MIRA INFORM REPORT

 

 

Report Date :

20.12.2011

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI HEAVY INDUSTRIES LTD

 

 

Registered Office :

2-16-5 Konan Minatoku Tokyo 106-8215

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

January 1950

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 050387

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Comprehensive heavy machinery manufacturer

 

 

No. of Employees :

69,276

 

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 67,511.2 Million

Status :

Good

Payment Behaviour :

Regular

Litigation :

--

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

MITSUBISHI HEAVY INDUSTRIES LTD

REGD NAME:    Mitsubishi Jyukogyo KK

MAIN OFFICE:  2-16-5 Konan Minatoku Tokyo 106-8215 JAPAN

Tel: 03-6716-3111     Fax: 03-6716-5800

 

                        *.. The given address is its Takasago Hyogo Factory

 

URL:                 http://www.mhi.co.jp/

E-Mail address: info@mhi.co.jp

 

 

ACTIVITIES

 

Comprehensive heavy machinery mfr

 

BRANCHES   

 

Osaka, Nagoya, Fukuoka, Sapporo, Hiroshima, other (Tot 8)

 

OVERSEAS   

 

(Offices & Representatives) 9

Subsidiaries): Europe (19), North & South Americas (43), Asia (70),

Oceania (2), Africa (2)

 

FACTORIES  

 

Nagasaki, Kobe, Shimonoseki, Yokohama, Hiroshima, other (Tot 9)

Thailand (factory)

 

 

CHIEF EXEC

 

HIDEAKI OHMIYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 2,903,770 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 265,608 M

TREND             SLOW                          WORTH            Yen 1,312,676 M

STARTED                     1950                             EMPLOYES      69,276

 

 

COMMENT

 

COMPREHENSIVE HEAVY MACHINERY MFR.  

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 67,511.2 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 

HIGHLIGHTS

 

This is the nation’s largest mfr of comprehensive heavy machinery.  Core of Mitsubishi group.  Maintains overwhelmingly strong market position in shipbuilding, N-Power plants, aerospace, engines, and other heavy machineries.  Also involved in various operations, such as power plants, bridges, environmental systems, theme parks & air-conditioning with more than 700 kinds of products.  (For products, see OPERATION).  Fills majority of orders for arms from Defense Ministry and by far leads others in this sector.  Windmill production expanding to 2,600 megawatts over medium term (currently 1,200 megawatts).  A new windmill plant is under construction in the US, where strong demand is available, with startup slated in fall 2011.  The firm has won a turnkey order from Japan-Thailand joint venture Gulf JP Co to build a 1.6-gigawatt combined-cycle gas powered plant in Thailand.  The plant will have two units that are slated to go on stream in June and December 2013, says the firm.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/20110 fiscal term amounted to Yen 2,903,770 million, a 1.26% down from Yen 2,940,887 million in the previous term.  Orders declined slightly as affected by the North Japan Earthquake.  By Divisions, Shipbuilding/offshore Structures up 31.1% to Yen 302,439 million; Machinery & Steel Structures down 10.9% to Yen 996,963 million; Mass & Medium-lot Manufactured Machinery down 19.6% to Yen 34,379 million; Aerospace down 5.6% to Yen 72,268 million.  The recurring profit was posted at Yen 68,113 million and the net profit at Yen 30,117 million, respectively, compared with Yen 74,009 million recurring profit and Yen 14,163 million net profit, respectively, a year ago.

 

(Apr/Sept/2011 results): Sales Yen 1,293,626 million (down 4.7%), operating profit Yen 73,180 million (up 13.3%), recurring profit Yen 45,629 million (up 5.1%), net profit Yen 39,885 million (up 129.6%).  (% compared with the corresponding period a year ago). 

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 70,000 million and the net profit at Yen 35,000 million, respectively, on a 1.9% fall in turnover, to Yen 2,850,000 million.  Orders are at Yen 3 trillion as in the preceding term.  Domestic nuclear-related works are stagnant.  Aerospace business faces upfront development costs.  .

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 67,511.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jan 1950

Regd No.:         (Tokyo-Minatoku) 050387

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         6,000 million shares

Issued:                3,373,647,813 shares

Sum:                   Yen 265,608 million

           

Major shareholders (%): Japan Trustee Services Bank, (5.0), Master Trust Bank of Japan T 13170 (4.2), Nomura (BOTMU) (3.7), Meiji Yasuda Life Ins (2.3), Tokio Marine & Nichido Fire Ins (1.7), Nomura Trust Bank (MUFG Trust) (1.3), Japan Trustee Services T4 (1.3), Nomura T (MUTB) (1.3), OD05 Omnibus China Treaty (1.0), Company’s S/Holding Assn (0.8); foreign owners (19.2)

           

No. of shareholders: 335,484

 

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

 

Managements: Kazuo Tsukuda, ch; Hideaki Ohmiya, pres; Ichiro Shunichi Miyanaga, v pres; Yoshiaki Tsukuda, v pres; Yujiro Kawamoto, s/mgn dir; Hisashi Hara, s/mgn dir; Takashi Abe, s/mgn dir; Akira Hishikawa, s/mgn dir

