufacturers

PP, PS, ABS

Closed LoopRecycling

Hyper Cycle Systems Corporation(HCS)

MitsubishiElectric Corporation

Green Cycle Systems Corporation(GCS)

Home Appliance RecyclingMitsubishiElectrichassuccessfullydevelopedatechnologyforautomaticallyseparatingoutthethreeprimarytypesofplasticusedinhomeappliances(PP,PSandABS)fromshreddedmixedplasticsoriginallyfromend-of-lifehomeappliances.ThistechnologyhasenabledtheCompanytomakesubstantialimprovementsinplasticrecyclingratios.

Sales in the Home Appliances segment

increased by 12% year on year to ¥924.5

billion. This result was attributable to the

following factors: a rise in sales of air

conditioners both in Japan and abroad

following last summer’s heat waves; growth

in domestic demand for consumer-use air

conditioners, LCD televisions, and refrigera-

tors due to a last-minute surge in response

to a change made in the eco-point system

for consumer electronics during the third

quarter; and increased sales of photovoltaic

(PV) systems in Japan and abroad owing

mainly to the impact of government

subsidies and other stimulus programs

introduced in various countries.

As a result of this increase in sales and

other factors, operating income improved

by ¥37.2 billion compared with the previous

fiscal year to ¥42.0 billion.

Net Sales

¥924.5billion


Operating Income

¥42.0billion


Home Appliances


Air Conditioners and Home Appliance LineupBasedontheprinciplesof”Uni&Eco,”andkeywordssuchasenergy-saving,comfortableandclean,MitsubishiElectricstrivestodevelopproductsthatprovidebothadvancedfunctionalityand”RakuRaku-UD”usability.

Digital SignageMitsubishiElectricoffersafulllineupofvisualdisplayproducts,includinghigh-brightness,high-resolutionprojectors,large-screenLCDpublicdisplaysandmultiplelarge-screensystems.Throughtheseproducts,theCompanyisprovidingsolutionsformeetingrooms,schools,retailstoresandotherindoorvenues,aswellasforawiderangeofbusinessesandapplications,suchastrainstationsandpublicfacilities.

All-electric-powered Home-use ProductsWorkingtoachieveco-existencewiththeenvironmentandrealizearecycling-basedsociety,MitsubishiElectricstrivestocreatehigh-quality,long-lastingproductsforall-electric-poweredhome-useproducts,withadvantagesincludingenhancedcomfortandenergysavings.

LED LightingCurrentlyseeingrapiddevelopment,LEDspossessoutstandingfeaturesthatexpandlightingpossibilities,includinglongevity,lowpowerconsumption,absenceofmercuryandtheenablingofmorecompactfixtures.LEDsalsosignificantlycontributetopowerconservationefforts.

22.3%


Research and Development / Intellectual Property

R&D InitiativesThe Mitsubishi Electric Group’s R&D network comprises the

Advanced Technology R&D Center, Information Technology R&D

Center, and Industrial Design Center in Japan and laboratories in

the United States and Europe. These centers operate under the

umbrella of the Corporate Research and Development Group,

working in collaboration with the development departments in

individual business groups.

Amid business conditions that remain uncertain due mainly to

intensifying global competition, the expansion of newly emerging

markets and the impact of the recent natural disaster in Japan on

economic activities, the Corporate Research and Development

Group is undertaking development activities in tandem with each

business group to thoroughly strengthen strong businesses and

products. The Corporate Research and Development Group is also

redoubling development initiatives that play a role in increasing

future growth, while making exhaustive efforts to bolster its core

technologies.

Regarding R&D based on the VI Strategy—which makes strong

businesses stronger in such areas as factory automation equip-

ment, elevators and escalators, automotive equipment, power

systems, transportation systems, and air-conditioning systems—

the Mitsubishi Electric Group is increasing its technological capa-

bilities in order to differentiate itself from other companies and

maintain its competitive edge in international markets. In addi-

tion, the Group is promoting activities that increase the number

of new, profitable businesses. Under the AD Strategy, which aims

at bolstering the solutions business centered on these strong

businesses, the Group will integrate various products and tech-

nologies related to energy-efficient buildings and digital signage

as it moves forward with development activities that create new

solution-based products and services.

From the standpoint of preserving the global environment, the

Group is aggressively addressing technological challenges related

to smart grids, power devices, photovoltaic (PV) power genera-

tion systems, heat pump applications and other energy and

environmental businesses. Such initiatives are being undertaken

with the aim of realizing the Group’s Environmental Vision 2021.

Through these efforts, Mitsubishi Electric is helping to achieve a

sustainable society by combining leading technologies from its

wide array of business fields and by developing energy-saving

products and systems.

To support global business development, we are pressing

ahead with intellectual property and international standardization

activities that link together our business and development

strategies as we undertake technological development. At the

same time, we are pursuing active collaboration with industry,

academia and government concerns through joint research with

leading Japanese and international institutions as well as national

projects in Japan.

R&D Achievements in Fiscal 2011Wireless Mesh Network Technology for Advanced Meter InfrastructureMitsubishi Electric has developed wireless mesh network technol-

ogy for smart meter systems that realizes low-power data trans-

mission and lower setup costs compared to wired communication

systems. By controlling wireless signal transmission timing, the

technology enables automatic meter reading every 30 minutes

with high reliability for up to approximately 500 smart meters1.

Mitsubishi Electric’s wireless mesh network technology employs

a unique transmission scheduling algorithm to maintain the mesh

network with less maintenance traffic. Beginning with the

practical use of this technology in the smart meter systems that

are vital to smart grids, Mitsubishi Electric will expand this

technology into such data consolidation system applications as

factory and public facility management along with energy usage

visualization tools.

The World’s First2 Full SiC3-IPM4 with Built-in Drive Circuits and Protection CircuitsMitsubishi Electric has developed the world’s first Full SiC-IPM fea-

turing power semiconductor elements composed entirely of SiC

materials. Compared with conventional Si-IPM modules, in which

semiconductor elements are composed of Si, our Full SiC-IPM

achieves an approximately 70% reduction in inverter power loss

and a 50% smaller module volume5. In addition to promoting the

commercialization of this type of Full SiC-IPM, Mitsubishi Electric

will take steps to improve the power efficiency of various types of

equipment by installing the Full SiC-IPM in products such as

general industrial electrical equipment, elevators and escalators,

and PV inverters for photovoltaic power generation.

Next-generation electronic meters Remote meters

Concentrator*

Realizes stable, automatic monitoring of up to 500 metering units

Wide-area transmission network

*Concentrator: A device that links together multiple circuits

Research and Development


The World’s Smallest and Lightest6 Motor Controller Unit for Automotive Electric Power SteeringMitsubishi Electric has developed the world’s smallest and lightest

motor controller unit for automotive electric power steering. This

unit’s volume is approximately 50% lower and its mass is about

30% less compared with the Company’s conventional products

with equal output. These improvements were achieved by

utilizing Mitsubishi Electric’s Poki Poki motor7 technology,

which serves as the power source, and advanced motor design

technology that integrates this motor and a controller unit.

Essential to the Mitsubishi Electric Group’s pursuit of global

business development is the rigorous promotion and protection

of intellectual property (IP) rights.

Recognizing IP as a vital resource that underpins corporate

strengths, the Mitsubishi Electric Group continues to integrate

its business, R&D and IP activities. With approximately 40,000

patents and about 12,000 new applications filed each year in

Japan and overseas, the Group’s extensive portfolio forms the

wellspring of its global competitive advantage.

Structure of the Intellectual Property DivisionThe Group’s IP-related operations are the direct responsibility of

the President and overseen by the IP Division at headquarters

under an appointed IP executive officer. Day-to-day issues are

handled by IP departments at relevant facilities, R&D centers and

affiliated companies. Focusing on integration as the means to

improve the structure and effectiveness of the IP network, the

Group coordinates activities at each level. The IP Division at head-

quarters formulates strategies for the entire Group, promotes

Intellectual Property

Integrating Business, R&D and IP Activities

DevelopmentStrategy

R&D CentersIP Departments

Integration IP Network

PresidentIP Departments at Business Groups,Facilities, Affiliates

IP Strategy IP Division atHeadquarters

Business Strategy

*Rated at 1200V/300A when comparing volume

Approx. 50%less module mass

World’s first Full SiC-IPM with built-in drive and protection circuits

Full SiC-IPM

Moduleinterior

Si-IPM

SiC elements installed with current sensors

(for short-circuit protection)

Control board(drive and

protection circuits)

In combination with the Company’s unique motor control system,

the new motor controller unit realizes natural, smooth and stable

handling. Mitsubishi Electric will promote further size and weight

reductions for this power control unit in order to help lower

automobile fuel consumption.

1 Highly functional electronic meters capable of receiving transmissions from other equipment.

2 As of February 16, 2011; based on internal research3 Silicon carbide: A 1:1 compound of carbon and silicon4 Intelligent Power Module: A highly functional power semiconductor module with

built-in drive circuits and protection circuits5 Compared with the Company’s PM300CLA1206 As of September 30, 2010; based on internal research7 Motors that deliver high efficiency as well as size reductions. They can be mass

produced using the Company’s unique technology in which coils are wound around a linearly open core.

World’s smallest and lightest motor controller unit

Motor controller unit forautomotive power steering

critical IP-related projects, and coordinates interaction with the

patent office. At manufacturing facility, R&D center and affiliated

company levels, IP departments pursue specific objectives in line

with the Group’s overall IP strategies.


IP StrategyIn all its IP-related activities, the Group strives to enhance IP capa-

bilities in order to contribute to business based on the effective

utilization of the IP creation cycle. Specifically, the IP Division and

its departments identify critical IP-related themes in connection

with mainstay businesses and important R&D projects. In strategi-

cally promoting IP activities, the Group further reinforces its

global competitiveness.

In the Group’s IP strategy of recent years, maintaining a close

correlation with international standards has been particularly

important. Therefore, the Group is working to ensure the interna-

SEGMENT FIELD CORE TECHNOLOGY PRODUCTS/TECHNOLOGIES/PATENTS


Power SystemsPower generation systems, substation systems, power distribution systems, insulation technology, large-current control systems, smart grids, energy management systems

Transportation SystemsPropulsion control systems, transportation planning and control systems, train information systems, train vision systems

Elevators/EscalatorsMachine-room-less elevators, high-speed elevators, high-efficiency group control systems, escalators, elevator adjustable speed control technology, elevator electric safety technology

Supervisory Control SystemsTotal security solution (DIGUARD: security network integration platform), multiple large-screen systems, network visual monitoring systems


Industrial Automation Products and Systems

Programmable controllers, human machine interfaces, AC servo systems, inverters, low-voltage circuit breakers, computerized numerical controllers, electrical discharge machines, laser processing machines, micro spark coating technology, industrial robots

Measurement and Control Systems Energy diagnosis technology, power meters, EcoMonitor, smart meters

Automotive Electric & Electronic Products and Car Multimedia Systems

Electrical power steering, high-frequency alternators, high-power starters, onboard ETC equipment, car navigation technology


Wireless SystemsDigital modulation and demodulation technology, wireless access control technology, error detection and correction technology, amplifier circuit technology, super-compact base stations for femto-cells, digital train radio systems

Closed Circuit Television SystemsVideo storage technology, video encoding and decoding technology, sensor information processing technology, speech coding technology

Space, Satellite Communication Systems

Satellites, posture control technology, H-II transfer vehicle

Antennas and Radar DevicesRadar system technology, antenna technology, microwave and millimeter wave technology, tracking and signal processing technology

Information Communications Network Systems

Information security technology, quantum cryptography systems, data management technology, information system construction technology, optical communication technology, optical access technology, optical core/metro network technology, IP network technology, NGN1 home gateways, optical network technology, optical transmission protocol

Electronic Devices

Power Devices High-efficiency power devices/modules, (IGBT2, IPM3), transfer molds/power modules, SiC power devices

High Frequency and Optical Devices GaN high-power devices/amplifiers, optical devices (LD/PD modules)

LCD Displays Curved displays, 3D LCDs

Home Appliances

Air-Conditioning SystemsHeat pump technology, air conditioners, ventilating fans, next-generation refrigerants, chlorofluorocarbon-free technology, hybrid nano-coating, universal design

Photovoltaic Power Generation Systems

High-efficiency photovoltaic cells, PV inverters

TVs Laser light source technology, intelligent image/sound processing technology, super-resolution technology

Recorders and PlayersBlu-ray disc recorders, digital terrestrial broadcasting receiver technology for automobiles, image retrieval technology, high-resolution image compression coding technology

1 NGN: Next Generation Network2 IGBT: Insulated Gate Bipolar Transistor3 IPM: Intelligent Power Module

Mitsubishi Electric Group’s Core Technologies and Patents

tional standardization of its technologies, as well as to obtain

standard patents. The securing of overseas IP rights is a critical

issue in light of progress made by the Group as well as by its

competitors, to further globalize business activities. Moreover,

in response to further business globalization, Group IP represen-

tatives in the United States, Europe and China actively work to

strengthen IP capabilities and to accelerate global IP activities.

At the same time, the Group is accelerating the globalization of

its IP activities through such actions as filing patents prior to

undertaking business development in emerging countries,

including India and Brazil.


Corporate Social Responsibility

Philanthropic ActivitiesThe Mitsubishi Electric Group promotes philanthropic activities

in Japan and overseas with an emphasis on the three categories

of social welfare, environmental preservation, and science

and technology.

Employee Participatory Program ”Satoyama” Woodland Preservation ProjectStarted in October 2007, the ”Satoyama” Woodland Preservation

Project involves the voluntary participation of employees in

environmental restoration activities in the areas near Company

facilities, including parks, forests and rivers. Such activities are

undertaken with the full backing of government authorities and

local communities. As of March 2011, this project had been

initiated in Mitsubishi Electric’s eight regions in Japan. During the

tenth meeting of the Conference of the Parties (COP 10) to the

United Nations Convention on Biological Diversity, which was held

in Nagoya in October 2010, numerous conference attendees visit-

ed a Prefectural forest in one such region in the city (Togokusan,

Moriyama-ku). Through its environmental activities in the Nagoya

region, Mitsubishi Electric became the first company to participate

in Aichi Prefecture’s Corporate Forest Cultivation campaign.

In line with the slogan ”down-to-earth and sustainable,”

Mitsubishi Electric Group’s Corporate Social ResponsibilityThe operating environment continues to undergo dramatic

changes, reflecting advances in globalization, revisions to legisla-

tion, and other factors. What must continue regardless of how

the times may change is a respect for corporate ethics and com-

pliance and a commitment to not compromise on environmental

issues and product quality. This commitment of the Mitsubishi

Electric Group was first articulated in the Keiei no Yotei, or Keys

to Management, which was drawn up at the time of Mitsubishi

Electric’s founding in 1921. The spirit of this document, which

states our contributions in areas such as the prosperity of society,

product quality and customer satisfaction, lives on today in our

Corporate Mission and Seven Guiding Principles. With these

tenets as our core principles, the Group promotes various initia-

tives in order to fulfill its corporate social responsibilities.

As a member of society, the Mitsubishi Electric Group is

responsible for upholding corporate ethics and compliance as

well as engaging in social contribution and environmental activi-

ties. The Group also recognizes its responsibility to contribute to

society through the technologies it has built up over the years.

The Group’s technologies and products that support environmen-

tal protection, energy conservation and social infrastructure can

help contribute to the realization of a society that is more

”people-friendly” and ”earth-friendly,” or, in other words, a more

prosperous society. For example, since fiscal 2011 the Group has

been moving forward with smart grid-related trials, which involve

establishing a system for maintaining a highly reliable power

supply even for grids that have introduced such large, renewable

energy sources as photovoltaic power generation. The practical

application of this system is required to support technologies in

a very diverse array of fields. By combining its own far-ranging

technological capabilities, the Mitsubishi Electric Group will

continue to contribute to the creation of a low-carbon society.

Regarding the Great East Japan Earthquake, which occurred in

March 2011, the entire Mitsubishi Electric Group will work

together to provide assistance to facilitate the rapid recovery of

stricken areas, while overcoming the effects of the disaster on

business operations and striving to fulfill the Group’s responsibili-

ty as a corporate citizen.

Corporate Mission

The Mitsubishi Electric Group will continually improve its

technologies and services by applying creativity to all aspects

of its business. By doing so, we enhance the quality of life in

our society. To this end, all members of the Group will pursue

the following Seven Guiding Principles.

Seven Guiding Principles

Trust, Quality, Technology, Citizenship, Ethics, Environment, Growth

The Mitsubishi Electric Group promotes its corporate social responsibility (CSR) activities based on the conviction that all business activities must take CSR into consideration. The Group’s Corporate Mission and Seven Guiding Principles form its basic CSR policies. We are vigilant in our enforcement of cor-porate ethics and compliance and constantly work to improve educational programs and strengthen our internal control system. At the same time, we pursue initiatives related to quality management, environmental preservation, philanthropy and improved communication with all stakeholders.

Employees and top management from the Company’s headquarters and neighboring districts are working to promote the recovery of natural forests in the areas surround-ing Mount Fuji in cooperation with Sumitomo Forestry Co., Ltd.


we will continue to pursue phased nature conservation activities

in areas throughout the country.

Mitsubishi Electric SOCIO-ROOTS FundEstablished in 1992, the Mitsubishi Electric SOCIO-ROOTS Fund

is a gift program in which the Company matches any donation

made by an employee, thus doubling the goodwill of the gift.

More than 1,000 employees participate in the Fund each year.

As of March 2011, the Fund had attracted more than 1,400

donations, with approximately ¥580 million provided to various

social welfare facilities and other programs.

Maximizing the benefits of this gift-matching system during

the course of social welfare activities undertaken in the fiscal year

under review, the Company assisted in covering some of the

costs needed to install a photovoltaic system at an orphanage in

Japan. Such activities encourage environmental preservation and

electricity conservation among children.

Powered by the goodwill of its employees, Mitsubishi Electric

will continue to carry out activities that bring smiles to people in

local communities.

Environmental ActivitiesCommunicating the Mitsubishi Electric Group’s Environmental Statement, ”Eco Changes” WorldwideFollowing the establishment of the Mitsubishi Electric Group’s

Environmental Vision 2021, Mitsubishi Electric formulated its

environmental statement in Japan, ”Eco Changes – from in the

home to outer space,” in June 2009. This statement expresses

the Group’s stance on environmental management. Since June

2010, the Company has also been promoting the environmental

statement outside Japan as: ”Eco Changes – for a greener

tomorrow.” Through the formulation of this new environmental

statement, the Group is emphasizing internally and externally its

conviction that any product or business activity that lacks the

perspective of environmental performance or improvement

should not exist, and also demonstrating its commitment to carry

out activities around the world that are grounded in local reality.

Aiming to be a leading green company that continues to

address the needs of a global society, the Mitsubishi Electric Group

will strive to strengthen its corporate constitution (disciplining

ourselves to use less energy and resources while manufacturing in

a responsible, self-regulated manner, and increasing production

efficiency to its highest level) and contribute to society (striving to

ensure that an environmental benefit or improvement is delivered

when people use our products and services).

Strengthening Our Corporate Constitution• Reducing CO2 during Production

Due to a sharp increase in production after recovery following the

economic crisis of 2008-2009, particularly in China, Thailand and

other Asian countries, the total amount of CO2 emitted by the

Mitsubishi Electric Group in fiscal 2011 was 966,000 tons. This

amount exceeded the Group’s overall expected total of 873,000

tons. Conversely, the Group successfully cut CO2 emissions by

35,000 tons, exceeding its reduction target of 33,000 tons.

Mitsubishi Electric’s non-consolidated CO2 emissions totaled

508,000 tons (target: 493,000 tons); the Company reduced CO2

emissions by 22,000 tons, exceeding its emission reduction target

of 16,000 tons. In our production divisions, we are promoting

the identification and reduction of waste resulting from the use

of our products. In future Environmental Plans, Mitsubishi Electric

shall continue to focus on making further improvements to

production lines, but will put particular emphasis on visualizing

LeadingGreen Company

Making Positive Contributions to the Earthand Its People through Technology and Action

Creating a Low-Carbon

Society

Respecting BiodiversityEnsuring harmony with nature and fostering environmental awareness

Creating a Recycling-Based

Society

Aim to reduce CO2 emissionsfrom power generation

Reduce CO2 emissionsfrom product usage by 30%(Base year: fiscal 2001)Reduce total CO2 emissionsfrom production by 30%(Base year: fiscal 1991)

Aim for zero emissionsfrom manufacturing

Promote product “3Rs”;reduce, reuse and recycleReduce resource inputs

Environmental Vision 2021

Strengthen OurConstitution

(Through high-efficiency production and proactive self-regulation)

Contribute toSociety

(Through business activities and environmental mindset)

Presentation ceremony held at Seikou Gakuen Orphanage

The photovoltaic module installed at Seikou Gakuen Orphanage


Groupwide Plan to Reduce CO2 from Production

and monitoring the status of energy use in the production

process. Toward this end, in fiscal 2011, at several of its factories

in Japan, the Company initiated a plan to gradually install energy

conservation support equipment, such as its EcoMonitor and

EcoServer, as well as its ”e & eco-F@ctory” solution. The mea-

sures we have undertaken at Company offices include utilizing

the DIGUARD total building security system and proactively

introducing technology that automatically turns lighting on and

off depending on the presence of people.

Affiliated companies in Japan emitted a total of 191,000 tons

of CO2 (target: 165,000 tons) and cut emissions by 5,000 tons

(target: 7,000 tons). Affiliated companies overseas emitted a

total of 267,000 tons of CO2 (target: 215,000 tons) and reduced

emissions by 7,000 tons (target: 10,000 tons).

Looking ahead, the entire Mitsubishi Electric Group will further

bolster its initiatives in this area.

