Mitsubishi Heavy Industries : Presentation Materials with Summary (204 KB)

Q1 FY2022 Financial Results

August 5, 2022

Mitsubishi Heavy Industries, Ltd.

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

Allow me to explain the Financial Results using these materials.

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Table of Contents

I. Key Takeaways

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II. Q1 FY2022 Financial Results	7-15
•	Financial Results Overview
• Financial Position and Cash Flows
•	Profit Bridge
•	Results by Segment

III. FY2022 Forecast	16-18
IV. Appendix	19-22
© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.	2

Here is the table of contents.

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I. Key Takeaways

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

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Q1 FY2022 Financial Results

	Order Intake			Revenue		EBITDA		Free Cash Flow
(billion yen)		917.8				871.3
					47.2		-159.7
689.6	+22%	778.0	851.7
		750.4							billion yen		billion yen
									(-¥6.5 bn YoY)		(+¥7.5 bn YoY)
									EBITDA Margin		Operating Cash Flow
									5.4%		-¥148.1 bn
	Q1 FY20	Q1 FY21	Q1 FY22		Q1 FY20	Q1 FY21	Q1 FY22
			(-0.9% YoY)		(-¥5.6 bn YoY)
	Profit from Business Activities		Profit Attributable to Owners of Parent
			Interest-Bearing Debt		D/E Ratio
							19.1
									0.57
		21.4	14.9			+52%			969.4
						12.6			billion yen		(-0.22 YoY)
									(-¥160.4 bn YoY)
											Equity Ratio
									¥590.3 bn		30.2%
				-57.9				Net Interest-Bearing Debt
-71.3								(-¥266.1 bn YoY)		(+2.8 pt YoY)
	Q1 FY20	Q1 FY21	Q1 FY22		Q1 FY20	Q1 FY21	Q1 FY22
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	© Mitsubishi Heavy Industries, Ltd.	All Rights Reserved.

First, I will provide an overview of the Financial Results. This shows the results of several key financial indicators.

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Q1 FY2022 Financial Results Highlights

• Order Intake: ¥917.8 bn (+¥167.3 bn YoY) Orders increased in all segments YoY.
  In terms of major businesses, orders were strong in Gas Turbine Combined Cycle (GTCC), Aero Engines, Metals Machinery, Logistics Systems, HVAC, and Defense & Space. (See p. 6 for supplementary details)
• Revenue: ¥871.3 bn (+¥19.6 bn YoY)
  Revenue increased YoY in Energy Systems and Logistics, Thermal & Drive Systems. In terms of major businesses, GTCC, Aero Engines, Logistics Systems, and HVAC showed strong results.
• Business Profit: ¥14.9 bn (-¥6.5 bn YoY)
  Although there were some negative factors, including one-time expenses from European coal-fired thermal power business downsizing as well as a lag between price optimizations and profit realization to address materials and logistics cost inflation, secured ¥14.9 bn in business profit through revenue increases, fixed cost reductions, and asset management.
• Net Profit: ¥19.1 bn (+¥6.5 bn YoY)
  Despite a YoY decrease in business profit, due to contributions of foreign exchange gains from depreciation of the yen, net profit increased 52% YoY to ¥19.1 bn.

© Mitsubishi Heavy Industries, Ltd. All Rights Reserved.

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Next, I will explain the highlights from the Financial Results using this page.

To provide some supplementary information, order intake and revenue increased YoY. Growth in order intake was particularly strong, with progress against the annual forecast of ¥3.7 tr at around 25%, a high level not seen in recent years.

Profit from business activities (business profit) decreased YoY, partly due to one-time expenses from downsizing at a European location, which I will explain on slide 10. Contrastingly, profit attributable to owners of parent (net profit) increased by around 52% YoY, partly due to contributions of foreign exchange gains from the depreciation of the yen.

Free cash flow was mostly at the same level as Q1 FY2021.

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