MIRA INFORM REPORT

 

 

Report Date :

19.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI ELECTRIC CORPORATION

 

 

Registered Office :

2-7-3 Marunouchi Chiyodaku Tokyo 100-8310

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January 1921

 

 

Com. Reg. No.:

0100-01-008772 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of Heavy Electric Machinery, Industrial Mechatronics, Telecom Systems, Electronic Devices & Consumer Electronics

 

 

No of Employees :

124,305

 

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 103,892.7 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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 ELECTRIC CORPORATION

 

 

REGD NAME

 

Mitsubishi Denki KK

 

 

MAIN OFFICE

 

2-7-3 Marunouchi Chiyodaku Tokyo 100-8310 JAPAN

 

Tel: 03-3218-2111     Fax: 03-3218-2431

                       

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

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

 

 

ACTIVITIES

 

Mfg of heavy electrics, mechatronics, telephone systems, electronic devices

 

 

BRANCHES   

 

Osaka, Nagoya, Fukuoka, Hiroshima, other (Tot 38)

 

 

FACTORIES

 

Kobe, Amagasaki, Mrugame, Inazawa

 

 

OVERSEAS   

 

USA, Mid/South America, Canada, Europe, Near/Mid East, China (25), Korea (3), Taiwan (5), other Asia (21), Australia, including JV’s and subsidiaries

 

CHIEF EXEC

 

MASAKI SAKUYAMA, PRES & CEO     

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 4,054,359 M

PAYMENTS      REGULAR         CAPITAL           Yen 175,820 M

TREND             STEADY           WORTH            Yen 1,600,351 M

STARTED         1921                 EMPLOYES      124,305

 

 

COMMENT    

 

COMPREHENSIVE ELECTRICAL MACHINERY PRODUCER. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 103,892.7 MILLION, 30 DAYS NORMAL TERSM

 

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

3,645,331

124,525

110,349

(%)

1,109,025

(Consolidated)

31/03/2012

3,639,468

224,080

112,063

-0.16

1,191,020

 

31/03/2013

3,567,184

65,141

69,517

-1.99

1,366,991

 

31/03/2014

4,054,359

248,990

153,473

13.66

1,600,351

 

31/03/2015

4,180,000

260,000

175,000

3.10

..

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

HIGHLIGHTS

 

This is the third ranked comprehensive electric machinery mfr, with FA products as earnings source.  Strong in defense electronics and aerospace areas.  Japan’s top-class maker of power semiconductors for home appliances such as refrigerators.  In consumer electronics strong in air conditioners.  The company started up a demonstration facility for the smart grids constructed at a cost of Yen seven billion, in a bid to speed up development and to attain related sales at Yen1.3 trillion for the March 2016 term, up 60% from the March 2012 term.  The firm is eager to buy agents for FA systems in overseas to cultivate new customers thru direct sales.  It will start up automobile equipment subsidiary in Mexico in October 2014.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 4,054,359 million, a 13.7% up from Yen 3,567,184 in the previous term.  Orders for FA systems and elevators for Chinese customers were buoyant.  The recurring profit was posted at Yen 248,990 million and the net profit at Yen 153,473 million, respectively, compared with Yen 65,141 million recurring profit and Yen 69,517 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 260,000 and the net profit at Yen 175,000 million, respectively, on a 3.1% rise in turnover, to Yen 4,180,000 million.  Sales of FA systems, automobile equipment and power semiconductors will remain brisk. 

