|
Report Date : |
01.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
MITSUBISHI HEAVY INDUSTRIES LTD |
|
|
|
|
Registered Office : |
2-16-5 Konan Minatoku |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
January 1950 |
|
|
|
|
Com. Reg. No.: |
0104-01-050387 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of Comprehensive heavy machinery |
|
|
|
|
No of Employees : |
80,583 |
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 |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Japan |
A1 |
A1 |
|
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 |
MITSUBISHI HEAVY
INDUSTRIES LTD
Mitsubishi Jyukogyo KK
2-16-5 Konan Minatoku Tokyo 106-8215 JAPAN
Tel: 03-6716-3111
Fax: 03-6716-5800
*.. The is its Nagoya Factory
E-Mail address: info@mhi.co.jp
Comprehensive heavy machinery mfr
Osaka, Nagoya, Fukuoka, Sapporo, Hiroshima, other (Tot 31)
(Offices & Representatives) 9 Subsidiaries): Europe
(19), North & South Americas (43), Asia (70), Oceania (2), Africa (2)
10 Oye-cho, Minato - Ku Nagoya 455-8515
Also
located at : Nagasaki, Kobe, Shimonoseki, Yokohama, Hiroshima, other
(Tot 26) Thailand (factory)
SHUNICHI MIYANAGA, PRES
Yen Amount: In
million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 3,349,598 M
PAYMENTS REGULAR CAPITAL Yen
265,608 M
TREND UP WORTH Yen 1,774,223 M
STARTED 1950 EMPLOYES 80,583
COMPREHENSIVE HEAVY MACHINERY MFR.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
2,903,770 |
68,113 |
30,117 |
(%) |
1,312,678 |
|
(Consolidated) |
31/03/2012 |
2,820,932 |
86,182 |
24,540 |
-2.85 |
1,306,366 |
|
|
31/03/2013 |
2,817,893 |
149,028 |
97,330 |
-0.11 |
1,430,225 |
|
|
31/03/2014 |
3,349,598 |
183,159 |
160,428 |
18.87 |
1,774,223 |
|
|
31/03/2015 |
4,000,000 |
230,000 |
130,000 |
19.42 |
.. |
Unit:
In Million Yen
Forecast
(or estimated) figures for 31/03/2015 fiscal term
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). 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
has two units that started production in June and December 2013, says the
firm. The company has invested Yen 15
billion in a local shipbuilder in Brazil to participate in the management and
take a firm foothold there to acquire strong demand for drilling ships and the
likes. It is establishing a joint
venture specialized in ocean windmills with Vestas, major wind power generation
equipment maker in Europe, by spring 2014.
The sales volume for Mar/2014 fiscal term amounted to Yen
3,349,598 million, an 18.9% up from Yen 2,817,893 million in the previous
term. Mfg of aircraft parts expanded,
driven by a weaker Yen and rise in plant operating rates. Sales of compressors and chemical plants
grew. Prime-cost reduction made a
progress. The recurring profit was
posted at Yen 183,159 million and the net profit at Yen 160,428 million,
respectively, compared with Yen 149,028 million recurring profit and Yen 97,330
million net profit, respectively, a year ago.
Profitability expanded.
For the current term ending Mar 2015 the recurring profit is
projected at Yen 230,000 million and the net profit at Yen 130,000 million,
respectively, on a 19.4% rise in turnover, to Yen 4,000,000 million. The weaker Yen will contribute throughout the
term. Business size of thermal power
equipment will expand, due to the business integration with Hitachi Ltd. .
The financial situation is considered FAIR and good for
ORDINARY business engagements.
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 (%): Master Bank of Japan T (4.2), Japan Trustee Services Bank,
(3.9), Nomura T (BOTMU) (3.7), JP Morgan Chase Bank 380055 (2.8), Meiji Yasuda
Life Ins (2.3), Tokio Marine & Nichido Fire Ins (1.4), Nomura T (MUTB)
(1.3), Bank of New York Treaty Jasdec (1.3), SSBT OD05 Omnibus Acct Treaty CI.
