[Translation]
This document has been translated from the Japanese original for reference purpose only. In the event of any discrepancy between this document and the Japanese original, the original shall prevail.
Semi-annual Securities Report
The 155th Interim Business Term From April 1, 2025 to September 30, 2025
Mitsubishi Electric Corporation
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo
The 155th Interim Business Term (from April 1, 2025 to September 30, 2025)
Semi-annual Securities Report
This is an English translation of the Semi-annual Securities Report ("Hanki Hokokusho") pursuant to item 1 of the table in Article 24-5, Paragraph 1 of the Financial Instruments and Exchange Act of Japan filed via the Electronic Disclosure for Investors' Network ("EDINET") system as set forth in Article 27-30-2 of the same Act. The translation includes a table of contents and pagination that are not included in the electronic filing.
Mitsubishi Electric Corporation
Table of Contents
Page
Cover 1
Overview of the Company 2
Key Financial Data 2
Description of Business 3
Business Overview 4
Business and Other Risks 4
Management Analysis of Financial Position, Operating Results and Cash Flows 4
Material Agreements, etc. 7
Information on the Company 8
Information on the Company's Stock, etc. 8
Total number of shares, etc. 8
Information on the stock acquisition rights, etc. 8
Information on moving strike convertible bonds, etc. 8
Changes in the total number of issued shares and the amount of common stock, etc. 8
Principal shareholders 9
Information on voting rights 10
Directors and Executive Officers 10
Financial Information 11
Condensed Interim Consolidated Financial Statements 12
Condensed Interim Consolidated Statement of Financial Position 12
Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated
Statement of Comprehensive Income 14
Condensed Interim Consolidated Statement of Changes in Equity 16
Condensed Interim Consolidated Statement of Cash Flows 17
Other 28
(Translatioin) Independent Auditor's Interim Review Report on Interim Consolidated Financial Statements
[Cover]
[Filed Document] Semi-annual Securities Report ("Hanki Hokokusho")
[Applicable Law] Item 1 of the table in Article 24-5, Paragraph 1 of the Financial Instruments and Exchange Act of Japan
[Filed to] Director, Kanto Local Finance Bureau
[Filing Date] November 11, 2025
[Fiscal Year] The 155th Interim business term (from April 1, 2025 to September 30, 2025)
[Company Name] Mitsubishi Denki Kabushiki Kaisha [Company Name in English] Mitsubishi Electric Corporation [Title and Name of Representative] Kei Uruma, President & CEO
[Address of Head Office] 7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo [Phone Number] 03(3218)2111
[Contact Person] Jumpei Hayakawa, Senior Manager, Accounting Section, Corporate
Accounting Div., Corporate Finance & Accounting Group
[Contact Address] 7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo
[Phone Number] 03(3218)2111
[Contact Person] Jumpei Hayakawa, Senior Manager, Accounting Section, Corporate Accounting Div., Corporate Finance & Accounting Group
[Place Where the Filed Document is Tokyo Stock Exchange, Inc.
Available for Public Inspection] (2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo)
Cautionary Statement
While the statements herein, including the forecasts regarding the Mitsubishi Electric Group, are based on assumptions considered to be reasonable under the circumstances on the date of announcement, actual results may differ significantly from forecasts.
The main factors materially affecting the expectations expressed herein include but are not limited to the following:
Changes in worldwide economic and social conditions, as well as regulations, taxation and other legislation
Changes in foreign currency exchange rates
Changes in stock markets
Changes in the fund-raising environment
Changes in the supply and demand of products, as well as the material procurement environment
Establishment of important patents, status of significant licenses and disputes related to key patents
Litigation and other legal proceedings
Issues related to quality and defects in products or services
Laws, regulations and issues related to the global environment, especially responses to climate change
Laws, regulations and issues related to human rights
Radical technological innovation, as well as the development, manufacturing and time-to-market of products using new technology
Business restructuring
Information security incidents
Large-scale disasters, including earthquakes, tsunamis, typhoons, volcanic eruptions and fires
Social, economic and political upheaval due to heightened geopolitical risks, war, conflict, terrorism or other factors
Social, economic and political upheaval due to pandemics or other factors
Important matters related to Mitsubishi Electric Corporation's directors and executive officers, major shareholders, affiliated companies and other stakeholders
Overview of the Company
Key Financial Data
(Millions of yen, unless otherwise stated)
For the six months ended Sept. 30, 2024
For the six months ended Sept. 30, 2025
Year ended Mar. 31, 2025
Revenue
2,643,597
2,732,504
5,521,711
Profit before income taxes
176,744
253,975
437,265
Net profit attributable to
Mitsubishi Electric Corp. stockholders
118,640
189,397
324,084
Comprehensive income attributable to Mitsubishi
Electric Corp. stockholders
107,172
240,911
353,213
Mitsubishi Electric Corp. stockholders' equity
3,753,772
4,047,964
3,949,678
Total equity
3,879,938
4,180,902
4,076,366
Total assets
6,092,803
6,444,778
6,375,680
Basic earnings per share attributable to Mitsubishi
Electric Corp. stockholders (yen)
56.85
91.74
155.70
Diluted earnings per share attributable to Mitsubishi
Electric Corp. stockholders (yen)
56.85
91.74
155.70
Mitsubishi Electric Corp. stockholders' equity ratio (%)
61.6
62.8
61.9
Cash flows from operating activities
271,432
344,724
455,905
Cash flows from investing activities
(118,500)
(46,770)
(191,750)
Cash flows from financing activities
(152,134)
(206,707)
(265,333)
Cash and cash equivalents at end of period
754,504
862,837
757,331
Notes: 1. The condensed interim consolidated financial statements and the consolidated financial statements of the Group are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).
As the Group prepares the condensed interim consolidated financial statements, the key financial data of the Company is not provided.
Diluted earnings per share attributable to Mitsubishi Electric Corp. stockholders is equal to Basic earnings per share attributable to Mitsubishi Electric Corp. stockholders as no dilutive securities existed.
2. Description of Business
The condensed interim consolidated financial statements of the Mitsubishi Electric Group are prepared in accordance with IFRS Accounting Standards. The Mitsubishi Electric Group, which is composed of the Company, 228 consolidated subsidiaries and 40 equity method companies, engages in 6 business segments (Infrastructure, Industry & Mobility, Life, Digital Innovation, Semiconductor & Device, Others) and our products range from all types.
Beginning in the first half of fiscal 2026, the Company has changed the segment name of "Business Platform" to "Digital Innovation." Details are described in "IV. Financial Information, 1. Condensed Interim Consolidated Financial Statements, Notes to condensed interim consolidated financial statements, 5. Segment information."
Change in major subsidiaries and affiliated companies during the six months ended September 30, 2025 was as follows. (Digital Innovation)
Mitsubishi Electric Information Network Corporation absorbed Mitsubishi Electric Information Systems Corporation and Mitsubishi Electric IT Solutions Corporation, with the business responsible for functions for planning and promotion of DX, IT, and security transferred from the Company, and changed its company name to Mitsubishi Electric Digital Innovation Corporation on April 1, 2025.