• Making Significant Progress toward Zero Emissions

As outlined in its 6th Environmental Plan, the Mitsubishi Electric

Group established the following final waste disposal ratio targets

for fiscal 2012: less than 0.1% for Mitsubishi Electric, less than

0.5% for affiliated companies in Japan and less than 3.0% for

overseas affiliated companies. The final disposal ratio for fiscal

2011 stood at 0.002% for Mitsubishi Electric, 0.04% for affiliat-

ed companies in Japan and 1.76% for overseas affiliated compa-

nies, a significant improvement over initial targets. These results

were made possible by the development of measures that took

into account actual conditions for waste production and disposal.

Particularly in Japan, we are making aggressive efforts in this

area, mainly by promoting coordinated waste management that

integrates the processes of numerous operating bases.

Contributing to Society• Mitsubishi Electric Operates Japan’s First Large-scale,

High-purity Plastic Recycling Plant

Mitsubishi Electric initiated Japan’s first-ever large-scale,

high-purity plastic recycling system at its subsidiary Green Cycle

Systems Corporation (GCS) in April 2010. This system takes the

shredded mixed plastic recovered from end-of-lifecycle home

appliance recycling facilities, and separates—in significant

amounts and at high levels of purity—the three major types of

plastic that can be recycled for reuse in home appliances.

Through this system, Mitsubishi Electric has increased its

recycling ratio of high-purity plastic that is available for use in

new products more than tenfold, from 6% to a maximum of

70%. This, in turn, has enabled the recycling of high volumes of

plastic into new home appliances.

1991 2010 2012 2021

67

23

24

47

17

22

51

19

26

47

16

17

16%30%96

0

20

40

60

80

100

120

8086

2011

51

19

2797

2009

51

19

2595

114

Total emissions(10,000 tons)

Base year

Environmental Vision 2021

Goal (FY2021)Goal of the 6th

Environmental Plan

Overseas Affiliates (Base year: FY2006)

Affiliates in Japan (Base year: FY2001)Mitsubishi Electric (Base year: FY1991)

(FY)

More information about the Mitsubishi Electric Group’s environmental and CSR initiatives is available on our website at the following URL.

http://www.MitsubishiElectric.com/company/csr/index.html

Mitsubishi Electric’s Large-scale High-purity Plastic Recycling

Plasticseparation

Minutecrushing

Machinecrushing

Manualdisassembly

End-of-lifecycleappliance

Available for use in new products Available for use in

new products

Up to 70% RecyclingGreen Cycle Systems produces high-purity

plastic that can be recycled for use in new

appliances on a large scale

70%6%

Green Cycle SystemsLarge-scale, high-purity plastic recycling plant

Hyper Cycle SystemsElectrical appliance recycling plant

Breaking the 6% BarrierOnly 6% of plastic has been recovered

manually at Hyper Cycle Systems

MetalPlastic


Corporate Governance

Basic Corporate Governance PolicyTo realize sustained growth and increase corporate value,

Mitsubishi Electric works to maintain the flexibility of its operations

while promoting management transparency. These endeavors are

supported by an efficient corporate governance structure that

clearly defines and reinforces the supervisory functions of manage-

ment while ensuring that the Company is responsive to the expec-

tations of customers, shareholders, and all of our stakeholders.

Corporate Management and Governance StructureCorporate Management StructureIn June 2003, Mitsubishi Electric became a company with a

committee system. Key to this structure is the separation of

supervisory and executive functions; the Board of Directors plays

a supervisory decision-making role and executive officers handle

the day-to-day running of the Company.

The present Board is comprised of 12 directors (five of whom

are outside directors), who objectively supervise and advise the

Company’s management. The Board of Directors has three inter-

nal bodies: the Audit, Nomination and Compensation commit-

tees. Each body has five members, three of whom are outside

directors. The Audit Committee is supported by dedicated

independent staff.

Internal Control SystemFurther ensuring effective corporate governance, the roles of

Chairman and President & CEO are clearly defined and exclusive.

The Chairman heads the board of directors and the President &

CEO heads the Company’s executive officers. Neither the

Chairman nor the President & CEO is a member of the Nomination

or Compensation Committees. This allows for the clear division of

executive and supervisory functions, thereby enabling Mitsubishi

Electric to ensure effective corporate governance.

Executive officers are responsible for ensuring compliance and

management efficiency in their assigned areas of operations.

Internal auditors monitor executive officers’ performance of

duties. Internal auditors report on the results of such monitoring

to the executive officer in charge of auditing. And the executive

officer in charge of auditing and accounting auditors report on

the results of such monitoring to the Audit Committee.

Mitsubishi Electric maintains a multi-dimensional risk manage-

ment system in which all executive officers participate. Under this

system, executive officers are responsible for risk management in

their assigned areas of operation. In addition, executive officers

exchange information and participate in important management

initiatives and decisions through regularly scheduled executive

officers’ meetings.

The Corporate Auditing Division and Audit CommitteeActing independently, Mitsubishi Electric’s Corporate Auditing

Division conducts internal audits of the Company from a fair and

impartial standpoint. In addition, the division’s activities are

supported by auditors with profound knowledge of their particu-

lar fields, assigned from certain business units.

The Audit Committee is made up of five directors, three of

whom are outside directors. In accordance with the policies and

assignments agreed to by the committee, the performances of

directors and executive officers as well as affiliated companies

are audited.

The Corporate Auditing Division, through the executive officer

in charge of auditing, submits reports to the Audit Committee,

which holds periodic meetings to exchange information and dis-

cuss auditing policies. In addition, the Audit Committee discusses

policies and methods of auditing with accounting auditors, who

furnish it with reports on the status and results of the audits of

the Company that they themselves conduct.

Decision-making and Execution SupervisionReport

Appointment

Report

President & CEO

Executive Vice Presidents

Senior Vice Presidents

Executive Officers

General Shareholders’ Meeting

Executive Officers Board of Directors

Business/Administration Divisions

Reporting to

Appointment/Dismissal/Supervision

Chairman

DirectorsNominationCommittee

Outside Directors (majority)

DirectorsAuditCommittee



DirectorsCompensationCommittee


Directors and Executive Officers

Directors (As of June 29, 2011)

Setsuhiro Shimomura ........................... Chairman

Kenichiro Yamanishi ............................ Representative Executive Officer, President & CEO

Masanori Saito ...................................... Chairman of the Audit Committee

Hiroki Yoshimatsu ................................ Member of the Compensation Committee, Executive Officer

Noritomo Hashimoto ........................... Chairman of the Nomination Committee, Chairman of the Compensation Committee,

Executive Officer

Ryosuke Fujimoto ................................. Member of the Audit Committee

Masaki Sakuyama ................................. Member of the Nomination Committee, Senior Vice President

Hiroyoshi Murayama ............................ Member of the Nomination Committee, Member of the Audit Committee, Attorney-at-Law

Shunji Yanai .......................................... Member of the Nomination Committee, Member of the Compensation Committee,

Judge, International Tribunal for the Law of the Sea

Mikio Sasaki .......................................... Member of the Compensation Committee, Senior Corporate Advisor,

Mitsubishi Corporation

Shigemitsu Miki .................................... Member of the Nomination Committee, Member of the Audit Committee,

Senior Advisor, The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Fujiatsu Makino .................................... Member of the Audit Committee, Member of the Compensation Committee,

Certified Public Accountant, Registered Tax Accountant

Executive Officers (As of April 1, 2011)

Representative Executive Officer

President & CEO:

Kenichiro Yamanishi

Representative Executive Officers

Executive Vice Presidents:

Mitsuo Muneyuki ................................. In charge of Export Control and Building Systems

Kazuo Kyuma ....................................... In charge of Semiconductor & Device

Senior Vice Presidents:

Masaki Sakuyama ................................. In charge of Corporate Strategic Planning and Operations of Associated Companies

Takashi Sasakawa ................................. In charge of Global Strategic Planning & Marketing

Hideyasu Nonaka ................................. In charge of Factory Automation Systems

Eiji Nakayama ....................................... In charge of Automotive Equipment

Executive Officers:

Susumu Shikata .................................... In charge of Public Utility Systems

Kenji Kuroda ......................................... In charge of Information Systems & Network Service

Hiroki Yoshimatsu ................................ In charge of Accounting and Finance

Noritomo Hashimoto ........................... In charge of General Affairs, Human Resources and Public Relations

Shoichi Sakata ...................................... In charge of Purchasing

Kunio Oguchi ........................................ In charge of Advertising and Domestic Marketing

Kazuhiko Tsutsumi ............................... In charge of Research & Development

Yoshiaki Nakatani................................. In charge of Energy & Industrial Systems

Tsuyoshi Nakamura .............................. In charge of Auditing, Government & External Relations, Legal Affairs,

Export Control and Intellectual Property

Masaharu Moriyasu .............................. In charge of Total Productivity Management & Environmental Programs

Hiroyuki Umemura ............................... In charge of Living Environment & Digital Media Equipment

Masaaki Yasui ....................................... In charge of Electronic Systems

Yasuyuki Nakanishi .............................. In charge of Communication Systems


Organization

Corporate Marketing Group Business Planning OfficeMarket Planning & Administration Dept.Marketing Research & Business Development Dept.Branch Offices (Hokkaido, Tohoku, Kanetsu, Kanagawa, Hokuriku, Chubu, Kansai, Chugoku, Shikoku, Kyushu)

Corporate Productivity Engineering Dept.Corporate Quality Assurance Planning Dept.Corporate Environmental Sustainability GroupCorporate Logistics Dept.Information Technology CenterDesign Systems Engineering CenterManufacturing Engineering Center

Planning & Administration Dept.Advanced Technology R&D CenterInformation Technology R&D CenterIndustrial Design Center

Planning & Administration Dept.Strategic IT Business Planning Dept.Marketing Dept.

Planning & Administration Dept.Engineering Planning Dept.ITS Business Development GroupPublic-Use Systems Marketing Div.Transportation Systems Div.Overseas Marketing Div.Plant Engineering & Construction Div.Branch OfficesKobe Works, Itami Works, Nagasaki Works

Planning & Administration Dept.Engineering Planning Dept.Nuclear Power Plant Technical Supervisory OfficePower Systems Marketing Div.Overseas Marketing Div.Power Plant Engineering & Construction CenterBranch OfficesEnergy Systems Center, Transmission & Distribution Systems Center,Power Distribution Systems Center

Planning & Administration Div.Engineering Planning Dept. Total Security Systems Dept.Domestic Marketing Div.Overseas Marketing Div.Branch OfficesInazawa Works

Planning & Administration Dept.Defense Systems Div.Space Systems Div.IT Space Solutions Div.Branch OfficesCommunication Systems Center, Kamakura Works

Planning & Administration Dept.Communication Systems Engineering CenterTelecommunication Systems Sales & Marketing Div.NTT Projects Div.Branch OfficesCommunication Networks Center

Planning & Administration Dept.Engineering Dept.External Relations Dept.Customer Satisfaction Promotion Dept.Marketing & Operations Strategic Planning Dept.Eco-Facility Systems Marketing Dept.Air-Conditioning & Refrigeration Systems Div.Lighting, Ventilation & Housing Systems Div.PV Systems Div.Home Appliances Div.Digital Media Equipment Div.Living Environment Systems LaboratoryBranch OfficesNakatsugawa Works, Air-Conditioning & Refrigeration Systems Works, Shizuoka Works, Kyoto Works, Gunma Works, Nagasaki Works

Planning & Administration Dept.Industrial Products Marketing Div.Industrial Automation Marketing Div.Overseas Marketing Div.Branch OfficesNagoya Works, Fukuyama Works

Planning & Administration Dept.Automotive Equipment Marketing Div.Automotive Electronics Development CenterBranch OfficesHimeji Works, Sanda Works

Planning & Administration Div.Semiconductor & Device Marketing Div. ASemiconductor & Device Marketing Div. BLCD Div.Branch OfficesPower Device Works, High Frequency & Optical Device Works

Corporate Total Productivity Management & Environmental Programs Group

Corporate Research and Development Group

Information Systems & Network Service Group

Public Utility Systems Group

Energy & Industrial Systems Group

Building Systems Group

Electronic Systems Group

Communication Systems Group

Living Environment & Digital Media Equipment Group

Factory Automation Systems Group

Automotive Equipment Group

Semiconductor & Device Group

Board of DirectorsChairman

Audit Committee Office

Executive Officers’Meeting

NominationCommittee

AuditCommittee

CompensationCommittee

President & CEO

Executive VicePresidents

Senior VicePresidents

ExecutiveOfficers

Corporate Auditing Div.

Corporate Strategic Planning Div.

Associated Companies Div.

Government & External Relations Div.

Corporate Administration Div.

Corporate Human Resources Div.

Corporate Accounting Div.

Corporate Finance Div.

Corporate Purchasing Div.

Public Relations Div.

Corporate Advertising Div.

Global Strategic Planning & Marketing Div.

Regional Corporate Offices

Legal Div.

Corporate Export Control Div.

Corporate Licensing Div.

Corporate Intellectual Property Div.

Americas (U.S.A.)Europe (U.K.)Asia (Singapore)ChinaTaiwan

(As of June 29, 2011)


Major Subsidiaries and Affiliates

Manufacturing Sales/Installation/Services Comprehensive Sales Companies




Electronic Devices

Home Appliances

Others

Mitsubishi Electric Building Techno-Service Co., Ltd.

Mitsubishi Electric Plant Engineering Corporation

Ryoden Elevator Construction, Ltd.

Mitsubishi Electric Control Software Corporation

RYO-SA BUILWARE Co.,Ltd.

Mitsubishi Elevator Korea Co., Ltd.

Mitsubishi Elevator Hong Kong Co., Ltd.

Ryowa Corporation

Meldas System Engineering Corporation

Ryoden Koki Engineering Co., Ltd.

Mitsubishi Electric Automation (Hong Kong) Ltd.

Mitsubishi Electric Automation Korea Co., Ltd.

Meiryo Technica Co., Ltd.

DB Seiko Co., Ltd.

Mitsubishi Electric Automotive America, Inc.

Mitsubishi Electric Thai Auto-Parts Co., Ltd.

Electric Powersteering Components Europe s.r.o.

Mitsubishi Electric Automation, Inc.

Mitsubishi Electric Automotive Czech s.r.o.

Mitsubishi Electric Living Environment Systems Corporation

Mitsubishi Electric Life Network Co., Ltd.

Mitsubishi Electric Osram Ltd.

Mitsubishi Electric Air Conditioning & Refrigeration Equipment Sales Co., Ltd.

Mitsubishi Electric Air Conditioning & Refrigeration Systems Co., Ltd.

Melco Facilities Corporation

Digitec Industrial Ltd.

Mitsubishi Electric Kang Yong Watana Co., Ltd.

Mitsubishi Electric Ryoden Air-Conditioning & Visual Information Systems (Hong Kong) Ltd.

Mitsubishi Electric Home Appliance Co., Ltd.

Mitsubishi Electric Lighting Corporation

Mitsubishi Digital Electronics America, Inc.

Mitsubishi Electric Consumer Products (Thailand) Co., Ltd.

Shanghai Mitsubishi Electric & Shangling Air-Conditioner and Electric Appliance Co., Ltd.

Mitsubishi Electric (Guangzhou) Compressor Co., Ltd.

Siam Compressor Industry Co., Ltd.

Mitsubishi Electric TOKKI Systems Corporation

Mitsubishi Precision Co., Ltd.

SPC Electronics Corporation

Diamond Telecommunication Co., Ltd.

Mitsubishi Electric Information Systems Corporation

Mitsubishi Electric Information Network Corporation

Mitsubishi Electric Information Technology Corporation

Mitsubishi Electric Business Systems Co., Ltd.

Mitsubishi Space Software Co., Ltd.

Mitsubishi Electric Micro-Computer Application Software Co., Ltd.

Melco Display Technology Inc.

Mitsubishi Electric Metecs Co., Ltd.

IT Semicon Co., Ltd.

Fukuryo Semiconductor Engineering Corporation

Mitsubishi Electric Trading Corporation

Mitsubishi Electric Logistics Corporation

Mitsubishi Electric Engineering Co., Ltd.

Mitsubishi Electric System & Service Co., Ltd.

Mitsubishi Electric Life Service Corporation

The Kodensha Co., Ltd.

iPLANET Inc.

Tada Electric Co., Ltd.

Toyo Electric Corporation

Mitsubishi Electric Power Products, Inc.

Mitsubishi Elevator Asia Co., Ltd.

Mitsubishi Electric Shanghai Electric Elevator Co., Ltd.

Toshiba Mitsubishi-Electric Industrial Systems Corporation

Mitsubishi Hitachi Home Elevator Corporation

Shanghai Mitsubishi Elevator Co., Ltd. ETA-Melco Elevator Co. L.L.C.

Shizuki Electric Co., Inc.

Nippon Injector Corporation

Shihlin Electric & Engineering Corporation

Seiryo Electric Co., Ltd.

Miyoshi Electronics Corporation

Oi Electric Co., Ltd.

Renesas Electronics Corporation

Powerex, Inc.

Setsuyo Astec Corporation

Itec Hankyu Hanshin Co., Ltd.

Osram Melco Ltd.

Kang Yong Electric Public Co., Ltd.

Mitsubishi Electric Credit Corporation

KITA KOUDENSHA Corporation

Ryoden Trading Co., Ltd.

Kanaden Corporation

Mansei Corporation

Chiyoda Mitsubishi Electric Co., Ltd. and other regional comprehensive sales companies (10 companies)

Mitsubishi Electric Europe B.V.

Mitsubishi Electric & Electronics USA, Inc.

Mitsubishi Electric Taiwan Co., Ltd.

Mitsubishi Electric (H.K.) Ltd.

Mitsubishi Electric Asia Pte. Ltd.

Mitsubishi Electric Australia Pty. Ltd.

Mitsubishi Electric & Electronics (Shanghai) Co., Ltd.

Notes: 1. Comprehensive sales companies include several companies that are responsible for selling products from a number of businesses, and therefore are put into their own separate

category rather than separating them by business segment.2. Companies shaded in gray are consolidated subsidiaries, while others are equity-method affiliate companies.3. The name of Fukuryo Semicon Engineering Corporation was changed to Melco Semiconductor Engineering Corporation on April 1, 2011.

(As of March 31, 2011)


Financial SectionContents

26 Five-Year Summary

27 Financial Review

36 Consolidated Balance Sheets

38 Consolidated Statements of Income

39 Consolidated Statements of Equity

40 Consolidated Statements of Cash Flow

41 Notes to Consolidated Financial Statements

72 Independent Auditors’ Report


Yen (millions)U.S. dollars (thousands)

Years ended March 31 2011 2010 2009 2008 2007 2011

Summary of Operations

Net sales ¥3,645,331 ¥3,353,298 ¥3,665,119 ¥4,049,818 ¥3,855,745 $43,919,651

Cost of sales 2,622,959 2,505,095 2,710,976 2,957,185 2,831,309 31,601,916

Selling, general, administrative

and R&D expenses 784,606 736,959 783,673 825,428 791,434 9,453,084

Loss on impairment of

long-lived assets 4,005 16,942 30,742 3,189 14,630 48,253

Operating costs 3,411,570 3,258,996 3,525,391 3,785,802 3,637,373 41,103,253

Operating income 233,761 94,302 139,728 264,016 218,372 2,816,398

Income before income taxes 210,237 64,259 43,933 244,137 210,733 2,532,976

Net income attributable

to Mitsubishi Electric Corp. ¥ 124,525 ¥ 28,278 ¥ 12,167 ¥ 157,977 ¥ 123,080 $ 1,500,301

Financial Ratios

Return on sales (%) 3.42 0.84 0.33 3.90 3.19 —

Return on equity (%) 12.36 3.12 1.29 15.11 12.30 —

Return on assets (%) 3.80 0.86 0.36 4.55 3.64 —

Equity ratio (%) 31.52 30.00 25.48 29.60 30.68 —

Per-Share Amounts

Net income attributable

to Mitsubishi Electric Corp.

(yen/U.S. dollars)

Basic ¥58.00 ¥13.18 ¥5.67 ¥73.60 ¥57.34 $0.699

Diluted — 13.18 5.67 73.59 57.34 —

Cash dividends declared

(yen/U.S. dollars) ¥ 12 ¥ 4 ¥ 6 ¥ 13 ¥ 10 $0.145

Statistical Information

Current assets ¥2,073,064 ¥1,927,473 ¥1,939,916 ¥2,060,628 ¥2,050,500 $24,976,675

Current liabilities 1,470,387 1,266,909 1,413,015 1,505,901 1,529,838 17,715,506

Working capital 602,677 660,564 526,901 554,727 520,662 7,261,169

Mitsubishi Electric Corp.

Shareholders’ equity 1,050,340 964,584 849,476 1,031,438 1,059,209 12,654,699

Cash dividends paid 19,315 — 27,904 25,758 19,317 232,711

Total assets 3,332,679 3,215,094 3,334,123 3,485,080 3,452,231 40,152,759

Capital expenditures 107,638 109,069 141,434 144,623 140,557 1,296,843

R&D expenditures 151,779 133,781 144,444 148,790 132,722 1,828,663

Depreciation ¥ 105,280 ¥ 119,762 ¥ 148,018 ¥ 136,283 ¥ 130,130 $ 1,268,434

Employees

(at the end of the year) 114,443 109,565 106,931 105,651 102,835 —

Notes: 1. Operating income is presented as net sales less cost of sales, selling, general, administrative and R&D expenses, and loss on impairment of long-lived assets. Total operating income for each segment conforms to above mentioned operating income. Business restructuring expenses are shown as non-operating expenses.

2. R&D expenditures include elements spent on quality improvements, which constitute manufacturing costs. 3. U.S. dollar amounts are translated from yen at the rate of ¥83=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2011. 4. The Company has 157 consolidated subsidiaries and 40 equity-method companies as of March 31, 2011. 5. For the year ended March 31, 2010, the Company applies FASB ASC Topic 810 “Consolidation”. Due to the adoption of ASC Topic 810, “Net Income” is

renamed “Net income attributable to Mitsubishi Electric Corp.”. Also, income before income taxes includes equity in earnings (losses) of affiliated companies, while excluding net income attributable to noncontrolling interests. Consequently, the Company has reclassified the figures for all prior periods.

6. For the year ended March 31, 2011, diluted net income per share attributable to Mitsubishi Electric Corp. is not included in the above figure as no dilutive securities existed.

