Mitsubishi Corporation Supplementary Information to the Financial Results for the Nine Months Ended December 2011

Transcription

1 Mitsubishi Corporation Supplementary Information to the Financial Results for the Nine Months December 2011 Based on US GAAP (page) Supplementary Information to the Consolidated Balance Sheets ****** 2 Supplementary Information to the Consolidated Statements of Income ****** 3 Supplementary Information to the Consolidated Statements of Cash Flows ****** 4 Operating Segment Information (Nine Months December 2011) ****** 5-6 Performance at Consolidated Subsidiaries and s ****** 7-9 Financial Indicators ****** 10 Forward-Looking Statements This release contains forward-looking statements about Mitsubishi Corporation s future plans, strategies, beliefs and performance that are not historical facts. Such statements are based on the company s assumptions and beliefs in light of competitive, financial and economic data currently available and are subject to a number of risks, uncertainties and assumptions that, without limitation, relate to world economic conditions, exchange rates and commodity prices. Accordingly, Mitsubishi Corporation wishes to caution readers that actual results may differ materially from those projected in this release and that Mitsubishi Corporation bears no responsibility for any negative impact caused by the use of this release. 1

2 Please refer to pages 9 and 10 of the earnings release. Supplementary Information for Consolidated Balance Sheets [Assets] Main items 2011/3 2011/12 Current assets 5, , Sheet Accounts receivable-trade 2, , Reflects higher transaction volumes and sales prices. Inventories (10.7) Decrease in inventory levels commensurate with operating leases, etc. Other current assets (54.0) Reflects in derivative assets due to changes in market prices, etc. Investments and non-current receivables 5, , Investments in and advances to affiliated companies 1, , Increase due to new investments, etc. Other investments 1, , Increase due to new investments, etc. Property and equipment-net 1, , Increase due to asset acquisitions such as real estate and aircraft. [Liabilities] Main items 2011/3 2011/12 Current liabilities 3, , Short-term debt Increase due to increased working capital and other demand for funds at subsidiaries, etc. Accounts payable-trade 1, , Reflects higher transaction volumes and sales prices. Long-term liabilities 3, , Long-term debt 3, , Increase due to borrowing and corporate bond issuance, etc. Deferred income taxes (77.7) Reflects drop in share prices of listed shares. Other long-term liabilities (45.7) Reflects in advances from customers on long-term transactions, etc. [Shareholders' Equity] Main items 2011/3 2011/12 Total shareholders' equity 3, ,219.0 (14.3) Retained earnings 3, , Reflects net income ( billion yen), and due to payment of dividends ( billion yen) and due to treasury stock retirement ( billion yen), etc. Net unrealized gains on securities available for sale (86.1) Reflects drop in share prices of listed shares. Foreign currency translation adjustments (395.7) (556.1) (160.4) Less treasury stock (151.7) (21.4) Reflects treasury stock retirement. Decrease in Australian dollar-denominated investments due to the yen s appreciation, etc. US$ 2011/ / (5.41 yen appreciation) AUS$ 2011/ / (6.96 yen appreciation) Euro 2011/ / (16.86 yen appreciation) Major indices 2011/3 2011/ / /12 Current ratio 150.5% 141.5% (9.0%) ROE (* 2 ) 12.0% 11.5% (0.5%) Total shareholders' equity ratio (* 1 ) 28.7% 26.7% (2.0%) ROA (* 2 ) 3.8% 3.2% (0.6%) Total assets 11, , Interest-bearing liabilities (* 3 ) 2011/3 2011/12 (*1) Total shareholders' equity shows the amount of total shareholders' equity attributable to Mitsubishi Corporation, excluding noncontrolling interests. (*2) ROE=Calculated with net income attributable to Mitsubishi Corporation as the numerator, ROA=Calculated with income before income taxes as the numerator. Interest-bearing debt (Gross) 4, , Interest-bearing debt (Net) 2, , Total shareholders' equity (* 1 ) 3, ,219.0 (14.3) Interest-bearing debt to equity ratio (Gross) Interest-bearing debt to equity ratio (Net) /3 2011/12 Short-term borrowings CP Current maturities of long-term borrowings & andbonds (21.6) Long-term borrowings 2, , Bonds Interest-bearing debt (Gross) 4, , (*3) Interest-bearing liabilities do not include the impact of adopting ASC Codification Topic 815, "Derivatives and Hedging." 2