Business Overview
Business and Other Risks
During the six months ended September 30, 2025, there were no new business and other risks such as unusual fluctuations in the financial position, operating results, and cash flows.
There were no material changes in the business and other risks stated in the Annual Securities Report for the fiscal year ended March 31, 2025.
Forward-looking statements in this section are based on the judgment of the Company as of the date of submission of the Semi-annual Securities Report (November 11, 2025).
Management Analysis of Financial Position, Operating Results and Cash Flows
The condensed interim consolidated financial statements of the Mitsubishi Electric Group are prepared in accordance with IFRS Accounting Standards. The Group makes judgments, estimates and assumptions that affect the amounts of assets, liabilities, income and expenses in preparation of the condensed interim consolidated financial statements, and actual results may differ from these estimates.
Overview of business performance
During the first half of fiscal 2026, the Japanese economy experienced a gradual recovery, supported by robust capital expenditures and a rebound in consumer spending. In the United States, the economy showed signs of slowing down due to a reactionary decline following last-minute demand driven by additional tariffs and a deterioration in employment conditions. In Europe, the economy gradually recovered, backed by stable prices, firm wage trends, and interest rate cuts. In China, the economy remained sluggish due to the ongoing real estate recession and weak domestic demand.
As a result, the business performance for the six months ended September 30, 2025 is as follows.
＜Consolidated performance＞ (In billions of yen)
For the six months
ended Sept. 30, 2024
For the six months
ended Sept. 30, 2025
Year-on-year
Revenue
2,643.5
2,732.5
up 88.9
Operating profit
176.6
224.3
up 47.6
Profit before income taxes
176.7
253.9
up 77.2
Net profit attributable to Mitsubishi
Electric Corp. stockholders
118.6
189.3
up 70.7
Revenue
Although revenue was impacted by the stronger yen, it increased by 88.9 billion yen year-on-year to 2,732.5 billion yen, due to increases in sales mainly in the Infrastructure segment. In the Infrastructure segment, the public utility systems business saw increases in the transportation systems and public utility businesses in Japan and the uninterruptible power supply (UPS) business outside Japan. The energy systems business saw an increase in the power transmission and distribution business worldwide, and the defense & space systems business also increased in large-scale projects for the defense systems business. In the Life segment, the building systems business saw increases in Asia (excluding China) and Japan, and the air conditioning systems & home products business also increased due primarily to improvements in product prices and increases in residential and industrial air conditioning systems in Europe, North America, and Japan. The Digital Innovation segment saw increases in the digital manufacturing solutions and the IT infrastructure and security solutions businesses. The Industry & Mobility segment saw increases in the factory automation systems business due primarily to increases in capital expenditures related to smartphones and AI, as well as demand for industrial machinery, while the automotive equipment business saw decreases due primarily to the impact of a lower sales volume of Japanese car manufacturers in China and a decrease in car multimedia for North America. The Semiconductor & Device segment saw a decrease due to continued stagnation in demand for power modules.
＜Impact of exchange rate fluctuations on revenue＞
Average exchange rate
for the six months ended Sept. 30, 2024
Average exchange rate
for the six months ended Sept. 30, 2025
Impact of exchange rate fluctuations on revenue for the six months
ended Sept. 30, 2025
Consolidated total
-
-
About ¥31.0 billion decrease
US$
¥152
¥146
About ¥20.0 billion decrease
EURO
¥166
¥169
About ¥5.0 billion increase
CNY
¥21.2
¥20.3
About ¥8.0 billion decrease
Operating profit
Operating profit increased by 47.6 billion yen year-on-year to 224.3 billion yen due mainly to increases in the Infrastructure, Industry & Mobility, and Semiconductor & Device segments, despite decreases in the Life and Digital Innovation segments. Operating profit ratio improved by 1.5 points year-on-year to 8.2% due mainly to an improvement in cost ratio.
The cost ratio improved by 1.0 points year-on-year due primarily to improvements in product prices and in the Infrastructure segment, despite the impact of the stronger yen. Selling, general and administrative expenses increased by 27.1 billion yen year-on-year, and the selling, general and administrative expenses to revenue ratio deteriorated by 0.2 points year-on-year. Other profit (loss) increased by 18.5 billion yen year-on-year, and the other profit (loss) to revenue ratio improved by 0.7 points year-on-year.
Profit before income taxes
Profit before income taxes increased by 77.2 billion yen year-on-year to 253.9 billion yen due primarily to an increase in operating profit. The profit before income taxes to revenue ratio was 9.3%.
Net profit attributable to Mitsubishi Electric Corp. stockholders
Net profit attributable to Mitsubishi Electric Corporation stockholders increased by 70.7 billion yen year-on-year to 189.3 billion yen due mainly to an increase in profit before income taxes. The net profit attributable to Mitsubishi Electric Corporation stockholders to revenue ratio was 6.9%.
Consolidated Financial Results by Business Segment are as shown below.
Infrastructure
The market for the public utility systems business saw robust capital expenditures in public utilities and transportation systems in Japan. In this environment, orders decreased year-on-year due primarily to a decrease in large-scale projects for the transportation systems business outside Japan, while revenue increased year-on-year due primarily to increases in the transportation systems and public utility businesses in Japan and the uninterruptible power supply (UPS) business outside Japan.
The market for the energy systems business saw robust demand mainly resulting from the expanded use of renewable energy and increased investments in data centers. In this environment, orders increased year-on-year due to an increase in the power generation businesses worldwide. Revenue also increased year-on-year mainly due to an increase in the power transmission and distribution business worldwide.
The market for the defense & space systems business saw robust demand in defense and space systems mainly due to increases in the budgets of government-related organizations. In this environment, orders increased year-on-year due to increases in large-scale projects for the defense systems and space systems businesses. Revenue also increased year-on-year due to an increase in large-scale projects for the defense systems business.
As a result, revenue for this segment increased by 17% year-on-year to 582.3 billion yen.
Operating profit increased by 21.8 billion yen year-on-year to 38.8 billion yen due mainly to increased revenue and a shift in project portfolio.
Industry & Mobility
The market for the factory automation systems business saw increases in demand related to smartphones and industrial machinery in China and capital expenditures mainly for AI-related semiconductors in Japan, China and Taiwan. In this environment, both orders and revenue increased year-on-year due primarily to increases in capital expenditures related to smartphones and AI, as well as demand for industrial machinery.
The market for the automotive equipment business saw increases year-on-year in sales of new cars mainly in China and North
America. In this environment, revenue decreased year-on-year due primarily to the impact of a lower sales volume of Japanese car manufacturers in China and a decrease in car multimedia for North America.
As a result, revenue for this segment remained substantially unchanged year-on-year to 800.8 billion yen.
Operating profit increased by 11.2 billion yen year-on-year to 55.3 billion yen due primarily to improvements in product prices, an increase in revenue in the factory automation systems business, and reduced expenses in the automotive equipment business.
Life
The market for the building systems business saw robust demand mainly in the Middle East. In some regions such as Japan, the market continued to see delays in construction schedules and revisions to capital expenditure plans due to the continued impact of high material prices and logistics costs. In this environment, orders increased year-on-year due primarily to an increase in Japan. Revenue also increased year-on-year mainly due to increases in Asia (excluding China) and Japan.
