[Company analysis] Mitsubishi Electric Corporation(三菱電機)

「Mitsubishi Electric Corporation(三菱電機)」is one of the core companies of the「Mitsubishi Group」, an electronic equipment manufacturer. This company is known for home appliances such as air conditioners, but it is just only a part of whole business. Mitsubishi Electric's business domain is extremely wide, and has a top-class share in Japan in various industrial electronic equipment fields such as FA equipment, elevators, turbine generators, electric products for railway vehicles, power semiconductors, and satellites. As a major general electrical equipment manufacturer, it's sales is 4th largest in Japan after「Hitachi(日立製作所)」,「Sony(ソニー)」and「Panasonic Corporation(パナソニック)」. The number of consolidated employees is approximately 145,817.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Mitsubishi Electric Corporation
Company name (Japanese)	三菱電機
Date of establishment	Saturday, January 15, 1921
Headquarters location	〒100-8310 東京都千代田区丸の内2-7-3　東京ビル
Capital	175,820
Consolidated sales	4,519,921
Consolidated operating profit	290,477
Consolidated total assets	4,356,211
Consolidated capital	2,511,155
Capital adequacy ratio	57.6%
Consolidated number of employees	145,817

 

 

 

2. Summary and Features

 
「Mitsubishi Electric」was established on January 15, 1921 as a separate company from「Mitsubishi Heavy Industries」and they produced transformers, motors, and fans at the begining of the eastablishment. Since then, we have expanded our business area steadily and are now handling various products ranging from home appliances to heavy electric power and artificial satellites. In the elevator business which「Mitsubishi Electric」specializes in, they achieved the top share in Japan and the 4th in the world share. They are selling the world's fastest elevator in 2019, and have the 4th largest share in the electrical equipment field for vehicles.

 As a member of the「Mitsubishi Group」, it also has strengths in the space and defense fields, and they got the largest order volume of electronic equipment for the Ministry of Defense in Japan. They also participate in almost all of Japan's satellite business, and have already produced more than 70 satellites in-house. The electronic devices for satellites manufactured by「Mitsubishi Electric」were installed in more than 500 satellites around the world. Considering future demand, they invested to expand the satellite production facility in 2017, and the parallel production capacity was increased significantly.

Compared with other electronic device manufacturers, they mainly handle infrastructure business, so that is why「Mitsubishi Electric」achieved a high profit margin and a wide range of business fields. In particular, they have a strength in FA(Factory Automation), and they secured a domestic market share of over 50% in the sequencer product that is essential for equipment control and facility control.

However, considering the scale of their sales, they do not have many the world's top shared products. From the global market, even the above sequencer business got only the 3rd largest share(14%) in the world after「Siemens」and 「Rockwell」. 

 

 

 

3. Major Business

 

■ Building business
Their main products are elevators and escalators. Sales of this section is more than 1 million units in 90 countries around the world. In addition to the elevators and escalators business mentioned above, it also provides systems such as security systems and systems for efficiently controlling air conditioners and lighting equipment.

■FA (Factory automation) business
「Mitsubishi Electric」is a world-leading company in the FA field such as sequencers and laser processing machines. They also handle serve motors, industrial robots, energy saving support systems, and circuit breakers.

■ Public works
They are developing businesses related to water treatment, air traffic control systems, large-scale video equipment, disaster prevention information systems, and other lifelines, as well as building infrastructures such as public facilities and services.

■ Energy business
They are developing businesses related to power infrastructure such as turbine generators, protection control systems, vacuum circuit breakers, transformers, substation systems, switchgear, solar power generation systems, and power conversion equipment. In addition, this company also handles smart grids as a new energy business.

■ Transportation business
They are engaged in system business related to automobiles and railways, such as in-vehicle air conditioners, vehicle information management devices, power management systems, and train operation management systems.

■ Vehicle maintenance business
They handle the world's first commercialized electric power steering system, engine electrical components, engine control products, in-vehicle multimedia products, etc.

■ Space business
They have participated in the development of more than 570 artificial satellites worldwide. In addition to in-house production of artificial satellites, they are also developing business for space such as large telescopes and equipment equipped with artificial satellites.

■ Telecommunications business
They are also developing optical communication systems, wireless communication systems, video security, and other optical communication system products that handle large amounts of data at high speed.

■ Semiconductor and electronic devices
They handle electronic devices such as power semiconductors, TFT liquid crystal module semiconductors, and optical devices. In particular, power semiconductors are used in many fields such as electric power control and motor control for home appliances, industrial equipment, electric vehicles, railways, wind power generation, and solar power generation.

■ Air conditioning business
They handle products such as air conditioners, commercial air conditioners, low-temperature equipment, and water heaters.

■ Home appliances
They also handle B2C home appliances such as liquid TVs, refrigerators, vacuum cleaners, and rice cookers.

■ IT solution business
They provide IT solutions that utilize security technology, IOT technology, and cloud technology in various fields such as financial institutions, production sites, and social infrastructure (transportation, aviation, airports, electricity).

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		4,238,666	4,431,198	4,519,921
Consolidated operating profit		270,104	318,637	290,477
Consolidated total assets		4,172,270	4,264,559	4,356,211
Consolidated net assets		2,140,708	2,364,145	2,511,155
Breakdown of sales	Heavy electric system business	1,227,906	1,241,952	1,296,745
	Industrial mechatronics business	1,310,136	1,444,928	1,467,633
	IT system business	447,754	436,068	426,269
	Electric device business	186,554	202,294	199,908
	Home appliance buisness	1,004,415	1,049,369	1,074,044
	Others	713,603	764,346	676,736
	Adjustments	-651,702	-707,759	-621,414