(1.1), Chase London SL Omnibus Acct (1.1); foreign owners (30.2)
No. of
shareholders: 278,119
Listed
on the S/Exchange (s) of: Tokyo
Managements:
Hideaki Ohmiya, ch; Shunichi Miyanaga, pres; Atsushi Maekawa, v pres; Yoichi
Kujirai, v pres; Hisakado Mizutani, s/mgn dir; Kazuaki Kimura, s/mgn dir;
Tatsuhiko Nojima, s/mgn dir; Takashi Funato, s/mgn dir; Toshio Kodama, s/mgn
dir; Masahiko Arihara, s/mgn dir; Yukio Kodama, 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
Activities: Comprehensive
heavy machinery mfr:
(Sales
Breakdown by Divisions):
Shipbuilding
& Offshore Structure (8%): ships, industrial carriers,
navigation systems, oil storage facilities, patrol boats, offshore production
facilities, repairing & conversion);
Power
Systems (35%): combined power plants, diesel power plants, maritime
devices, LNG power plants, thermal power generating plants, instrument control
devices;
Machinery
& Steel Structure (17%): 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 (45%)
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, Road & Transport
Authority, Government of Dubai, airlines companies, 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, IHI Aerospace, 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 |
|
3,349,598 |
2,817,893 |
|
|
Cost of Sales |
2,695,898 |
2,297,072 |
|
|
|
GROSS PROFIT |
653,700 |
520,821 |
|
|
|
Selling & Adm Costs |
447,581 |
357,300 |
|
|
|
OPERATING PROFIT |
206,118 |
163,520 |
|
|
|
Non-Operating P/L |
-22,959 |
-14,492 |
|
|
|
RECURRING PROFIT |
183,159 |
149,028 |
|
|
|
NET PROFIT |
160,428 |
97,330 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
381,056 |
328,395 |
|
|
Receivables |
|
1,188,928 |
931,469 |
|
|
Inventory |
|
1,150,900 |
1,009,835 |
|
|
Securities, Marketable |
29 |
2 |
|
|
|
Other Current Assets |
459,948 |
355,123 |
|
|
|
TOTAL CURRENT ASSETS |
3,180,861 |
2,624,824 |
|
|
|
Property & Equipment |
930,498 |
792,932 |
|
|
|
Intangibles |
|
171,100 |
2,926 |
|
|
Investments, Other Fixed Assets |
603,576 |
514,437 |
|
|
|
TOTAL ASSETS |
4,886,035 |
3,935,119 |
|
|
|
Payables |
|
801,445 |
663,451 |
|
|
Short-Term Bank Loans |
166,296 |
154,014 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
1,317,537 |
876,357 |
|
|
|
TOTAL CURRENT LIABS |
2,285,278 |
1,693,822 |
|
|
|
Debentures |
|
175,000 |
200,000 |
|
|
Long-Term Bank Loans |
359,946 |
477,053 |
|
|
|
Reserve for Retirement Allw |
189,937 |
51,904 |
|
|
|
Other Debts |
|
101,651 |
82,114 |
|
|
TOTAL LIABILITIES |
3,111,812 |
2,504,893 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common
stock |
265,608 |
265,608 |
|
|
|
Additional
paid-in capital |
203,978 |
203,956 |
|
|
|
Retained
earnings |
1,031,371 |
901,397 |
|
|
|
Evaluation
p/l on investments/securities |
43,188 |
30,979 |
|
|
|
Others |
|
235,463 |
33,679 |
|
|
Treasury
stock, at cost |
(5,385) |
(5,394) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
1,774,223 |
1,430,225 |
|
|
|
TOTAL EQUITIES |
4,886,035 |
3,935,119 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash
Flows from Operating Activities |
|
296,216 |
288,375 |
|
|
Cash
Flows from Investment Activities |
-151,555 |
-76,737 |
|
|
|
Cash
Flows from Financing Activities |
-136,669 |
-154,215 |
|
|
|
Cash,
Bank Deposits at the Term End |
|
370,710 |
319,426 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
1,774,223 |
1,430,225 |
|
|
|
Current
Ratio (%) |
139.19 |
154.96 |
|
|
|
Net
Worth Ratio (%) |
36.31 |
36.35 |
|
|
|
Recurring
Profit Ratio (%) |
5.47 |
5.29 |
|
|
|
Net
Profit Ratio (%) |
4.79 |
3.45 |
|
|
|
Return
On Equity (%) |
9.04 |
6.81 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.48 |
|
|
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.