MIRA INFORM REPORT

 

 

Report Date :

23rd May 2006

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI CORPORATION

 

 

Registered Office :

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 Japan

 

 

Date of Incorporation :

Apr 1950

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Importers, exporters, wholesalers of energy, metals, machinery and chemicals

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

YEN 343,091 MILLION

 

 

Status :

Good 

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

NAME

 

MITSUBISHI CORPORATION

 

 

REGD NAME

 

Mitsubishi Shoji KK

 

 

MAIN OFFICE

 

2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 JAPAN

Tel: 03-3210-2121    

Fax: 03-3210-8051

URL:  http://www.mitsubishicorp.com/

E-Mail address: Not specified (thru the URL)

 

 

ACTIVITIES        

 

Import, export, wholesale of energy, metals, machinery, chemicals, other

 

 

BRANCHES        

 

Domestic (43)

 

 

OVERSEAS

 

Branches & subsidiaries (118)

Affiliates (77) (39 main offices & 38 branches)

 

 

CHIEF EXEC

         

YORIHIKO KOJIMA, PRES & CEO

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES            FAIR                     A/SALES              Yen 19,067,153 M

PAYMENTS           REGULAR             CAPITAL                Yen 190,071 M

TREND                 STEADY                WORTH                Yen 2,379,264 M

STARTED              1950                     EMPLOYES           54,143

 

COMMENT

 

LARGEST GENERAL TRADING HOUSE OF JAPAN.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 343,091 MILLION, NORMAL 30 DAYS TERMS

 

                   Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

 

This is the largest general trading house of Japan and one of the core Mitsubishi group firms.  Handles about 25,000 products from raw materials to finished items.  Strong in energies field, particularly topping in LNG business.  Has many excellent subsidiaries in food-related area.  Moving into satellite information business.  Energy resources division faring well.  Automobile business keeps expanding, thanks to robust demand worldwide.  Emphasis being directed to new-functional business areas.  Actively cultivating Asian markets such as importing LNG from China and investing in projects in Singapore.  Four major general trading houses are actively accelerating investments in energy and raw materials sectors and further expanding long-term profitability.  In this regard, the subject firm anticipates the largest investment at Yen 1.2 trillion in fiscal 2006 & 2007, an increase o 70% over the previous two-year period.  Total Yen 400 billion will be channeled into the energy projects in LNG and crude oil exploration as well as resources such as coal, iron and aluminum.  It will also allocate Yen 150 billion for investments in food operations and Yen 100 billion for overseas power generation projects.

 

(News released 03/May/06):  The subject has acquired a 20% interest in an offshore field project from Candax Energy Inc, Canada for roughly Yen 920 million, for LNG field development in Tunisia.  Said, the firm secured a 20% stake in the Chaal field, covering an area of 1,200 sq kilometers.  Candax has 60% stake in the project and Mitsubishi 20% with the remaining 20% held locally.

 

The sales volume for Mar/2006 fiscal term amounted to Yen 19,067,153 million, an 11.3% up from Yen 17,132,704 million in the previous term.  The record high earnings were largely thanks to booming international commodities prices.  Energy business cashed in on high oil prices and its metal group benefited from a booming coal business.  Foods were strong, too.  Automobiles rose on robust demand overseas.  The recurring profit was posted at Yen 478,383 million and the net profit at Yen 350,045 million (95% jump from previous term), respectively, compared with Yen 219,175 million recurring profit and Yen 182,369 million net profit, respectively, a year ago.

 

For the current term ending Mar/2007 the net profit is projected at Yen 370,000 million on a 0.7% rise in turnover, to Yen 19,200,000 million.  Soaring resources prices are expected to pause, holding metals and energy flat, but covered by brisk machinery and foods. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 343,091 million, on normal 30 days terms.

 

 

REGISTRATION

 

Date Registered:   Apr 1950

Legal Status:        Limited Company (Kabushiki Kaisha)

Authorized:           2,500 million shares

Issued:                  1,674,179,186 shares

Sum:                              Yen 190,071 million

         

Major shareholders (%): Master Trust Bank of Japan, T (8.0), Japan Trustee Services Bank, T (7.9), Tokyo Marine & Nichido Fire Ins (5.5), Meiji Yasuda Life Ins (4.7), State Street Bank of Trust (3.6), Mitsubishi Heavy Ind (2.9), Bank of Tokyo-Mitsubishi UFJ (2.5), Chase Manhattan Bank (London) (2.2); foreign owners (33.4)

No. of shareholders: 82,642

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, London

 