3 Please refer to page 11 of the earnings release. Supplementary Information to the Consolidated Statements of Income 1 Revenues (271.9 billion yen increase) Revenues from trading, manufacturing and other activities Trading margins and commissions on trading transactions Total 3, , , , Gross profit (24.8 billion yen ) (Reference: Operating income (loss)) Industrial Finance, Logistics & Development (1.1) Industrial Finance, Logistics & Development (0.6) Energy Business Energy Business Metals (49.6) Metals (47.7) Machinery (5.5) Machinery (8.5) Chemicals Chemicals Living Essentials Living Essentials Others Others (32.9) (36.0) (3.1) Total (24.8) Total (38.0) 3 SG&A expenses (16.3 billion yen increase) Parent company (157.1) (159.7) (2.6) Regional subsidiaries (28.8) (28.7) 0.1 Subsidiaries and affiliates (429.8) (443.6) (13.8) Total (615.7) (632.0) (16.3) 4 Provision for doubtful receivables (3.1 billion yen ) Reflects absence of provisions in previous fiscal year. 5 Net interest expense (4.2 billion yen ) Decrease due to lower interest rates. 6 Dividend income (5.0 billion yen increase) (Reference: Net financial income) Resource related Interest income Production, sales and others (1.1) Interest expense (30.1) (30.0) 0.1 Total Net interest expense (5.7) (1.5) 4.2 Dividends Net financial income Gain on marketable securities and investments-net (38.4 billion yen deterioration) Write-down of marketable securities (available for sale) : +4.2 ( Dec. 2010: Dec. 2011: -9.3) Impairment losses on non-performing assets : -5.0 ( Dec. 2010: -6.3 Dec. 2011: -11.3) Includes investment write-downs on listed affiliated companies. Absence of a gain on a share transfer at a Other realized gains and unrealized gains on shares, etc. : ( Dec. 2010: Dec. 2011: +23.5) Chilean iron ore business (-36.6 billion yen). 8 Gain (loss) on property and equipment-net (1.5 billion yen deterioration) Gains on sale : -1.0 ( Dec. 2010: +3.9 Dec. 2011: +2.9) Retirement and disposal losses : +0.5 ( Dec. 2010: -2.7 Dec. 2011: -2.2) Impairment losses : -1.0 ( Dec. 2010: -1.1 Dec. 2011: -2.1) 9 Other income-net (16.4 billion yen improvement) Improvement in foreign exchange gains and losses, etc. 10 of affiliated companies-net (19.7 billion yen increase) Reflects higher earnings of overseas resource-related business investees, etc. 3

4 I. Cash Flows From Operating Activities [Nine Months December 31, 2011] Net cash provided by operating activities: billion yen Please refer to page 13 of the earnings release. Supplementary Information to the Consolidated Statements of Cash Flows Net cash provided by operating activities was billion yen, despite an increase in working capital requirements. Operating activities provided net cash due to strong cash flows from operating transactions primarily at resource-related subsidiaries and firm growth in dividend income from investees, mainly resource-related business investees. [Comparison With the Nine Months December 31, 2010] Increased 91.9 billion yen Net cash provided by operating activities increased 91.9 billion yen year on year, as a result mainly of an improvement in working capital requirements. (*) Breakdown of depreciation and amortization Dec Dec Tangible fixed assets Intangible fixed assets Total II. Cash Flows From Investing Activities [Nine Months December 31, 2011] Net cash used in investing activities: billion yen Investing activities used net cash of billion yen, with the main outflows being an investment in a Chilean copper asset rights holding company, investments to acquire working interests in resource-related subsidiaries, and capital expenditures at resource-related subsidiaries. [Comparison With the Nine Months December 31, 2010] Increased billion yen Investing activities used billion yen more net cash in the first nine months of the year ending than the corresponding period of the previous fiscal year. This was due to an investment in a Chilean copper asset rights holding company, investments to acquire working interests in resource-related subsidiaries, and capital expenditures at resource-related subsidiaries. III. Cash Flows From Financing Activities [Nine Months December 31, 2011] Net cash provided by financing activities: billion yen Net cash provided by financing activities was billion yen, despite the payment of dividends at the Parent. Cash was mainly provided by fund procurement for new investments. [Comparison With the Nine Months December 31, 2010] Increased billion yen There was a billion yen year-on-year change in net cash provided by financing activities from the corresponding period of the previous fiscal year. Cash was mainly provided by fund procurement for new investments. Note: Reconciliation With the Balance Sheet Movements in cash flows are generally consistent with changes on the balance sheet. However, due to new consolidations and exclusions as well as eliminating the effect of mark-tomarket valuations and foreign exchange rate fluctuations, some cash flow movements may be inconsistent with balance sheet changes. 4

