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MIRA INFORM REPORT
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Report No. : |
500769 |
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Report Date : |
29.03.2018 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI ELECTRIC CORPORATION |
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Registered Office : |
Tokyo Bldg 4F, 2-7-3 Marunouchi Chiyodaku Tokyo 100-8310 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Jan 1921 |
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Com. Reg. No.: |
0100-01-008772 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Heavy Electrics, Mechatronics, Telephone Systems, Electronic Devices |
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No. of Employees : |
33,977 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work
ethic, mastery of high technology, and a comparatively small defense allocation
(slightly less than 1% of GDP) have helped Japan develop an advanced economy.
Two notable characteristics of the post-World War II 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 have significantly eroded under the dual
pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences,
Japan in 2017 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. For three postwar decades, overall real economic
growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in
the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the aftereffects of inefficient investment and the collapse of an
asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by
the Bank of Japan’s aggressive monetary easing, Japan is making modest progress
in ending deflation, but demographic decline – a low birthrate and an aging,
shrinking population – poses a major long-term challenge for the economy. The
government currently faces the quandary of balancing its efforts to stimulate
growth and institute economic reforms with the necessity of addressing its
sizable public debt, which stands at 235% of GDP. To help raise government
revenue, Japan adopted legislation in 2012 to gradually raise the consumption
tax rate. However, the first such increase, in April 2014, led to another
recession, so Prime Minister ABE has twice postponed the next increase, now
scheduled for October 2019. Structural reforms to unlock productivity are seen
as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on
imported energy and raw materials. After the complete shutdown of Japan’s
nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's
industrial sector has become even more dependent than before on imported fossil
fuels. However, ABE’s government is seeking to restart nuclear power plants
that meet strict new safety standards and is emphasizing nuclear energy’s
importance as a base-load electricity source. In August 2015, Japan
successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in
Kagoshima prefecture, and several other reactors around the country have since
resumed operations; however, opposition from local governments has delayed
several more restarts that remain pending. Reforms of the electricity and gas
sectors, including full liberalization of Japan’s energy market in April 2016
and gas market in April 2017, constitute an important part of Prime Minister
Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the
Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's
economy to increased foreign competition and create new export opportunities
for Japanese businesses. Japan was the first country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP in
January 2017, and in November 2017 the remaining 11 countries agreed on the
core elements of a modified agreement, which they renamed the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name & 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, Marugame, Inazawa, other (Tot 29, including subsidiaries)
OVERSEAS: USA,
Mid/South America, Canada, Europe, Near/Mid East, China, Korea, Taiwan, other
Asia, 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 4,238,666 M
PAYMENTS REGULAR CAPITAL Yen 175,820 M
TREND SLOW WORTH Yen
2,039,627 M
STARTED 1921 EMPLOYES 33,977
COMMENT: COMPREHENSIVE ELECTRICAL MACHINERY PRODUCER. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
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. With a strength & large global market share in air-conditioners, the company is also the global leader in large capacity power semiconductor. It is also engaged in satellite business. We also add that with no ductwork, the firm’s electric cooling & heating system (HVAC), provides comfort through energy-efficient air-conditioning & heat at the touch of a button providing individual room comfort. It is also engaged in the satellite business.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 4,238,666 million, a 3.54% fall from Yen 4,394,353 million in the previous term. The recurring profit was posted at Yen 276,249 million and the net profit at Yen 210,493 million, respectively, compared with Yen 318,476 million recurring profit and Yen 228,494 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 360,000 million and the net profit at Yen 256,000 million, respectively, on a 3.81% rise in turnover, at Yen 4,400,000 million.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements.
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 (7.2), Japan Trustee Services T (5.7), Meiji Yasuda Life Ins (3.8), Nippon Life Ins (2.8), Group Employees’ S/Holding Assn (2.0), JP Morgan Chase Bank 385632 (1.7), MUFG (1.4), Bank of New York Mellon SANV 10 (1.3); foreign owners (36.7)
No. of shareholders: 92,308
Listed on the S/Exchange (s) of: Tokyo,
Managements: Kenichiro Yamanishi, ch; Masaki Sakuyama, pres; Yutaka Ohashi, v pres; Nobuyuki Ohashi, s/mgn dir; Akihiro Matsuyama, s/mgn dir; Hironori Yoshimatsu, dir; Masayuki Ichige, dir; Sanjuni Yabunaka, dir; Hiroshi Obayashi, dir; Kazunori Watanabe, dir; Katsunori Nagai, dir; Hiroko Koide, 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 (27%), telecom systems (9%), electronic devices (4%), consumer electronics (21%), others (15%)
Overseas Trading
Ratio (43%)
(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] Defense Ministry, Mitsubishi Electric Credit Corp, Mitsubishi Electric Europe, Mitsubishi Heavy Ind, Mitsubishi Electric Living Environment Systems Corp, Mitsubishi Corp, Mitsubishi Electric Automotive America, Shiden Engineering, 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)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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4,400,000 |
4,238,666 |
4,394,353 |
4,323,041 |
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Recur.
Profit |
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360,000 |
296,249 |
318,476 |
322,968 |
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Net
Profit |
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256,000 |
210,493 |
228,494 |
234,694 |
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Total
Assets |
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4,180,509 |
4,060,316 |
4,059,865 |
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Current
Assets |
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2,623,596 |
2,551,863 |
2,633,465 |
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Current
Liabs |
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1,525,761 |
1,507,953 |
1,612,582 |
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Net
Worth |
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2,039,627 |
1,838,773 |
1,842,203 |
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Capital,
Paid-Up |
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175,820 |
175,820 |
175,820 |
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Div.P.Share(¥) |
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27.00 |
27.00 |
27.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.81 |
-3.54 |
1.65 |
6.63 |
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Current Ratio |
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.. |
171.95 |
169.23 |
163.31 |
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N.Worth Ratio |
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.. |
48.79 |
45.29 |
45.38 |
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R.Profit/Sales |
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8.18 |
6.99 |
7.25 |
7.47 |
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N.Profit/Sales |
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5.82 |
4.97 |
5.20 |
5.43 |
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Return On Equity |
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.. |
10.32 |
12.43 |
12.74 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.04 |
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1 |
INR 92.28 |
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Euro |
1 |
INR 80.62 |
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Yen |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.