The market for the air conditioning systems & home products business saw robust demand for residential and industrial air conditioning systems in North America and Japan, along with continued signs of recovery in demand in Europe. In this environment, revenue increased year-on-year due primarily to improvements in product prices and increases in residential and industrial air conditioning systems in Europe, North America, and Japan.
As a result, revenue for this segment increased by 4% year-on-year to 1,143.7 billion yen.
Operating profit decreased by 6.8 billion yen year-on-year to 92.9 billion yen due primarily to the impact of the change in foreign exchange rates and increased expenses in the air conditioning systems & home products business, despite increased revenue and a shift in project portfolio in the building systems business.
Digital Innovation
The market for the digital innovation business saw robust demand for updates to legacy systems and digital transformation-related efforts. In this environment, both orders and revenue increased year-on-year mainly due to increases in the digital manufacturing solutions and the IT infrastructure and security solutions businesses. Revenue increased by 5% year-on-year to
71.8 billion yen.
Operating profit decreased by 0.5 billion yen year-on-year to 3.7 billion yen due primarily to increased expenses.
Semiconductor & Devices
The market for the semiconductor & device business saw robust demand for optical communication devices, despite continued stagnation in demand for power modules. In this environment, orders decreased year-on-year mainly due to a decrease in power modules. Revenue also decreased year-on-year due to decreases in power modules used for industrial and automotive applications, despite experiencing increases in optical communication devices and power modules used for railway & power transmission applications. Revenue decreased by 4% year-on-year to 140.6 billion yen.
Operating profit increased by 1.3 billion yen year-on-year to 24.7 billion yen due mainly to a shift in the product mix.
Others
Revenue decreased by 12% year-on-year to 381.0 billion yen due primarily to a decrease resulting from conversion of a logistics-related affiliate into an associate accounted for using the equity method.
Operating profit increased by 17.4 billion yen year-on-year to 28.8 billion yen due mainly to the impact of the transfer of shares of a subsidiary and a shift in project portfolios.
Analysis of financial position
Total assets increased by 69.0 billion yen compared to the end of the previous fiscal year to 6,444.7 billion yen. The change in balance of total assets was mainly attributable to increases in cash and cash equivalents by 105.5 billion yen, contract assets by
76.4 billion yen, and property, plant and equipment by 57.0 billion yen, despite a decrease in trade receivables by 215.1 billion yen.
Total liabilities decreased by 35.4 billion yen compared to the end of the previous fiscal year to 2,263.8 billion yen due primarily to a decrease in trade payables by 43.5 billion yen.
Mitsubishi Electric Corporation stockholders' equity increased by 98.2 billion yen compared to the end of the previous fiscal year to 4,047.9 billion yen due mainly to net profit attributable to Mitsubishi Electric Corporation stockholders of 189.3 billion yen, despite decreases due primarily to the purchase of treasury stock of 81.3 billion yen and a dividend payment of 62.3 billion yen. The stockholders' equity ratio was 62.8%, representing a 0.9 point increase compared to the end of the previous fiscal year.
Status of cash flows
Cash flows from operating activities for the six months ended September 30, 2025 were 344.7 billion yen (cash in), while cash flows from investing activities were 46.7 billion yen (cash out). As a result, free cash flow was 297.9 billion yen (cash in). Cash flows from financing activities were 206.7 billion yen (cash out), and cash and cash equivalents at the end of the period increased by 105.5 billion yen compared to the end of the previous fiscal year to 862.8 billion yen.
Net cash provided by operating activities increased by 73.2 billion yen year-on-year due mainly to an increase in net profit.
Net cash used in investing activities decreased by 71.7 billion yen year-on-year due mainly to increases in proceeds from sale of investment securities and others and an increase in proceeds from sale of subsidiary.
Net cash used in financing activities increased by 54.5 billion yen year-on-year due primarily to an increase in purchase of treasury stock.
Management policy, business environment and corporate agenda
For the six months ended September 30, 2025, there were no material changes in "Ⅱ. Business Overview, 1. Management Policy, Business Environment and Corporate Agenda" stated in the Annual Securities Report for the fiscal year ended March 31, 2025.
research and development
For the six months ended September 30, 2025, the total R&D expenses for the entire Group have amounted to 113.7 billion yen (Including elements spent on quality improvements, which constitute manufacturing costs).
There were no significant changes in the research and development activities of the Group for the six months ended September 30, 2025.
Material Agreements, etc.
Merger Agreement
On September 9, 2025, the Company entered into a merger agreement to acquire all of the shares of Nozomi Networks Inc., in the
U.S. (excluding the Company's existing holdings) and make it a wholly owned subsidiary. Please refer to "Ⅳ. Financial Information, 1. Condensed Interim Consolidated Financial Statements, Notes to condensed interim consolidated financial statements, 13. Additional information".
Information on the Company
Information on the Company's Stock, etc.
Total number of shares, etc.
Total number of shares
Class
Authorized shares (shares)
Common stock
8,000,000,000
Total
8,000,000,000
Issued shares
Class
Number of shares issued as of the end of the interim (shares)
(Sept. 30, 2025)
Number of shares issued as of the filing date (shares)
(Nov. 11, 2025)
Stock exchange on which the Company is listed
Description
Common stock
2,113,201,551
2,113,201,551
Tokyo (Prime Market)
The number of shares
per one unit of shares is 100 shares.
Total
2,113,201,551
2,113,201,551
-
-
Note: Common stock in the table above has voting rights.
Information on the stock acquisition rights, etc.
Details of stock option plans Not applicable.
Details of other stock acquisition rights, etc. Not applicable.
Information on moving strike convertible bonds, etc.
Not applicable.
Changes in the total number of issued shares and the amount of common stock, etc.
Date
Change in the total number of issued shares (thousand shares)
Balance of the total number of issued shares (thousand shares)
Change in common stock (millions of yen)
Balance of common stock (millions of yen)
Change in capital reserve
(millions of yen)
Balance of capital reserve (millions of yen)
From April 1,
2025 to
September 30,
2025
-
2,113,201
-
175,820
-
181,140
Principal shareholders
As of September 30, 2025
Name
Address
Number of shares Held (thousand shares)
Ownership percentage to the total number of issued shares (excluding treasury stock) (%)
The Master Trust Bank of Japan, Ltd. (Trust Account)
8-1, Akasaka 1-chome, Minato-ku, Tokyo
315,110
15.36
Custody Bank of Japan, Ltd.