5 Please refer to page 15 of the earnings release. Operating Segment Information (Nine Months Dec. 2011) [Gross Profit] Exchange rate for U.S. currency: Average for nine months ended Dec. 2010: yen Average for nine months ended Dec. 2011: yen (7.88 yen (9.07%) appreciation) Crude oil: Average for nine months ended Dec. 2010: US$78.77/BBL Average for nine months ended Dec. 2011: US$108.09/BBL (US$29.32/BBL (37.22%) up) ended Dec ended Dec Industrial Finance, Logistics & Development (1.1) Reflects in earnings in real estate finance businesses. Energy Business Increase due to higher earnings on transactions because of higher crude oil prices and sales volumes. Metals (49.6) Decrease due to lower sales volumes at an Australian resource-related subsidiary (coking coal), lower sales prices at a ferrochrome production and sales subsidiary, and lower transaction volumes at a steel products-related subsidiary. Decrease due mainly to lower sales in overseas automobile operations and foreign currency fluctuations, despite higher Machinery (5.5) earnings in the construction machinery and other businesses. Chemicals Reflects higher earnings on strong transactions at the Parent. Living Essentials Reflects higher earnings on transactions at food-related subsidiaries. Total (27.2) Adjustments and Eliminations Consolidated (24.8) [Equity in Earnings of d Companies] ended Dec ended Dec Although lease-related business earnings improved, the decline reflected the absence of gains on the sale of overseas real Industrial Finance, Logistics & Development (1.9) estate recorded in the previous fiscal year. Energy Business Reflects increase in equity in earnings of overseas resource-related companies due to higher crude oil prices. Metals Reflects increase in equity in earnings of a resource-related business investee. Machinery Chemicals Reflects higher equity in earnings at overseas automobile-related operations, as well as special factors related to a business withdrawal. Reflects higher equity in earnings due to strong transactions at a petrochemical business-related company and certain other entities. Reflects lower equity-method earnings due to natural disaster-related losses at affiliated companies in Japan, despite higher Living Essentials (0.2) earnings on transactions at food-related companies. Total Adjustments and Eliminations Consolidated

6 Please refer to page 15 of the earnings release. [Net Income (Loss)] ended Dec ended Dec Decrease due to the absence of gains on the sale of overseas real estate recorded in the previous fiscal year, despite improved Industrial Finance, Logistics & Development (0.9) lease-related business earnings. Energy Business Despite the absence of gains recognized on the sale of shares in the previous fiscal year, the Energy Business Group recorded higher earnings due to increased equity-method earnings from overseas resource-related companies in line with higher crude oil prices, along with increased dividend income from overseas resource-related business investees. Metals (44.3) Decrease reflects mainly the absence of gains on a share transfer at a Chilean iron-ore related subsidiary recorded in the previous fiscal year and lower sales volume at an Australian resource-related subsidiary (coking coal). Machinery Despite higher transactions mainly in the construction machinery business, segment net income declined, mainly due to lower (6.1) sales in overseas automobile operations, foreign currency effects, a loss stemming from the withdrawal from a business, and the absence of gains recognized on the sales of shares in the previous fiscal year. Chemicals Increased mainly due to higher earnings on strong transactions at the Parent, higher equity-method earnings from strong transactions, primarily at a petrochemical business-related company, and bargain purchase gains from the acquisition of a plastic business subsidiary. Living Essentials Despite lower equity-method earnings, mainly due to natural disaster-related losses at affiliated companies in Japan and the recording of a write-down of shares (The Nisshin OilliO Group, Ltd.), this segment posted higher earnings on increased earnings on transactions at food-related subsidiaries and gains on share sales. Total (10.9) Adjustments and Eliminations (13.4) Consolidated