Five-Year Summary

Mitsubishi Electric Corporation and Subsidiaries


OVERVIEW

During fiscal 2011, the year ended March 31, 2011, although the business environment saw such setbacks as rapid yen apprecia-

tion and soaring raw material prices, conditions continued improving overall on the back of a widespread recovery in the global

economy, particularly in emerging countries. However, the business environment has been affected by the Great East Japan

Earthquake, resulting in the suspension of production and, due to rolling blackouts and other factors, a decrease in the capacity

utilization ratio at some operational sites.

Under these circumstances, the Mitsubishi Electric Group placed greater emphasis than ever before on promoting growth

strategies rooted in the advantages it has over the competition as well as on Group efforts to boost its competitiveness and

strengthen its management structure.

As a result, in fiscal 2011, the Mitsubishi Electric Group recorded net sales of ¥3,645.3 billion, operating income of ¥233.8

billion, income before income taxes of ¥210.2 billion, and net income attributable to Mitsubishi Electric Corp. of ¥124.5 billion.

Financial Review

Net Sales

The Mitsubishi Electric Group recorded a rise in sales in the following business

segments: Industrial Automation Systems, Electronic Devices, Home Appliances

and Others. In the fiscal year under review, consolidated net sales increased by

¥3,645.3 billion year on year to ¥292.0 billion.

Cost of Sales, Expenses and Operating Income

The cost of sales increased by ¥117.9 billion compared with the previous fiscal

year to ¥2,623.0 billion, representing 72.0% of total net sales, an improvement

of 2.7 points. Selling, general and administrative (SG&A) expenses together with

research and development (R&D) expenses totaled ¥784.6 billion, up ¥47.6 bil-

lion year on year. As a result, the ratio of SG&A and R&D expenses to net sales

improved 0.5 point to 21.5%. Loss on impairment of long-lived assets decreased

by ¥12.9 billion year on year to ¥4.0 billion. Accounting for the aforementioned

factors, operating income amounted to ¥233.8 billion, a rise of ¥139.5 billion

compared with the previous fiscal year. This increase was primarily attributable

to improved income in the Energy and Electric Systems, Industrial Automation

Systems, Electronic Devices, Home Appliances and Others business segments.

Non-Operating Income and Expenses

Financial income, the sum of interest and dividend income less interest expenses,

amounted to ¥0.4 billion, a decrease of ¥0.8 billion year on year.

Equity in losses of affiliated companies totaled ¥20.3 billion, a decrease of

¥14.5 billion compared with the previous fiscal year.

Other income rose by ¥9.8 billion to ¥28.0 billion year on year due primarily

to the recording of a gain from sales of investment securities and other. Other

expenses increased by ¥18.6 year on year to ¥31.7 billion because of such

factors as foreign currency exchange losses and the costs required to completely

repair damage caused by the Great East Japan Earthquake.

Income before Income Taxes

Income before income taxes increased by ¥146.0 billion compared with the

previous fiscal year to ¥210.2 billion for a ratio to net sales of 5.8%. This was

primarily due to the aforementioned improvement in operating income.

Net Income Attributable to Mitsubishi Electric Corp.

Net Income Attributable to Mitsubishi Electric Corp. rose by ¥96.2 billion year on

year to ¥124.5 billion (a ratio to net sales of 3.4%). This was largely due to the

upswing in income before income taxes.

07 08 09 1007 08 09 10

3.86

218

4.053.65

264

234

1111

3.67

140

3.35

94

Net sales Operating income (Yen in trillions) (Yen in billions)

Net sales / Operating income

07 08 09 1007 08 09 10 1111

123

57.34

158 73.60

1228

125

5.67 13.18

58.00

Net income attributable to Mitsubishi Electric Corp. (Yen in billions)

Basic net income per share attributable to Mitsubishi Electric Corp. (Yen)

Net income attributable to Mitsubishi Electric Corp. / Basic net income per share attributable to Mitsubishi Electric Corp.


Business Risks

The Mitsubishi Electric Group engages in the development, manufacture and sale of products in the Energy and Electric Systems,

Industrial Automation Systems, Information and Communication Systems, Electronic Devices, Home Appliances and Other

business fields in Japan as well as North America, Europe, Asia and other overseas regions. As a result, the Group’s financial

standing and business performance may be affected by a variety of external factors.

Factors that may affect the financial standing and business performance of the Mitsubishi Electric Group include but are not

limited to the following. As such, additional factors may arise at any given time.

(1) Important trends

The Mitsubishi Electric Group’s operations may be affected by trends in the global economy, social conditions, laws, tax

codes and regulations.

(2) Foreign currency exchange rates

Fluctuations in foreign currency markets may affect Mitsubishi Electric’s sales of exported products and purchases of

imported materials that are denominated in U.S. dollars or euros, as well as its Asian production bases’ sales of exported

products and purchases of imported materials that are denominated in foreign currencies.

(3) Stock markets

A fall in stock market prices may cause Mitsubishi Electric to record devaluation losses on marketable securities or cause

an increase in retirement benefit obligations in accordance with a decline in the fair value of pension assets.

(4) Supply/demand balance for products and procurement conditions for materials and components

A decline in prices and shipments due to changes in the supply/demand balance as well as an increase in costs due to

a worsening of material and component procurement conditions may adversely affect the Mitsubishi Electric Group’s

performance.

(5) Fund raising

An increase in interest rates, the yen interest rate in particular, would increase Mitsubishi Electric’s interest expenses.

(6) Significant intellectual property matters

Important patent filings, licensing, copyrights and patent-related disputes may adversely affect related businesses.

(7) Environmental legislation or relevant issues

Mitsubishi Electric may incur losses or expenses owing to changes in environmental legislation or the occurrence of

environmental issues. Such changes in legislation or the occurrence of environmental issues may also affect the Group’s

overall operations, including manufacturing activities.

(8) Flaws or defects in products or services

Mitsubishi Electric may incur losses or expenses relating to flaws or defects in products or services. A decrease in the general

assessment of the quality of Group products and services may also impact overall operations.

(9) Lawsuits and other legal proceedings

Lawsuits and/or other legal proceedings against the Mitsubishi Electric Group may affect its overall operations.

(10) Disruptive changes

Disruptive changes in the technology, development and manufacturing of products using new technology, and timing of

market introduction may adversely affect the Mitsubishi Electric Group’s performance.

(11) Business restructuring

The Mitsubishi Electric Group may record losses due to restructuring measures.

(12) Natural disasters

The Mitsubishi Electric Group’s operations, particularly manufacturing activities, may be affected by the occurrence of

earthquakes, typhoons, tsunami, fires and other large-scale disasters.

(13) Other significant factors

The Mitsubishi Electric Group‘s operations may be affected by the outbreak of social or political upheaval due to terrorism,

war, pandemic by new strains of influenza and other diseases, or other factors.



The social infrastructure systems business saw year–on-year decreases in orders

and sales mainly due to a fall in large-scale projects in energy systems businesses,

despite growth in the electrical equipment for rolling stock business in Japan

and abroad.

The building systems business experienced an increase in orders and sales

compared with the previous fiscal year due to a gradual recovery in demand for

elevators and escalators in Japan and increasing demand for the same products

in China and ASEAN countries.

As a result, total sales in the Energy and Electric Systems segment amounted to

¥1,027.7 billion, a 1% dip from the previous fiscal year, but operating income rose

by ¥8.3 billion year on year to ¥83.1 billion, owing primarily to cost improvements.


The factory automation systems business experienced an increase in orders and

sales compared with the previous fiscal year thanks to expanded demand in the

Asian market, beginning with industrial machinery in China as well as rising flat

panel display- and semiconductor-related capital expenditures in South Korea

and Taiwan.

The automotive equipment business saw rises in excess of those of the pre-

vious fiscal year both in orders and sales due to increased demand in individual

markets, including China and India. This occurred despite indications of decreas-

ing demand following the termination of promotional incentives in certain

markets in Japan and Western Europe.

As a result, total sales in the Industrial Automation Systems segment were

¥927.0 billion, a 26% increase year on year. Owing to this rise and other factors,

operating income improved ¥74.0 billion to ¥100.1 billion.

Net Sales by Business SegmentYen (millions)

U.S. dollars (thousands)


Energy and Electric Systems ¥1,027,749 ¥1,039,669 ¥1,043,633 ¥1,057,935 ¥ 951,065 $12,382,518Industrial Automation Systems 927,002 733,132 851,688 1,017,503 956,930 11,168,699Information and

Communication Systems 487,915 526,161 582,146 644,388 688,004 5,878,494Electronic Devices 175,910 138,985 166,969 192,087 185,911 2,119,398Home Appliances 924,478 824,679 915,710 1,000,258 921,948 11,138,289Others 609,416 552,981 596,091 660,822 630,510 7,342,361Subtotal 4,152,470 3,815,607 4,156,237 4,572,993 4,334,368 50,029,759Eliminations (507,139) (462,309) (491,118) (523,175) (478,623) (6,110,108)Consolidated total ¥3,645,331 ¥3,353,298 ¥3,665,119 ¥4,049,818 ¥3,855,745 $43,919,651

Operating Income (Loss) by Business SegmentYen (millions)



Energy and Electric Systems ¥ 83,055 ¥ 74,727 ¥ 74,539 ¥ 68,543 ¥ 49,299 $1,000,663Industrial Automation Systems 100,089 26,138 49,934 129,257 125,139 1,205,892Information and

Communication Systems 13,743 18,672 24,869 2,352 20,803 165,578Electronic Devices 5,901 (7,141) (29,807) 8,395 12,141 71,096Home Appliances 42,008 4,809 34,706 65,754 23,306 506,120Others 14,475 3,204 12,341 16,916 14,976 174,398Subtotal 259,271 120,409 166,582 291,217 245,664 3,123,747Eliminations (25,510) (26,107) (26,854) (27,201) (27,292) (307,349)Consolidated total ¥233,761 ¥ 94,302 ¥139,728 ¥264,016 ¥218,372 $2,816,398

RESULTS BY BUSINESS SEGMENT

07 08 09 1007 08 09 10 1111

951

49

1,058

69

1,04475

1,040 1,02875

83

Net sales Operating income (Yen in billions) (Yen in billions)

Net sales and Operating income of Energy and Electric Systems

957 1251,018 129

50

733

927

26

100852

07 08 09 1007 08 09 10 1111


Net sales and Operating income of Industrial Automation Systems



The telecommunications equipment business experienced reductions in orders

and sales due to decreased demand for optical broadband access systems and

other communication infrastructure components in spite of increased sales of

home broadband equipment.

The information systems and services business recorded a year-on-year decline

in sales because of lower sales in the systems integration and other businesses.

In the electronic systems business, orders remained on par with those

recorded for the previous fiscal year. However, sales decreased year on year due

primarily to the reduction in large-scale projects in the electronic business.

As a result, total sales in the Information and Communication Systems

segment amounted to ¥487.9 billion, down 7% year on year. Because of

this decrease and other factors, operating income declined by ¥4.9 billion to

¥13.7 billion.

Electronic Devices

The semiconductor business experienced year-on-year increases in orders and

sales owing to a rise in demand for industrial-, commercial-, railway-, and

automotive-use power modules as well as optical transmission devices.

Orders and sales in the LCD module business were above those of the

previous fiscal year thanks to expanded demand for industrial-use and vehicle-

mounted products.

As a result, total sales in the Electronic Devices segment stood at ¥175.9

billion, up 27% year on year. Owing primarily to this increase in sales, operating

income improved by ¥13.0 billion to ¥5.9 billion.

Home Appliances

Sales in the Home Appliances segment increased by 12% year on year to ¥924.5

billion. This result was attributable to the following factors: a rise in sales of

air conditioners both in Japan and abroad following last summer’s heat waves;

growth in domestic demand for consumer-use air conditioners, LCD televisions,

and refrigerators due to a last-minute surge in response to a change made in

the eco-point system for consumer electronics during the third quarter; and

increased sales of photovoltaic (PV) systems in Japan and abroad owing mainly to

the impact of government subsidies and other stimulus programs introduced in

various countries.

As a result of this increase in sales and other factors, operating income

improved by ¥37.2 billion compared with the previous fiscal year to ¥42.0 billion.

Others

Sales in the Others segment improved by 10% year on year to ¥609.4 billion

primarily due to stronger sales among affiliated companies engaged in

procurement, logistics, engineering and other related activities.

Consequently, operating income increased by ¥11.3 billion compared with

the previous fiscal year to ¥14.5 billion.

07 08 09 1007 08 09 10 1111

688

21644

2

25

58219

14

526488


Net sales and Operating income of Information and Communication Systems

07 08 09 1007 08 09 10 1111

186

12

192

8

167

-30

139

176

-76

Net sales Operating income (loss) (Yen in billions) (Yen in billions)

Net sales and Operating income (loss) of Electronic Devices

07 08 09 1007 08 09 10 1111

23

922661,000

35

916

5

42

825924


Net sales and Operating income of Home Appliances

07 08 09 1007 08 09 10 1111

63115

661 17596

12

553609

3

14


Net sales and Operating income of Others


Japan

Sales increased by 10% year on year to ¥3,176.6 billion, and operating income rose by ¥127.7 billion to ¥177.4 billion. These

improvements are mainly the result of higher sales in the factory automation systems, automotive equipment, photovoltaic

systems and visual equipment-related businesses.

North America

Sales rose by 12% year on year to ¥230.0 billion primarily due to increased sales in the automotive equipment-related business.

However, operating income fell of ¥4.2 billion to ¥1.4 billion following a drop in price and sales of visual equipment.

Asia

Sales improved by 31% year on year to ¥583.8 billion, and operating income jumped by ¥16.4 billion to ¥43.7 billion.

These increases are primarily attributable to higher sales in the factory automation systems, automotive equipment and air

conditioner-related businesses.

Europe

Sales increased by 4% year on year to ¥294.0 billion, while operating income rose by ¥4.7 billion to ¥7.8 billion. These improve-

ments are mainly attributable to higher sales in the factory automation systems, automotive equipment and photovoltaic

systems-related businesses.

Others

Sales in other regions, including figures for Mitsubishi Electric’s Australian subsidiary, amounted to ¥38.2 billion. Operating

income was ¥4.3 billion.

Net Sales by Geographic SegmentYen (millions)



Japan ¥3,176,605 ¥2,886,502 ¥3,178,807 ¥3,468,792 ¥3,346,100 $38,272,349

North America 229,958 205,713 240,589 275,579 277,555 2,770,578

Asia (excluding Japan) 583,827 445,722 461,549 561,759 482,363 7,034,061

Europe 293,952 282,822 321,501 386,113 299,401 3,541,591

Others 38,200 33,140 34,107 31,905 30,819 460,241

Eliminations (677,211) (500,601) (571,434) (674,330) (580,493) (8,159,169)

Consolidated total ¥3,645,331 ¥3,353,298 ¥3,665,119 ¥4,049,818 ¥3,855,745 $43,919,651

Operating Income (Loss) by Geographic SegmentYen (millions)



Japan ¥177,354 ¥49,673 ¥ 89,293 ¥194,413 ¥177,732 $2,136,795

North America 1,363 5,531 (3,599) 5,861 5,257 16,422

Asia (excluding Japan) 43,734 27,337 32,072 49,088 31,057 526,916

Europe 7,830 3,091 10,727 16,044 11,041 94,337

Others 4,329 1,949 1,020 1,321 1,007 52,157

Eliminations (849) 6,721 10,215 (2,711) (7,722) (10,229)

Consolidated total ¥233,761 ¥94,302 ¥139,728 ¥264,016 ¥218,372 $2,816,398

RESULTS BY GEOGRAPHIC SEGMENT


The Mitsubishi Electric Group actively promotes R&D initiatives that cover fundamental and advanced applications as well as

product commercialization and manufacturing technologies. Carrying out these initiatives are various Group facilities, including

corporate laboratories in Japan and laboratories in the United States and Europe as well as the R&D departments of factories and

consolidated subsidiaries. Moreover, we pursue advanced and wide-ranging R&D activities in partnership with universities and

research institutions both in Japan and overseas.

In fiscal 2011, total R&D expenditures, including quality improvement expenses constituting manufacturing costs,

amounted to ¥151.8 billion. Mitsubishi Electric reports R&D activities by business segment according to purpose, type, result and

expenditure. However, expenditure on fundamental and basic research that does not fall under the purview of a specific business

segment is accounted for under Others.

In the Energy and Electric Systems segment, our research is directed at boosting the competitiveness of such core products

as rotating machines for generators, electric motors and other machinery, switches and transformers; other power transmission/

distribution/reception equipment and systems; transportation systems; and elevators and escalators. Other R&D areas include

IT-application systems for supervision and control, power information systems and building management systems. Notable

among Mitsubishi Electric’s recent R&D achievements are the Train Vision System, which has realized presentation of animated

destination guides and has enabled energy-saving by utilizing LED-backlit displays; Diamond Vision OLED large-scale display

system, which employs organic electro-luminescence (EL) panels; MLCNET-G100 Series IP modems that use metallic wires; the

commencement of verification experiments for smart grids; the world’s first1 injector without magnets, based on the Proton

Alternative Phase Focusing (APF) system for particle beam treatment system (Proton Type); Demonstration project of optimiza-

tion control technology for next-generation electrical tran./dist. systems; a digital instrumentation and control system for nuclear

power plants in China; NEXIEZ elevators for the global market; and hands free access control systems. R&D expenditures in this

segment totaled ¥27.1 billion.

In the Industrial Automation Systems segment, R&D activities are aimed at enhancing the competitiveness of our lineup,

which includes motors and related products; mechatronics equipment; FA control equipment and systems; automotive electric

and electronic components; electric power steering (EPS) and related products; and car multimedia systems. Mitsubishi Electric’s

important R&D successes include MELSEC-Q Series energy measuring module

and insulation monitoring module; RH-3SQHR/SDHR ceiling-mounted, high-

speed, horizontally articulated robot; MM-EFS Series premium high-efficiency IPM

motors; EA8A, EA12A, die-sinking electrical discharge machines; eX Series CO2

laser two-dimensional processing machines; the world’s smallest and lightest2

next-generation motor controller units for electric power steering; a car naviga-

tion system compatible with memory device; and DS-G50 DIATONE automobile

speaker based on carbon nanotubes. R&D expenditures in this segment totaled

¥45.0 billion.

In the Information and Communication Systems segment, Mitsubishi Electric

pursues research related to the development of information and communication

technology (ICT) systems, which include network systems for telecommunication

operators and network solutions equipment, as well as space systems, includ-

ing satellites, ground systems and large telescopes. Notable R&D successes for

R&D Expenditures

Yen (billions)U.S. dollars

(millions)


Energy and Electric Systems ¥ 27.1 ¥ 23.5 ¥ 24.0 ¥ 21.1 ¥ 20.5 $ 326.0

Industrial Automation Systems 45.0 34.7 37.8 37.1 28.3 541.7

Information and Communication Systems 14.9 12.5 15.1 25.2 21.9 179.9

Electronic Devices 8.6 7.3 8.3 8.6 8.8 103.4

Home Appliances 30.7 29.6 32.4 29.6 26.0 370.1

Others 25.5 26.1 26.9 27.2 27.3 307.5

Consolidated total ¥151.8 ¥133.8 ¥144.4 ¥148.8 ¥132.7 $1,828.7

Note: Figures for each segment and the consolidated total are rounded to the nearest unit.

RESEARCH AND DEVELOPMENT

07 08 09 1007 08 09 10 1111

133

3.4

149

3.7

144

3.9134

152

4.0 4.2

R&D expenditures R&D expenditures / (Yen in billions) Net sales (%)

R&D expenditures R&D expenditures ratio


Mitsubishi Electric include a digital surveillance camera system MELOOK-DG; the achievement of large capacity applications for

wavelength, multiplex transmission equipment; IP set top box; MELFOS on Demand FAX OCR service; WebMinder3 on Demand

SaaS Web security assessment services; and Value Platform on Demand4 IaaS platform service. R&D expenditures in this segment

totaled ¥14.9 billion.

In the Electronic Devices segment, our R&D focuses on semiconductor and other electronic devices that are themselves vital

components used in all our business segments. Major R&D achievements include the development of IPMs for New PV; the Super

Mini-DIPIPM Ver. 5 Series; a GaAs power transmission amplifier for W–CDMA-type PC data transmission terminals; a 43-Gbps

RZ–DQPSK modulator-integrated, wavelength-tunable, laser; the 9.0-inch QHD and 8.4-inch SVGA, XGA for industrial DIAFINE

Color TFT-LCD Modules. R&D expenditures in this segment totaled ¥8.6 billion.

In the Home Appliances segment, Mitsubishi Electric is directing its R&D efforts toward environment-conscious products

that focus on energy conservation, recycling, reducing environmental impact, universal design, digital imaging systems, and PV

cell modules. Notable results include home appliances with “RakuRaku-UD” (universal design for greater ease and comfort);

KIRIGAMINE Move Eye Series of room air conditioners, which incorporate the world’s first5 SiC power device; HIKARI BIG

Series refrigerators with rotating and moving shelves; REAL MDR1 Series 3D LCD televisions; FUJIN TC–ZK Series cyclone-type

vacuum cleaners installed with FUJIN cyclone technology; RakuRaku IH cooking heaters with user-friendly functions; and Indoors

Move Eye clothes-drying dehumidifiers with infrared sensors detecting un-dry spaces and dehumidify them intensively. R&D

expenditures in this segment totaled ¥30.7 billion.

In Others, fundamental technology R&D that benefits the entire Group is carried out at the Corporate Research and

Development Group and the Corporate Total Productivity Management & Environmental programs Group research centers, which

strive to enhance Group competitiveness and create new businesses. In our main areas of R&D we have developed smart grid

technologies (energy management system for supply/demand control, voltage regulating system for power distribution network,

wireless mesh network for advanced meter infrastructure); the world’s first6 Full SiC IPM with built-in drive and protection circuits;

Laser-backlight LCD televisions; embedded real-time virtualization technology for integrated controllers platform; one-time pad

mobile phone software using quantum key distribution; and Japan’s first7 large-scale, high-purity plastic recycling system. R&D

expenditures in this area amounted to ¥25.5 billion.

