MIRA INFORM REPORT

Report Date :

26.12.2014

IDENTIFICATION DETAILS

Name :	MITSUBISHI HEAVY INDUSTRIES, LTD.

Registered Office :	2-16-5, Konan, Minato-ku, Tokyo 108-0075

Country :	Japan

Financials (as on) :	31.03.2014

Date of Incorporation :	11.01.1950

Com. Reg. No.:	0104-01-050387

Legal Form :	Listed

Line of Business :	Manufacturer of Machinery.

No. of Employee :	80,583

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	US$ 680 Million
Status :	Good
Payment Behaviour :	Regular
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 – September 30, 2014

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

Source : CIA

COMPANY NAME

MITSUBISHI HEAVY INDUSTRIES, LTD.

OUTLINE

========

Country: Japan

Company name: MITSUBISHI HEAVY INDUSTRIES, LTD.

Name in local language: MITSUBISHI JUKOGYO K.K.

Office address: 2-16-5, Konan, Minato-ku, Tokyo 108-0075

Office tel: 03-6716-3111

Office fax: 03-6716-5800

Website: www.mhi.co.jp/

Business type: Manufacturer

Industry: Machinery

Established: January 11, 1950

Capital: Jp. 265,608,781,122 yen

Employees: 80,583

Corporate formation: Listed

Corporation No.: 0104-01-050387 (Tokyo Legal Affairs Bureau)

MAJOR SHAREHOLDERS

=====================

As of September 30, 2014:

Paid in capital : Jp. 265,608,781,122 yen

Number of authorized shares : 6,000,000,000 shares

Number of outstanding shares : 3,373,647,813 shares

Number of shareholders : 251,101

Major shareholders Number of thousand shares (%)

--------------------------------------------------------------------------------------------------------------------------

Master Trust Bank of Japan, Ltd 175,365 ( 5.19)

Japan Trustee Services Bank, Ltd 161,480 ( 4.78)

Nomura Trust & Banking Co., Ltd.(#1) 125,666 ( 3.72)

Meiji Yasuda Life Insurance Company, The 80,022 ( 2.37)

Nomura Trust & Banking Co., Ltd.(#2) 45,934 ( 1.36)

The Bank of New York Mellon SA/NV 10 45,215 ( 1.34)

Tokio Marine & Nichido Fire Insurance Co., Ltd 44,100 ( 1.30)

The Chase Manhattan Bank NA 40,590 ( 1.20)

State Street Bank West Client-Treaty 37,925 ( 1.12)

Japan Trustee Services Bank, Ltd.(#1) 37,508 ( 1.11)

-------------------------------------------------------------------------------------------------------------------------

Total 793,807 (23.52)

DETAILED PRODUCT CLASSFICATION & ACTIVITY

===========================================

Activity Product/Service Description

-------------------------------------------------------------------------------

Manufacturing Shipbuilding

Manufacturing Steel structures and construction

Manufacturing Power systems

Manufacturing Nuclear energy systems

Manufacturing Machinery

Manufacturing Aerospace

Manufacturing General machinery and special vehicle

Manufacturing Air-conditioning and refrigeration systems

Manufacturing Industrial machinery

Manufacturing Paper and printing machinery

Manufacturing Machine tool

Brands & Trade marks

==================

Mitsubishi

MHI

COMPANY MANAGEMENT

=======================

President Mr. Shunichi Miyanaga (*)

Nationality: Japan

Chairman Mr. Hideaki Omiya

Nationality: Japan

Director Mr. Atsushi Maekawa (*)

Nationality: Japan

Director Mr. Yoichi Kujirai (*)

Nationality: Japan

Director Mr. Hisakazu Mizutani (*)

Nationality: Japan

Director Mr. Kazuaki Kimura (*)

Nationality: Japan

Director Mr. Tatsuhiko Nojima (*)

