Mitsubishi Electric

Shareholders

Areas of activity

For 2017, the company operates in the following main areas:

• heating, ventilation and air conditioning systems,
• energy and electrical systems,
• industrial automation systems,
• information and communication systems,
• equipment for residential buildings,
• electronic devices.

Performance indicators

2018

Mitsubishi Electric Corporation on April 28, 2018 published the consolidated financial statements for the fiscal year 2018, which lasted from April 1, 2017 to March 31, 2018.

In fiscal year 2018, the global economy was characterized by stability in China, a significant rise in the United States, and trends towards a gradual recovery in Japan and Europe. In addition, compared to the last financial year, the yen weakened against foreign currencies in the period from May 2017, but strengthened against the US dollar since the second half of November 2017. In this economic environment, Mitsubishi Electric continued to implement growth strategies and initiatives aimed at strengthening its competitiveness and developing its business.

As a result, Mitsubishi Electric's consolidated net revenue in fiscal year 2018 amounted to 4,431,1 billion yen (over $40.32 billion), which is 5% higher than last fiscal year. The positive dynamics is associated with an increase in sales in the divisions of industrial and energy systems, industrial automation systems, electronic devices and household appliances.

Consolidated operating profit increased by 18% compared to the previous fiscal year and amounted to 318.6 billion yen due to an increase in profit by divisions of industrial and energy systems, industrial automation systems and electronic devices.

Profit before tax increased by 23% compared to the previous financial year to 364.5 billion yen - due to income from the sale of investment securities of Renesas Electronics Corporation and other factors.

Mitsubishi Electric's net profit increased by 29% compared to the previous fiscal year to 271.8 billion yen (about $2.5 billion).

Business in Russia

Main article: Mitsubishi Electric (RUS)

History

2022: Production of defective products at 70% of plants

On May 26, 2022, Mitsubishi Electric announced that it would appoint new directors after a company-wide investigation revealed that for decades the plants had forged quality control test results and shipped transformers and other equipment that had not passed the safety and efficiency test.

In April 2022, an external investigation showed that the results were falsified before the shipment of products, and after that, a further investigation showed that such fraud took place at 70% of the company's Japanese factories.

Mitsubishi Electric produces defective products at 70% of plants and is silent about this

In July 2021, the company filed an application for an external investigation, and in April 2022 adopted a report that showed the company, that several inspections of transformers with a nominal voltage of 22 kV 2 MVA and above, manufactured at Mitsubishi Electric Transmission and Distribution Center in Ako, Hyōgo Prefecture did not fully comply with customer requested testing standards that required compliance with Japanese Electrotechnical Committee standards (JEC), International Electrotechnical Commission (IEC) or Institute of Electrical and Electronics Engineers (IEEE). The Investigative Committee also confirmed cases where incorrect statements were made in the audit reports.

In the second half of May 2022, the company held a meeting of the appointment committee to draw up a list of new candidates for director, which will be proposed at the general meeting of shareholders on June 29, 2022. Mitsubishi Electric has already announced the selection of a list of new director candidates that will promote reforms and improve corporate culture.

Mitsubishi Electric said it suspended product deliveries when it became aware of the problems and notified customers of the affected products. The company only ships products that have been validated.

Apparently, the problem was raised within the company and did not lead to any complaints or, worse, damage by customers. Mitsubishi has proposed special inspections of shipped products if required.

In total, 8,363 transformers were shipped from 1982 to March 2022, of which 3,384 were not properly checked. Of the potentially faulty products, about half were delivered within Japan, and half were shipped abroad.

The deception involved intentionally conducting dielectric tests at a lower voltage than the standards required and asserting in the customer test reports that a higher voltage was used. These tests also produced false partial discharge measurements.

In other cases, factory tests showed that the transformer temperature and load loss exceeded the guaranteed minimum values, but false results were entered in the test reports.