1. Source: Mitsubishi Electric Corporation as of May 19, 2010

2. Source: Mitsubishi Electric Corporation as of September 30, 2010

3. WebMinder is a registered trademark of Mitsubishi Electric Information Network Corporation.

4. Value platform on Demand is a registered trademark of Mitsubishi Electric Information Network Corporation.

5. Source: Mitsubishi Electric Corporation as of August 24, 2010

6. Source: Mitsubishi Electric Corporation as of February 16, 2011

7. Source: Mitsubishi Electric Corporation as of June 2, 2010


Total assets stood at ¥3,332.7 billion as of March 31, 2011, an increase of

¥117.6 billion compared with the previous fiscal year-end. Investments in securi-

ties and other decreased by ¥33.1 billion; however, cash and cash equivalents

rose by ¥80.9 billion, while inventories increased by ¥53.3 billion.

Under liabilities, the outstanding balance of debt and corporate bonds fell

by ¥53.1 billion compared with the end of the previous fiscal year to ¥484.4

billion. As a result, the ratio of interest-bearing debt to total assets was 14.5%, a

decrease of 2.2 points year on year. Retirement and severance benefits decreased

by ¥39.8 billion. However, taking into account such factors as increases in trade

payables, accrued income taxes and accrued expenses by ¥64.1 billion, ¥24.2

billion and ¥11.3 billion, respectively, total liabilities rose by ¥29.8 billion to

¥2,223.7 billion.

Mitsubishi Electric Corp. shareholders’ equity rose by ¥85.8 billion compared

with the previous fiscal year-end to ¥1,050.3 billion and the ratio of Mitsubishi

Electric Corp. shareholders’ equity to total assets was 31.5%, up 1.5 points year

on year. The principal contributor to these increases was ¥124.5 billion in net

income attributable to Mitsubishi Electric Corp. These results occurred despite

such decreases as a ¥19.4 billion fall in accumulated other comprehensive

income—accompanying high yen exchange rates and a drop in share prices—

and the payment of cash dividends totaling ¥19.3 billion.

FINANCIAL POSITION

07 08 09 1007 08 09 10 1111

18.6

15.8

20.3

16.7

14.5

641

551

678

538484

Interest-bearing debt Interest-bearing debt / (Yen in billions) Total assets (%)

Interest-bearing debt Debt ratio

25.5

30.0 31.530.7 29.6

07 08 09 1007 08 09 10 1111

1,0591,031849 965 1,050

3,452 3,4853,334 3,215

3,333

Total assets (Yen in billions) Mitsubishi Electric Corp. shareholders’ equity (Yen in billions)

Shareholders’ equity ratio (%)

Total assets / Mitsubishi Electric Corp. shareholders’ equity

Shareholders’ equity ratio


In line with its policy of expanding and accelerating performance by imple-

menting Balanced Corporate Management while pursuing further growth, the

Mitsubishi Electric Group aims to realize its growth strategies as it increases

profitability. To that end, the Group directed its capital investment mainly

toward the areas of energy and electric systems, factory automation equipment,

automotive products and power devices. At the same time the Group contin-

ued to reinforce its solid business platform through the careful selection and

concentration of investments.

On an individual business segment basis, investments were made in Energy

and Electric Systems (including power systems, electric equipment for rolling

stock and elevators/escalators) aimed at increasing production capacity, stream-

lining and enhancing quality. In Industrial Automation, capital expenditures

were principally used primarily for boosting production capacity for factory

automation systems and automotive equipment operations. In Information and

Communication Systems, funds were appropriated for bolstering research and

development capabilities, while in Electronic Devices, Mitsubishi Electric directed

investment primarily toward augmenting production in the power device busi-

ness. In Home Appliances, expenditures primarily focused on increasing the

production capacity of air-conditioning equipment and PV systems, streamlining

operations and enhancing quality. And in Common and Others, investments

went toward boosting research and development capabilities.

Capital expenditures are derived from cash on hand and funds from

operations. During the consolidated fiscal year under review, production capacity

was not materially affected by the sale, disposal, damage or loss due to natural

disaster of property, plant and equipment.

CAPITAL EXPENDITURES

In the year ended March 31, 2011, net cash provided by operating activities

amounted to ¥327.6 billion, while net cash used in investing activities was

¥145.6 billion. As a result, free cash flow was an inflow of ¥182.0 billion, down

¥13.7 billion compared with the previous fiscal year. Taken into account along

with net cash used in financing activities of ¥89.2 billion, fiscal year-end cash and

cash equivalents amounted to ¥472.1 billion, an increase of ¥80.9 billion year

on year.

Net cash provided by operating cash flows decreased by ¥2.6 billion com-

pared with the previous fiscal year to ¥327.6 billion. This was mainly due to a rise

in inventories in spite of an upswing in net income.

Net cash used in investing activities increased by ¥11.1 billion year on year

to ¥145.6 billion. This was mainly the result of higher purchases of short-term

investments and investment securities.

Net cash used in financing activities was ¥89.2 billion, a ¥76.0 billion

decrease compared with the previous fiscal year. This reflected the repayment of

borrowings and other factors.

CASH FLOWS

141130

145136141 148

109 108120

105

07 08 09 1007 08 09 10 1111

Capital expenditures Depreciation (Yen in billions) (Yen in billions)

Capital expenditures Depreciation

119 127

-34

196182

07 08 09 1007 08 09 10 1111

275

-156-132

-215

-134-146

259

181

330 328

Net cash provided by operating activities (Yen in billions) Net cash used in investing activities (Yen in billions)

Free cash flows (Yen in billions)

Cash flows


Consolidated Balance Sheets


March 31, 2011 and 2010

Yen (millions)


(note 2)

2011 2010 2011

Assets

Current assets:

Cash and cash equivalents ¥ 472,067 ¥ 391,118 $ 5,687,554

Short-term investments (notes 3, 18 and 19) 10,031 9,542 120,856

Trade receivables (notes 4, 6 and 16) 790,991 790,754 9,530,012

Inventories (note 5) 527,504 474,204 6,355,470

Prepaid expenses and other current

assets (notes 9, 15 and 19) 272,471 261,855 3,282,783

Total current assets 2,073,064 1,927,473 24,976,675

Long-term receivables and investments:

Long-term trade receivables (note 18) 2,090 1,560 25,181

Investments in securities and other (notes 3, 15, 18 and 19) 259,164 292,281 3,122,458

Investments in and advances to affiliated

companies (note 6 and 19) 189,789 173,372 2,286,614

Total long-term receivables and investments 451,043 467,213 5,434,253

Property, plant and equipment (notes 7, 19, 20 and 21):

Land 99,438 98,484 1,198,048

Buildings 611,574 604,019 7,368,361

Machinery and equipment 1,475,820 1,461,201 17,780,964

Construction in progress 26,862 22,472 323,639

2,213,694 2,186,176 26,671,012

Less accumulated depreciation 1,686,241 1,668,642 20,316,157

Net property, plant and equipment 527,453 517,534 6,354,855

Other assets (notes 9, 10 and 19) 281,119 302,874 3,386,976

Total assets ¥3,332,679 ¥3,215,094 $40,152,759

See accompanying notes to consolidated financial statements.


Yen (millions)


(note 2)

2011 2010 2011

Liabilities and Equity

Current liabilities:

Bank loans (note 7) ¥ 64,905 ¥ 71,022 $ 781,988

Current portion of long-term debt (notes 7, 18 and 21) 137,856 57,977 1,660,916

Trade payables (notes 6 and 8) 697,789 633,670 8,407,096

Accrued expenses (note 17) 367,995 356,704 4,433,675

Accrued income taxes (note 9) 47,418 23,178 571,301

Other current liabilities (notes 10, 15 and 19) 154,424 124,358 1,860,530

Total current liabilities 1,470,387 1,266,909 17,715,506

Long-term debt (notes 7, 18 and 21) 281,591 408,501 3,392,663

Retirement and severance benefits (note 10) 419,008 458,763 5,048,289

Other liabilities (notes 9, 15, 17 and 19) 52,668 59,727 634,554

Total liabilities 2,223,654 2,193,900 26,791,012

Mitsubishi Electric Corp. shareholders' equity

Common stock (note 11):

Authorized 8,000,000,000 shares;

issued 2,147,201,551 shares in 2011 and in 2010 175,820 175,820 2,118,313

Capital surplus (note 11) 208,669 210,006 2,514,085

Legal reserve 59,223 58,281 713,530

Retained earnings 822,750 718,482 9,912,651

Accumulated other comprehensive

income (loss) (notes 3, 9, 10, 13 and 15) (215,919) (196,509) (2,601,434)

Treasury stock, at cost

264,421 shares in 2011 and

1,975,175 shares in 2010 (203) (1,496) (2,446)

Total Mitsubishi Electric Corp. shareholders' equity 1,050,340 964,584 12,654,699

Noncontrolling interests 58,685 56,610 707,048

Total equity 1,109,025 1,021,194 13,361,747

Commitments and contingent liabilities (note 17)

Total liabilities and equity ¥3,332,679 ¥3,215,094 $40,152,759


Consolidated Statements of Income


Years ended March 31, 2011, 2010 and 2009

Yen (millions)


(note 2)

2011 2010 2009 2011

Revenues:

Net sales (note 6) ¥3,645,331 ¥3,353,298 ¥3,665,119 $43,919,651

Interest and dividends (note 6) 8,162 8,921 12,948 98,337

Other (notes 3, 13, 15 and 20) 28,035 18,277 21,015 337,771

Total revenues 3,681,528 3,380,496 3,699,082 44,355,759

Costs and expenses:

Cost of sales (notes 10 and 21) 2,622,959 2,505,095 2,710,976 31,601,916

Selling, general and administrative

(notes 10, 20 and 21) 645,779 614,062 650,455 7,780,470

Research and development 138,827 122,897 133,218 1,672,614

Loss on impairment of long-lived assets

(note 19 and 20) 4,005 16,942 30,742 48,253

Interest 7,749 9,345 11,013 93,361

Equity in losses of affiliated companies

(note 6 and 19) 20,285 34,801 67,715 244,398

Other (notes 3, 13, 15, 16 and 20) 31,687 13,095 51,030 381,771

Total costs and expenses 3,471,291 3,316,237 3,655,149 41,822,783

Income before income taxes 210,237 64,259 43,933 2,532,976

Income taxes (note 9):

Current 54,309 23,958 7,909 654,326

Deferred 22,788 7,432 20,137 274,554

77,097 31,390 28,046 928,880

Net income 133,140 32,869 15,887 1,604,096

Net income attributable to

noncontrolling interests 8,615 4,591 3,720 103,795


Mitsubishi Electric Corp. ¥ 124,525 ¥ 28,278 ¥ 12,167 $ 1,500,301

Net income per share attributable to Mitsubishi Electric Corp. (note 14):

YenU.S. dollars

(note 2)

Basic ¥58.00 ¥13.18 ¥5.67 $0.699

Diluted — 13.18 5.67 —



Consolidated Statements of Equity



Yen (millions)

Common stock

Capital surplus

Legal reserve

Retained earnings

Accumulated other

comprehensive income (loss)

Treasury stock

Total Mitsubishi Electric Corp. shareholders’

equity

Non-controlling

interestsTotal

equity

Balance at March 31, 2008 ¥175,820 ¥210,890 ¥56,189 ¥708,033 ¥(118,987) ¥ (507) ¥1,031,438 ¥59,782 ¥1,091,220Comprehensive income (loss):

Net income attributable to Mitsubishi Electric Corp. 12,167 12,167 12,167 Net income attributable to noncontrolling interests 3,720 3,720 Other comprehensive income (loss), net of tax (note 13):

Foreign currency translation adjustments (52,388) (52,388) (6,469) (58,857)Pension liability adjustments (note 10) (85,127) (85,127) (85,127)Unrealized gains (losses) on securities (note 3) (28,610) (28,610) (175) (28,785)Unrealized gains (losses) on derivative instruments (note 15) 46 46 6 52

(153,912) (2,918) (156,830)Transfer to legal reserve 1,036 (1,036) — —Equity transactions with noncontrolling interests and other (4,400) (4,400)Dividends paid to Mitsubishi Electric Corp. shareholders’ equity (27,904) (27,904) (27,904)Purchase of treasury stock (205) (205) (205)Reissuance of treasury stock (9) 68 59 59 Balance at March 31, 2009 ¥175,820 ¥210,881 ¥57,225 ¥691,260 ¥(285,066) ¥ (644) ¥ 849,476 ¥52,464 ¥ 901,940 Comprehensive income (loss):


Foreign currency translation adjustments 5,975 5,975 1,226 7,201 Pension liability adjustments (note 10) 61,699 61,699 61,699 Unrealized gains (losses) on securities (note 3) 20,699 20,699 51 20,750 Unrealized gains (losses) on derivative instruments (note 15) 184 184 8 192

116,835 5,876 122,711 Transfer to legal reserve 1,056 (1,056) — —Equity transactions with noncontrolling interests and other (868) (868) (1,730) (2,598)Dividends paid to Mitsubishi Electric Corp. shareholders’ equityPurchase of treasury stock (872) (872) (872)Reissuance of treasury stock (7) 20 13 13 Balance at March 31, 2010 ¥175,820 ¥210,006 ¥58,281 ¥718,482 ¥(196,509) ¥(1,496) ¥ 964,584 ¥56,610 ¥1,021,194 Comprehensive income (loss):


Foreign currency translation adjustments (17,876) (17,876) (3,337) (21,213)Pension liability adjustments (note 10) 9,284 9,284 9,284 Unrealized gains (losses) on securities (note 3) (10,643) (10,643) (36) (10,679)Unrealized gains (losses) on derivative instruments (note 15) (175) (175) (8) (183)

105,115 5,234 110,349 Transfer to legal reserve 942 (942) — —Equity transactions with noncontrolling interests and other (1,516) (1,516) (3,159) (4,675)Dividends paid to Mitsubishi Electric Corp. shareholders’ equity (19,315) (19,315) (19,315)Purchase of treasury stock (46) (46) (46)Reissuance of treasury stock 179 1,339 1,518 1,518 Balance at March 31, 2011 ¥175,820 ¥208,669 ¥59,223 ¥822,750 ¥(215,919) ¥ (203) ¥1,050,340 ¥58,685 ¥1,109,025

U.S. dollars (thousands) (note 2)

Common stock

Capital surplus

Legal reserve

Retained earnings

Accumulated other

comprehensive income (loss)

Treasury stock

Total Mitsubishi Electric Corp. shareholders’

equity

Non-controlling

interestsTotal

equity

Balance at March 31, 2010 $2,118,313 $2,530,193 $702,181 $8,656,410 $(2,367,579) $(18,024) $11,621,494 $682,048 $12,303,542 Comprehensive income (loss):

Net income attributable to Mitsubishi Electric Corp. 1,500,301 1,500,301 1,500,301 Net income attributable to noncontrolling interests 103,795 103,795 Other comprehensive income (loss), net of tax (note 13):

Foreign currency translation adjustments (215,373) (215,373) (40,205) (255,578)Pension liability adjustments (note 10) 111,855 111,855 111,855 Unrealized gains (losses) on securities (note 3) (128,229) (128,229) (434) (128,663)Unrealized gains (losses) on derivative instruments (note 15) (2,108) (2,108) (96) (2,204)

1,266,446 63,060 1,329,506 Transfer to legal reserve 11,349 (11,349) — —Equity transactions with noncontrolling interests and other (18,265) (18,265) (38,060) (56,325)Dividends paid to Mitsubishi Electric Corp. shareholders’ equity (232,711) (232,711) (232,711)Purchase of treasury stock (554) (554) (554)Reissuance of treasury stock 2,157 16,132 18,289 18,289 Balance at March 31, 2011 $2,118,313 $2,514,085 $713,530 $9,912,651 $(2,601,434) $ (2,446) $12,654,699 $707,048 $13,361,747



Consolidated Statements of Cash Flows



Yen (millions)


(note 2)

2011 2010 2009 2011

Cash flows from operating activities:

Net income ¥ 133,140 ¥ 32,869 ¥ 15,887 $ 1,604,096 Adjustments to reconcile net income

to net cash provided by operating activities:

Depreciation 105,280 119,762 148,018 1,268,434 Impairment losses of property, plant and

equipment 3,538 16,425 28,704 42,627 Loss (gain) from sales and disposal of

property, plant and equipment, net (463) (1,056) 1,832 (5,578) Deferred income taxes 22,788 7,432 20,137 274,554 Loss (gain) from sales of securities and

other, net (1,300) (946) (605) (15,663) Devaluation losses of securities and other, net 3,979 3,099 18,556 47,940 Equity in losses of affiliated companies 20,285 34,801 67,715 244,398 Decrease (increase) in trade receivables (14,594) (16,170) 108,729 (175,831) Decrease (increase) in inventories (65,512) 56,358 (37,726) (789,301) Decrease (increase) in other assets 2,493 10,977 (8,800) 30,036 Increase (decrease) in trade payables 66,177 45,373 (133,954) 797,313 Increase (decrease) in accrued expenses and

retirement and severance benefits (29,019) (13,047) (43,192) (349,627) Increase (decrease) in other liabilities 43,653 7,069 (39,080) 525,940 Other, net 37,196 27,295 34,918 448,144 Net cash provided by operating activities 327,641 330,241 181,139 3,947,482

Cash flows from investing activities:

Capital expenditure (107,638) (109,069) (141,434) (1,296,843) Proceeds from sale of property,

plant and equipment 4,504 6,347 4,340 54,265 Purchase of short-term investments

and investment securities (51,640) (46,107) (86,749) (622,169) Proceeds from sale of short-term

investments and investment securities 18,895 20,145 13,693 227,651 Decrease (increase) in loans receivable (19) 831 146 (229) Other, net (9,732) (6,638) (4,935) (117,253) Net cash used in investing activities (145,630) (134,491) (214,939) (1,754,578)

Cash flows from financing activities:

Proceeds from long-term debt 100 92,711 102,940 1,205 Repayment of long-term debt (62,248) (106,584) (112,021) (749,976) Increase (decrease) in short-term debt, net (5,114) (146,487) 122,024 (61,614) Dividends paid (19,315) — (27,904) (232,711) Purchase of treasury stock (46) (872) (205) (554) Reissuance of treasury stock 5 13 59 60 Other, net (2,610) (3,988) — (31,446) Net cash provided by (used in) financing activities (89,228) (165,207) 84,893 (1,075,036)Effect of exchange rate changes on cash and cash equivalents (11,834) 1,959 (26,788) (142,579)Net increase in cash and cash equivalents 80,949 32,502 24,305 975,289 Cash and cash equivalents at beginning of year 391,118 358,616 334,311 4,712,265Cash and cash equivalents at end of year ¥ 472,067 ¥ 391,118 ¥ 358,616 $ 5,687,554



Notes to Consolidated Financial Statements


(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Description of Business

Mitsubishi Electric Corporation (the “Company”) is a multi-

national organization which develops, manufactures, sells

and distributes a broad range of electrical and electronic

equipments in the fields as diverse as home appliances and

space electronics.

The Company and its subsidiaries’ principal lines of

business are: (1) Energy and Electric Systems, (2) Industrial

Automation Systems, (3) Information and Communication

Systems, (4) Electronic Devices, (5) Home Appliances and

(6) Others.

Each line’s sales as a percentage of total consolidated

sales, before elimination of internal sales, for the year

ended March 31, 2011 are as follows: Energy and Electric

Systems—25%, Industrial Automation Systems—22%,

Information and Communication Systems—12%, Electronic

Devices—4%, Home Appliances—22% and Others—15%.

Majority of the operations of the Company and its

subsidiaries is mainly conducted in Japan. Net sales for the

year ended March 31, 2011 comprises of the following

geographical locations: Japan—66%, North America—7%,

Asia (excluding Japan)—17%, Europe—8% and Others—2%.

Our manufacturing operations are conducted principally

at the Parent company with 22 manufacturing sites located in

Japan as well as overseas manufacturing sites located in the

United States, United Kingdom, Thailand, Malaysia, China and

other countries.

(b) Basis of Presentation

The Company and its subsidiaries maintain their books of

account in conformity with financial accounting standards in

the countries of their domicile.

The Company prepares the consolidated financial state-

ments with reflecting the adjustments which are considered

necessary to conform with accounting principles generally

accepted in the United States of America.

(c) Consolidation

The Company prepares the consolidated financial statements

including the accounts of the parent company and those of

its majority-owned subsidiaries, whether directly or indirectly

controlled. All significant intercompany transactions, accounts,

and unrealized gains or losses have been eliminated.

Investments in corporate joint ventures and affiliated

companies with the ownership interest of 20% to 50%, in

which the Company does not have control, but has the ability

to exercise significant influence, are accounted for by the

equity method of accounting. Investments of less than 20%

or where the Company does not have significant influence are

accounted for by the cost method.

The Company evaluates Variable Interest Entities (VIEs)

whether it has a controlling financial interest in an entity

through means other than voting rights and whether it should

consolidate the entity as the primary beneficiary when the

Company has a controlling financial interest.

Starting this Year, the Company applies FASB Accounting

Standards Updates (ASU) 2009-17 “Improvements to Financial

Reporting by Enterprises Involved with Variable Interest

Entities”. ASU 2009-17 changes the approach to determining

a VIE‘s primary beneficiary and requires companies to more

frequently reassess whether they must consolidate a VIE. The

Company anticipates that there are no material effects on

the Company’s consolidated financial position and results of

operation from the adoption of ASU 2009-17.

(d) Use of Estimates

The Company makes estimates and assumptions to prepare

the consolidated financial statements in conformity with

generally accepted accounting principles, and those estimates

and assumptions affect the reported amounts of assets and

liabilities as well as the disclosed amounts of contingent assets

and liabilities at the date of the consolidated financial state-

ments and the reported amounts of revenues and expenses

during the reporting period. Significant items subject to such

estimates and assumptions include valuation allowances for

receivables, inventories and deferred tax assets; the carry-

ing amount of property, plant and equipment; and assets

and obligations related to employee benefits. Actual results

could differ from those estimates. In the year ended March

31, 2009, the Company changed its accounting estimates

relating to the useful life of certain machinery and equipment.

