Mitsubishi Corp. MBC Results for Six Months Ended Sept. 2012
Mitsubishi Corp. (MBC) - Results for Six Months Ended Sept. 2012
RNS Number : 1855Q
Mitsubishi Corporation
02 November 2012
FINANCIAL RESULTS FOR
THE SIX MONTHS ENDED SEPTEMBER 2012
Based on US GAAP
Mitsubishi Corporation
2-3-1 Marunouchi, Chiyoda-ku, Tokyo, JAPAN 100-8086
http://www.mitsubishicorp.com/
November 2, 2012
Mitsubishi Corporation
Mitsubishi Corporation and subsidiaries
FINANCIAL HIGHLIGHTS
for the six months ended September 30, 2012
(Based on US GAAP) (Consolidated)
1. Consolidated operating results for the six months ended September 30, 2012
(1) Operating transactions and income
(Figures less than one million
yen are rounded)
Net income
Operating Income before attributable to
transactions Operating income income taxes
Mitsubishi
Corporation
For the six Millions of Millions Millions Millions
months Yen % of Yen % of Yen % of Yen %
ended
September 9,650,606 (3.6) 55,658 (67.0) 151,466 (41.4) 190,418 (22.8)
30, 2012
September 10,009,074 4.5 168,606 (15.4) 258,437 (17.7) 246,615 (8.3)
30, 2011
Comprehensive income for the six months ended September 30, 2012 and 2011 were
\31,414million (-%) and \-30,379million (-%) respectively.
Net income attributable to Net income attributable to
Mitsubishi Corporation Mitsubishi Corporation
per share per share (diluted basis)
For the six months Yen Yen
ended
September 30, 2012 115.66 115.42
September 30, 2011 149.92 149.57
(2) Assets and shareholders' equity
Mitsubishi Ratio of Mitsubishi
Corporation Corporation
Total assets Total equity shareholders' equity
shareholders' to total assets
equity
As of Millions of Millions of Millions of Yen %
Yen Yen
September 30, 12,588,602 3,804,227 3,485,076 27.7
2012
March 31, 12,588,320 3,826,777 3,507,818 27.9
2012
The six months ended September 30, 2011 and the year ended March 31, 2012 have
been retrospectively adjusted, as described in " 2) Retrospective Adjustment
of the Previous Fiscal Year's Consolidated Financial Statements" under " (6)
Basis for Preparation of Consolidated Financial Statements" of the
consolidated financial statements.
2. Dividends
Cash dividend per share (Yen)
(Record date) 1Q end 2Q end 3Q end Year-end Annual
Fiscal Year
- 32.00 - 33.00 65.00
ended March 31, 2012
Fiscal Year
- 25.00
ending March 31, 2013
Fiscal Year
- 25.00 50.00
ending March 31, 2013 (Forecast)
NOTE: Change from the latest released dividend forecasts: No
3. Outlook for the fiscal year ending March 31, 2013 (April 1, 2012 to March
31, 2013)
Forecast of
Net income Net income
Operating Operating Income before attributable to attributable
transactions income income taxes to
Mitsubishi Mitsubishi
Corporation Corporation
per share
For
the Millions % Millions % Millions % Millions % Yen
year of Yen of Yen of Yen of Yen
ending
March
31, 20,000,000 (0.6) 140,000 (48.4) 280,000 (38.4) 330,000 (27.0) 200.41
2013
NOTE: Change from the latest released earnings forecasts: No
NOTE: Increase-decrease rate from April 1, 2012 to March 31, 2013 has been
retrospectively adjusted, reflecting change of accounting cost method
investment to equity method investment.
4. