MIRA INFORM REPORT
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Report Date : |
27.04.2013 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI HEAVY INDUSTRIES LTD |
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Registered Office : |
2-16-5 Konan Minatoku Tokyo 106-8215 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
January 1950 |
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Com. Reg. No.: |
0104-01-050387
(Tokyo-Minatoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Comprehensive heavy machinery manufacturer |
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No. of Employees : |
68026 |
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 69,928.3 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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 – March 31st 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
japan ECONOMIC OVERVIEW
In the years
following World War II, government-industry cooperation, a strong work ethic, mastery
of high technology, and a comparatively small defense allocation (1% of GDP)
helped Japan develop a technologically advanced economy. Two notable
characteristics of the post-war economy were the close interlocking structures
of manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. For three decades, overall real economic growth
had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s,
and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging
just 1.7%, largely because of the after effects of inefficient investment and
an asset price bubble in the late 1980s that required a protracted period of
time for firms to reduce excess debt, capital, and labor. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan into recession. Government stimulus
spending helped the economy recover in late 2009 and 2010, but the economy
contracted again in 2011 as the massive 9.0 magnitude earthquake and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared
the economy his government's top priority; he has pledged to reconsider his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus and regulatory reform and has
said he will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 stood as the fourth-largest economy in the world after second-place
China, which surpassed Japan in 2001, and third-place India, which edged out
Japan in 2012. The new government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which
exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth,
and an aging and shrinking population are other major long-term challenges for
the economy.
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Source : CIA |
Company name
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 is its Takasago Hyogo Factory
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 11) Thailand (factory)
CHIEF EXEC
SHUNICHI
MIYANAGA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 2,817,893 M
PAYMENTSREGULAR CAPITAL Yen 265,608 M
TREND Regular WORTH Yen 1,430,225 M
STARTED 1950 EMPLOYES 68,026
COMMENT
COMPREHENSIVE HEAVY MACHINERY MFR.
FINANCIAL SITUATION CONSIDERED FAIR
AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 69,928.3 MILLION, 30 DAYS NORMAL TERMS.
Unit: In Million Yen
Forecast (or estimated) figures for
31/03/2013 fiscal term
HIGHLIGHTS
This is the nation’s largest mfr of comprehensive heavy machinery, and 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. The company plans to sell the forklift business to NICHIYU in Apr 2014, and convert it to a subsidiary in exchange for proceeds from the sale. It will start trial flights of the MRJ, the first passenger jet plane, in autumn 2013.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 2,817,893 million, a 0.1% down from Yen 2,820,932 million in the previous term. Aircraft & shipbuilding businesses improved on the strength of adjustment to the high Yen in the second half. Net profit recovered strongly without tax consequences. The recurring profit was posted at Yen 149,028 million and the net profit at Yen 97,330 million, respectively, compared with Yen 86,182 million recurring profit and Yen 24,540 million net profit, respectively, a year ago.
For the current term ending Mar 2014 the recurring profit is projected at Yen 160,000 million and the net profit at Yen 100,000 million, respectively, on an 11.8% rise in turnover, to Yen 3,150,000 million. The weaker Yen will contribute throughout the term. Aircraft plant operating rate will rise, and production of automobile turbo engines will further increase. Costs on cash cow gas turbines will decline, and lucrative maintenance orders will grow. .