As a result of the change, net income and net income per

share (basic and diluted) decreased by ¥5,747 million and

¥2.68, respectively.

(e) Cash and Cash Equivalents

The Company considers all highly liquid debt instruments

with original maturities of three months or less to be cash

equivalents for the consolidated cash flow statements.

(f) Short-Term Investments and Investment Securities

The Company classifies investments in debt and equity secu-

rities into trading, available-for-sale, or held-to-maturity

securities.

Trading securities are bought and held principally for the

purpose of selling them in the near term. Held-to-maturity

securities are those securities in which the Company has the

ability and intent to hold the security until maturity. All securi-

ties not included in trading or held-to-maturity are classified

as available-for-sale.

Trading and available-for-sale securities are recorded

at fair value. Held-to-maturity securities are recorded at


amortized cost, adjusted for the amortization or accretion of

premiums or discounts. Unrealized holding gains and losses

on trading securities are included in earnings. Unrealized

holding gains and losses, net of the related tax effect, on

available-for-sale securities are excluded from earnings and

are reported as a separate component of other comprehen-

sive income (loss) until realized. Realized gains or losses from

the sale of securities are determined on the average cost of

the particular security held at the time of sale.

A decline in the fair value of any available-for-sale security

below costs that is other-than-temporary results in a reduction

in carrying amount to the fair value, which becomes the new

cost basis for the security.

To determine whether an impairment of equity security

is other-than-temporary, the Company considers whether it

has the ability and intent to hold the security until a market

price recovery and considers whether evidence indicating

the market price of the security is recoverable to the carrying

amount outweighs the counter evidence. Evidence considered

in this assessment includes the reasons for the impairment,

the severity and duration of the impairment, changes in value

subsequent to year-end, and forecasted performance of

the investee.

To determine whether an impairment of debt security is

other-than-temporary, the Company considers whether it has

the intent to sell the equity investment and more likely than

not where the Company is required to sell until a market price

of the investment is recoverable to the amortized cost.

Other investments are stated at cost. The Company rec-

ognizes a loss when there is other-than-temporary decline in

value of other investments, using the same policy as described

above for available-for-sale security impairments.

(g) Allowance for Doubtful Receivables

The Company records an allowance for doubtful receiv-

ables based on credit loss history and evaluation of specific

doubtful receivables.

(h) Inventories

In work-in-process, the Company records the ordered products

at the acquisition cost and the regular purchased products at

the average production costs. Those products are recorded at

the lower of cost or market. Net costs in excess of billings on

long-term contracts are included in inventories. Raw material

and finished product inventories are generally recorded using

the average-cost method, and evaluated at the lower of

cost or market. In accordance with the general practice in

the heavy electrical industry, inventories related to Energy

and Electric Systems include items with long manufacturing

periods which are not realizable within one year.

(i) Property, Plant and Equipment

The Company records property, plant and equipment at cost.

Depreciation of property, plant and equipment is generally

calculated by the declining-balance method, except for certain

assets which are depreciated by the straight-line method, over

the estimated useful life of the assets according to general

class, type of construction, and use of these assets.

The estimated useful life of buildings is 3 to 50 years,

while machinery and equipment is 2 to 20 years.

(j) Leases

The Company records capital leases at the inception of the

lease at the lower of the discounted present value of future

minimum lease payments or the fair value of the leased

assets. The amortization of the leased assets is calculated in

accordance with the Company’s normal depreciation policy.

(k) Income Taxes

The Company recognizes deferred tax assets and liabilities

for the future tax consequences attributable to differences

between the financial statement carrying amounts of existing

assets and liabilities and their respective tax basis, operating

loss and tax credit carryforwards. Deferred tax assets and

liabilities are measured using enacted tax rates expected to

apply to taxable income in the years in which the tempo-

rary differences are expected to be recovered or settled. The

effect on deferred tax assets and liabilities of a change in

tax rates is recognized in income in the period that includes

the enactment date. Valuation allowances are established to

reduce deferred tax assets to their net realizable value if it is

more likely than not that some portion or all of the deferred

tax asset will not be realized.

The Company recognizes the financial statement effects

of unrecognized tax benefits only if those positions are more

likely than not of being sustained.

(l) Product Warranties

The Company generally offers warranties on its products

against certain manufacturing and other defects for the spe-

cific periods of time and/or usage of the product depending

on the nature of the product, the geographic location of its

sale and other factors. The Company recognizes accrued war-

ranty costs based primarily on historical experience of actual

warranty claims as well as current information on repair costs.

(m) Retirement and Severance Benefits

The Company recognizes the funded status (i.e., the difference

between the fair value of plan assets and the projected bene-

fit obligations) of its pension plans in the consolidated balance

sheet at the end of the year, and records the corresponding

amount to Accumulated other comprehensive income (loss),

net of tax. The adjustment items for Accumulated other

comprehensive income (loss) are unrecognized prior service

cost and unrecognized net gain or loss. The amounts of these

adjustments are recognized as net periodic pension cost in

future fiscal years.


(n) Revenue Recognition

The Company recognizes revenue when persuasive evidence

of an arrangement including title transfer exists, delivery has

occurred, the sales price is fixed or determinable, and collect-

ibility is probable. These criteria are met for mass-merchandis-

ing products such as consumer products and semiconductors

at the time when the product is received by the customer,

and for products with acceptance provisions such as heavy

machinery and industrial products at the time when the prod-

uct is received by the customer and the specific criteria of the

product are demonstrated by the Company with only certain

inconsequential or perfunctory work left to be performed

by the customer. Revenue from maintenance agreements is

recognized over the contract term when the maintenance is

provided and the cost is incurred. Also, the Company applies

the percentage of completion method for long-term con-

struction contracts. The Company measures the percentage

of completion by comparing expenses recognized through

the current year to the aggregate amount of estimated cost.

Any anticipated losses on fixed price contracts are charged

to operations when such losses can be estimated. Provisions

are made for contingencies in the period when they become

known pursuant to specific contract terms and conditions and

are estimable.

The contract which may consists of any combination of

products, equipment, installation and maintenance is allo-

cated revenue to each accounting unit based on its relative

fair value, when each deliverable is accounted for separate

accounting unit.

(o) Research and Development and Advertising

The Company accounts for the costs of research and devel-

opment and advertising as expense when those costs are

incurred.

(p) Shipping and Handling Costs

The Company records shipping and handling costs mainly as

selling, general and administrative expenses.

(q) Net Income per Share

The Company calculates basic net income per share attribut-

able to Mitsubishi Electric Corp. divided net income attribut-

able to Mitsubishi Electric Corp. by the weighted-average

number of common shares outstanding during each year.

Diluted net income per share attributable to Mitsubishi Electric

Corp. reflects the potential dilution and is calculated on the

basis that dilutive securities were converted at the beginning

of the year or at time of issuance (if later), and that dilutive

stock option were exercised (less the number of treasury

stock assumed to be purchased from the proceeds using the

average market price of the Company’s common stock).

(r) Foreign Currency Translation

The Company translates receivables and payables in foreign

currency at the prevailing rates of exchange at the balance

sheet date. Gains and losses resulting from translation of

receivables and payables are recognized in current earnings.

Assets and liabilities of the Company’s overseas consolidating

subsidiaries are translated into Japanese yen at the prevail-

ing rates of exchange at the balance sheet date. Income and

expense items are translated at the average exchange rate

prevailing during the year. Gains and losses resulting from

translation of financial statements are recognized as foreign

currency translation adjustments in other comprehensive

income (loss).

(s) Derivatives

The Company recognizes all derivatives as either assets or lia-

bilities in the consolidated financial statements and measures

them at fair value. For derivatives designated as fair value

hedges, changes in fair value of the hedged item and the

derivative are recognized in current earnings. For derivatives

designated as cash flow hedges, fair value changes of the

effective portion of the hedging instruments are recognized as

a component of other comprehensive income (loss) until the

hedged item is recognized in earnings. The ineffective portion

of all hedges is recognized in earnings immediately.

The Company discloses the use and purpose of derivative

instruments, accounting for derivative instruments and related

hedged items. The Company also discloses the effects on the

entity’s financial position, financial performance, and cash

flows by the derivative instruments and hedging activities.

(t) Securitizations

The Company accounts for the securitization of the accounts

receivables as a sale, if it is determined based on the

Company’s evaluation that it has surrendered control over the

transferred receivables.

Accordingly, the receivables sold under these facilities

are excluded from Trade receivables in the accompanying

consolidated balance sheets. Gain or loss on sale of receiv-

ables is calculated based on the allocated carrying amount of

the receivables sold. When a portion of accounts receivables

is transferred, the participating interest that continues to be

held is recorded at the allocated carrying amount of the assets

based on their relative fair values at the date of the transfer.

The Company estimates fair value based on the present value

of future expected cash flows less credit losses.

Starting this Year, the Company applies FASB ASU

2009-16 “Accounting for Transfers of Financial Assets”.

ASU 2009-16 eliminates the concept of a qualifying special-

purpose entity (QSPE), creates more stringent conditions for

reporting a transfer of a portion of a financial asset as a sale,

clarifies other sale-accounting criteria, and changes the initial

measurement of a transferor’s interest in transferred financial

assets. The Company anticipates that there are no material

effects on the Company’s consolidated financial position and

results of operation from the adoption of ASU 2009-16.


(u) Impairment of Long-Lived Assets

The Company reviews for impairment of long-lived assets

such as property, plant, and equipment and purchased intan-

gibles subject to amortization, to be held and used whenever

events or changes in circumstances indicate that the carrying

amount of an asset may not be recoverable. Recoverability of

assets to be held and used is measured by a comparison of

the carrying amount of an asset to estimated undiscounted

future cash flows expected to be generated by the asset. If

the carrying amount of an asset exceeds its estimated future

cash flows, an impairment loss is recognized by the amount

by which the carrying amount of the asset exceeds the fair

value of the asset. Long-lived assets to be disposed of other

than sale continue to be classified as held and used until they

are disposed.

Long-lived assets classified as held-for-sale are separately

presented in the balance sheet and reported at the lower of

the carrying amount or fair value less costs to sell, and are

no longer depreciated.　The assets and liabilities of a disposed

group classified as held-for-sale are presented separately in

the appropriate asset and liability sections of the consolidated

balance sheets.

(v) Stock-based Compensation

When the Company grants stock-option to employees and

others, the Company recognizes the cost of employee ser-

vices received in exchange for stock compensation based on

the grant-date fair value of the employee stock options and

incremental compensation costs arising from subsequent

modifications of awards after the grant date.

(w) Goodwill and Other Intangible Assets

The Company accounts for acquisition of companies using

the acquisition method. The Company recognizes at fair value

the assets acquired, the liabilities assumed, any noncontrolling

interests in the acquiree, and acquired goodwill at the acquisi-

tion date. The Company discloses the nature of business com-

bination to enable the readers to evaluate the effects of such

transaction on the consolidated financial statements.

The Company does not amortize goodwill but tests it for

impairment at least annually. Also other intangible assets with

indefinite useful life are not amortized, but instead tested for

impairment until its useful life is determined. On the other

hand, other intangible assets determined to have useful life

are amortized over their respective estimated useful life and

tested for impairment.

(x) Cost Associated with Exit or Disposal Activities

The Company recognizes the costs associated with exit or dis-

posal activities as liability only when it meets the definition of

a liability in the Statements of Financial Accounting Concepts

No. 6, “Elements of Financial Statements”. The Company uses

fair value for initial measurement of liabilities related to exit or

disposal activities.

(y) Guarantees

The Company recognizes the guarantees and indemnifica-

tion arrangements as liability measured at fair value as they

are issued or modified by the Company, and discloses the

guarantees that the Company has undertaken, including a

rollforward of the Company’s product warranty liabilities. The

Company continually monitors the conditions of the guaran-

tees and indemnifications to identify occurrence of probable

losses, and when such losses are identified and if estimable,

they are recognized in current earnings.

(z) Asset Retirement Obligations

The Company recognizes legal obligations associated with the

retirement of long-lived assets that result from an acquisition,

construction and development, and (or) from a normal opera-

tion of a long-lived asset, except for certain lease obligations.

The Company recognizes a liability for an asset retirement

obligation at fair value in the period which it is incurred if a

reasonable estimate of fair value can be made. The associated

asset retirement costs are capitalized as part of the carrying

amount of the long-lived asset and subsequently allocated to

expense over the asset’s useful life. Subsequent to the initial

measurement of the asset retirement obligation, the obliga-

tion is adjusted at the end of each period to reflect the pas-

sage of time and changes in the estimated future cash flows

underlying the obligation.

(aa) Reclassifications

The Company has made certain reclassifications of the previ-

ous fiscal years’ consolidated financial statements to conform

to the presentation used for the year ended March 31, 2011.

(bb) Future Application of New Accounting Standards

The Company recognizes ASU issued by FASB as new

accounting standards.

In October 2009, the FASB issued ASU 2009-13 “Multiple-

Deliverable Revenue Arrangements” (An Amendment of

Accounting Standards Codification Topic (ASC Topic) 605

“Revenue Recognition”). ASU 2009-13 requires the selling

price used for each deliverable be based on estimated sell-

ing price (ESP) if neither vender specific objective evidence

(VSOE) nor third party evidence (TPE) is available, and that

arrangement consideration be allocated at the inception of

the arrangement to all deliverables using the relative selling

price method regardless of whether the selling price is deter-

mined based on VSOE, TPE, or ESP. As a result, the residual

method of allocating arrangement consideration will no lon-

ger be permitted. ASU 2009-13 also requires qualitative and

quantitative expanded disclosures. The Company is required

to adopt ASU 2009-13 on April 1, 2011. The Company is cur-

rently evaluating the effects on the Company's consolidated

financial position and results of operations upon adoption of

ASU 2009-13.

In October 2009, the FASB issued ASU 2009-14 “Certain


Revenue Arrangements That Include Software Elements” (An

Amendment of ASC Topic 985 “Software”). ASU 2009-14

excludes tangible products containing software components

and non-software components that function together to deliv-

er the tangible product’s essential functionality from scope of

the software revenue guidance. ASU 2009-14 also requires

disclosures that are included within the amendments in ASU

2009-13. The Company is required to adopt ASU 2009-14 on

April 1, 2011. The Company is currently evaluating the effects

on the Company's consolidated financial position and results

of operations upon adoption of ASU 2009-14.

In December 2010, the FASB issued ASU 2010-28

“When to Perform Step 2 of the Goodwill Impairment Test

for Reporting Units with Zero or Negative Carrying Amounts”

(An Amendment of ASC Topic 350 “Intangibles-Goodwill

and Other”). ASU 2010-28 modifies Step 1 of the goodwill

impairment test which required an entity to compare the fair

value of reporting unit with its carrying amount including

goodwill for reporting units with zero or negative carrying

amounts, and requires the entity, if there are any adverse

qualitative factors indicating that it is more likely than not

that an impairment exists, to perform Step 2 of the goodwill

impairment test and calculate the amount of impairment

loss by comparing the implied fair value of reporting unit’s

goodwill with the carrying amount of goodwill. The Company

is required to adopt ASU 2010-28 on April 1, 2011. The

Company is currently evaluating the effects on the Company's

consolidated financial position and results of operations upon

adoption of ASU 2010-28.

In December 2010, the FASB issued ASU 2010-29

“Disclosure of Supplementary Pro Forma Information for

Business Combinations” (An Amendment of ASC Topic 805

“Business Combination”). ASU 2010-29 requires to disclose

the business combination(s) that occurred during the current

year as though it had occurred as of the beginning of the

comparable prior annual reporting period, if comparative pro

forma financial information of both current and prior annual

reporting periods is presented. ASU 2010-29 also expands the

supplemental pro forma disclosure requirements to include

a description of the nature and amount of material, nonrecur-

ring pro forma adjustments directly attributable to the business

combination in the reported pro forma revenue and earnings.

The Company is required to adopt ASU 2010-29 on April 1,

2011. The Company anticipates that there are no material

effects on the Company’s consolidated financial position and

results of operations upon adoption of ASU 2010-29.

In Apri l 2011, the FASB issued ASU 2011-03

“Reconsideration of Effective Control for Repurchase

Agreements” (An Amendment of ASC Topic 860 “Transfer and

Servicing”). ASU 2011-03 removes from assessment of effec-

tive control one of the criterions that required a transferor at

all times during the contract term to have obtained cash or

other collateral sufficient to fund substantially all of the cost

of purchasing replacement financial assets from others. The

Company is required to adopt ASU 2011-03 prospectively

to transactions or modifications of existing transactions that

occur on or after January 1, 2012. The Company is currently

evaluating the effects on the Company's consolidated finan-

cial position and results of operations upon adoption of ASU

2011-03.

(2) U.S. DOLLAR AMOUNTS

The Company has presented the consolidated financial

statements in Japanese yen, and solely for the convenience of

the reader, has provided translated amounts in United States

dollars at the rate of ¥83=U.S.$1, which was the approximate

exchange rate prevailing on the Tokyo Foreign Exchange

Market at the end of March 2011. This translation should not

be construed as a representation that the amounts shown

could be converted into United States dollars at such rate.

(3) SECURITIES

Marketable securities included in short-term investments and

investments in securities and other consist of available-for-

sale securities. The cost, gross unrealized holding gains, gross

unrealized holding losses and fair value for such securities by

equity securities and debt securities at March 31, 2011 and

2010 were as follows:Yen (millions)

Cost

Grossunrealized

holdinggains

Grossunrealized

holdinglosses Fair value

2011:

Available-for-sale:

Equity securities ¥102,609 ¥27,900 ¥ 9,946 ¥120,563

Debt securities 59,453 2,714 9,478 52,689

¥162,062 ¥30,614 ¥19,424 ¥173,252


Yen (millions)

Cost

Grossunrealized

holdinggains

Grossunrealized


2010:

Available-for-sale:

Equity securities ¥104,231 ¥41,882 ¥ 5,840 ¥140,273

Debt securities 72,596 2,181 10,282 64,495

¥176,827 ¥44,063 ¥16,122 ¥204,768


Cost

Grossunrealized

holdinggains

Grossunrealized


2011:

Available-for-sale:

Equity securities $1,236,253 $336,144 $119,831 $1,452,566

Debt securities 716,301 32,699 114,193 634,807

$1,952,554 $368,843 $234,024 $2,087,373

Debt securities consist of Japanese government debt securities,

corporate debt securities and others.

In the years ended March 31, 2011 and 2009, net

unrealized gains on available-for-sale securities, net of taxes

and noncontrolling interests, decreased by ¥10,643 million

($128,229 thousand) and ¥28,610 million, respectively.

In the year ended 2010, net unrealized gains on available-

for-sale securities, net of taxes and noncontrolling interests,

increased by ¥20,699 million.

As of March 31, 2011 and 2010, the cost of non-

marketable equity securities were ¥13,779 million ($166,012

thousand) and ¥14,350 million, respectively.

Maturities of marketable securities classified as available-for-sale at March 31, 2011 were as follows:

Yen (millions)U.S. dollars(thousands)

Cost Fair value Cost Fair value

Due within one year ¥ 9,424 ¥ 10,031 $ 113,542 $ 120,855

Due after one year through five years 9,238 10,599 111,301 127,699

Due after five years 40,791 32,059 491,458 386,253

Marketable equity securities 102,609 120,563 1,236,253 1,452,566

¥162,062 ¥173,252 $1,952,554 $2,087,373

Gross unrealized losses on available-for-sale securities and the fair value of the related securities, aggregated by length of time

that individual securities have been in a continuous unrealized loss positions, at March 31, 2011 were as follows:

Yen (millions)

Less than 12 months 12 months or more Total

Fair value

Unrealized losses

Fair value

Unrealized losses

Fair value

Unrealized losses

Available-for-sale:

Equity securities ¥22,291 ¥4,071 ¥15,879 ¥ 5,875 ¥38,170 ¥ 9,946

Debt securities 792 8 31,027 9,470 31,819 9,478

¥23,083 ¥4,079 ¥46,906 ¥15,345 ¥69,989 ¥19,424



Less than 12 months 12 months or more Total

Fair value

Unrealized losses

Fair value

Unrealized losses

Fair value

Unrealized losses

Available-for-sale:

Equity securities $268,566 $49,048 $191,314 $ 70,783 $459,880 $119,831

Debt securities 9,542 96 373,819 114,097 383,361 114,193

$278,108 $49,144 $565,133 $184,880 $843,241 $234,024

The Company did not recognize an impairment loss from the

decline in the fair value of the marketable securities includ-

ing the unrealized losses. Based on that evaluation and the

Company’s ability and intent to hold those securities for

a reasonable period of time sufficient for a recovery of fair

value, the Company does not consider those securities to be

other-than-temporarily impaired.

Proceeds from the sale of available-for-sale securities and gross realized gains and losses on those sales in the years ended March

31, 2011, 2010 and 2009 were as follows:


2011 2010 2009 2011

Proceeds ¥3,955 ¥1,406 ¥1,732 $47,651

Gross realized gains 1,157 672 81 13,940

Gross realized losses 11 27 0 133

For the years ended March 31, 2011, 2010 and 2009 the Company recognized loss on impairment of marketable securities

¥3,679 million ($44,325 thousand), ¥2,864 million and ¥18,071 million due to other-than-temporary declines in fair value.

