Fiscal Year Ending March 2027 Second Quarter Financial Summary [IFRS] (Consolidated)

Summary of Results

Mitsubishi Electric Corporation announced its second quarter (interim) financial summary for the fiscal year ending March 2027 under IFRS. Cumulative-period revenue was 3,125,147 million yen, up 14.4% year-over-year, and operating income was 358,112 million yen, up 59.6% year-over-year, achieving substantial profit growth. Interim net income was 297,025 million yen, representing a significant increase attributable to owners of the parent. Adjusted operating income was 344,778 million yen, indicating notable growth even after excluding gains/losses on business disposals and impairments. Note that changes affecting comparability are disclosed, including accounting policy changes, changes in the scope of consolidation, and the finalization of provisional accounting treatment for Nozomi Networks.

Significant Subsequent Events and Outlook

Significant subsequent events include a company split (simplified absorption-type split) and share transfer of the automotive equipment business to Mitsubishi Electric Mobility, and transactions related to forming a joint venture with ABB for the power distribution and control equipment business. The transfer consideration for the automotive equipment business is approximately 115 billion yen, and the post-transfer voting rights ratio will be 50%. As a result, a loss on impairment of approximately 100 billion yen is expected to be recorded in consolidated results for fiscal 2027, which may affect future capital allocation and profit structure. The joint venture with ABB aims to strengthen offerings and global expansion in the power distribution and power control sectors. The dividend policy is expected to be maintained, and supplementary financial materials will be prepared with an earnings presentation meeting to be held.