           

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

 

Related companies: Mitsubishi-Hitachi Metals Mfg, MHI Environment Engineering,

MPSA, MCFA, other

 

 

OPERATION

 

Activities: Comprehensive heavy machinery mfr:

 

(Sales Breakdown by Divisions):

 

Shipbuilding & Offshore Structure (10%): ships, industrial carriers, navigation systems, oil storage facilities, patrol boats, offshore production facilities, repairing & conversion);

Power Systems (34%): combined power plants, diesel power plants, maritime devices, LNG power plants, thermal power generating plants, instrument control devices;

Machinery & Steel Structure (19%): steel bridges, tunnel ventilation equipment, energy-related facilities, material handling equipment, distribution equipment, flood prevention & irrigation works, underground construction equipment, water supply systems, cranes, conveyors, mechanical parking systems, environmental devices, compressors & mechanical drive turbines, chemical plants, oil & gas production plants, testing & measuring equipment, iron & steel machinery, seawater desalination plants;

Aerospace (15%): defense aircrafts, aero engines, guided weapon systems, civil aircrafts & aero engines, space systems;

Mass & Medium-lot Manufactured Machinery (17%): forklifts, compressors, small-medium sized engines, tractors, industrial robots, paper & printing machinery, construction machinery, special vehicles, turbo chargers, distribution equipment, refrigeration systems, other;

Others (5%): machine tools, precision cutting tools, automotive components, other.

 

Overseas trading ratio (50.3%): Asia 13.3%, N America 12.2%, Europe 7.6%, Latin America 8.3%, Mid East 5.8%, Africa 4.7%, other region 0.4%.

 

Clients: [Mfrs, electric powers, governments, wholesalers] Defense Ministry, Tokyo Electric Power, Kyushu Electric Power, Shikoku Electric Power, Kansai Electric Power, Japan Aerospace Exploration Agency, Mitsubishi Motors, other.

No. of accounts: 3,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Sumitomo Corp, Metal One, Mitsubishi      Electric, Kawasaki Heavy Ind, Taihei Dengyo Kaisha, 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)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

2,903,770

2,940,887

 

  Cost of Sales

2,461,857

2,537,257

 

      GROSS PROFIT

441,913

403,629

 

  Selling & Adm Costs

340,693

337,968

 

      OPERATING PROFIT

101,219

65,660

 

  Non-Operating P/L

-33,016

-41,651

 

      RECURRING PROFIT

68,113

24,009

　

      NET PROFIT

30,117

14,163

BALANCE SHEET

 

 

 

 

  Cash

　

301,047

274,061

 

  Receivables

 

852,645

948,200

 

  Inventory

 

1,116,205

978,807

 

  Securities, Marketable

8

9

 

  Other Current Assets

305,708

625,585

 

      TOTAL CURRENT ASSETS

2,575,613

2,826,662

 

  Property & Equipment

861,528

896,350

 

  Intangibles

 

25,165

29,149

 

  Investments, Other Fixed Assets

526,695

510,698

 

      TOTAL ASSETS

3,989,001

4,262,859

 

  Payables

 

619,107

646,538

 

  Short-Term Bank Loans

85,488

117,679

 

　

 

　

　

 

  Other Current Liabs

829,475

791,579

 

      TOTAL CURRENT LIABS

1,534,070

1,555,796

 

  Debentures

 

320,000

344,605

 

  Long-Term Bank Loans

684,989

897,801

 

  Reserve for Retirement Allw

49,842

48,542

 

  Other Debts

　

87,421

87,343

 

      TOTAL LIABILITIES

2,676,322

2,934,087

 

      MINORITY INTERESTS

 

 

 

Common stock

265,608

265,608

 

Additional paid-in capital

203,939

203,938

 

Retained earnings

815,145

800,199

 

Evaluation p/l on investments/securities

25,579

35,942

 

Others

 

44,718

44,979

 

Treasury stock, at cost

(42,311)

(21,894)

 

      TOTAL S/HOLDERS` EQUITY

1,312,678

1,328,772

　

      TOTAL EQUITIES

3,989,001

4,262,859

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

337,805

117,977

 

Cash Flows from Investment Activities

-137,248

-180,704

 

Cash Flows from Financing Activities

-169,793

-105,291

　

Cash, Bank Deposits at the Term End

　

288,868

261,373

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

1,312,678

1,328,772

 

 

Current Ratio (%)

167.89

181.69

 

 

Net Worth Ratio (%)

32.91

31.17

 

 

Recurring Profit Ratio (%)

2.35

0.82

 

 

Net Profit Ratio (%)

1.04

0.48

 

 

Return On Equity (%)

2.29

1.07

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.96

UK Pound

1

Rs.82.04

Euro

1

Rs.68.91

 

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

--

NB

                                       New Business

 

--

 

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%)

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.