(4) TRADE RECEIVABLESS

Trade receivables are summarized as follows:


2011 2010 2011

Notes receivable ¥ 58,931 ¥ 49,364 $ 710,012

Accounts receivable 740,433 750,503 8,920,880

Allowance for doubtful receivables (8,373) (9,113) (100,880)

¥790,991 ¥790,754 $9,530,012

(5) INVENTORIES

Inventories are comprised of the following:


2011 2010 2011

Work in process ¥249,173 ¥246,685 $3,002,084

Less accumulated billings on long-term contracts 16,198 21,075 195,156

232,975 225,610 2,806,928

Raw materials 79,334 75,664 955,831

Finished products 215,195 172,930 2,592,711

¥527,504 ¥474,204 $6,355,470


(6) INVESTMENTS IN AFFILIATED COMPANIES

Summary of combined financial information relating to affiliated companies accounted for by the equity method of accounting

(Renesas Electronics Corp., Toshiba Mitsubishi-Electric Industrial Systems Corp., etc.) as of March 31, 2011 and 2010, and for the

years ended March 31, 2011, 2010 and 2009 is as follows:


2011 2010 2011

Financial Position

Current assets ¥1,570,042 ¥1,229,928 $18,916,169

Property, plant and equipment 438,814 336,384 5,286,915

Other assets 252,402 147,978 3,040,988

Total assets ¥2,261,258 ¥1,714,290 $27,244,072

Current liabilities ¥1,270,234 ¥ 917,638 $15,304,024

Long-term debt 387,360 283,838 4,666,988

Total liabilities 1,657,594 1,201,476 19,971,012

Shareholders’ equity 603,664 512,814 7,273,060

Total liabilities and shareholders’ equity ¥2,261,258 ¥1,714,290 $27,244,072

Yen (millions)


2011 2010 2009 2011

Results of Operations

Sales ¥2,181,546 ¥1,614,702 ¥1,840,643 $26,283,687

Net income (loss) attributable to affiliated companies (69,818) (37,851) (162,843) (841,181)

The balances and transactions with affiliated companies accounted for by the equity method of accounting as of March 31, 2011

and 2010, and for the years ended March 31, 2011, 2010 and 2009 is as follows:


2011 2010 2011

Trade receivables ¥ 69,625 ¥ 67,116 $ 838,855

Trade payables 146,925 125,410 1,770,181

Yen (millions)


2011 2010 2009 2011

Sales ¥314,174 ¥281,043 ¥324,670 $3,785,229

Purchases 160,188 148,308 189,714 1,929,976

Dividends 8,963 7,558 7,644 107,988

Investments in affiliated companies accounted for by the equity method of accounting include the shares of 10 publicly quoted

affiliates (9 publicly quoted affiliates existed in 2010), which are summarized as follows:


2011 2010 2011

Investments at equity ¥ 95,177 ¥34,606 $1,146,711

Quoted market value 107,758 34,454 1,298,289

Due to an affiliated company accounted for by the equity

method of accounting named Renesas Technology Corp.

merged with NEC Electronics Corp., Renesas Electronics Corp.

(Renesas) was established on April 1, 2010. The Company

was allocated 20.5 shares of Renesas per share of Renesas

Technology Corp. at the effective date of its merger.

Renesas offered allocation of new stocks which is total

amounts of ¥134,600 million ($1,621,687 thousand) to the

Company, NEC Corporation and Hitachi, Ltd. The Company

was accepted ¥35,235 million ($424,518 thousand) to new

stocks allocation. As a result of its merger, the Company’s

ownership interest for Renesas is 25.05% and the Company


accounts for by equity method to investment on Renesas.

The Company includes the amounts of $13,785 million

($166,084 thousand) which is difference between the costs of

investments $98,472 million ($1,186,410 thousand) and the

amounts of net assets which is after fair value measurements

at effective date $84,687 million ($1,020,325 thousand) in

investments in affiliated companies as goodwill related to

equity investment on consolidated balance sheets.

At March 31, 2011, the Company recognizes that no

impairment exists on its goodwill.

Bank loans consisted of the following:


2011 2010 2011

Borrowings from banks and others ¥64,555 ¥70,652 $777,771

Commercial paper 350 370 4,217

¥64,905 ¥71,022 $781,988

The weighted average interest rates on borrowings from

banks and others outstanding as of March 31, 2011 and 2010

were 0.74% and 0.97%, respectively.

At March 31, 2011, the Company had unused committed

lines of credit that can provide short-term funds from sub-

scribing financial institutions amounting to ¥114,000 million

($1,373,494 thousand).

(7) BANk LOANS AND LONG-TERM DEBT

Long-term debt consisted of the following:


2011 2010 2011

Borrowings from banks and other companies,

due 2011 to 2021 with bearing interest rate

ranging from 0.42% to 8.00% at March 31, 2011:

due 2010 to 2021 with bearing interest rate

ranging from 0.53% to 8.91% at March 31, 2010:

Secured ¥ 1,305 ¥ 1,312 $ 15,723

Unsecured 253,532 301,492 3,054,602

1.76% Japanese yen bonds due 2011 25,000 25,000 301,205





1.38% Japanese yen bonds due 2011 14 — 169

0.94% Japanese yen bonds due 2012 200 — 2,409

Capital lease obligations 29,396 28,674 354,169

419,447 466,478 5,053,579

Less amount due within one year 137,856 57,977 1,660,916

¥281,591 ¥408,501 $3,392,663

The aggregate annual maturities of long-term debt outstanding at March 31, 2011 were as follows:

Year ending March 31:


2012 ¥137,856 $1,660,916

2013 88,297 1,063,819

2014 98,063 1,181,482

2015 34,086 410,675

2016 7,470 90,000

Thereafter 53,675 646,687

Total ¥419,447 $5,053,579


Substantially all of the loans with banks and others have basic

written agreements. With respect to all present or future

loans, these agreements state that the Company would need

to provide collateral or guarantors immediately upon the

banks’ request and that any collateral furnished pursuant to

such agreements will be used against repayment of debts in

case of default.

Certain of the secured loan agreements contain provi-

sions that permit the lenders to require additional collateral,

and substantially all of the unsecured loan agreements per-

mit the lenders to require collateral or guarantors. Property,

plant and equipment carried at ¥1,200 million ($14,458

thousand) are pledged as security for long-term loans from

banks and others.

Trade payables are summarized as follows:


2011 2010 2011

Notes payable ¥ 21,781 ¥ 23,920 $ 262,421

Accounts payable 676,008 609,750 8,144,675

¥697,789 ¥633,670 $8,407,096

(8) TRADE PAYABLES

(9) INCOME TAXES

Total income taxes were allocated as follows:


2011 2010 2009 2011

Income before income taxes ¥77,097 ¥31,390 ¥ 28,046 $928,880

Shareholders’ equity—accumulated other

comprehensive income (loss):

Foreign currency translation adjustments (1,978) 550 (3,308) (23,832)

Pension liability adjustments (1,651) 45,284 (61,255) (19,891)

Unrealized gains (losses) on securities (6,886) 12,652 (22,843) (82,964)

Unrealized gains (losses) on derivative instruments (7) (8) 53 (84)

¥66,575 ¥89,868 ¥(59,307) $802,109

The significant components of deferred tax expense attributable to income taxes are as follows:


2011 2010 2009 2011

Change in valuation allowance related

to deferred tax assets ¥ (9,232) ¥1,633 ¥ 5,337 $(111,229)

Other 32,020 5,799 14,800 385,783

¥22,788 ¥7,432 ¥20,137 $ 274,554

The Company is subjected to a number of income taxes. The statutory tax rate is approximately 41% for the years ended March

31, 2011, 2010 and 2009.


The actual tax rate for the years ended March 31, 2011, 2010 and 2009 is reconciled with the Japanese statutory tax rate in the

following table:

2011 2010 2009

Japanese statutory tax rate 41.0% 41.0% 41.0%

Change in valuation allowance (0.9) 0.7 24.7

Expenses permanently not deductible for tax purposes 1.0 3.2 6.5

International tax rate difference (6.9) (16.5) (13.2)

Tax credits (4.2) (4.1) (4.1)

Tax effect attributable to investments at equity 4.0 23.5 63.7

Revision of Japanese tax regulations — — (49.5)

Other 2.7 1.0 (5.3)

Actual income tax rate 36.7% 48.8% 63.8%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities

at March 31, 2011 and 2010 are as follows:


2011 2010 2011

Deferred tax assets:

Retirement and severance benefits ¥122,238 ¥140,255 $1,472,747

Accrued expenses 113,118 103,018 1,362,867

Property, plant and equipment 40,517 53,853 488,157

Inventories 42,699 37,745 514,446

Pension liability adjustments 121,765 120,114 1,467,048

Tax loss carryforwards 7,687 19,385 92,614

Other 85,216 84,504 1,026,699

Total gross deferred tax assets 533,240 558,874 6,424,578

Valuation allowance (62,590) (71,822) (754,096)

Deferred tax assets, less valuation allowance 470,650 487,052 5,670,482

Deferred tax liabilities:

Securities contributed to employee

retirement benefit trust 32,856 32,856 395,855

Property, plant and equipment 15,284 14,167 184,145

Net unrealized gains on securities 4,630 11,516 55,783

Other 25,576 21,777 308,145

Total gross deferred tax liabilities 78,346 80,316 943,928

Net deferred tax assets ¥392,304 ¥406,736 $4,726,554

The valuation allowance for deferred tax assets as of April

1, 2009 was ¥70,189 million. The net change in the total

valuation allowance for the year ended March 31, 2010 was

an increase of ¥1,633 million. The net change in the total

valuation allowance for the year ended March 31, 2011 was a

decrease of ¥9,232 million ($111,229 thousand). In assessing

the realizability of deferred tax assets, management considers

whether it is more likely than not that some portion or all of

the deferred tax assets will be realized. The ultimate realiza-

tion of deferred tax assets is dependent upon the generation

of future taxable income during the periods in which those

temporary differences become deductible. Management

considers the scheduled reversal of deferred tax liabilities, pro-

jected future taxable income, and tax planning strategies in

making this assessment.

At March 31, 2011, the Company and certain sub-

sidiaries had net operating loss carryforwards of ¥15,855

million ($191,024 thousand) and ¥46,301 million ($557,843

thousand) for corporate and local income tax purposes,

respectively, which were available to offset future taxable

income, if any. A significant portion of the net operating loss

carryforwards will expire in the years ending March 31, 2017

and 2016.


Net deferred tax assets and liabilities at March 31, 2011 and 2010 are reflected in the accompanying consolidated balance sheets

under the following captions:


2011 2010 2011

Prepaid expenses and other current assets ¥159,559 ¥145,340 $1,922,397

Other assets 237,459 265,148 2,860,952

Other liabilities (4,714) (3,752) (56,795)

¥392,304 ¥406,736 $4,726,554

Income taxes have not been recognized undistributed income

of domestic subsidiaries and affiliated companies as such

income, if distributed in the form of dividends, is either

not taxable under present circumstances or is not material.

Income taxes based on the undistributed income of foreign

subsidiaries and affiliated companies have been recognized.

Although the Company believes that there are no sig-

nificant unrecognized tax benefits as of March 31, 2011 and

2010, future determination by tax authorities could affect the

effective tax rate in the future periods.

The Company records interest and penalties related to

additional income tax, etc. in the consolidated statements

of income. Both interest and penalties accrued as of March

31, 2011 and 2010, and interest and penalties for the years

ended March 31, 2011, 2010 and 2009 are not material.

The Company and its subsidiaries file income tax returns

in Japan and various foreign tax jurisdictions. The tax years

that remain subject to examination by major tax jurisdictions

are as follows:

Location Open tax years

Japan 2005-2011

United States 2009-2011

Thailand 2007-2011

Europe 2005-2011

(10) RETIREMENT AND SEVERANCE BENEFITS

The Company has non-contributory and contributory defined

benefit plans covering substantially all of its employees who

meet eligibility requirements.

Under the non-contributory plans, employees with less

than twenty years of service are entitled to lump-sum sev-

erance indemnities at date of severance, and employees

with twenty or more years of service are entitled to annu-

ity payments subsequent to retirement, determined by the

current basic rate of pay, length of service and termination

conditions. In addition, certain employees who meet the

eligibility requirements are entitled to additional lump-sum

payments at the date of retirement based on the retirement

age. Under the contributory plans, employees are entitled to

annuity payments at a certain age. The assets of certain of the

non-contributory plans and the contributory plans are com-

bined in accordance with the regulations and administered

by a board of trustees comprised equally of employer and

employee representatives. An employee retirement benefit

trust is established for certain of the non-contributory plans.

The Company amended its benefit plan under labor and

management agreement during the year ended March 31,

2005, and established a defined contribution plan on April

1, 2005. In addition, the Company amended its contributory

defined benefit plan and introduced a cash balance pension

plan. Under the cash balance pension plan, each participant

has a notional account which is credited yearly based on the

current rate of contribution and market-related interest rate.

The domestic consolidated subsidiaries sponsor various

pension plans, which are partially or entirely employees’

pension fund plan, corporate pension fund plan, and/ or

qualified pension plan, based on each subsidiaries’ respective

pension policies.

In addition, the foreign consolidated subsidiaries that have

adopted pension policy mainly sponsors defined contribution

pension plan.

The Company measures the fair value of plan assets and

the projected benefit obligation at the end of the year, and

recognizes the funded status (i.e., the difference between

the fair value of plan assets and the projected benefit

obligations) of pension in consolidated balance sheets with

the amount of corresponding adjustment to Accumulated

other comprehensive income (loss), net of tax.


Obligations and funded status

Reconciliations of beginning and ending balances of the benefit obligations and the fair value of the plan assets are as follows:

Yen (millions)


2011 2010 2011

Change in benefit obligations:

Benefit obligations at beginning of year ¥1,095,652 ¥1,136,279 $13,200,627

Service cost 28,925 31,358 348,494

Interest cost 22,346 23,108 269,229

Plan participants’ contributions 1,129 1,168 13,603

Amendments (576) (10,037) (6,940)

Actuarial loss (gain) 82 2,768 988

Benefits paid (74,651) (80,933) (899,410)

Acquisitions and divestitures, etc. (825) (8,059) (9,940)

Benefit obligations at end of year 1,072,082 1,095,652 12,916,651

Change in plan assets:

Fair value of plan assets at beginning of year 637,716 542,509 7,683,325

Actual return on plan assets (10,465) 87,573 (126,084)

Employer contributions 63,243 44,229 761,964

Plan participants’ contributions 1,129 1,168 13,603

Benefits paid (35,579) (36,295) (428,663)

Acquisitions and divestitures, etc. (458) (1,468) (5,518)

Fair value of plan assets at end of year 655,586 637,716 7,898,627

Funded status at end of year ¥ (416,496) ¥ (457,936) $ (5,018,024)

Amounts recognized in the consolidated balance sheet at March 31, 2011 and 2010 consist of:

Yen (millions)


2011 2010 2011

Other assets ¥ 8,192 ¥ 7,467 $ 98,699

Other current liabilities (5,680) (6,640) (68,434)

Retirement and severance benefits (419,008) (458,763) (5,048,289)

¥(416,496) ¥(457,936) $(5,018,024)

Amounts recognized in accumulated other comprehensive income (loss) at March 31, 2011 and 2010 consist of:

Yen (millions)


2011 2010 2011

Actuarial gain or loss ¥ 414,793 ¥ 427,115 $ 4,997,506

Prior service benefit (117,263) (133,683) (1,412,807)

¥ 297,530 ¥ 293,432 $ 3,584,699

The accumulated benefit obligations for all defined benefit plans were as follows:

Yen (millions)


2011 2010 2011

Accumulated benefit obligations ¥1,066,581 ¥1,090,079 $12,850,373


Components of net periodic retirement and severance costs and other amounts recognized in other comprehensive

income (loss)

Net periodic retirement and severance costs for the years ended March 31, 2011, 2010 and 2009 consisted of the following

components:


2011 2010 2009 2011

Service cost ¥ 30,054 ¥ 32,526 ¥ 37,534 $ 362,096

Interest cost on projected benefit obligation 22,346 23,108 23,494 269,229

Expected return on plan assets (12,057) (10,373) (12,158) (145,265)

Amortization of prior service benefit (16,996) (15,529) (15,505) (204,771)

Amortization of actuarial loss 35,107 42,220 31,273 422,976

58,454 71,952 64,638 704,265

Plan participants’ contributions (1,129) (1,168) (1,213) (13,602)

Net periodic retirement and severance costs ¥ 57,325 ¥ 70,784 ¥ 63,425 $ 690,663

Other changes in plan assets and projected benefit obligations recognized in other comprehensive income (loss) for the years

ended March 31, 2011 and 2010 were summarized as follows:


2011 2010 2011

Actuarial gain or loss ¥ 22,785 ¥ (73,766) $ 274,518

Amortization of actuarial loss (35,107) (42,220) (422,976)

Prior service benefit (576) (10,037) (6,940)

Amortization of prior service benefit 16,996 15,529 204,771

¥ 4,098 ¥(110,494) $ 49,373

The estimated actuarial gain or loss and prior service benefit for the defined benefit pension plans that will be amortized from

accumulated other comprehensive income (loss) into net periodic benefit cost over the next year are summarized as follows:

Yen (millions)


Actuarial gain or loss ¥ 27,604 $ 332,578

Prior service benefit (17,044) (205,349)

Actuarial assumptions

Actuarial assumptions used to determine benefit obligations at March 31, 2011 and 2010 were as follows:

2011 2010

Discount rate 2.0% 2.0%

Assumed rate of increase in future compensation levels 1.7% 1.7%

Actuarial assumptions used to determine net periodic retirement and severance costs for the years ended March 31, 2011, 2010

and 2009 were as follows:2011 2010 2009

Discount rate 2.0% 2.0% 2.0%

Assumed rate of increase in future compensation levels 1.7% 1.7% 1.7%

Expected long-term rate of return on plan assets 2.5% 2.5% 2.5%

The expected long-term rate of return is based on actual historical returns and the expectations for future returns of each plan

asset category in which the Company invests.


Plan Assets

The fair values of the Company’s pension plan assets at March 31, 2011 and 2010 were as follows:

Yen (millions)

2011Level 1 Level 2 Level 3 Total

Equity securities

Marketable equity securities ¥139,744 ¥ — ¥— ¥139,744

Pooled funds — 164,206 — 164,206

Debt securities

Government, municipal and corporate debt securities 2,334 20,876 — 23.210

Pooled funds — 207,468 — 207,468

Other assets

Life insurance company general accounts — 77,383 — 77,383

Other — 43,575 — 43,575

¥142,078 ¥513,508 ¥— ¥655,586

Notes: 1. Marketable equity securities include mainly domestic stocks.

2. Pooled funds of equity securities include approximately 40% domestic stocks and 60% foreign stocks.

3. Pooled funds of debt securities include approximately 60% domestic bonds and 40% foreign bonds.

4. Government, municipal and corporate debt securities of level 1 include government debt securities.

Yen (millions)


Equity securities


Pooled funds — 171,802 — 171,802

Debt securities

Government, municipal and corporate debt securities 3,110 15,771 — 18,881

Pooled funds — 192,882 — 192,882

Other assets


Other — 25,613 — 25,613

¥158,776 ¥478,940 ¥— ¥637,716

Notes: 1. Marketable equity securities include mainly domestic stocks.

2. Pooled funds of equity securities include approximately 50% domestic stocks and 50% foreign stocks.

3. Pooled funds of debt securities include approximately 60% domestic bonds and 40% foreign bonds.

4. Government, municipal and corporate debt securities of level 1 include government debt securities.



Equity securities

Marketable equity securities $1,683,663 $ — $— $1,683,663

Pooled funds — 1,978,386 — 1,978,386

Debt securities

Government, municipal and corporate debt securities 28,120 251,519 — 279,639

Pooled funds — 2,499,614 — 2,499,614

Other assets


Other — 525,000 — 525,000

$1,711,783 $6,186,844 $— $7,898,627


The Company’s investment policies are designed to ensure

adequate plan assets are available to provide future pay-

ments of pension benefits to eligible participants. Taking into

account the expected long-term rate of return on plan assets,

the Company formulates an investment portfolio comprised

of the optimal combination of equity and debt securities.

Plan assets are invested in individual equity and debt securi-

ties using the guidelines of the investment portfolio in order

to produce a total return that will match the expected return

on a mid-term to long-term basis. The Company evaluates the

gap between expected return and actual return of invested

plan assets on an annual basis. In addition, taking into the

consideration the management environment and the revision

of regulations, the Company revises the investment portfolio

when and to the extent considered necessary to achieve the

expected long-term rate of return on plan assets based on the

pension asset and liability management method.

The Company’s investment portfolio consists of two major

components: approximately 40% is invested in equity securi-

ties, approximately 60% is invested in debt securities and

other investment vehicles, primarily consisting of investments

in life insurance company general accounts. As for selection

of plan assets, the Company has examined the contents of

investment, and appropriately diversified investments.

See note 19 which shows categorized input for fair value

measurements by the valuation technique into a three-level

hierarchy.

Each level into which assets are categorized is based on

inputs used to measure the fair value of the assets.

Level 1 assets are comprised principally of equity securities

and government bonds, which are valued using un adjusted

quoted market prices in active markets with sufficient volume

and frequency of transactions. Level 2 assets are comprised

principally of pooled funds that invest in equity and debt

securities, corporate bonds and investments in life insurance

company general accounts. Pooled funds are valued at their

net asset values that are calculated by the sponsor of the

fund. Corporate bonds are valued using quoted prices for

identical assets in markets that are not active. Investments in

life insurance company general accounts are valued at the

amounts that are the conventional interest adding to the

principle amounts calculated by life insurance company.

Cash Flows

The Company expects to contribute ¥46,661 million ($562,181 thousand) to its pension plan in the year ending March 31, 2011.

Estimated future benefit payments are as follows:



2012 ¥ 79,769 $ 961,072

2013 71,016 855,614

2014 66,391 799,892

2015 62,540 753,494

2016 60,594 730,048

2017—2021 251,236 3,026,940

The amount of cost recognized for the Company and certain subsidiaries’ defined contribution plans for the years ended March

31, 2011, 2010 and 2009 were ¥6,709 million ($80,831 thousand), ¥6,225 million and ¥6,715 million, respectively.

Changes in common stock for the years ended March 31, 2011 and 2010 were as follows:Shares

2011 2010

Number of common shares issued: Balance at beginning of year 2,147,201,551 2,147,201,551

Balance at end of year 2,147,201,551 2,147,201,551

Conversions into common stock of convertible debenture

issued subsequent to October 1, 1982 and exercise of war-

rants were accounted for in accordance with the provisions of

the Japanese Commercial Code by crediting one-half of the

conversion price and exercise price to each of the common

stock account and the capital surplus account.

