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Mitsubishi Electric Completes Refund Payments Regarding Overcharged Expenses in Defense Business

Mitsubishi Electric Corporation (TOKYO: 6503) announced that today it reimbursed a total of 49,511,910,061 yen to the national treasury as refunds regarding overcharged expenses to Japan's Ministry of Defense (MOD) in the defense business of its Electronic Systems Group. Mitsubishi Electric's bidding suspension from MOD will be lifted as of midnight tonight.

Three subsidiaries of Mitsubishi Electric, namely, Mitsubishi Precision Co., Ltd., Mitsubishi Electric TOKKI Systems Corporation and Mitsubishi Space Software Co., Ltd., also reimbursed a total of 10,768,312,869 yen to the national treasury on February 13.

Reimbursements of 60,280,222,930 yen to MOD announced today and refund payments of 15,436,571,720 yen made to three other public entities regarding space systems business, as announced on January 18, amount to a total of 75,716,794,650 yen. This sum has been recorded as non-operating expenses in the company's consolidated financial results for the third quarter of the current fiscal year ending March 31, 2013.

Taiyo Musen Co., Ltd., an equity-method affiliate in which Mitsubishi Electric has a 25% share, also made refunds to the national treasury today regarding overcharged expenses.

The impact of the reimbursements on the company's business performance has already been considered in the company's current consolidated financial results forecast for the current fiscal year, as announced on December 21, 2012.

Mitsubishi Electric is committed to strengthening its corporate ethics and compliance systems to prevent any recurrence and to restore public trust.

 

Reference: Four affiliates’ reimbursements and bidding suspension periods

Company   Mitsubishi Precision Co., Ltd.   Mitsubishi Electric TOKKI Systems Corporation   Mitsubishi Space Software Co., Ltd.   Taiyo Musen Co., Ltd.
Category Consolidated subsidiary Consolidated subsidiary Consolidated subsidiary Equity-method affiliate
Capital 3,167 million yen 600 million yen 500 million yen 120 million yen
Shares held by Mitsubishi Electric as of March 31, 2012 66.38% 100.0% 86.0% 25.0%
Net sales in fiscal year ended March 2012 18,339 million yen 27,698 million yen 16,312 million yen 3,186 million yen
Reimbursement 1,926,586,383 yen 7,254,885,602 yen 1,586,840,884 yen 2,968,519,285 yen
End of bidding suspension   February 13, 2013   February 13, 2013   February 13, 2013   February 13, 2013
 

About Mitsubishi Electric

With over 90 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Embracing the spirit of its corporate statement, Changes for the Better, and its environmental statement, Eco Changes, Mitsubishi Electric endeavors to be a global, leading green company, enriching society with technology. The company recorded consolidated group sales of 3,639.4 billion yen (US$ 44.4 billion*) in the fiscal year ended March 31, 2012. For more information visit http://www.MitsubishiElectric.com
*At an exchange rate of 82 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2012

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