7 Performance at Consolidated Subsidiaries and s Number of Consolidated Subsidiaries and s (No. of companies) / Total December 2010 December 2011 Increase / Profit Loss Total Profit Loss Total Profit Loss Total Subsidiaries (6) (4) (10) s (6) 3 (3) Total (12) (1) (13) Subsidiaries s Total Subsidiaries (1) s Total Profit/Loss of Consolidated Subsidiaries and s (based on MC's equity earnings) / Total December 2010 December 2011 Total (1.8) Profit Loss Total Profit Loss Subsidiaries 57.9 (4.7) s 31.2 (0.8) (4.0) Total 89.1 (5.5) (5.8) Subsidiaries (10.2) (12.3) s 75.6 (6.0) (5.4) 77.2 Total (16.2) (17.7) Subsidiaries s Total (14.9) (6.8) (21.7) (14.1) (9.4) (23.5) Profit (48.6) 7.0 (41.6) (48.4) 15.9 (32.5) Increase / Loss 2.9 (3.2) (0.3) (2.1) 0.6 (1.5) 0.8 (2.6) (1.8) Total (50.7) 7.6 (43.1) (47.6) 13.3 (34.3) * The Parent has retrospectively adjusted the profit/loss information for the nine months ended December 2010, since a domestic subsidiary changed its fiscal year ending date and a company newly became an equity-method affiliate due to the additional purchase of shares. 7

8 Performance at Principal Subsidiaries and s * "" represents the share of voting rights held. * Hyphens appear in the equity in earnings columns for subsidiaries and affiliates that do not disclose earnings due to reasons such as, but not limited to, nondisclosure agreements with partners or being a listed company that has not yet announced earnings. < Industrial Finance, Logistics & Development Group > / Increase or Subsidiary Bow Bells House Investment L-1 (U.K.) Financial investment company Subsidiary MC Aviation Partners Inc. Aircraft leasing and management services Subsidiary Mitsubishi Corporation LT, Inc. Warehousing and total logistics services Nine Months Nine Months Dec Dec Mitsubishi UFJ Lease & Finance Company Ltd. Leasing, installment sales, other financing < Energy Business Group > / or Dec Dec Astomos Energy Corporation Import, trading, domestic distribution and sales of LPG Brunei LNG Sendirian Berhad (Brunei) Manufacturing and sales of LNG Subsidiary Diamond Gas Holdings Sdn. Bhd. (Malaysia) Stockholding company for GTL (Gas to liquid) project in Malaysia Subsidiary Diamond Gas Netherlands B.V. (The Netherlands) Stockholding company for Malaysia Ⅲ project Subsidiary Diamond Gas Resources Pty. Ltd. (Australia) Sales agent of JALP crude oil and condensate Subsidiary Diamond Gas Sakhalin B.V. (The Netherlands) Stockholding company for Sakhalin Ⅱ project in Russia Subsidiary Diamond Tanker Pte. Ltd. (Singapore) Marine transportation, etc Encore Energy Pte. Ltd. (Singapore) Energi Mega Pratama Inc. (Indonesia) Japan Australia LNG (MIMI) Pty. Ltd. (Australia) Subsidiary MCX Exploration (USA) Ltd. (U.S.A.) Stockholding company for P.T. Medco Energi Internasional (Indonesia) Exploration, development, and production of oil and natural gas in Indonesia Development and sales of resources (LNG, LPG, condensate and crude oil) Exploration, development and production of oil and natural gas Subsidiary Mitsubishi Shoji Sekiyu Co., Ltd. Marketing and sales of petroleum products < Metals Group > / or Dec Dec Iron Ore Company of Canada (Canada) Iron ore production and sales JECO 2 Ltd. (U.K.) Subsidiary JECO Corporation Investment company for Minera Escondida Ltda. copper mines in Chile Investment company for Minera Escondida Ltda. copper mines in Chile Subsidiary M.C. Inversiones Limitada (Chile) Investment company for iron ore mine in Chile Subsidiary MC Copper Holdings B.V. (The Netherlands) Investment company for Los Pelambres copper mine in Chile Subsidiary Metal One Corporation Steel products operations Subsidiary Mitsubishi Corporation Unimetals Ltd. Metal trading company Subsidiary Mitsubishi Development Pty Ltd (Australia) Investment, production and sales of coal and other metals resources Strand Minerals (Indonesia) Pte. Ltd. (Singapore) Investment company for nickel mine in Indonesia Subsidiary Triland Metals Limited (U.K.) < Machinery Group > / Commodity broker and market maker on the London Metal Exchange (LME) Chiyoda Corporation Plant engineering business Subsidiary Diamond Cammellia S.A. (Panama) Ship owning and chartering FF Sheffe B.V. (The Netherlands) Holding company of automobiles Isuzu Motors Co., (Thailand) Ltd. (Thailand) Manufacturing of automobiles Isuzu Motors International Operations (Thailand) Co., Ltd. (Thailand) Distribution of automobiles Subsidiary MCE Bank GmbH (Germany) Automobile finance Subsidiary Mitsubishi Corporation Machinery, Inc. Export, import and domestic trading of machine parts Subsidiary Mitsubishi Corporation Power Systems, Inc. Supply, installation work, maintenance, inspection of power generating systems and related equipment; in-plant transportation services or Dec Dec Subsidiary Mitsubishi Motors Malaysia Sdn. Bhd. (Malaysia) Distribution of automobiles