Certain sections of the Japanese Commercial Code are

repealed by the Japanese Corporate Law effective May 1,

2006.

The Japanese Corporate Law requires that an amount

equal to 10% of dividends and other distributions paid in

cash by the Company and its domestic subsidiaries be appro-

priated as a legal reserve until the aggregated amount of

additional paid-in capital and the legal reserve equal to 25%

(11) SHAREHOLDERS’ EqUITY


of the common stocks. The additional paid-in capital and the

legal reserve may be used to reduce a deficit or transferred to

common stock with a resolution of the shareholders’ meeting.

The amount available for dividends under the Japanese

Corporate Law is based on the amount recorded in the

Company’s books of account in accordance with accounting

standards of Japan. The adjustments included in the accom-

panying consolidated financial statements to have them

conform with accounting principles generally accepted in

the United States of America, but not recorded in the books

(12) STOCk OPTION PLANS

of account, have no effect on the determination of retained

earnings available for dividends under the Japanese Corporate

Law. Retained earnings available for dividends shown in the

Company’s books of account amounted to ¥204,037 million

($2,458,277 thousand) at March 31, 2011.

Cash dividends and appropriations to the legal reserve

charged to retained earnings during the years ended March

31, 2011, 2010 and 2009 represent dividends paid out during

the years and the related appropriations to the legal reserve.

The Company had granted stock options to directors, execu-

tive officers and senior employees. Under the stock option

plan, options to purchase common stock, granted at the

exercise prices not less than market value at date of grant,

become exercisable in two years after the date of grant and

expire within four years after the date of grant.

(13) OTHER COMPREHENSIVE INCOME (LOSS)

The stock option plan activity for the years ended March 31, 2011, 2010 and 2009 is shown as follows:

Shares

Weighted average exercise price

Yen U.S. dollars

Outstanding at March 31, 2008 16,000 ¥437

Outstanding at March 31, 2009 16,000 437 Exercised 16,000 437

Outstanding at March 31, 2010 — — $ —

Outstanding at March 31, 2011 — ¥ — $ —

Change in accumulated other comprehensive income (loss) is as follows:


2011 2010 2009 2011

Foreign currency translation adjustments:

Balance at beginning of year ¥ (41,524) ¥ (47,499) ¥ 4,889 $ (500,290) Adjustments for the year (17,876) 5,975 (52,388) (215,373) Balance at end of year (59,400) (41,524) (47,499) (715,663)

Pension liability adjustments:

Balance at beginning of year (171,674) (233,373) (148,246) (2,068,361) Adjustments for the year 9,284 61,699 (85,127) 111,855 Balance at end of year (162,390) (171,674) (233,373) (1,956,506)

Unrealized gains (losses) on securities:

Balance at beginning of year 16,600 (4,099) 24,511 200,000 Adjustments for the year (10,643) 20,699 (28,610) (128,229) Balance at end of year 5,957 16,600 (4,099) 71,771

Unrealized gains (losses) on derivative instruments:

Balance at beginning of year 89 (95) (141) 1,072 Adjustments for the year (175) 184 46 (2,108) Balance at end of year (86) 89 (95) (1,036)

Total accumulated other comprehensive income (loss): Balance at beginning of year (196,509) (285,066) (118,987) (2,367,579) Adjustments for the year (19,410) 88,557 (166,079) (233,855) Balance at end of year ¥(215,919) ¥(196,509) ¥(285,066) $(2,601,434)


Tax effects allocated to each component of other comprehensive income (loss) and reclassification adjustments are as follows:

Yen (millions)

Before-tax amountTax (expense)

or benefit Net-of-tax amount

2011:


Amount arising during the year on investments in

foreign entities held at end of year ¥(22,684) ¥ 1,948 ¥(20,736)

Less reclassification adjustments for gains (losses)

included in net income 2,830 30 2,860

Net change in foreign currency translation

adjustments during the year (19,854) 1,978 (17,876)


Amount arising during the year on pension

liability adjustments (23,921) 9,077 (14,844)


included in net income 31,554 (7,426) 24,128

Net change in pension liability adjustment 7,633 1,651 9,284


Unrealized holding gains (losses) arising during the year (22,250) 8,864 (13,386)



Net change in unrealized gains (losses) on securities (17,529) 6,886 (10,643)


Unrealized holding gains (losses) arising during the year (182) 7 (175)

Other comprehensive income (loss) ¥(29,932) ¥10,522 ¥(19,410)

Yen (millions)



2010:



foreign entities held at end of year ¥ 6,100 ¥ (550) ¥ 5,550


included in net income 425 — 425


adjustments during the year 6,525 (550) 5,975



liability adjustments 80,292 (34,341) 45,951



Net change in pension liability adjustment 106,983 (45,284) 61,699


Unrealized holding gains (losses) arising during the year 29,832 (11,214) 18,618



Net change in unrealized gains (losses) on securities 33,351 (12,652) 20,699


Unrealized holding gains (losses) arising during the year 176 8 184

Other comprehensive income (loss) ¥147,035 ¥(58,478) ¥88,557


Yen (millions)



2009:



foreign entities held at end of year ¥ (55,696) ¥ 3,308 ¥ (52,388)






Net change in pension liability adjustment (146,382) 61,255 (85,127)







Unrealized holding gains (losses) arising during the year 99 (53) 46

Other comprehensive income (loss) ¥(253,432) ¥87,353 ¥(166,079)




2011:



foreign entities held at end of year $(273,301) $ 23,470 $(249,831)


included in net income 34,096 362 34,458


adjustments during the year (239,205) 23,832 (215,373)






Net change in pension liability adjustment 91,964 19,891 111,855







Unrealized holding gains (losses) arising during the year (2,192) 84 (2,108)

Other comprehensive income (loss) $(360,626) $126,771 $(233,855)


(14) NET INCOME PER SHARE ATTRIBUTABLE TO MITSUBISHI ELECTRIC CORP.

A reconciliation of the numerators and denominators of the basic and diluted net income per share attributable to Mitsubishi

Electric Corp. calculations is as follows:


2011 2010 2009 2011


Mitsubishi Electric Corp. ¥124,525 ¥28,278 ¥12,167 $1,500,301

Effect of dilutive securities — — — —

Diluted net income attributable to

Mitsubishi Electric Corp. ¥124,525 ¥28,278 ¥12,167 $1,500,301

Shares

2011 2010 2009

Average common shares outstanding 2,146,959,471 2,146,133,669 2,146,436,907

Effect of dilutive securities:

Stock option — 826 6,707

Diluted common shares outstanding 2,146,959,471 2,146,134,495 2,146,443,614

Yen U.S. dollars

2011 2010 2009 2011

Net income per share attributable to

Mitsubishi Electric Corp.:

Basic ¥58.00 ¥13.18 ¥5.67 $0.699

Diluted — 13.18 5.67 —

Diluted net income per share attributable to Mitsubishi Electric Corp. is not presented as no dilutive securities existed as of and

for the year ended March 31, 2011.

(15) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Foreign Exchange Risk Management and Interest Rate Risk ManagementThe Company and its subsidiaries operate internationally, giv-

ing rise to significant exposure to market risks from changes

in foreign currencies and interest rates. Derivative financial

instruments are comprised principally of foreign exchange

contracts, foreign currency swaps and interest rate swaps uti-

lized by the Company and certain of its subsidiaries to reduce

these risks. The Company and its subsidiaries do not hold or

issue financial instruments for trading purposes.

Contract Amounts, Notional Principal Amounts and Credit RiskThe Company and its subsidiaries are exposed to risk of credit-

related losses in the event of nonperformance by counterpar-

ties to foreign exchange contracts, foreign currency swaps and

interest rate swaps. The Company believes such risk is minimal

due to the high credit ratings of these counterparties.

Information with Respect to Fair Value HedgesCertain subsidiaries have entered into foreign currency swaps

to hedge currency exposure and designate them as fair value

hedges.

Information with Respect to Cash Flow HedgesThe Company and certain of its subsidiaries have entered into

forward foreign exchange contracts mainly with forecasted

transactions to hedge against market risks from changes

in foreign currencies and interest rate swap agreements to

modify the interest rate characteristics of a portion of its long-

term debt from a variable to a fixed rate. The Company and

certain of its subsidiaries designate them as cash flow hedges.

The maximum period for cash flow hedges is 22 months. The

Company expects that the amounts of net loss of ¥10 million

($120 thousand) in accumulated other comprehensive income

(loss) will be reclassified into earnings over the next 12 months

with transactions such as collection of foreign currency receiv-

ables and payment of foreign currency payables and interests

on long-term debt.

Derivatives not designated as hedging InstrumentsThe Company and certain of its subsidiaries enter into foreign

exchange contracts and certain of foreign currency swaps and

interest rate swaps that are not designated as hedging instru-

ments to hedge against certain foreign currency and interest

rate exposures. The Company and certain of its subsidiaries

recognize the changes in unrealized gains and losses on such

instruments in earnings.


Yen (millions)


2011 2010 2011

Foreign exchange contracts:

Forwards to sell foreign currencies ¥129,398 ¥80,560 $1,559,012 Forwards to buy foreign currencies 57,395 37,288 691,506Foreign currency swaps 13,121 10,258 158,084Interest rate swaps 7,000 8,000 84,337

The estimated fair values of foreign exchange contracts, foreign currency swaps and interest rate swaps at March 31, 2011 and

2010 are as follows:Asset derivatives

Derivatives designated as hedging instruments Consolidated balance sheet line item Estimated fair value

Yen (millions)


2011 2010 2011

Foreign exchange contracts Prepaid expenses and

other current assets ¥ — ¥214 $ —

Liability derivatives

Derivatives designated as hedging instruments Consolidated balance sheet line item Estimated fair value

Yen (millions)


2011 2010 2011

Foreign exchange contracts Other current liabilities ¥ 16 ¥ 4 $ 193Interest rate swaps Other liabilities 163 188 1,964

Total ¥179 ¥192 $2,157

Asset derivatives

Derivatives not designated as hedging instruments Consolidated balance sheet line item Estimated fair value

Yen (millions)


2011 2010 2011

Foreign exchange contracts Prepaid expenses and

other current assets ¥ 580 ¥1,325 $ 6,988Foreign currency swaps Prepaid expenses and

other current assets 816 235 9,831Interest rate swaps Investments in securities

and other 128 113 1,542

Total ¥1,524 ¥1,673 $18,361

Liability derivatives

Derivatives not designated as hedging instruments Consolidated balance sheet line item Estimated fair value

Yen (millions)


2011 2010 2011

Foreign exchange contracts Other current liabilities ¥2,208 ¥675 $26,602Foreign currency swaps Other current liabilities 784 — 9,446

Total ¥2,992 ¥675 $36,048

The effect of foreign exchange contracts and interest rate swaps designated as cash flow hedges on the consolidated statements

of income for the years ended March 31, 2011 and 2010 are as follows: Derivatives in cash flow hedging relationships

Amount of gain or (loss) recognized in OCI on derivative (effective portion)

Yen (millions)


2011 2010 2011

Foreign exchange contracts ¥(224) ¥226 $(2,699)Interest rate swaps 25 (45) 301

Total ¥(199) ¥181 $(2,398)

Contract amounts of foreign exchange contracts and foreign currency swaps and notional principal amounts of interest rate

swaps at March 31, 2011 and 2010 are as follows:


Derivatives in cash flow hedging relationships

Line item of gain or (loss) recognized from accumulated OCI into income (effective portion)

Amount of gain or (loss) recognized from accumulated OCI into income(effective portion)

Yen (millions)


2011 2010 2011

Foreign exchange contracts Other revenues ¥213 ¥214 $2,566

The effect of foreign exchange contracts, foreign currency swaps and interest rate swaps not designated as hedging instruments

on the consolidated statements of income for the years ended March 31, 2011 and 2010 are set forth below:

Derivatives not designated as hedging instrumentsLine item of gain or (loss) recognized in income on derivative Amount of gain or (loss) recognized in income on derivative

Yen (millions)


2011 2010 2011

Foreign exchange contracts Other revenues ¥5,817 ¥4,897 $70,084Foreign currency swaps Other revenues

(cost and expenses) (159) 373 (1,916)Interest rate swaps Other revenues 5 108 60

Total ¥5,663 ¥5,378 $68,228

The Company sells its accounts receivable under several

securitization programs.

When the Company retains subordinated interests in the

certain accounts receivables after the sale of these receivables,

a portion of these, where the Company retains subordinated

interests, is not taken off the balance sheet and is recorded

at their fair value. Such carrying value is adjusted to reflect

the portion that is not expected to be collectible. As of

March 31, 2011, the Company did not retain subordinated

interests in the certain accounts receivables after the sale of

these receivables.

The Company recognized losses of ¥643 million ($7,747

thousand), ¥783 million and ¥1,216 million on the securitiza-

tions of receivables for the years ended March 31, 2011, 2010

and 2009, respectively.

Subsequent to securitization, the Company retains collec-

tion and administrative responsibilities for the receivables. The

Company has not recorded a servicing asset or liability since

the cost of collection effort is similar to the amount of com-

mission income.

(16) SECURITIzATIONS

Certain cash flows received from special purpose entities (SPEs) and banks on the above transactions for the years ended March

31, 2011, 2010 and 2009 are as follows:


2011 2010 2009 2011

Proceeds from new securitizations ¥413,959 ¥366,112 ¥452,406 $4,987,458

Quantitative information about trade receivables including securitized receivables as of March 31, 2011 and 2010 are as follows:

Yen (millions)


2011 2010 2011

Trade receivables ¥923,510 ¥933,412 $11,126,627

Less: Securitized receivables 132,519 142,658 1,596,615

Total receivables ¥790,991 ¥790,754 $ 9,530,012

As of March 31, 2011 and 2010, delinquencies and credit losses of trade receivables including securitized receivables are

immaterial.


At March 31, 2011, commitments outstanding for the

purchase of property, plant and equipment were ¥22,009

million ($265,169 thousand).

It is common practice in Japan for companies, in the

ordinary course of business, to receive promissory notes in

settlement of accounts receivable and to subsequently dis-

count such notes at banks. At March 31, 2011, certain sub-

sidiaries were contingently liable to trade notes discounted

in the amount of ¥512 million ($6,169 thousand). Certain

subsidiaries account for the discounted notes as sale of

receivables.

As of March 31, 2011, the Company had no significant

concentrations of credit risk.

While the Company and certain of its subsidiaries are

defendants and co-defendants in various lawsuits and

legal actions, based upon the advice of legal counsel, the

Company’s management is of the opinion that damages,

if any, would not have a material adverse effect on the

Company’s consolidated financial position and results of

operations, except for the following cases.

The Company and certain of its subsidiaries move toward

reconciliation with some DRAM purchasers in relation to the

possibility of the violation of competition law concerning

DRAM sales. In addition, the Company received a decision

rendered by the European Commission imposing fines for

an infringement of EU Competition Rules against its sales

of certain gas-insulated switchgears in Europe. However,

there is significant inconsistency on recognition of the mate-

rial underlying facts between the European Commission

and the Company. Therefore, the Company has appealed

to the European Court of First Instance and is challenging

the decision. As of March 31, 2011, the Company recorded

reasonably estimated amount of ¥27,728 million ($334,072

thousand) as a reserve for various competition-law-related

expenses in “Other liabilities” relating to the DRAM case in

the United States and in Europe and gas-insulated switchgears

in Europe. The Company is unable to estimate the impact on

the Company’s consolidated financial position and operational

results as to be arising out of other legal proceedings.

(17) COMMITMENTS AND CONTINGENT LIABILITIES

The following table provides the undiscounted maximum amount of potential future payments for each major group of

guarantees at March 31, 2011:


Guarantees of bank loan:

Employees ¥ 8,678 $104,554

Affiliated and other companies 1,762 21,229

Other 5,078 61,181

Total ¥15,518 $186,964

Change in accrued product warranty for the years ended March 31, 2011 and 2010 is summarized as follows:

Yen (millions)


2011 2010 2011

Balance at beginning of year ¥45,904 ¥46,757 $553,060

Addition 44,363 41,427 534,494

Utilization 40,420 42,264 486,988

Foreign currency translation adjustments (455) (16) (5,482)

Balance at end of year ¥49,392 ¥45,904 $595,084

The guarantees for the employees are principally made for

their housing loans, and the term of guarantees is 1 year

to 26 years. The guarantees for the affiliated and other

companies are made to enhance their credit, and the term of

guarantees is 1 year to 4 years.


(18) FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company uses the following methods and assumptions to

estimate the fair value of each class of financial instrument for

which it is practical to estimate its value:

(a) Cash and cash equivalents, Trade receivables, Bank

loans, Trade payables, Accrued expenses and Other

current liabilities

The carrying amount approximates fair value because of the

short term nature of these instruments.

(b) Short-term investments and Investments in securities

and other

The fair values of most short-term investments and invest-

ments in securities and other are estimated based on quoted

market prices for these instruments. For other investments

for which there are no quoted market prices, a reasonable

estimate of fair value could not be made without incurring

excessive costs.

(c) Long-term trade receivables

The fair value of the Company’s long-term trade receiv-

ables are calculated by discounting future cash flows using

estimated market discount rates.

(d) Long-term debt

The fair value of the Company’s long-term debt is calculated

by discounting future cash flows associated with each instru-

ment using the Company’s current borrowing rate for similar

debt of comparable maturity, or based on the quoted market

prices for the same or similar issues. The Company excludes

the financial instruments relating to lease activities because its

carrying amount approximates fair value.

(e) Derivative financial instruments

The fair values of derivative financial instruments, consisting

principally of foreign exchange contracts, foreign currency

swaps and interest rate swaps are estimated by obtaining

quotes from brokers. (See note 15 about estimated fair value.)

The estimated fair values of the Company’s financial instruments at March 31, 2011 and 2010 are summarized as follows:

Yen (millions)


2011 2010 2011Carryingamount

Estimatedfair value

Carryingamount

Estimatedfair value

Carryingamount

Estimatedfair value

Nonderivatives:

Assets:

Marketable securities ¥173,252 ¥173,252 ¥204,768 ¥204,768 $2,087,373 $2,087,373

Long-term trade receivables 2,090 2,142 1,560 1,689 25,181 25,807

Liabilities:

Long-term debt, including

current portion 390,051 392,774 437,804 440,507 4,699,410 4,732,217

Limitations

Fair value estimates are made at a specific point in time based

on relevant market information and information about the

financial instrument. These estimates are subjective in nature

and involve uncertainties and matters of significant judgment

and therefore cannot be determined with precision. Changes

in assumptions could significantly affect the estimates.

(19) FAIR VALUE MEASUREMENTS

The Company defines fair value as “the price that would be

received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement

date”. On that basis, the Company has categorized the inputs

for fair value measurement by the valuation technique into

a three-level hierarchy, and placed the order of priority.

Level 1 : Quoted prices in active markets for identical assets

or liabilities.

Level 2 : Inputs other than quoted prices included within

Level 1 that are directly or indirectly observable for

the asset or liability.

Level 3 : Unobservable inputs for the asset or liability.


Level 1 equity securities are marketable equity securities,

which are valued using unadjusted quoted market prices

in active markets with sufficient volume and frequency of

transactions. Debt securities are comprised of government,

municipal and corporate debt securities, and investment

trusts. Level 1 debt securities are valued using unadjusted

quoted market prices in active markets with sufficient volume

and frequency of transactions. Level 2 debt securities are

valued based on market approach, using quoted prices for

identical assets in markets that are not active. Level 2 deriva-

tives are comprised principally of foreign exchange contracts,

which are valued based on market approach, using quotes

obtained from counterparties or third parties.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as

of March 31, 2011 and 2010.Yen (millions)


Assets:

Equity securities


Debt securities

Government, municipal and

corporate debt securities 1,506 47,505 — 49,011

Investment trusts — 3,678 — 3,678

Derivatives — 1,524 — 1,524

Liabilities:


Yen (millions)


Assets:

Equity securities


Debt securities





Liabilities:

Derivatives — 867 — 867



Assets:

Equity securities

Marketable equity securities $1,452,566 $ — $— $1,452,566

Debt securities




Derivatives — 18,361 — 18,361

Liabilities:

Derivatives — 38,205 — 38,205


At December 31, 2010, equity securities with an equity

method were written down to their fair value of ¥8,348

million ($100,578 thousand), resulting in an other-than-

temporary impairment charge of ¥8,414 million ($101,373

thousand), which was included in equity in earnings (losses)

of affiliated companies for the year ended March 31, 2011.

The impaired equity securities were classified as Level 1

instruments, because they were measured by the quoted

prices in active markets.

At March 31, 2011, long-lived assets were written down

to their fair value of ¥6,040 million ($72,771 thousand),

resulting in an impairment charge of ¥4,005 million ($48,253

thousand), which was included in loss on impairment of

long-lived assets for the year ended March 31, 2011. The

impaired long-lived assets were classified as Level 3 assets,

because they were measured by the unobservable inputs,

based on income approach.

At September 30, 2009, equity securities with an equity

method (Renesas Technology Corp.) were written down to

their fair value of ¥64,237 million, resulting in an other-than-

temporary impairment charge of ¥8,969 million, which has

included in equity in earnings (losses) of affiliated companies

for the year ended March 31, 2010. The impaired equity secu-

rities were classified as Level 3 instruments, because they were

measured based on unobservable inputs, such as business

plan and market approach.

At March 31, 2010, equity securities with an equity

method were written down to their fair value of ¥4,308

million, resulting in an other-than-temporary impairment

charge of ¥3,380 million, which was included in equity in

earnings (losses) of affiliated companies for the year ended

March 31, 2010. The impaired equity securities were classified

as Level 1 instruments, because they were measured by the

quoted prices in active markets.