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 69,928.3 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jan 1950
Regd No.: 0104-01-050387 (Tokyo-Minatoku)
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, (5.3), Master Trust Bank of Japan T (5.0), Nomura (BOTMU) (3.7), SSBT OD05 Omnibus Acct Treaty CI (2.4), Meiji Yasuda Life Ins (2.3), Japan Trustee Services T9 (1.5), Tokio Marine & Nichido Fire Ins (1.4), Nomura Trust Bank (MUFG Trust) (1.3), Nomura T (MUTB) (1.3), Company’s S/Holding Assn (1.1); foreign owners (20.9)
No. of shareholders: 310,458
Listed on the S/Exchange (s) of: Tokyo
Managements: Hideaki Ohmiya, ch; Shunichi Miyanaga, pres; Atsushi Maekawa, v pres; Hisashi Hara, s/mgn dir; Takashi Abe, s/mgn dir; Akira Hishikawa, s/mgn dir; Takato Nishizawa, s/mgn dir; Masafumi Wani, s/mgn dir; Shigero Masamori, s/mgn dir; Takashi Kobayashi, s/mgn dir; Yoichi Kujirai, s/mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Mitsubishi-Hitachi Metals Mfg, MHI Environment Engineering,
Mitsubishi Heavy Ind Printing, MPSA, MCFA, other
OPERATION
Activities: Comprehensive heavy machinery mfr:
(Sales Breakdown by Divisions):
Shipbuilding & Offshore Structure (11%): 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 (15%): 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 (20%): defense aircrafts, aero engines, guided weapon systems, civil aircrafts & aero engines, space systems;
Mass & Medium-lot Manufactured Machinery (15%): 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 (42%)
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, shin Maywa Ind, 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: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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2,817,893 |
2,820,932 |
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Cost of Sales |
2,297,072 |
2,375,158 |
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GROSS PROFIT |
520,821 |
445,774 |
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Selling & Adm Costs |
357,300 |
333,812 |
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OPERATING PROFIT |
163,520 |
111,962 |
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Non-Operating P/L |
-14,492 |
-25,780 |
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RECURRING PROFIT |
149,028 |
86,182 |
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NET PROFIT |
97,330 |
24,540 |
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BALANCE SHEET |
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Cash |
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328,365 |
262,287 |
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Receivables |
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931,469 |
968,064 |
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Inventory |
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1,009,835 |
1,053,442 |
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Securities, Marketable |
2 |
1 |
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Other Current Assets |
355,153 |
355,209 |
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TOTAL CURRENT ASSETS |
2,624,824 |
2,639,003 |
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Property & Equipment |
792,932 |
797,584 |
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Intangibles |
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29,216 |
25,313 |
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Investments, Other Fixed Assets |
488,147 |
502,087 |
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TOTAL ASSETS |
3,935,119 |
3,963,987 |
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Payables |
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663,451 |
651,101 |
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Short-Term Bank Loans |
154,014 |
152,344 |
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Other Current Liabs |
876,357 |
911,250 |
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TOTAL CURRENT LIABS |
1,693,822 |
1,714,695 |
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Debentures |
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200,000 |
250,000 |
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Long-Term Bank Loans |
477,053 |
553,189 |
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Reserve for Retirement Allw |
51,904 |
47,002 |
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Other Debts |
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82,114 |
92,735 |
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TOTAL LIABILITIES |
2,504,893 |
2,657,621 |
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MINORITY INTERESTS |
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Common
stock |
265,608 |
265,608 |
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Additional
paid-in capital |
203,956 |
203,942 |
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Retained
earnings |
901,397 |
822,473 |
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Evaluation
p/l on investments/securities |
30,979 |
22,082 |
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Others |
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33,679 |
(2,321) |
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Treasury
stock, at cost |
(5,394) |
(5,418) |
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TOTAL S/HOLDERS` EQUITY |
1,430,225 |
1,306,366 |
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TOTAL EQUITIES |
3,915,119 |
3,963,987 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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288,375 |
200,361 |
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Cash
Flows from Investment Activities |
-76,737 |
-47,047 |
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Cash Flows
from Financing Activities |
-154,215 |
-183,614 |
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Cash,
Bank Deposits at the Term End |
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319,426 |
254,605 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
1,430,225 |
1,306,366 |
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Current
Ratio (%) |
154.96 |
153.91 |
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Net
Worth Ratio (%) |
36.53 |
32.96 |
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Recurring
Profit Ratio (%) |
5.29 |
3.06 |
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Net
Profit Ratio (%) |
3.45 |
0.87 |
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Return
On Equity (%) |
6.81 |
1.88 |
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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.54.29 |
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UK Pound |
1 |
Rs.83.88 |
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Euro |
1 |
Rs.70.68 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
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 |
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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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.