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 103,892.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Jan 1921

Regd No.:         0100-01-008772 (Tokyo-Chiyodaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         8,000 million shares

Issued:                2,147,201,551 shares

Sum:                   Yen 175,820 million

 

Major shareholders (%): Master Trust Bank of Japan, T (7.4),State Street Bank & Trust (5.3), Japan Trustee Services T (4.5), Meiji Yasuda Life Ins (3.8), Nippon Life Ins (3.1), Group Employees’ S/Holding Assn (2.2), Bank of New York Treaty Jasdec (1.8), MUFG (1.7), Japan Trustee Services T4 (1.5), Mitsubishi Heavy Industries (1.4); foreign owners (34.4)

 

No. of shareholders: 102,615

 

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

 

Managements: Kenichiro Yamanishi, ch; Masaki Sakuyama, pres; Hideyuki Okubo, s/mgn dir; Makoto Ohashi, s/mgn dir; Noritoo Hashimoto, s/mgn dir; Yoshiaki Nakaya, s/mgn dir; Yasuyuki Nakatani, s/mgn dir; Yasuyuki Nakanishi, s/mgn dir; Masayuki Ichige, s/mgn dir;

 

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

 

Related companies: Kodensha, other

 

           

OPERATION

 

Activities: Manufactures heavy electric machinery (26%), industrial Mechatronics (23%), telecom systems (13%), electronic devices (4%), consumer electronics (20%), others (14%)

 

Overseas Trading Ratio (35%)

 

(Mfg items): air conditioning systems automotive equipment, building systems, energy systems, home products, information & communication system, public systems, semiconductors & devices, space systems, transportation systems, visual information systems, other.

 

Clients: [Mfrs, wholesalers] Mitsubishi Electric Credit Corp, Mitsubishi Electric Europe, Mitsubishi Heavy Ind, Mitsubishi Electric Living Environment Systems Corp, Mitsubishi Corp, Mitsubishi Electric Automotive America, other

 

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Electric Credit Corp, Mitsubishi Electric Trading Corp, Mitsubishi Electric Engineering Co, Toshiba 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 Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

4,054,359

3,567,184

 

  Cost of Sales

2,814,589

2,604,360

 

      GROSS PROFIT

1,239,770

962,824

 

  Selling & Adm Costs

1,004,598

800,729

 

      OPERATING PROFIT

235,172

152,095

 

  Non-Operating P/L

13,000

-86,954

 

      RECURRING PROFIT

248,990

65,141

 

      NET PROFIT

153,473

69,517

BALANCE SHEET

 

 

 

 

  Cash

 

418,049

298,881

 

  Receivables

 

974,505

983,468

 

  Inventory

 

590,735

602,341

 

  Securities, Marketable

51

812

 

  Other Current Assets

1,306,667

243,893

 

      TOTAL CURRENT ASSETS

3,290,007

2,129,395

 

  Property & Equipment

649,385

603,000

 

  Intangibles

 

 

 

 

  Investments, Other Fixed Assets

(326,426)

678,015

 

      TOTAL ASSETS

3,612,966

3,410,410

 

  Payables

 

758,913

652,718

 

  Short-Term Bank Loans

162,052

234,918

 

 

 

 

 

 

  Other Current Liabs

573,278

498,431

 

      TOTAL CURRENT LIABS

1,494,243

1,386,067

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

211,426

305,654

 

  Reserve for Retirement Allw

 

 

 

  Other Debts

 

306,946

351,698

 

      TOTAL LIABILITIES

2,012,615

2,043,419

 

      MINORITY INTERESTS

 

 

 

Common stock

175,820

175,820

 

Additional paid-in capital

207,089

205,945

 

Retained earnings

1,139,738

1,012,027

 

Evaluation p/l on investments/securities

 

 

 

Others

 

77,986

(26,566)

 

Treasury stock, at cost

(282)

(235)

 

      TOTAL S/HOLDERS` EQUITY

1,600,351

1,366,991

 

      TOTAL EQUITIES

3,612,966

3,410,410

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

440,487

82,752

 

Cash Flows from Investment Activities

-130,221

-153,701

 

Cash Flows from Financing Activities

-209,021

-41,153

 

Cash, Bank Deposits at the Term End

 

418,049

298,881

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

1,600,351

1,366,991

 

 

Current Ratio (%)

220.18

153.63

 

 

Net Worth Ratio (%)

44.29

40.08

 

 

Recurring Profit Ratio (%)

6.14

1.83

 

 

Net Profit Ratio (%)

3.79

1.95

 

 

Return On Equity (%)

9.59

5.09

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.72

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

 

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.