(Trust Account)
8-12, Harumi 1-chome, Chuo-ku, Tokyo
113,386
5.53
STATE STREET BANK AND TRUST COMPANY 505001
(Standing proxy: Mizuho Bank, Ltd.,
Settlement & Clearing Service Department)
ONE CONGRESS STREET, SUITE 1,
BOSTON，MASSACHUSETTS
(15-1, Konan 2-chome, Minato-ku, Tokyo)
96,488
4.70
Meiji Yasuda Life Insurance Company
1-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo
81,863
3.99
STATE STREET BANK AND TRUST COMPANY 505223
(Standing proxy: Mizuho Bank, Ltd.,
Settlement & Clearing Service Department)
P. O. BOX 351 BOSTON MASSACHUSETTS 02101 U. S. A．
(15-1, Konan 2-chome, Minato-ku, Tokyo)
49,231
2.40
JP MORGAN CHASE BANK 385632
(Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Service Department)
25 BANK STREET, CANARY WHARF, LONDON, E14 5JP, UNITED KINGDOM
(15-1, Konan 2-chome, Minato-ku, Tokyo)
46,846
2.28
Mitsubishi Electric Group Employees Shareholding Union
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo
43,028
2.10
STATE STREET BANK WEST CLIENT
- TREATY 505234
(Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Service Department)
1776 HERITAGE DRIVE, NORTH QUINCY, MA 02171, U.S.A.
(15-1, Konan 2-chome, Minato-ku, Tokyo)
41,003
2.00
Nippon Life Insurance Company
6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
36,339
1.77
JP MORGAN CHASE BANK 380055
(Standing proxy: Mizuho Bank, Ltd., Settlement & Clearing Service Department)
270 PARK AVENUE, NEW-YORK, NY
10017, UNITED STATES OF AMERICA
(15-1, Konan 2-chome, Minato-ku, Tokyo)
35,099
1.71
Total
-
858,396
41.83
Notes: 1. In addition to the above, the Company owns 61,085,657 company-owned shares.
Sumitomo Mitsui Trust Bank, Ltd. submitted a change report on the Statements of Large-Volume Holdings with Sumitomo Mitsui Trust Asset Management Co., Ltd. and Amova Asset Management Co., Ltd. as co-owners on September 19, 2025. However, since the Company cannot confirm the number of shares actually owned as of September 30, 2025, "Principalshareholders" column is based on the shareholder registry. The shareholding status as of September 15, 2025 according to the report is as follows.
Name
Address
Number of shares Held (thousand shares)
Ownership percentage to the total number of issued shares (%)
Sumitomo Mitsui Trust Asset Management
Co., Ltd.
1-1, Shibakoen 1-chome, Minato-ku, Tokyo
61,923
2.93
Amova Asset Management Co., Ltd.
7-1, Akasaka 9-chome, Minato-ku, Tokyo
36,684
1.74
(6) Information on voting rights
Issued shares
(As of September 30, 2025)
Classification
Number of shares (shares)
Number of voting rights
Description
Shares without voting right
-
-
-
Shares with restricted voting right
(treasury stock, etc.)
-
-
-
Shares with restricted voting right
(others)
-
-
-
Shares with full voting right (treasury stock, etc.)
Common
61,085,600
stock
-
Standard common stock of the Company without any restriction. Number of shares constituting one
unit: 100 shares
Shares with full voting right (others)
Common
2,051,619,500
stock
20,516,195
Same as above
Shares less than one unit
Common
496,451
stock
-
Same as above
Number of shares issued
2,113,201,551
-
-
Total number of voting rights
-
20,516,195
-
Notes: 1. The number of shares in "Shares less than one unit" includes 57 shares as treasury stocks, 204 shares held by the Board Incentive Plan Trust and 80 shares registered in the name of Japan Securities Depository Center, Inc.
2. The number of shares and the number of voting rights in "Shares with full voting right (others)" include 6,700 shares (67 voting rights) registered in the name of Japan Securities Depository Center, Inc. and 1,056,600 shares (10,566 voting rights) held through the Board Incentive Plan Trust.
Treasury stock, etc.
(As of September 30, 2025)
Name of shareholder
Address
Number of shares held under own name (shares)
Number of shares held under the name of others (shares)
Total shares held (shares)
Ownership percentage to the total number of issued shares (%)
Mitsubishi Electric
Corporation
7-3, Marunouchi 2-chome, Chiyoda-ku, Tokyo
61,085,600
-
61,085,600
2.89
Total
-
61,085,600
-
61,085,600
2.89
Note: In addition to 61,085,600 shares owned by the Company in the table above and 57 shares less than one unit owned by the Company, 1,056,804 shares of the Company held through the Board Incentive Plan Trust are included in the shares of treasury stock in the condensed interim consolidated financial statements.
2. Directors and Executive Officers
There were no changes in directors and executive officers from the filing date of the Annual Securities Report for the fiscal year ended March 31, 2025 to September 30, 2025, except for the changes described in the Annual Securities Report for the previous fiscal year.
Financial Information
Basis of preparation of the condensed interim consolidated financial statements
The Group prepares its condensed interim consolidated financial statements in accordance with International Accounting Standards 34 "Interim Financial Reporting" ("IAS 34") since the Group meets all the requirements of a "specified international accounting standard company" in Article 1-2-2 of the Ministry of Finance Ordinance No. 28 of 1976, "Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements", and therefore Article 312 of that Ordinance applies to the Group.
The Company also qualifies as a company listed in the upper section of the item 1 of the table in Article 24-5-1 of the Financial Instruments and Exchange Act of Japan, and prepares Type-1 interim consolidated financial statements in accordance with Part 1 and Part 5 of "Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements".
Audit certification
Pursuant to Article 193-2, paragraph 1 of the Financial Instruments and Exchange Act of Japan, the condensed interim consolidated financial statements for the first half of the current fiscal year from April 1, 2025 to September 30, 2025 are reviewed by KPMG AZSA LLC.