Managements: Mikio Sasaki, ch; Yorihiko Kojima, pres & CEO; Yukio Masuda, v pres; Takeru Ishibashi, v pres; Yukio Ueno, v pres; Hidetoshi Kamezaki, v pres; Takeshi Inoue, s/mgn dir; Masao Miyamoto, s/mgn dir; Ichiro Mizuno, s/mgn dir; Hisanori Yoshimura, s/mgn dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Ryoshoku Ltd, Mitsubishi Corp USA, Mitsubishi Corporation Financial & Management Services, other (Tot 375 as of Sept/05)

         

 

OPERATION

 

Activities: Imports, exports and wholesales wide varieties of commodities from raw materials to consumer goods (Sales breakdown by divisions):

 

Energy Div (25%): crude oil, petroleum products, LNG, LPG, carbon, other;

 

Metals Div (20%): ferrous & nonferrous raw materials, MDP units, steel products, other;

Machinery Div (16%): power & electrical systems, plant projects, aerospace, industrial machinery, motor vehicles, other;

Chemical Div (11%): raw materials for synthetic resins & fibers, chemical fertilizers, inorganic raw materials, industrial salts, plastics, electronics materials, life science products, other;

Living Essentials Div (26%): foods, textiles, housing general merchandise, other;

New Business Initiative Div (2%): information & telecommunication technologies, financial services, logistics services, human life business, business investments, marketing technologies to create & foster new businesses.

Overseas sales ratio (17%).

 

Clients: [Power companies, mfrs, wholesalers] Nippon Oil Corp, Ryoshoku Ltd, Tokyo Gas, Tokyo Electric Power, Kansai Electric Power, other.

No. of accounts: 3,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, oil refiners, wholesalers] Mitsubishi Heavy Ind, Saudi Arabian Oil Co, Brunei LNG SB, Malaysia LNG, other.

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Bank of Tokyo-Mitsubishi UFJ (H/O)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

                                                                                   (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

19,067,153

17,132,704

 

  Cost of Sales

18,015,672

16,254,941

 

      GROSS PROFIT

1,051,481

877,763

 

  Selling & Adm Costs

696,779

685,022

 

      OPERATING PROFIT

349,664

192,741

 

  Non-Operating P/L

128,719

26,434

 

      RECURRING PROFIT

478,383

219,175

　

      NET PROFIT

350,045

182,369

BALANCE SHEET

 

 

 

 

  Cash

　

646,317

569,005

 

  Receivables

 

3,119,275

2,795,437

 

  Inventory

 

840,874

667,968

 

  Securities, Marketable

　

　

 

  Other Current Assets

777,054

833,474

 

      TOTAL CURRENT ASSETS

5,383,520

4,865,884

 

  Property & Equipment

1,327,272

1,227,161

 

  Intangibles

 

　

　

 

  Investments, Other Fixed Assets

3,700,449

3,000,327

 

      TOTAL ASSETS

10,411,241

9,093,372

 

  Payables

 

2,434,570

2,093,559

 

  Short-Term Bank Loans

626,156

545,124

 

　

 

　

　

 

  Other Current Liabs

1,080,694

1,221,736

 

      TOTAL CURRENT LIABS

4,141,420

3,860,419

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,877,149

2,968,143

 

  Reserve for Retirement Allw

40,121

54,182

 

  Other Debts

　

705,595

475,232

 

      TOTAL LIABILITIES

7,764,285

7,357,976

 

      MINORITY INTERESTS

267,692

230,942

 

Common stock

197,818

126,705

 

Additional paid-in capital

251,598

179,632

 

Retained earnings

1,487,707

1,175,682

 

Evaluation p/l on investments/securities

544,328

278,288

 

Others

 

(101,070)

(254,923)

 

Treasury stock, at cost

(1,117)

(930)

 

      TOTAL S/HOLDERS` EQUITY

2,379,264

1,504,454

　

      TOTAL EQUITIES

10,411,241

9,093,372

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

336,316

148,578

 

Cash Flows from Investment Activities

-94,471

-51,637

 

Cash Flows from Financing Activities

-187,918

3,293

　

Cash, Bank Deposits at the Term End

　

646,317

576,826

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

2,379,264

1,504,454

 

 

Current Ratio (%)

129.99

126.05

 

 

Net Worth Ratio (%)

22.85

16.54

 

 

Recurring Profit Ratio (%)

2.51

1.28

 

 

Net Profit Ratio (%)

1.84

1.06

 

 

Return On Equity (%)

14.71

12.12

 

 

 

 RATING EXPLANATIONS

 

 

RATING

STATUS

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions