Mitsubishi Electric Corporation

It's time we'd like to now start the financial results briefing of Q1 of fiscal year ending March 2027 of Mitsubishi Electric. Let me introduce the speaker today. Executive Officer, CFO, Kenichiro Fujimoto. Mr. Fujimoto, please start. Thank you. This is Fujimoto of Mitsubishi Electric. Thank you very much for attending this financial results briefing. First of all, I'd like to express deepest condolences to the victims of 2026 Kumamoto earthquake and extend heartfelt sympathies to affected people. entire Mitsubishi Electric Group sincerely pray for swift recovery of affected areas and will start the initiative to support the people who are affected. In relation to the Kumamoto earthquake, let me share with you the current status of our business. We have two production sites in Kumamoto for semiconductor and device business. There were no significant impact on buildings. Processes that completed the equipment inspection and startup gradually resumed the operation since yesterday. Now, let me start my explanation on the fiscal 27 Q1 consolidated financial results. Please turn to page 4. Those are the key points of the financial results. Driven by the growing demand and others, Q1 revenue increased year-on-year in all segments, especially industry mobility and life segments. This was the record high Q1 revenue, ¥1,497.1 billion. in fa systems a defense and space system air conditioning system and home products the business scale increased and there were price improvements in mass production businesses and there was a weaker yen effect as i said all p grew 50.4 billion year-on-year to 144. 3 billion yen which was the record high as q1 as for four-year fiscal 27 forecast in factory automation system ai and semiconductor related demand increased leading to bigger business scale and yen weakened in q1 So the previous forecast is revised upward by 70 billion yen, revenue of 6.27 trillion and adjusted OP of 620 billion, up 30 billion from the initial forecast. Page 6, this is the results of the Q1. As explained, revenue was up 14% year-on-year, adjusted OP up 54%. The net profit attributable to MEC stockholders increased 21% year-on-year to 109.8 billion yen, the highest number as Q1. This shows the waterfall chart showing the Q1 revenue and adjusted P year-on-year changes. The weaker yen pushed up the revenue by 85 billion yen and pushed up the operating profit by 22 billion yen. Excluding the FX impact, there were procurement price increase revenue in FAA system, defense space system, AC system, and home products. increased and also there were price improvements in mass production businesses and there was an effect of the next day support program implemented last fiscal year the AOP increased by 28.5 billion yen this shows the consolidated statement of financial position and cash flow total assets declined by 109.2 billion yen from the end of last fiscal year inventories increased with the progress of construction in the introduction individual production businesses but there is a progress in collection of the account receivables total equity increased by 88.6 billion yen from the end of last fiscal year The MEC stockholders' equity was 4,575.5 bn up 87.2 bn from the end of last fiscal year, reflecting the dividend payment of 61.4 bn but the booking of 109.8 bn in net profit. and the percentage of this against the total asset increased to 63.1% plus 2.2 points. Next is the free cash flow. There were increase in the expenses of the inventories, but with the higher net profit and also the return of the retirement benefit trust assets, the free cash flow, excuse me, the cash flow from operating activities, was inflow of 388.6 billion yen, up 195.1 billion yen. There was an increase in the tangible fixed assets, and as a result, the cash flow from investing activities increased 67.7 billion yen year-on-year. And free cash flow was positive 301.5 billion yen, up 127.4 billion yen year-on-year. Next is year-on-year comparison of revenue and operating profit by segment. Revenue increased in all segments.

AOP increased in all segments except for digital innovation.

I will explain the details on the following pages by segment. And sub-segment-wise numbers will be shown in supplementary materials on page 20.