The company is still awaiting a final report on the full scale of the problems, and Mitusbishi has promised to fully cooperate with the investigation. The company does not expect any changes in earnings in connection with this matter.^[1]

2021

Launch of ME Innovation Fund

On January 12, 2022, Mitsubishi Electric and Global Brain announced the immediate launch of ME Innovation Fund, a corporate venture capital fund (CVC) that will invest and collaborate with startups around the world. The fund will work with a commitment to invest 5 billion yen ($44 million) over ten years until 2032. More details here.

Creation of a company to develop the business of producing elevators and escalators

On October 18, 2021, Mitsubishi Electric announced the creation of a new subsidiary of Mitsubishi Electric Building Techno-Service, to which it will transfer business in the field of systems for buildings, including elevators, escalators and hand dryers. More details here.

Mitsubishi Electric CEO resigns after document forgery scandal

On October 1, 2021, the chairman of the board of directors and the de facto head of Mitsubishi Electric, Masaki Sakuyama, resigned after a series of scandals related to quality control, as he assumes responsibility for the actions of the president of the company from 2014 to 2018. More details here.

Takesha Sugiyama's resignation as president of Mitsubishi Electric

In early July 2021, Mitsubishi Electric President Takeshi Sugiyama announced his resignation and attributed it to the scandal with forgery of documents for the company's products. More details here.

2018

Registration of 2,812 patent applications and investment of about $2 billion in R&D

According to data All-Russian Intellectual Property Organization (WIPO), at the end of 2018, Mitsubishi Electric registered 2812 patent applications. This TAdviser was reported in Mitsubishi Electric on April 19, 2019.

In addition, in the fiscal year 2018 (from April 1, 2017 to March 31, 2018), the corporation invested $1984 million in R&D. The company believes that its own R&D is a prerequisite for sustainable development.

In Japan, we are number one in the number of registered patents and are one of the top ten investment companies in R & D. The main focus of our research activities is industrial and social innovations, "said Hiroyuki Onoda, CEO of Mitsubishi Electric in Russia.

According to Mitsubishi Electric, the key R&D focus of the company is the development of smart digital platforms that make it possible to constantly improve the range of products and services of Mitsubishi Electric. In particular, the company is already testing its own technology, artificial intelligence Maisart which, according to the company, "effectively and environmentally friendly" manage the work of industrial enterprises, buildings,. The transport company is confident that such platforms make technologies "smarter," which means they create a safer and more convenient society.

TAdviser interview with Noritsugu Uemura

In July 2018, Noritsugu Uemura, Senior General Manager of the Department of Government and External Relations of Mitsubishi Electric Corporation, in an interview with TAdviser spoke about the strategy for building a super-intelligent society and the features of the e-F @ ctory digital platform.

2017

Sale of radiotherapy equipment business

In December 2017, the Japanese company Hitachi acquired a business from its compatriot Mitsubishi Electric to produce radiation therapy equipment for charged particles. More details here.

Launch of a new superconducting magnet plant in Ako

Сверхпроводящий магнит для МРТ

On March 27, 2017, Mitsubishi Electric Corporation announced the completion of the construction of a superconducting magnet plant on the territory of the Center for Transmission and Distribution Systems in Ako, Hyogo Prefecture, Japan. The Ako plant allows you to increase the production of superconducting magnets, including those used in magnetic resonance tomographs (MRI) and in semiconductor production equipment.

The plant begins work in March 2017. By fiscal year 2021, Mitsubishi Electric plans to deliver new equipment worth up to nine billion yen, which is 70% higher than in fiscal year 2017. At the same time, Mitsubishi Electric's production capacity growth will reach 60%.

Mitsubishi Electric expects annual global MRI market growth of 6%. Given the growing demand for high-tech products and services in Japan and abroad, the corporation is expanding its own capacity to produce superconducting magnets.

At the initial stage, the Ako plant will increase the company's production capacity by about a quarter. At the new plant Mitsubishi Electric plans to use the latest winding equipment and drying chambers with improved characteristics.