Nationality: Japan

Director Mr. Takashi Funato

Nationality: Japan

Director Mr. Toshio Kodama

Nationality: Japan

Director Mr. Yorihiko Kojima

Nationality: Japan

Director Ms. Christina Ahmadjian

Nationality: USA

Director Mr. Hiroki Tsuda

Nationality: Japan

Auditor Mr. Toshiro Yagami

Nationality: Japan

Auditor Mr. Eiji Isu

Nationality: Japan

Auditor Mr. Nobuo Kuroyanagi

Nationality: Japan

Auditor Mr. Haruya Uehara

Nationality: Japan

Auditor Mr. Shinichiro Ito

Nationality: Japan

Note: The names of directors and auditors are phonetically spelt.

(*): representative directors

*Key Personnel*

=============

Mr. Shunichi Miyanaga, representative director and president of the subject.

Born on : April 27, 1948

Business career:

Apr. 1972 Employed by the subject.

Jun. 2008 Director.

Apr. 2011 Director, Corporate Officer and Vice President.

Apr. 2013 Representative Director and President.

Home address: 2-6-1-1910, Koraku, Bunkyo-ku, Tokyo 112-0004

FINANCIALS

==========

Currency: (local currency – Jp. yen)

------------------------------------------------------------------------------------

Year | Sales | Net Income

------------------------------------------------------------------------------------

2009	3,375,674,000,000	24,217,000,000
2010	2,940,887,000,000	14,163,000,000
2011	2,903,770,000,000	30,117,000,000
2012	2,820,932,000,000	24,540,000,000
2013	2,817,893,000,000	97,330,000,000
2014	3,349,598,000,000	160,428,000,000

FINANCIAL DESCRIPTION

=====================

*Book Closing*

=============

March 31st

*Financials*

==========

Consolidated Balance Sheet
Denomination: millions of JP yen
	03/31/2012			03/31/2013	03/31/2014
Current Assets	2,639,003			2,624,824	3,180,861
Cash & deposits	262,287			328,365	381,056
Accounts receivable	968,064			931,469	1,188,928
Securities marketable	1			2	29
Inventories	1,053,442			1,009,835	1,150,900
Others	355,209			355,153	459,948
Fixed Assets	1,324,984			1,310,294	1,705,174
Tangible fixed assets	797,584			792,932	930,498
Intangible fixed assets	25,313			29,932	171,100
Investment & others		502,087	488,144		603,575
Total Assets		3,963,987	3,935,119		4,886,035

Current Liabilities		1,714,695	1,693,822		2,285,278
Accounts payables		651,101	663,451		801,445
Short-term loans & due		353,957	354,185		259,245
Others		709,637	676,186		1,224,588

Fixed Liabilities	942,925	811,070	826,533
Bonds payable	250,000	200,000	175,000
Long-term loans	553,189	477,053	359,946
Others	139,736	134,017	291,587
Total Liabilities	2,657,621	2,504,893	3,111,812

Shareholders' equity	1,286,606	1,365,568	1,495,573
Paid-in capital	265,608	265,608	265,608
Capital reserves	203,942	203,956	203,978
Retained earnings	822,473	901,397	1,031,371
Treasury stock	-5,418	-5,394	-5,385
Valuation & adjustments	-31,517	13,081	47,825
Minority interests & others	51,277	51,575	230,823
Total Net Assets	1,306,366	1,430,225	1,774,223
Total Liabilities & Net Assets	3,963,987	3,935,119	4,886,035


Consolidated Income Statement
Denomination: millions of JP yen
	03/31/2012	03/31/2013	03/3/12014
Net Sales	2,820,932	2,817,893	3,349,598
Cost of goods sold	2,375,158	2,297,072	2,695,898
Gross profit	445,774	520,821	653,700
Sales & general & admin. exp.	333,812	357,300	447,581
Operating profit	111,961	163,520	206,118
Non operating income	17,954	18,874	15,186
Non operating expenses	43,733	33,366	38,146
Ordinary profit	86,182	149,028	183,159
Special profit	28,344	12,833	160,206
Special loss	44,695	6,414	128,944
Pretax profit	69,831	155,448	214,421
Net profit	24,540	97,330	160,428