Condensed Interim Consolidated Financial Statements
Condensed Interim Consolidated Statement of Financial Position
Yen (millions)
Notes
As of Mar. 31, 2025
As of Sept. 30, 2025
(Assets)
Cash and cash equivalents
757,331
862,837
Trade receivables
1,147,037
931,921
Contract assets
343,228
419,671
Other financial assets
10
52,515
46,134
Inventories
1,244,959
1,268,506
Other current assets
202,465
208,139
Current assets
3,747,535
3,737,208
Investments accounted for using the equity method
324,766
326,911
Other financial assets
10
312,836
294,403
Property, plant and equipment
958,458
1,015,500
Goodwill and intangible assets
221,406
240,083
Deferred tax assets
113,146
129,220
Net defined benefit assets
669,575
669,416
Other non-current assets
27,958
32,037
Non-current assets
2,628,145
2,707,570
Total assets
6,375,680
6,444,778
Yen (millions)
Notes
As of Mar. 31, 2025
As of Sept. 30, 2025
(Liabilities)
Bonds, borrowings and lease liabilities
10
120,889
104,860
Trade payables
601,978
558,464
Contract liabilities
330,616
354,059
Other financial liabilities
10
154,708
161,910
Accrued expenses
354,483
365,662
Accrued income taxes
37,808
60,352
Provisions
123,243
121,470
Other current liabilities
123,304
90,589
Current liabilities
1,847,029
1,817,366
Bonds, borrowings and lease liabilities
10
239,772
234,027
Other financial liabilities
10
56
930
Net defined benefit liabilities
143,676
148,486
Provisions
3,059
3,174
Deferred tax liabilities
25,155
20,291
Other non-current liabilities
40,567
39,602
Non-current liabilities
452,285
446,510
Total liabilities
2,299,314
2,263,876
(Equity)
Common stock
175,820
175,820
Capital surplus
186,741
186,623
Retained earnings
3,304,481
3,443,831
Accumulated other comprehensive income (loss)
10
354,459
393,702
Treasury stock, at cost
(71,823)
(152,012)
Mitsubishi Electric Corp. stockholders' equity
3,949,678
4,047,964
Non-controlling interests
126,688
132,938
Total equity
4,076,366
4,180,902
Total liabilities and equity
6,375,680
6,444,778
Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Statement of Profit or Loss
Yen (millions)
Notes
For the six months ended Sept. 30, 2024
For the six months ended Sept. 30, 2025
Revenue
7
2,643,597
2,732,504
Cost of sales
1,832,830
1,865,509
Selling, general and administrative expenses
635,299
662,439
Other profit (loss)
8
1,214
19,810
Operating profit
176,682
224,366
Financial income
11,381
14,935
Financial expenses
25,676
4,045
Share of profit of investments accounted for using the equity method
14,357
18,719
Profit before income taxes
176,744
253,975
Income taxes
44,682
51,685
Net profit
132,062
202,290
Net profit attributable to:
Mitsubishi Electric Corp. stockholders
118,640
189,397
Non-controlling interests
13,422
12,893
Yen
Notes
For the six months ended Sept. 30, 2024
For the six months ended Sept. 30, 2025
Earnings per share (attributable to
Mitsubishi Electric Corp. stockholders)
Basic
9
56.85
91.74
Diluted
9
56.85
91.74
Condensed Interim Consolidated Statement of Comprehensive Income
Yen (millions)
Notes
For the six months ended Sept. 30, 2024
For the six months ended Sept. 30, 2025
Net profit
132,062
202,290
Other comprehensive income (loss), net of tax
Items that will not be reclassified to net profit
Changes in fair value of financial assets measured at fair value through other
10
(13,550)
7,940
comprehensive income
Share of other comprehensive income of investments accounted for using the equity
7,478
569
method
Total items that will not be reclassified to
(6,072)
8,509
net profit
Items that may be reclassified to net profit
Exchange differences on translating foreign operations
(14,805)
49,465
Net changes in the fair value of cash flow
hedges
89
4
Share of other comprehensive income of
investments accounted for using the equity
8,862
(3,283)
method
Total items that may be reclassified to net
(5,854)
46,186
profit
Total other comprehensive income (loss)
(11,926)
54,695
Comprehensive income
120,136
256,985
Comprehensive income attributable to:
Mitsubishi Electric Corp. stockholders
107,172
240,911
Non-controlling interests
12,964
16,074
Condensed Interim Consolidated Statement of Changes in Equity
Notes
Mitsubishi Electric Corp. stockholders' equity
Non-controlling interests
Total equity
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost
Total
Balance at beginning of period
175,820
195,157
3,102,755
363,632
(98,040)
3,739,324
127,094
3,866,418
Comprehensive income
Net profit
118,640
118,640
13,422
132,062
Other comprehensive income (loss), net of tax
(11,468)
(11,468)
(458)
(11,926)
Comprehensive income
-
-
118,640
(11,468)
-
107,172
12,964
120,136
Reclassification to retained
earnings
4,218
(4,218)
-
-
Dividends
6
(62,702)
(62,702)
(8,673)
(71,375)
Purchase of treasury stock
(23,182)
(23,182)
(23,182)
Disposal of treasury stock
(417)
723
306
306
Cancellation of treasury stock
(56,634)
56,634
-
-
Transfer to capital surplus from retained earnings
56,344
(56,344)
-
-
Transactions with non-
controlling interests and others
(7,146)
(7,146)
(5,219)
(12,365)
Balance at end of period
175,820
187,304
3,106,567
347,946
(63,865)
3,753,772
126,166
3,879,938
For the six months ended Sept. 30, 2024
For the six months ended Sept. 30, 2025
Yen (millions)
Yen (millions)
Notes
Mitsubishi Electric Corp. stockholders' equity
Non-controlling interests
Total equity
Common stock
Capital surplus
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost
Total
Balance at beginning of period
175,820
186,741
3,304,481
354,459
(71,823)
3,949,678
126,688
4,076,366
Comprehensive income
Net profit
189,397
189,397
12,893
202,290
Other comprehensive income (loss), net of tax
51,514
51,514
3,181
54,695
Comprehensive income
-
-
189,397
51,514
-
240,911
16,074
256,985
Reclassification to retained
earnings
12,271
(12,271)
-
-
Dividends
6
(62,318)
(62,318)
(9,826)
(72,144)
Purchase of treasury stock
(81,383)
(81,383)
(81,383)
Disposal of treasury stock
(1,194)
1,194
-
-
Transactions with non-controlling interests and others
1,076
1,076
2
1,078
Balance at end of period
175,820
186,623
3,443,831
393,702
(152,012)
4,047,964
132,938
4,180,902
Condensed Interim Consolidated Statement of Cash Flows
Yen (millions)
For the six months ended Sept. 30, 2024
For the six months ended Sept. 30, 2025
Cash flows from operating activities
Net profit
132,062
202,290
Adjustments to cash flows from operating activities
Depreciation and amortization
102,850
107,841
Impairment losses
99
77
Loss (gain) on sales and disposal of property, plant and
equipment, net
85
(1,797)
Income taxes
44,682
51,685
Share of profit of investments accounted for using the
equity method
(14,357)
(18,719)
Financial income and financial expenses
14,295
(10,890)
Gain on sale of subsidiary
-
(14,755)
Decrease in trade receivables
200,469
231,667
Decrease (increase) in contract assets
(39,110)
(76,566)
Decrease (increase) in inventories
(25,530)
(1,118)
Decrease (increase) in other assets
(25,550)
(10,268)
Increase (decrease) in trade payables
(26,060)
(49,385)
Increase in net defined benefit liabilities
8,412
2,467
Increase (decrease) in other liabilities
(28,289)
(42,157)
Others, net
(18,774)
7,486
Subtotal
325,284
377,858
Interest and dividends received
21,665
21,098
Interest paid
(3,880)
(3,649)
Income taxes paid
(71,637)
(50,583)
Cash flows from operating activities
271,432
344,724
Cash flows from investing activities
Purchase of property, plant and equipment
(97,898)
(87,142)
Proceeds from sale of property, plant and equipment
1,431
4,048
Purchase of intangible assets
(15,453)
(18,652)
Purchase of investment securities and others, net of cash
acquired
(21,775)
(13,389)
Proceeds from sale of investment securities and others
15,270
45,228
Proceeds from sale of subsidiary, net of cash disposed
-
19,021
Others, net
(75)
4,116
Cash flows from investing activities
(118,500)
(46,770)
Cash flows from financing activities
Proceeds from bonds and long-term borrowings
1,357
218
Repayments of bonds and long-term borrowings
(288)
(5,818)
Increase (decrease) in short-term borrowings, net
(11,664)
(11,295)
Repayments of lease liabilities
(33,053)
(33,584)
Dividends paid to Mitsubishi Electric Corp. stockholders
(62,702)
(62,318)
Purchase of treasury stock
(23,182)
(81,383)
Disposal of treasury stock
0
-
Dividends paid to non-controlling interests
(10,605)
(12,529)
Transactions with non-controlling interests
(11,997)
2
Cash flows from financing activities
(152,134)
(206,707)
Effect of exchange rate changes on cash and cash equivalents
(11,678)
14,259
Net increase (decrease) in cash and cash equivalents
(10,880)
105,506
Cash and cash equivalents at beginning of period
765,384
757,331
Cash and cash equivalents at end of period
754,504
862,837
Notes to condensed interim consolidated financial statements
Reporting entity
Mitsubishi Electric Corporation ("the Company") is an entity located in Japan. The condensed interim consolidated financial statements of the Mitsubishi Electric Group ("the Group") comprises the Company, its subsidiaries and equity in the Company's associates and joint ventures.