"Clean rooms" with controlled climatic parameters will improve the quality of products. Production facilities and offices previously located in three remote buildings of the Ako Transmission and Distribution Systems Center will be combined in one building to improve productivity.

Main characteristics of the plant:

Building area: 1821.05 m2 (total area: 1917.30 m2)

Construction: Steel frame, 2 floors (2nd floor for office space), air-conditioned and dust-proof rooms

Main equipment produced:

• Superconducting magnets (for MRI, semiconductor equipment, etc.)
• Development of models of high-temperature superconducting magnets

Commissioning: March 2017

Environmental protection measures

• Latest industrial equipment that reduces CO2 emissions to the atmosphere by approximately 59.5 tons per year (compared to existing plants)
• LED lighting of all rooms and automatic adjustment of illumination using motion sensors
• Energy efficient air conditioners

Measures to improve production efficiency

• New partially automated winding machines
• Digital displays for process monitoring, etc.

2015:129 thousand employees

The president and chief executive officer is Masaki Sakuyama.

As of 31 March 2015:

• Consolidated turnover of the company (98 yen = 1 US dollar): 4,323,041 million. yen/$ 36.025 million .
• Authorized capital: 175.820 million yen.
• Number of personnel: 129,249 people.

2014: Financial results of the year

The company's fiscal year ends March 31

According to the results of fiscal year 2014, the company's turnover amounted to 41.4 billion. dollars USA 124,300 employees work in 37 countries.

2011: Work in the video surveillance technology market

For 2011, among other things, Mitsubishi Electric is a global manufacturer of digital DVRs, black and white and color cameras, video servers and video printers. Based on Mitsubishi Electric equipment, video surveillance solutions for objects of any scale are implemented - from small stores and gas stations to large factories and banking institutions.

1996: Mitsubishi Electric Europe registration

In 1996, the Dutch company Mitsubishi Electric Europe B. V. was established, headquartered in London, which combined all European and part of the Middle East divisions of Mitsubishi Electric.

1980: A series of innovations

Since 1980, Mitsubishi Electric has introduced its advanced technologies to the markets, which include:

• the world's first widescreen LED screen placed in sports arenas,
• the world's largest CRT television screen,
• the world's first spiral escalator,
• the fastest elevator in the world,
• antennas, which made it possible to create the world's first commercial Internet access system on board an airplane in the air, and much more.

1969: Opening an office in Britain and expansion in Europe and the Middle East

Since 1969, Mitsubishi Electric has been operating on the European continent - this year the company's representative office in the UK was founded in the City of London. Three years later, the company began expanding European operations - its divisions were opened in all key business centers in Europe and the Middle East.

Over the next two decades, Mitsubishi Electric has pioneered the development of computers, advanced air conditioning systems, automotive electronics, solar-powered satellites, and nuclear power plants.

1960: Launch of production technology development

By 1960, the company was one of the most innovative and diversified manufacturers of electrical equipment in Japan. In the early 1960s, the company began developing production technologies that focused on environmental care. Note that this happened long before the state of ecology turned into a serious problem for humanity.

1930: Start of production of elevators, escalators and equipment for power plants

In 1930, Mitsubishi Electric began creating, installing and maintaining elevators and escalators, as well as producing equipment for power plants. The company continued to grow rapidly and actively expand its areas of activity.

1921: Founding of Mitsubishi Electric Corporation

The history of Mitsubishi Electric is the history of the development of modern Japan. The company was founded on January 15, 1921, when Mitsubishi Shipbuilding Co. (today it is Mitsubishi Heavy Industries, Ltd.) repelled the factory located in Kobe, which produced electric motors for ocean ships. The new company was called Mitsubishi Electric Corporation.

In the same year, having begun the production and sale of electric fans, which quickly became the leader in sales, the company entered the market of household electrical equipment. Over the next 10 years, the company won a number of major contracts, including the creation of electric substations for Japanese railways.