*Latest Financial *

==============

As of September 30, 2014:

Unit: millions of JPY

Year term	Sales	Operation profit	Ordinary profit	Net profit
2Q 2014	1,505,573	75,469	59,809	32,811
2Q 2015	1,759,121	118,269	127,943	38,017
FY 2015 (F)	4,000,000	260,000	230,000	100,000

Current assets	3,168,471
Fixed assets	1,802,359
Total assets	4,970,830
Current liabilities	2,163,355
Fixed liabilities	895,753
Shareholders’ equity	1,556,940
Retained earnings	1,092,652
Total net assets	1,911,721
Total liabilities & net assets	4,970,830

*Bank Details*

===========

Bank of Tokyo-Mitsubishi UFJ, Ltd. Head office

Mitsubishi Trust & Banking Co., Ltd. Head office

Sumitomo Mitsui Banking Corp. Head office

Mizuho Bank, Ltd. Head office

Norin Chukin Bank Head office

*Credit Opinion*

=============

The subject is a world's leading conglomerate manufacturer of various heavy machinery and structures.

Overseas business accounts for 49 percent of its total business as of March 31, 2014.

Blessed with a weaker currency, major business segments including aircraft parts and components have been boosting its whole performance. Compressor, forklift, turbo engine for automobile, and gas turbine are picking up.

One the mainstay, gas turbine has been in a good shape, and large-scale compressor and turbo for automobile are also boosting the performance.

The joint venture for thermal power plant with Hitachi Limited, which started in January 2014, is expected to fully contribute in 2015. MRJ is ready to launch test flight in 2015.

The shipbuilding business suffered JPY 40 billion of loss over the orders of two passenger vessels. A structural reform of this operation is needed.

Financial condition is sound and financial strength is adequate.

No caution is to be utilized with the subject.

Our standard suggestion would be up to US$ 680 million on terms of 90 days.

LOCAL BRANCHES & MANAGEMENT

===============================

Branch name: KANSAI

Branch address: Osaka City, Osaka Prefecture

----------------------------------------------------------------------------------------------------

Branch name: CHUBU

Branch address: Nagoya City, Aichi Prefecture

----------------------------------------------------------------------------------------------------

Branch name: KYUSHU

Branch address: Fukuoka City, Fukuoka Prefecture

----------------------------------------------------------------------------------------------------

Branch name: HOKKAIDO

Branch address: Sapporo City, Hokkaido

----------------------------------------------------------------------------------------------------

Branch name: CHUGOKU

Branch address: Hiroshima City, Hiroshima Prefecture

----------------------------------------------------------------------------------------------------

Branch name: TOHOKU

Branch address: Sendai City, Miyagi Prefecture

----------------------------------------------------------------------------------------------------

Branch name: HOKURIKU

Branch address: Toyama City, Toyama Prefecture

----------------------------------------------------------------------------------------------------

Branch name: SHIKOKU

Branch address: Takamatsu City, Kagawa Prefecture

----------------------------------------------------------------------------------------------------

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

========================================

*Main Products & Services*

=====================

Products expand to various fields.

1)Shipping and Ocean

passenger ships, cargo ships, tankers, industrial carries, combination carries, defense and patrol vessels, offshore oil production facilities, offshore oil loading facilities, ship design and production support system

2)Steel structure

steel bridges, LNG storage tank, wind damper, tunneling machinery, foundation fixing machinery dome and sport arenas

3)Power systems

steam turbines, gas turbines, boilers, natural energy power plant, diesel power plants, renewable energy

4)Nuclear energy systems

PWR power plants, Advanced reactor, nuclear fuel cycle equipment

5)Machinery

fuel gas treatment, waste treatment, water treatment, intelligent transportation system, iron and steel manufacturing plant, compressor, blower, mechanical drive turbine, chemical plant, oil and gas production plant, seawater desalination plant

