MIRA INFORM REPORT
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Report Date : |
18.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUBISHI CORPORATION |
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Registered Office : |
2-3-1 Marunouchi
Chiyodaku Tokyo 100-8086 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
April 1950 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, Export, Wholesale of
Energy, Metals, Machinery, Chemicals, other |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
Yen 446,723.8 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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: (thru the URL)
ACTIVITIES
Import, export, wholesale of
energy, metals, machinery, chemicals, other
BRANCHES
Domestic (43)
OVERSEAS
Branches & subsidiaries
(120)
Subsidiaries/Affiliates
(80) (39 main offices & 41 branches)
CHIEF EXEC
YORIHIKO KOJIMA, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARy
FINANCES FAIR A/SALES Yen 23,103,043 M
PAYMENTS REGULAR CAPITAL Yen 201,825 M
TREND STEADY WORTH Yen
2,873,210 M
STARTED 1950 EMPLOYES 60,664
COMMENT
LARGEST
GENERAL TRADING HOUSE OF JAPAN.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN
446,723.8 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated)
figures for 31/03/2009 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 subsidiaries in food-related area. Moving into satellite communications thru
JV. 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. Listed on London and Paris stock exchanges.
FINANCIAL INFORMATION
The sales volume
for Mar/2008 fiscal term amounted to Yen 23,103,043 million, a 12.6% up from
Yen 20,516,204 million in the previous tem.
This is thanks to strong performance in its energy and chemical product
divisions. Profits of coking coal
jumped, fueled by 3-fold rising prices of hard coking coat under annual
contract. The recurring profit was
posted at Yen 544,505 million and the net profit at Yen 462,788 million,
respectively, compared with Yen 595,542 million recurring profit and Yen
415,895 million net profit, respectively, a year ago.
(Apr/Sept/2008 results):
Sales Yen 13,180,573 million (up 19.2%), operating profit Yen 312,526 million
(up 56.4%), recurring profit Yen 375,802 million (up 25.7%), net profit Yen
289,199 million (up 17.0%). (% compared
with the same period a year ago). The
growth is the result of increased energy business-related transactions on the
back of higher commodity prices.
By Divisions:
Energy Div up 15% to Yen 46.4 billion, as higher crude oil prices lifted equity
in earnings in overseas natural resource-related business investees &
dividend income;
Metal Div up 87% to
Yen 153.8 billion, resulting mainly from higher resource prices at Australian
coking coal subsidiary and higher equity in earnings of iron ore-related
businesses;
Machinery Div down
24% to Yen 26.4 billion, this referring to impairment losses on property &
equipment, lower sales in overseas automobile operations, and decreased equity
earnings due to the sale of a European automobile-related firm;
Chemicals Div down
14% to Yen 17.0 billion, reflecting the absence of tax benefits from higher
equity interest in petrochemical business-related company, despite increased
earnings from strong transactions of commodity chemicals at the parent company;
Living Essentials
Div down 23% to Yen 19.6 billion, due mainly to write-downs of listed shares
& the absence of gains on sales of shares recorded in the previous
term.
For the current
term ending Mar/2009 the recurring profit is projected at Yen 675,000 million
and the net profit at Yen 520,000 million, respectively, on an 8.2% rise in
turnover, to Yen 25,000,000 million.
The firm downgraded its full-year estimate, citing sluggish auto sales
in emerging economies and lower profits for its Australian coat business, as
suffered from the depreciation of Australian Dollar. Yen’s appreciation is cited as another factor for the
revision. The firm also sees asset impairment
losses coming from the falling value of its stockholdings depressing full-year
earnings. The initial forecast was:
Sales Yen 27,000,000 million, recurring profit Yen 800,000 million, net profit
Yen 620,000 million. The revised
forecast is based on the following assumptions: Exchange Rate: Yen 103.1/US$
(Yen 114.4/US$); Crude Oil Price: US$87.6/Bbl (US$77.4/Bbl; Interest Rate:
0.87% (0.79%). (Parenthesis shows the
previous assumptions.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
446,723.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1950
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
2,500 million shares
Issued:
1,694,223,909 shares
Sum: Yen 201,825 million
Major shareholders (%)
Japan Trustee Services Bank T
(5.7), Tokio Marine & Nichido Fire Ins (5.4), Master Trust Bank of Japan T
(5.2), Meiji Yasuda Life Ins (4.2), Company’s Treasury Stock (3.1), Mitsubishi
Heavy Ind (2.8), State Street Bank & Trust (2.8), MUFG (2.5), State Street
Bank & Trust 505103 (1.5), Hero & Co (1.5), foreign owners (36.2)
No. of shareholders
154,976
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya, London
Managements
Mikio Sasaki, ch;
Yorihiko Kojima, pres & CEO; Yukio Ueno, v pres;
Takeshi Inoue, v
pres; Ichiro Mizuno, v pres; Hisanori Yoshimura, v pres; Hajime Katsumura, s/mgn dir; Masatoshi
Nishizawa, s/mgn dir; Tsunao Kijima, s/mgn dir; Mutsumi Kotsuka, s/mgn dir;
Ryoichi Ueda, 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, Mitsubishi
Development, etc.