9 Subsidiary MSK FARM MACHINERY CORPORATION Sales and service of agricultural machinery and facilities Subsidiary Nikken Corporation Rental and sales of construction machinery and other equipment Subsidiary P.T. Dipo Star Finance (Indonesia) Automobile finance P.T. Krama Yudha Tiga Berlian Motors (Indonesia) Distribution of automobiles Subsidiary The Colt Car Company Ltd. (U.K.) Distribution of automobiles Subsidiary Tri Petch Isuzu Leasing Co., Ltd. (Thailand) Automobile finance Subsidiary Tri Petch Isuzu Sales Co., Ltd. (Thailand) Distribution of automobiles Note: Isuzu Operations (Thailand) Co., Ltd. was renamed Isuzu Motors International Operations (Thailand) Co., Ltd. on July 1, < Chemicals Group > / Subsidiary Kohjin Co., Ltd. Manufacturing of plastic films, biochemicals and fine chemicals or Dec Dec Metanol de Oriente, METOR, S.A. (Venezuela) Manufacturing and marketing of methanol Subsidiary Mitsubishi Shoji Plastics Corp. Marketing of synthetic raw materials and plastics SPDC Ltd. Investment and petroleum and petrochemicals-related businesses < Living Essentials Group > / Dec Dec or Subsidiary AGREX Inc. (U.S.A.) Storage and marketing of grain Subsidiary Alpac Forest Products Inc. (Canada) Manufacturing and sales of wood pulp Subsidiary California Oils Corporation (U.S.A.) Manufacturing and sales of processed vegetable oils and fats Subsidiary Dai-Nippon Meiji Sugar Co., Ltd. Manufacturing and wholesale of sugar products Hokuetsu Kishu Paper, Co., Ltd. Manufacturing, processing, and sales of paper and pulp Subsidiary Indiana Packers Corporation (U.S.A.) Processing and sales of pork Subsidiary Kentucky Fried Chicken Japan Ltd. Fast-food restaurant chain and home-delivery pizza stores LAWSON, INC. Franchise chain of LAWSON convenience stores Subsidiary Loyalty Marketing, Inc. Managing the operations of Multi-Partner Loyalty Program "Ponta" Subsidiary Mitsubishi Shoji Packaging Corporation Sales and marketing of packaging materials, paper, paperboard and corrugated containerboard, as well as export of paper and paperboard Subsidiary Mitsubishi Shokuhin Co., Ltd Wholesale of food products Subsidiary Nosan Corporation Manufacturing and marketing of livestock feed Subsidiary Princes Limited (U.K.) Manufacturing of food products and soft drinks Note: T-Gaia Corporation Handling of subscriber contracts for various communication services, sales of handsets and equipment RYOSHOKU LIMITED was renamed Mitsubishi Shokuhin Co., Ltd. on July 1, 2011 and San-Esu Inc., Food Service Network Co., Ltd. and Meidi-ya Corporation were made its wholly owned subsidiaries Meidi-ya Corporation was merged with Mitsubishi Shokuhin Co., Ltd. on October 1, < Global Environment Business Development Group > / Dec Dec or Subsidiary Diamond Generating Asia, Limited (Hong Kong) Independent Power Producer Subsidiary Diamond Generating Corporation (U.S.A.) Independent Power Producer

10 Financial Indicators (U.S. GAAP) (Reference) Nine Months December 2010 Nine Months December 2011 Change (Forecast) 1. Earnings Per Share (yen) (1) Basic EPS (2) Diluted EPS ROE ROA Debt-to-equity ratio (times) March 2011 December 2011 Change (Reference) (Forecast) (1)Gross (2)Net (after subtracting cash and deposits) Current Ratio 6. Ratio of Shareholders' Equity to Total Assets 7. Book Value per Share (yen) , ,