The Group is a multinational organization which develops, manufactures, sells and distributes a broad range of electrical and electronic equipment in the fields as diverse as home appliances to space electronics. The Company and its subsidiaries' principal lines of business are: (1) Infrastructure, (2) Industry & Mobility, (3) Life, (4) Digital Innovation, (5) Semiconductor & Device and (6) Others. The Group's manufacturing operations are conducted principally by the Company with 16 manufacturing sites located in Japan, as well as overseas manufacturing sites located in Thailand, China, the United States, Mexico, Italy and other countries.
Basis of preparation
Statement of condensed interim consolidated financial statements in accordance with IAS 34
The Group prepares its condensed interim consolidated financial statements in accordance with IAS 34 since the Group meets all the requirements of a "specified international accounting standard company" in Article 1-2-2 of the Ministry of Finance Ordinance No. 28 of 1976, "Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements", and therefore Article 312 of that Ordinance applies to the Group.
Functional currency and presentation currency
The condensed interim consolidated financial statements of the Group are presented in Japanese yen, which is the Company's functional currency, rounded down in units of millions of yen.
Reclassification
Portions of the previous fiscal year's presentation have been reclassified to conform to the presentation for the six months ended Sept. 30, 2025.
Material accounting policies
Material accounting policies adopted in preparation of the condensed interim consolidated financial statements are consistent with those used in the preparation of the Company's annual consolidated financial statements for the year ended March 31, 2025.
Significant accounting estimates and judgments
Management is required to make judgments, estimates and assumptions that affect the application of accounting policies and amounts of assets, liabilities, income and expenses in preparation of the consolidated financial statements in accordance with IFRS Accounting Standards. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. The effects resulting from changes in accounting estimates are recognized in the period when estimates are revised and in the subsequent periods.
Accounting estimates and assumptions that could have a material effect on the amounts in the condensed interim consolidated financial statements are the same as in the Company's annual consolidated financial statements for the year ended March 31, 2025.
Segment information
Overview of reportable segments
The operating segments presented below are identified based on the segments for which separate financial information is available, and are periodically used for decisions on business resources allocation and evaluation of business operation by the Company's management.
The Group conducts business through 6 categories, Infrastructure, Industry & Mobility, Life, Digital Innovation, Semiconductor & Device and Others, by aggregating multiple operating segments based on types and characteristics of products, production methods, and similarities in market.
Beginning in the first half of fiscal 2026, the company has changed the segment name of "Business Platform" to "Digital Innovation." Segment information for the first half of fiscal 2025 has also reflected the name change.
Principal operating segments and major products and services included in each category are as follows:
Infrastructure
Public Utility Systems
Rolling stock system, supervisory control system for water treatment plants, power supply system for large electricity users, communication
system
Energy Systems
Supervisory control system for power plants, substation equipment,
power electronics equipment, power transmission and distribution system, power demand and supply optimization solution
Defense &
Space Systems
Missile system, radar system, command & control system, electric
warfare system, satellite system, satellite data solutions
Industry & Mobility
Factory Automation
Systems
Control and drive products, processing machines, power distribution
control equipment, FA digital solution
Automotive Equipment
Electric vehicle-related equipment, ADAS-related products, vehicle
control system, powertrain products
Life
Building Systems
Elevators, escalators, building management systems
Air Conditioning
Systems & Home Products
Air conditioning & refrigeration systems, lighting, ventilation, home equipment & appliances
Digital Innovation
Information Systems &
Network Service
Manufacturing DX solutions, IT infrastructure and security solutions
Semiconductor &
Device
Semiconductor & Device
Power devices, high-frequency devices, optical devices
Others
-
Procurement, real estate, advertising, finance, and other services
Segment information by business categories
Segment information by business categories are as follows.
For the six months ended Sept
Infrastructure
. 30, 2024
Industry & Mobility
Life
Digital Innovation
Semiconductor & Device
Others
Total
Yen (millions)
Eliminations Consolidated and corporate total
Revenue and operating profit
Revenue
External customers 492,444
803,068
1,090,924
38,428
132,396
86,337
2,643,597
-
2,643,597
Intersegment
6,345
8,916
8,434
29,952
13,814
347,335
414,796
(414,796)
-
Total
498,789
811,984
1,099,358
68,380
146,210
433,672
3,058,393
(414,796)
2,643,597
Operating profit
17,067
44,075
99,740
4,211
23,391
11,429
199,913
(23,231)
176,682
For the six months ended Sept. 30, 2025
Yen (millions)
Infrastructure Industry & Life Digital Semiconductor Others Total Eliminations Consolidated
Mobility
Innovation
& Device
and corporate
total
Revenue and operating profit
Revenue
External customers 576,933
791,190
1,126,091
38,449
127,322
72,519
2,732,504
-
2,732,504
Intersegment
5,405
9,703
17,668
33,447
13,332
308,577
388,132
(388,132)
-
Total
582,338
800,893
1,143,759
71,896
140,654
381,096
3,120,636
(388,132)
2,732,504
Operating profit
38,895
55,322
92,924
3,702
24,770
28,865
244,478
(20,112)
224,366
Intersegment transactions are conducted generally at prices that the Company's management recognizes as approximate arm's length prices. The calculation method of operating profit (loss) for reportable segments is consistent with that used in the Condensed Interim Consolidated Statement of Profit or Loss. It does not include share of profit of investments accounted for using the equity method, financial income or financial expenses.
Among operating profit (loss), eliminations and corporate items are income and expenses that are not included in reportable segments, and mainly comprised of expenses related to headquarter functions and income from the sale of land.
Information by geographical areas
Revenue from external customers by the location of customers are as follows:
For the six months
Yen (millions) For the six months
ended Sept. 30, 2024 ended Sept. 30, 2025
Revenue from external
customers
% of total revenue
Revenue from external
customers
% of total revenue
Japan
1,223,972
46.3％
1,285,251
47.0％
North America
405,392
15.3％
425,875
15.6％
Asia (excluding Japan)
585,906
22.2％
589,585
21.6％
Europe
377,296
14.3％
381,696
14.0％
Others
51,031
1.9％
50,097
1.8％
Overseas Total
1,419,625
53.7％
1,447,253
53.0％
Consolidated total
2,643,597
100.0％
2,732,504
100.0％
The United States (within North America)
335,087
12.7％
363,808
13.3％
China (within Asia)
269,645
10.2％
263,383
9.7％
There are no individual countries or regions with significant revenue from external customers in the first half of the previous and current fiscal years, except for Japan, the United States and China.