OPERATION
Activities:
Imports, exports and wholesales wide varieties of commodities from raw materials
to consumer goods:
(Sales breakdown by divisions):
Energy Div (22%):
crude oil, petroleum products, LNG, LPG, carbon, other;
Metals Div (25%): ferrous & nonferrous raw
materials, MDP units, steel products, other;
Machinery Div (17%): 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 (24%): foods, textiles, housing general
merchandise, other;
New Business Initiative Div (1%): information &
telecommunication technologies, financial services, logistics services, human
life business, business investments, marketing technologies to create &
foster new businesses;
Industrial Finance Div (1%)
Overseas sales ratio (21%).
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, JGC Corp, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
MUFG (H/O)
Mizuho
Corporate Bank (H/O)
Relations:
Satisfactory
FINANCES: (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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23,103,043 |
20,516,204 |
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Cost of Sales |
21,930,821 |
19,368,103 |
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GROSS PROFIT |
1,172,222 |
1,148,101 |
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Selling & Adm Costs |
817,118 |
735,971 |
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OPERATING PROFIT |
355,104 |
412,130 |
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Non-Operating P/L |
189,401 |
183,412 |
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RECURRING PROFIT |
544,505 |
595,542 |
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NET PROFIT |
462,788 |
415,895 |
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BALANCE SHEET |
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Cash |
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750,128 |
754,776 |
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Receivables |
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2,956,017 |
1,626,885 |
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Inventory |
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1,075,563 |
913,383 |
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Securities, Marketable |
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Other Current Assets |
1,309,667 |
2,576,775 |
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TOTAL CURRENT ASSETS |
6,091,375 |
5,871,819 |
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Property & Equipment |
1,610,621 |
1,380,203 |
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Intangibles |
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742,421 |
612,573 |
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Investments, Other Fixed Assets |
4,052,443 |
4,173,559 |
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TOTAL ASSETS |
11,754,439 |
11,485,664 |
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Payables |
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2,511,048 |
2,480,540 |
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Short-Term Bank Loans |
742,421 |
612,573 |
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Other Current Liabs |
1,407,187 |
1,063,602 |
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TOTAL CURRENT LIABS |
4,660,656 |
4,516,715 |
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Debentures |
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3,096,818 |
2,865,008 |
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Long-Term Bank Loans |
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46,599 |
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Reserve for Retirement Allw |
51,724 |
789,340 |
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Other Debts |
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737,751 |
0 |
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TOTAL LIABILITIES |
8,546,949 |
8,230,339 |
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MINORITY INTERESTS |
334,512 |
307,460 |
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Common
stock |
201,825 |
199,268 |
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Additional
paid-in capital |
259,571 |
254,376 |
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Retained
earnings |
2,208,947 |
1,838,742 |
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Evaluation
p/l on investments/securities |
446,941 |
627,922 |
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Others |
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(92,570) |
38,806 |
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Treasury
stock, at cost |
(151,504) |
(1,386) |
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TOTAL S/HOLDERS` EQUITY |
2,873,210 |
2,957,728 |
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TOTAL EQUITIES |
11,754,439 |
11,495,527 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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319,068 |
440,434 |
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Cash
Flows from Investment Activities |
-356,659 |
-294,617 |
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Cash
Flows from Financing Activities |
69,472 |
-109,791 |
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Cash,
Bank Deposits at the Term End |
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750,128 |
753,690 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
2,873,210 |
2,957,728 |
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Current
Ratio (%) |
130.70 |
130.00 |
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Net
Worth Ratio (%) |
24.44 |
25.73 |
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Recurring
Profit Ratio (%) |
2.36 |
2.90 |
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Net
Profit Ratio (%) |
2.00 |
2.03 |
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Return
On Equity (%) |
16.11 |
14.06 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.99 |
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UK Pound |
1 |
Rs.72.14 |
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Euro |
1 |
Rs.61.57 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)