6)Aerospace

fighter aircraft, aircraft engine, guided weapon system, space system, civil aircraft

7)General machinery

engines, turbocharger, trucks, forklift, distribution equipment, construction machinery

8)Air-conditioning

window type air conditioner, refrigeration machines, office air conditioner, building air-condition system, absorption chiller, automobile air conditioner, refrigeration machinery, marine transport refrigeration unit

9)Industrial machinery

injection molding machinery, extrusion molding machinery, food and packing plant,

10)Paper and printing machinery

pulp and paper production machinery, paper converting machinery, printing machinery

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

===============================================

As of March 31, 2013:

Domestic branches: 8 (as per above listed)

Domestic R & D facilities: 6

Domestic business facilities: 14

Overseas offices: 10

*Works*

===========

Nagasaki Shipyards & Machinery Works (1-1, Akunoura-Machi, Nagasaki city, Nagasaki Pref.)

Kobe Shipyard & Machinery Works

Shimonoseki Shipyard & Machinery Works

Yokohama Dockyard & Machinery Works

Hiroshima Machinery Works

Takasago Machinery Works

Nagoya Aerospace Systems Works

Nagoya Guidance & Propulsion Systems Works

Mihara Facility

Sagamihara Facility

Nagoya Thermal Control Facility

Ritto Facility

Iwatsuka Plant(Nagoya)

Yokohama Control Center

*Overseas offices*

===============

Jakarta

Taipei

Moscow

Kiev

Istanbul

Dubai

Abu Dhabi

Johannesburg

Ho Chi Minh

Hanoi

ORGANIZATION STRUCTURE

======================

*Address*

========

Registered address is same as that of the operational head office.

The quoted address is for Nagasaki Shipyards & Machinery Works.

*Company History*

===============

Date Development

------------------------------------------------------------------------------------------

Oct. 1917 Established under the name of Mitsubishi Shipbuilding Co., ltd.

Apr. 1934 Took the current name of Mitsubishi Heavy Industries Ltd.

Jan. 1950 Was divided into three entities. (A law aimed at dissolving 'ZAIBATSU' or

dismantling the over concentration of economic power was in effect)

June 1964 Three entities was consolidated again.

May 2003 Moved its headquarter to captioned address.

Mar. 2008 "M-Jet Ltd." established, aiming at manufacture of regional-range airplanes.

Apr. 2008 "M-Jet" changed the company name to "Mitsubishi Airplanes Ltd."

Aug. 2008 "Shin-Caterpillar Mitsubishi" changed its name to "Caterpillar Japan".

Oct. 2009 Business integration of environmental-related divisions.

July 2010 Closed Paper & Printing Machine Division.

Jan. 2012 Founded Engineering Headquarters.

Nov. 2012 Announced the business & capital integration for folk lift business between

the subject and NICHIYU(Nippon Yusoki Co., a public listed #7105) to be

inaugurated from April 1, 2013.

Also announced the business and capital integration for thermal power

generation business between the subject and Hitachi Ltd., to be launched on

April 1, 2014.

TRADE REFERENCES

================

*Suppliers*

==========

Mitsubishi Corporation

Sumitomo Corporation

Mitsubishi Electric Corporation

Kawasaki Heavy Industries, Ltd.

Seika Corporation

*Customers*

==========

Defense Agency

Japan Atomic Power Company

Kansai Electric Power Co., Inc.

Mitsubishi Motors Corporation

National Space Development Agency of Japan

*Corporate & Organization Structure*

=============================

The subject is the core company of Mitsubishi Heavy Industries Ltd. group, which owns and controls a total 218 subsidiaries and 24 affiliate worldwide as September 30, 2014.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.46
UK Pound	1	Rs.98.51
Euro	1	Rs.77.31

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	TPT

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.