Dividends
Dividends paid for the six months ended Sept. 30, 2024 and 2025 are as follows:
Resolution date Total amount of dividends
Dividend per share Record date Effective date
May 9, 2024
Board of Directors Meeting May 13, 2025
Board of Directors Meeting
Yen (millions) Yen
62,702
30
March 31, 2024
June 4, 2024
62,318
30
March 31, 2025
June 3, 2025
Dividends with a record date in the six months ended Sept. 30, 2024 and 2025 and the effective date in the next period are as follows:
Resolution date Total amount of dividends
Dividend per share Record date Effective date
October 31, 2024
Board of Directors Meeting October 31, 2025
Board of Directors Meeting
Yen (millions) Yen
41,613
20
September 30, 2024
December 3, 2024
51,302
25
September 30, 2025
December 2, 2025
Revenues
The Group's business consists of 6 reportable segments: Infrastructure, Industry & Mobility, Life, Digital Innovation, Semiconductor & Device and Others. Revenue is presented by these categories since the Company's management periodically uses them for decision of business resources allocation and evaluation of business operations.
The principal businesses and major products and services of each operating segment are shown in Note "5. Segment information". The Group conducts business through 6 categories by aggregating multiple operating segments based on types and characteristics of products, production methods, and similarities in market.
Revenue is disaggregated by region according to the customer's location. The relationship between these disaggregated revenue and segment revenue is as follows:
For the six months ended Sept. 30, 2024
Japan North America
Asia (excluding Japan)
Overseas
Europe Others total
Yen (millions)
Consolidated total
Infrastructure
362,571
97,899
19,603
8,007
4,364
129,873
492,444
Industry & Mobility
304,644
140,338
242,372
107,135
8,579
498,424
803,068
Life
400,986
161,232
262,284
228,539
37,883
689,938
1,090,924
Digital Innovation
38,427
1
-
-
-
1
38,428
Semiconductor & Device
36,670
5,615
56,437
33,474
200
95,726
132,396
Others
80,674
307
5,210
141
5
5,663
86,337
Consolidated total
1,223,972
405,392
585,906
377,296
51,031
1,419,625
2,643,597
For the six months ended Sept. 30, 2025
Japan North America
Asia (excluding Japan)
Overseas
Europe Others total
Yen (millions)
Consolidated total
Infrastructure
426,124
119,996
16,451
7,540
6,822
150,809
576,933
Industry & Mobility
303,248
127,948
254,542
98,835
6,617
487,942
791,190
Life
415,236
172,242
257,378
244,904
36,331
710,855
1,126,091
Digital Innovation
38,448
1
-
-
-
1
38,449
Semiconductor & Device
34,805
5,571
56,204
30,415
327
92,517
127,322
Others
67,390
117
5,010
2
-
5,129
72,519
Consolidated total
1,285,251
425,875
589,585
381,696
50,097
1,447,253
2,732,504
Revenue recognition methods for each category are primarily as follows:
Infrastructure, Digital Innovation
Major revenue recognition methods are as follows. Revenue is primarily recorded over time.
Many contracts related to the production of products qualify as specific construction contracts meeting certain criteria, and revenue is recognized according to the progress of the construction if progress can be reasonably measured. Revenue is recognized only to the extent of the cost incurred if progress cannot be reasonably measured. The progress of construction is measured by comparing the cost incurred through the current year to the aggregate amount of estimated cost. The estimated total cost is calculated for each contract based on various information such as the contract details of the relevant construction contract, required specifications, the presence or absence of new technological development elements, and historical incurred cost results for similar contracts. Estimates and underlying assumptions for the aggregate amount of estimated cost are reviewed on an ongoing basis since there is a possibility that the cost incurred may change due to the progress of construction.
Life
Major revenue recognition methods of the air conditioning systems & home products business are as follows. Revenue is primarily recorded at a point in time.
Revenue from mass-produced goods such as home appliances is recognized at the time when the product is accepted by the customer.
Major revenue recognition methods of the building systems business are as follows. Revenue is primarily recorded over time.
Many contracts related to the production of products qualify as specific construction contracts meeting certain criteria, and revenue is recognized according to the progress of the construction if progress can be reasonably measured. Revenue is recognized only to the extent of the cost incurred if progress cannot be reasonably measured. The progress of construction is measured by comparing the cost incurred through the current year to the aggregate amount of estimated cost. The estimated total cost is calculated for each contract based on various information such as the contract details of the relevant construction contract, required specifications, the presence or absence of new technological development elements, and historical incurred cost results for similar contracts. Estimates and underlying assumptions for the aggregate amount of estimated cost are reviewed on an ongoing basis since there is a possibility that the cost incurred may change due to the progress of construction.
Revenue from maintenance agreements is recognized over the contract term as the maintenance is provided.
Industry & Mobility, Semiconductor & Device, Others
Major revenue recognition methods are as follows. Revenue is primarily recorded at a point in time.
Revenue from mass-produced goods such as industrial products and semiconductors is recognized at the time when the product is accepted by the customer.
Revenue from some products requiring acceptance inspection is recognized at the time when the product is received by the customer and the functionality of the product is substantially demonstrated by the Company and its consolidated subsidiaries.
Other profit (loss)
Other profit (loss) for the six months ended Sept. 30, 2025 includes gain on sale of subsidiary of 14,755 million yen.
Earnings per share
Basic earnings per share and diluted earnings per share for net profit attributable to Mitsubishi Electric Corp. stockholders are as follows:
Net profit attributable to Mitsubishi Electric Corp.
For the six months ended Sept. 30, 2024
Yen (millions)
For the six months ended Sept. 30, 2025
stockholders
118,640 189,397
For the six months ended Sept. 30, 2024
Shares
For the six months ended Sept. 30, 2025
Basic average ordinary shares outstanding 2,086,806,040 2,064,567,700
For the six
For the six
Yen
Basic earnings per share for net profit attributable to
months ended Sept. 30, 2024
months ended Sept. 30, 2025
Mitsubishi Electric Corp. stockholders
Diluted earnings per share for net profit attributable to Mitsubishi Electric Corp. stockholders
56.85 91.74
56.85 91.74
Note : The number of the Company's shares held through the Board Incentive Plan Trust were included in the shares of treasury stock that were deducted from the average number of ordinary shares outstanding in the calculation of Earnings per share attributable to Mitsubishi Electric Corp. stockholders. (1,900,722 shares for the six months ended Sept. 30, 2024, and 1,424,643 shares for the six months ended Sept. 30, 2025).
Financial instruments
The Group classifies fair value measurements from level 1 to level 3 according to the observability of the inputs used in measurement:
Level 1: quoted prices for identical assets or liabilities in active markets
Level 2: fair value calculated directly or indirectly using observable prices other than those in level 1 Level 3: fair value calculated using valuation techniques including unobservable inputs
A determination is made at the end of each reporting period as to whether there are financial instruments for which transfers between levels were carried out. For the year ended Mar. 31, 2025, certain investments classified as financial assets measured at fair value through other comprehensive income were transferred from level 3 to 1, as they were listed on a stock exchange. There were no financial instruments with significant transfers between levels for the six months ended Sept. 30, 2025.