At March 31, 2010, long-lived assets were written down

to their fair value of ¥21,214 million, resulting in an impair-

ment charge of ¥16,942 million, which was included in

loss on impairment of long-lived assets for the year ended

March 31, 2010. The impaired long-lived assets were clas-

sified as Level 3 assets, because they were measured by the

unobservable inputs, based on income approach.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

(20) SUPPLEMENTARY INCOME AND EXPENSE INFORMATION

Yen (millions)


2011 2010 2009 2011

Advertising expenses ¥(17,053) ¥(16,462) ¥(21,720) $(205,458)Shipping and handling costs (74,782) (63,198) (72,672) (900,988)Exchange gains (losses) (10,174) 68 (20,200) (122,578)Business restructuring costs (2,501) — (3,572) (30,133)Loss on disaster (5,456) — — (65,735)Loss on impairment of long-lived assets (4,005) (16,942) (30,742) (48,253)

Advertising expenses are included in “Costs and expenses—

Selling, general and administrative”.

Shipping and handling costs represents the costs included

in “Costs and expenses—Selling, general and administrative”.

Exchange gains (losses) are included in “Revenues—

Other” and “Costs and expenses—Other”.

Business restructuring costs are included in “Costs and

expenses—Other”.

For the year ended March 31, 2011, the Company recog-

nized business restructuring costs of ¥2,501 million ($30,133

thousand) for the after-sale service expense and retirement

benefits and others associated with the restructuring of the

visual equipment businesses in North America.

For the year ended March 31, 2009, the Company rec-

ognized business restructuring costs of ¥3,572 million for the

removal and disposal of facilities and the after-sale service

expense resulting from the company’s decision to discontinue

the washing machine business.

Loss on disaster is included in “Costs and expenses—

Other”.

For the year ended March 31, 2011, the Company recog-

nized disaster losses of ¥5,456 million ($65,735 thousand) for

the repair and removal of facilities ,the disposal and inspec-

tion of inventories and restoration support for counterparties

which is suffered from an earthquake associated with the

recovery from damage suffered from the Great East Japan

Earthquake.

Loss on impairment of long-lived assets is included in

“Costs and expenses—Loss on impairment of long-lived

assets.”

For the year ended March 31, 2011, the Company and

certain of its subsidiaries recognized impairment losses of

¥3,538 million ($42,627 thousand) for tangible assets such

as buildings and machinery as well as ¥467 million ($5,626

thousand) for intangible assets. The impairment losses

included ¥1,879 million ($22,639 thousand) for the Home

Appliances business related assets due to a decline in the

profitability and ¥1,908 million ($22,988 thousand) for the

welfare related assets. The impairment losses were mainly

measured based on the fair value less cost to sell.




¥16,425 million for tangible assets such as buildings and

machinery as well as ¥517 million for intangible assets. The

impairment losses included ¥11,053 million for the Home

Appliances business related assets due to a decline in the

profitability and ¥5,436 million for the welfare related assets.

The impairment losses were mainly measured based on the

fair value of the discounted present value of expected future

cash flow.



¥28,704 million for tangible assets such as buildings and

machinery as well as ¥2,038 million for intangible assets. The

impairment losses included ¥20,322 million for the Electronic

Devices business related assets and ¥6,412 million for the

Home Appliances business related assets due to a decline in

the profitability. The impairment losses were mainly measured

based on the fair value less cost to sell.

For the year ended March 31, 2010, the Company applies

FASB ASC Topic 810 “Consolidation”. Due to the adoption

of ASC Topic 810, “Net income” is renamed “Net income

attributable to Mitsubishi Electric Corp.”. Also, Income before

income taxes includes equity in earnings (losses) of affiliated

companies, while excluding net income attributable to non-

controlling interests. Consequently, the Company reclassifies

the consolidated financial statement for all prior periods,

and as a result, Income before income taxes as of March 31,

2009 decreased by ¥63,995 million. There is no impact to Net

income attributable to Mitsubishi Electric Corp.

(21) LEASES

The Company and certain of its subsidiaries enter into capital

lease and operating lease agreements with Mitsubishi Electric

Credit Corporation, an equity method investee. The leased

assets, which are committed under capital lease agreements,

are capitalized.

The Company and certain of its subsidiaries lease machin-

ery and equipments. At March 31, 2011, the aggregated cost

and accumulated depreciation of leased assets under capital

leases amounted to ¥46,099 million ($555,410 thousand) and

¥24,061 million ($289,892 thousand), respectively.

Future minimum lease payments under capital and non-cancelable operating leases as of March 31, 2011 are as follows:


Capital leases Operating leases Capital leases Operating leases


2012 ¥11,546 ¥ 4,580 $139,108 $ 55,181

2013 9,900 3,352 119,277 40,386

2014 5,577 2,168 67,193 26,120

2015 2,388 1,239 28,771 14,928

2016 980 753 11,807 9,072

Thereafter 163 997 1,964 12,012

Total minimum lease payments 30,554 ¥13,089 368,120 $157,699Less: Estimated executory costs 832 10,023

Net minimum lease payments 29,722 358,097Less: Amount representing interest 326 3,928

Present value of net minimum capital lease payments 29,396 354,169Less: Current portion of obligations under capital leases 10,933 131,723

Obligations under capital leases, excluding current portion ¥18,463 $222,446

Rental expenses related to operating leases for the years

ended March 31, 2011, 2010 and 2009 amounted to

¥41,007 million ($494,060 thousand), ¥40,760 million and

¥41,280 million, respectively. These operating leases are for

office space, warehouses, employee facilities and computer

equipment, and are customarily renewed.

(22) SUPPLEMENTARY CASH FLOW INFORMATION

Yen (millions)


2011 2010 2009 2011

Cash paid during the year for:

Interest ¥ 7,722 ¥ 8,748 ¥11,276 $ 93,036 Income taxes 34,166 17,596 68,016 411,639


Principal businesses of each segment are as follows:

Energy and

Electric Systems

Turbine generators, hydraulic turbine generators, nuclear power plant equipment, motors, transformers, power

electronics equipment, circuit breakers, gas insulated switches, switch control devices, surveillance-system control

and security systems, large display devices, electrical equipment for locomotives and rolling stock, elevators,

escalators, building security systems, particle beam treatment systems, and others

Industrial

Automation

Systems

Programmable logic controllers, inverters, servomotors, human-machine interface, motors, hoists, magnetic

switches, no-fuse circuit breakers, short-circuit breakers, transformers for electricity distribution, time and power

meters, uninterruptible power supply, industrial fans, computerized numerical controllers, electrical-discharge

machines, laser processing machines, industrial robots, clutches, automotive electrical equipment, car electronics

and car mechatronics, car multimedia, and others

Information and

Communication

Systems

Wireless and wired communications systems, surveillance cameras, satellite communications equipment, satellites,

radar equipment, antennas, missile systems, fire control systems, broadcasting equipment, data transmission devices,

network security systems, information systems equipment, systems integration, and others

Electronic Devices Power modules, high-frequency devices, optical devices, LCD devices, microcomputers, system LSIs, and others

Home Appliances LCD televisions, projection TVs, display monitors, projectors, DVD players and recorders, room air conditioners, package

air conditioners, air-to-water heat pump boilers, refrigerators, electric fans, ventilators, photovoltaic power generation

systems, hot water supply systems, LED lamps, fluorescent lamps, indoor lighting, compressors, chillers, humidifiers,

dehumidifiers, air purifiers, showcases, cleaners, rice cookers, microwave ovens, IH cooking heaters, and others

Others Procurement, Logistics, real estate, advertising, finance and other services

Intersegment transactions are conducted generally at the price that the Company’s management recognizes as approximate

arm’s length price. Operating income (loss) in Segment Information is measured in a manner consistent with consolidated

operating income.

(23) SEGMENT INFORMATION

Starting from financial results for the fiscal year ended March

31, 2010, the Company discloses its segment information in

accordance with FASB ASC Topic 280 “Segment Reporting”,

the Company applies it to figures for all prior periods.

Operating segment presented below is identified based

on the segments for which separate financial information

is available, and is periodically used for decision of business

resources allocation and evaluation of business operation by

the Company’s management.

The Company conducts business through 6 reportable

business segments, Energy and Electric Systems, Industrial

Automation Systems, Information and Communication

Systems, Electronic Devices, Home Appliances, and Others,

based on types and characteristics of products, production

method, and similarity in market.

Segment Information

Segment information in the years ended March 31, 2011, 2010 and 2009 are as follows:

As of and for the year ended March 31, 2011 Yen (millions)


Industrial Automation

Systems

Information and Communication

SystemsElectronic

DevicesHome

Appliances Others SubtotalEliminations

and other Total

I Net sales and operating income

Sales:(1) External customers ¥1,019,270 ¥921,667 ¥465,688 ¥149,623 ¥911,788 ¥177,295 ¥3,645,331 ¥ — ¥3,645,331(2) Intersegment 8,479 5,335 22,227 26,287 12,690 432,121 507,139 (507,139) — Net sales 1,027,749 927,002 487,915 175,910 924,478 609,416 4,152,470 (507,139) 3,645,331Operating costs 944,694 826,913 474,172 170,009 882,470 594,941 3,893,199 (481,629) 3,411,570Operating income ¥ 83,055 ¥100,089 ¥ 13,743 ¥ 5,901 ¥ 42,008 ¥ 14,475 ¥ 259,271 ¥ (25,510) ¥ 233,761

II Assets, depreciation and amortization, loss on impairment of long-lived assets, and capital expenditures

Assets ¥1,030,968 ¥806,494 ¥369,813 ¥139,333 ¥695,730 ¥164,719 ¥3,207,057 ¥ 125,622 ¥3,332,679Depreciation and

amortization 21,076 40,193 16,123 10,414 25,280 5,616 118,702 — 118,702Loss on impairment of

long-lived assets — — 42 — 1,879 2,084 4,005 — 4,005Capital expenditures 22,582 35,989 12,123 15,130 29,139 3,323 118,286 — 118,286


As of and for the year ended March 31, 2011 U.S. dollars (thousands)



Systems


SystemsElectronic

DevicesHome


and other Total


Sales:(1) External customers $12,280,361 $11,104,422 $5,610,699 $1,802,687 $10,985,398 $2,136,084 $43,919,651 $ — $43,919,651(2) Intersegment 102,157 64,277 267,795 316,711 152,891 5,206,277 6,110,108 (6,110,108) — Net sales 12,382,518 11,168,699 5,878,494 2,119,398 11,138,289 7,342,361 50,029,759 (6,110,108) 43,919,651Operating costs 11,381,855 9,962,807 5,712,916 2,048,302 10,632,169 7,167,963 46,906,012 (5,802,759) 41,103,253Operating income $ 1,000,663 $ 1,205,892 $ 165,578 $ 71,096 $ 506,120 $ 174,398 $ 3,123,747 $ (307,349) $ 2,816,398


Assets $12,421,301 $ 9,716,795 $4,455,579 $1,678,711 $ 8,382,289 $1,984,566 $38,639,241 $ 1,513,518 $40,152,759Depreciation and

amortization 253,928 484,253 194,253 125,470 304,578 67,663 1,430,145 — 1,430,145Loss on impairment of

long-lived assets — — 506 — 22,639 25,108 48,253 — 48,253Capital expenditures 272,072 433,603 146,060 182,289 351,073 40,036 1,425,133 — 1,425,133

Notes: 1 The amount of unallocatable R&D expenditure included in “Eliminations and other” on “Operating costs” for the years ended March 31, 2011, 2010 and 2009 are ¥25,510 million ($307,349 thousand), ¥26,107 million and ¥26,854 million, respectively.

2 The amount of company-wide shared assets included in “Eliminations and other” on “Assets” for the years ended March 31, 2011, 2010 and 2009 are ¥267,159 million ($3,218,783 thousand), ¥204,551 million and ¥184,316 million, respectively, and those amounts are mainly the Company’s deposit in bank.




Systems


SystemsElectronic

DevicesHome


and other Total


Sales:(1) External customers ¥1,029,573 ¥714,145 ¥505,192 ¥119,531 ¥813,862 ¥170,995 ¥3,353,298 ¥ — ¥3,353,298(2) Intersegment 10,096 18,987 20,969 19,454 10,817 381,986 462,309 (462,309) — Net sales 1,039,669 733,132 526,161 138,985 824,679 552,981 3,815,607 (462,309) 3,353,298Operating costs 964,942 706,994 507,489 146,126 819,870 549,777 3,695,198 (436,202) 3,258,996Operating income (loss) ¥ 74,727 ¥ 26,138 ¥ 18,672 ¥ (7,141) ¥ 4,809 ¥ 3,204 ¥ 120,409 ¥ (26,107) ¥ 94,302




long-lived assets 6 — 50 397 11,053 5,436 16,942 — 16,942Capital expenditures 20,882 36,442 11,162 12,835 32,380 5,402 119,103 — 119,103




Systems


SystemsElectronic

DevicesHome


and other Total


Sales:(1) External customers ¥1,033,946 ¥827,340 ¥560,007 ¥146,720 ¥902,235 ¥194,871 ¥3,665,119 ¥ — ¥3,665,119(2) Intersegment 9,687 24,348 22,139 20,249 13,475 401,220 491,118 (491,118) — Net sales 1,043,633 851,688 582,146 166,969 915,710 596,091 4,156,237 (491,118) 3,665,119Operating costs 969,094 801,754 557,277 196,776 881,004 583,750 3,989,655 (464,264) 3,525,391Operating income (loss) ¥ 74,539 ¥ 49,934 ¥ 24,869 ¥ (29,807) ¥ 34,706 ¥ 12,341 ¥ 166,582 ¥ (26,854) ¥ 139,728




long-lived assets — 1,185 835 20,322 6,412 1,988 30,742 — 30,742Capital expenditures 21,910 52,821 14,546 22,814 36,985 5,901 154,977 — 154,977


Geographical Information

Sales to external customers by the location of customers, and long-lived assets by the location of the Company and its

subsidiaries as of and for the years ended March 31, 2011, 2010 and 2009 are as follows:

As of and for the year ended March 31, 2011 Yen (million)

Overseas

Consolidated totalJapan

North America

Asia (excluding

Japan) Europe Others Overseas total

Sales to external customers ¥2,416,090 ¥251,071 ¥603,261 ¥289,440 ¥85,469 ¥1,229,241 ¥3,645,331% of total net sales 66.3% 6.9% 16.6% 7.9% 2.3% 33.7% 100.0%Long-lived assets 488,524 8,055 57,465 13,481 2,154 81,155 569,679


Overseas


North America

Asia (excluding




Overseas


North America

Asia (excluding



As of and for the year ended March 31, 2011 U.S. dollars (thousand)

Overseas


North America

Asia (excluding


Sales to external customers $29,109,518 $3,024,952 $7,268,205 $3,487,229 $1,029,747 $14,810,133 $43,919,651% of total net sales 66.3% 6.9% 16.6% 7.9% 2.3% 33.7% 100.0%Long-lived assets 5,885,831 97,048 692,349 162,422 25,952 977,771 6,863,602

Notes: The major countries and regions included in each segments are as follows: (1) North America : United States, and Canada (2) Asia (excluding Japan) : China, South Korea, Thailand, Malaysia, Singapore, and Indonesia (3) Europe : United Kingdom, France, Germany, the Netherlands, Spain, and Italy

In addition to the disclosure requirement of FASB ASC Topic 280 “Segment Reporting”, the Company discloses the following

information as supplement.

Geographical Information Based on the Location of the Company and Its Subsidiaries


JapanNorth

America

Asia (excluding

Japan) Europe Others Subtotal Eliminations Total


Sales:(1) External customers ¥2,685,219 ¥216,536 ¥419,557 ¥285,862 ¥38,157 ¥3,645,331 ¥ — ¥3,645,331(2) Intersegment 491,386 13,422 164,270 8,090 43 677,211 (677,211) — Net sales 3,176,605 229,958 583,827 293,952 38,200 4,322,542 (677,211) 3,645,331Operating costs 2,999,251 228,595 540,093 286,122 33,871 4,087,932 (676,362) 3,411,570Operating income ¥ 177,354 ¥ 1,363 ¥ 43,734 ¥ 7,830 ¥ 4,329 ¥ 234,610 ¥ (849) ¥ 233,761

II Assets ¥2,552,679 ¥155,972 ¥430,965 ¥183,427 ¥26,958 ¥3,350,001 ¥ (17,322) ¥3,332,679



JapanNorth

America

Asia (excluding



Sales:(1) External customers ¥2,531,542 ¥189,927 ¥325,730 ¥272,993 ¥33,106 ¥3,353,298 ¥ — ¥3,353,298(2) Intersegment 354,960 15,786 119,992 9,829 34 500,601 (500,601) — Net sales 2,886,502 205,713 445,722 282,822 33,140 3,853,899 (500,601) 3,353,298Operating costs 2,836,829 200,182 418,385 279,731 31,191 3,766,318 (507,322) 3,258,996Operating income ¥ 49,673 ¥ 5,531 ¥ 27,337 ¥ 3,091 ¥ 1,949 ¥ 87,581 ¥ 6,721 ¥ 94,302

II Assets ¥2,527,697 ¥130,586 ¥391,891 ¥162,568 ¥22,101 ¥3,234,843 ¥ (19,749) ¥3,215,094


JapanNorth

America

Asia (excluding



Sales:(1) External customers ¥2,769,713 ¥225,718 ¥324,157 ¥311,451 ¥34,080 ¥3,665,119 ¥ — ¥3,665,119(2) Intersegment 409,094 14,871 137,392 10,050 27 571,434 (571,434) — Net sales 3,178,807 240,589 461,549 321,501 34,107 4,236,553 (571,434) 3,665,119Operating costs 3,089,514 244,188 429,477 310,774 33,087 4,107,040 (581,649) 3,525,391Operating income (loss) ¥ 89,293 ¥ (3,599) ¥ 32,072 ¥ 10,727 ¥ 1,020 ¥ 129,513 ¥ 10,215 ¥ 139,728

II Assets ¥2,674,014 ¥133,168 ¥362,990 ¥156,638 ¥17,354 ¥3,344,164 ¥ (10,041) ¥3,334,123

As of and for the year ended March 31, 2011 U.S. dollars (thousand)

JapanNorth

America

Asia (excluding



Sales:(1) External customers $32,352,036 $2,608,867 $5,054,904 $3,444,121 $459,723 $43,919,651 $ — $43,919,651(2) Intersegment 5,920,313 161,711 1,979,157 97,470 518 8,159,169 (8,159,169) — Net sales 38,272,349 2,770,578 7,034,061 3,541,591 460,241 52,078,820 (8,159,169) 43,919,651Operating costs 36,135,554 2,754,156 6,507,145 3,447,254 408,084 49,252,193 (8,148,940) 41,103,253Operating income $ 2,136,795 $ 16,422 $ 526,916 $ 94,337 $ 52,157 $ 2,826,627 $ (10,229) $ 2,816,398

II Assets $30,755,169 $1,879,181 $5,192,349 $2,209,964 $324,795 $40,361,458 $ (208,699) $40,152,759

Notes: 1 The Company has identified 5 location segments based on geographical proximity, similarity in market, and interconnectedness within business activities. 2 The major countries and regions included in each segments are as follows: (1) North America : United States, and Canada (2) Asia (excluding Japan) : China, South Korea, Thailand, Malaysia, Singapore, and Indonesia (3) Europe : United Kingdom, France, Germany, the Netherlands, Spain, and Italy 3 The amount of company-wide shared assets included in “Eliminations and other” on “Assets” for the years ended March 31, 2011, 2010 and 2009 is

¥267,159 million ($3,218,783 thousand), ¥204,551 million and ¥184,316 million, respectively, and those amounts are mainly the Company’s deposit in bank.

(24) SUBSEqUENT EVENT

On June 29, 2011, the date the consolidated financial statements were issued, there was no incidence of subsequent events that

would give material effects on the Company’s consolidated financial position and results of operations.


Independent Auditors’ Report

Corporate Data / Shareholder Information

Number of Shares (thousands)

Percentage of Total

The Master Trust Bank of Japan, Ltd. (Trust Account) 180,351 8.4%

State Street Bank and Trust Company 115,284 5.4%

Japan Trustee Services Bank, Ltd. (Trust Account) 107,070 5.0%

Meiji Yasuda Life Insurance Company 81,862 3.8%

Nippon Life Insurance Company 72,439 3.4%

Mitsubishi Electric Group Employees Shareholding Union 49,458 2.3%

SSBT OD05 OMNIBUS ACCOUNT-TREATY CLIENTS 43,241 2.0%

The Bank of Tokyo-Mitsubishi UFJ, Ltd. 36,849 1.7%

Japan Trustee Services Bank, Ltd. (Trust Account 4) 35,372 1.6%

The Master Trust Bank of Japan, Ltd. (Mitsubishi Heavy Industries, Ltd. [Retirement benefit trust account]) 30,087 1.4%

Major Shareholders

(As of March 31, 2011)

Corporate DataMitsubishi Electric Corporation

Tokyo Building, 2-7-3, Marunouchi,

Chiyoda-ku, Tokyo 100-8310, Japan

Tel: +81(3)3218-2111

Established: January 15, 1921

Paid-in Capital: ¥175,820 million

Shares issued: 2,147,201,551 shares

Employees: 114,443

Annual MeetingThe annual meeting of shareholders of the Corporation is normal-

ly held in June each year. In addition, the Corporation may hold a

special meeting of shareholders as necessary, giving at least two

weeks advance notice to shareholders.

Stock Exchange ListingsJapan: Tokyo

Europe: London

Stock Price (Yen)

0

1,500

1,200

900

600

300

5,000

10,000

15,000

20,000

’08/4 ’09/4 ’10/4 ’11/4 Nikkei Stock Average(Yen)The Nikkei Stock Average is based on information copyrighted by Nihon Keizai Shimbun, Inc.

Other Corporations

Individuals and Others

Securities Companies

Financial InstitutionsForeign Corporations

0.8%

44.2%

6.5%

31.1%

17.4%

Distribution of Shareholders


X-X01-1-C8783-A　HQ1108〈MDOC〉

http://www.MitsubishiElectric.com

€¦ · Others 14.7% Net sales ¥609,416 million Home Appliances 22.3% Net sales ¥924,478 million...

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