MIRA INFORM REPORT

 

 

Report No. :

335849

Report Date :

10.08.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUBISHI ELECTRIC CORPORATION

 

 

Registered Office :

Tokyo Bldg 4F, 2-7-3 Marunouchi Chiyodaku Tokyo 100-8310

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Jan., 1921

 

 

Com. Reg. No.:

0100-01-008772 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of heavy electrics, mechatronics, telephone systems, electronic devices.

 

 

No. of Employees :

129,249

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

Yen 120,143.0 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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company Name and address

 

MITSUBISHI ELECTRIC CORPORATION

 

REGD NAME:               Mitsubishi Denki KK

 

MAIN OFFICE:              Tokyo Bldg 4F, 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 51)

 

 

FACTORIES

 

Kobe, Amagasaki, Mrugame, Inazawa, other (Tot 29, including subsidiaries)

 

 

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                      en 4,223,041 M

PAYMENTSREGULAR   CAPITAL                       Yen 175,820 M

TREND STEADY           WORTH                        Yen 1,930,167 M

STARTED         1921                 EMPLOYES                  129,249

 

 

COMMENT

 

COMPREHENSIVE ELECTRICAL MACHINERY PRODUCER. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 120,143.0 MILLION, 30 DAYS NORMAL TERSM

 

Unit: in Million Yen

Forecast (or estimated) figures for 31/03/2016 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/2015 fiscal term amounted to Yen 4,323,041 million, a 6.6% up from Yen 4,054,359 million in the previous term. The recurring profit was posted at Yen 322,968 million and the net profit at Yen 234,694 million, respectively, compared with Yen 248,990 million recurring profit and Yen 153,473 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 320,000 and the net profit at Yen 220,000 million, respectively, on a 1.1% rise in turnover, to Yen 4,370,000 million.  

.

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 120,143.0 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 (6.9), 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 (37.4)

 

No. of shareholders: 87,861

 

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 (25%), industrial Mechatronics (26%), telecom systems (11%), electronic devices (5%), consumer electronics (19%), others (15%)

Overseas Trading Ratio (42%)

 

(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:

31/03/2015

31/03/2014

INCOME STATEMENT

  Annual Sales

　

4,323,041

4,054,359

  Cost of Sales

3,032,161

2,914,589

      GROSS PROFIT

1,290,880

1,139,770

  Selling & Adm Costs

973,276

904,598

      OPERATING PROFIT

317,604

235,172

  Non-Operating P/L

5,364

13,818

      RECURRING PROFIT

322,968

248,990

　

      NET PROFIT

234,694

153,473

BALANCE SHEET

  Cash

　

568,517

418,049

  Receivables

1,048,542

983,468

  Inventory

705,420

602,341

  Securities, Marketable

　

51

  Other Current Assets

310,966

286,098

      TOTAL CURRENT ASSETS

2,633,445

2,290,007

  Property & Equipment

706,475

649,385

  Intangibles

　

　

  Investments, Other Fixed Assets

719,531

673,574

      TOTAL ASSETS

4,059,451

3,612,966

  Payables

　

　

  Short-Term Bank Loans

164,402

162,052

　

　

　

  Other Current Liabs

1,448,180

1,332,191

      TOTAL CURRENT LIABS

1,612,582

1,494,243

  Debentures

217,592

211,426

  Long-Term Bank Loans

　

　

  Reserve for Retirement Allw

182,282

212,638

  Other Debts

　

116,828

94,308

      TOTAL LIABILITIES

2,129,284

2,012,615

      MINORITY INTERESTS

  Capital, Paid-Up

175,820

175,820

  Surplus

1,754,347

1,424,531

      SHAREHOLDERS' EQUITY

1,930,167

1,600,351

　

      TOTAL EQUITIES

4,059,451

3,612,966

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2015

31/03/2014

Cash Flows from Operating Activities

　

378,313

440,487

Cash Flows from Investment Activities

-198,163

-130,221

Cash Flows from Financing Activities

-49,623

-209,021

　

Cash, Bank Deposits at the Term End

　

568,517

418,049

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

Net Worth (S/Holders' Equity)

1,930,167

1,600,351

Current Ratio (%)

163.31

153.26

Net Worth Ratio (%)

47.55

44.29

Recurring Profit Ratio (%)

7.47

6.14

Net Profit Ratio (%)

5.43

3.79

Return On Equity (%)

12.16

9.59

 

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.81

UK Pound

1

Rs.98.93

Euro

1

Rs.69.66

 

 

 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

 

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.