For financial instruments classified as level 3, changing the unobservable inputs to reasonably possible alternative assumptions would not change the fair value significantly.
Financial instruments measured at amortized cost
Methods of measurement of fair value, carrying amount and fair value of financial instruments measured at amortized cost are as follows:
Bonds and borrowings (including long-term borrowings to be repaid within 1 year)
Fair values of bonds are calculated using the Reference Statistical Prices of the Japan Securities Dealers Association and are classified as level 2 because fair value is calculated using observable market data. Fair values of borrowings are calculated using the present value of future cash flows discounted by the expected interest rate for similar new contracts and are classified as level 2 because fair value is calculated using observable market data.
Yen (millions)
As of Mar. 31, 2025 As of Sept. 30, 2025
Financial instruments measured at amortized cost
Bonds and borrowings (including long-term borrowings to be repaid within 1 year)
Carrying amount Fair value Carrying amount Fair value
166,966 161,312 161,542 156,328
Note : The fair value of financial assets and financial liabilities measured at amortized cost other than the above approximated the carrying amounts.
Financial instruments measured at fair value on a recurring basis
The method of measurement of fair value and fair value of financial instruments measured at fair value on a recurring basis are as follows:
Equity instruments and debt instruments
The fair value of marketable equity instruments is calculated based on the market price at the end of the reporting period and are classified as level 1 because fair value is calculated using the market value of an identical asset in an active market. The fair value of non-marketable equity instruments, investments in capital and debt instruments is calculated based on comprehensively taking into consideration quantitative information on the net assets and other financial information of the investee and forecasts of its future cash flows, and is classified as Level 3 because fair value is calculated based on valuation techniques using unobservable indicators. The reasonableness of the valuation techniques has been verified by the department in charge using various methods and the result of the verification has been approved by an appropriate management.
Derivative assets and liabilities
Fair values of derivatives are calculated based on market interest rates and market rates of foreign exchange banks as
financial assets or financial liabilities measured at fair value through profit or loss and are classified as level 2 because fair value is calculated using observable market data.
Contingent considerations
The fair value of liabilities related to contingent considerations is calculated using the present value taking into account the probability of possible payment to contract counterparties and classified as level 3 because fair value is calculated based on valuation techniques using unobservable indicators. The reasonableness of the valuation techniques has been verified by the department in charge using various methods and the result of the verification has been approved by an appropriate management.
As of Mar. 31, 2025
Assets
Financial assets measured at fair value through profit or loss
Yen (millions) Level 1 Level 2 Level 3 Total
Debt instruments
-
-
2,904
2,904
Derivative assets
-
2,149
-
2,149
Financial assets measured at fair value through other comprehensive income
Equity instruments
101,343
-
154,729
256,072
Total
101,343
2,149
157,633
261,125
Liabilities
Financial liabilities measured at fair
value through profit or loss
Derivative liabilities
-
2,214
-
2,214
Contingent considerations
-
-
1,456
1,456
Total
-
2,214
1,456
3,670
As of Sept. 30, 2025
Assets
Financial assets measured at fair value through profit or loss
Yen (millions) Level 1 Level 2 Level 3 Total
Debt instruments
-
-
4,433
4,433
Derivative assets
-
2,777
-
2,777
Financial assets measured at fair value through other comprehensive income
Equity instruments
79,770
-
154,457
234,227
Total
79,770
2,777
158,890
241,437
Liabilities
Financial liabilities measured at fair
value through profit or loss
Derivative liabilities
-
4,658
-
4,658
Contingent considerations
-
-
2,017
2,017
Total
-
4,658
2,017
6,675
Changes in financial assets measured at fair value on a recurring basis classified as Level 3 are as follows:
Yen (millions)
For the six months ended
For the six months ended
Sept. 30, 2024
Sept. 30, 2025
Balance at beginning of period
163,730
157,633
Gains (losses) (Note 1, 2)
in profit or loss
18
(150)
in other comprehensive income
(5,508)
169
Purchases
5,085
3,033
Sales
(1,205)
(1,795)
Decrease due to transfer (Note 3)
(3,407)
-
Balance at end of period
158,713
158,890
Notes : 1 Gains (losses) in profit or loss are related to financial assets measured at fair value through profit or loss as of the end of the reporting period and included in "Financial income" or "Financial expenses" in the Condensed Interim Consolidated Statement of Profit or Loss.
Gains (losses) in other comprehensive income are related to financial assets measured at fair value through other comprehensive income as of the end of the reporting period and included in "Changes in fair value of financial assets measured at fair value through other comprehensive income" in the Condensed Interim Consolidated Statement of Comprehensive Income.
Decrease due to transfer for the six months ended Sept. 30, 2024 is caused by transfer to level 1 upon listing of unlisted stocks on a stock exchange.
Contingent liabilities
There were no significant events as of September 30, 2025.
Subsequent events
There were no significant subsequent events which should be disclosed as of the date of the approval of the condensed interim consolidated financial statements for the six months ended Sept. 30, 2025.
Additional information
Signing of Merger Agreement to Make Nozomi Networks Inc. a Wholly Owned Subsidiary
On September 9, 2025, the Company entered into a merger agreement to acquire all of the shares (excluding the Company's existing holdings) of Nozomi Networks Inc. (hereinafter "Nozomi") and make it a wholly owned subsidiary. Nozomi is a U.S.-based developer and distributor of operational technology (OT) security solutions, serving a diverse range of customers primarily in social infrastructure sectors such as power and railways, as well as in the manufacturing industry. A summary of the agreement is presented as follows.
Purpose of the agreement
By integrating solutions in the OT domain, where there are established strengths, with Nozomi's world-class cutting-edge OT security technology and diverse customer base, the Company aims to fundamentally enhance its security business.
Furthermore, by leveraging data and insights obtained through Nozomi's solutions for intrusion detection and visualization, and by working responsibly with both companies' diverse installed bases, new services can be co-created with customers. This collaboration will accelerate the growth of the Company's "Serendie®"digital platform, and its related businesses, while providing services and value that safely and reliably support future customers' DX.
Merger method
The transaction will be executed through a "reverse triangular merger", whereby Nirvana Merger Sub, Inc. (hereinafter "SPC"), a wholly owned subsidiary of the Company established for the purpose of this transaction as a special purpose vehicle in the United States, will merge with Nozomi.
In connection with the merger the Company will pay or cause to be paid cash as consideration to the shareholders and holders of equity-linked securities in Nozomi, and all issued and outstanding shares, and equity-linked securities of Nozomi will be cancelled and converted into the right to receive the merger consideration, except that the shares held currently by the Company will not be entitled to receive the merger consideration. All shares of SPC held by the Company will be converted into common shares of Nozomi, the surviving entity. As a result, the Company will acquire all the issued shares
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Disclaimer
Mitsubishi Electric Corporation published this content on November 27, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 27, 2025 at 07:36 UTC.
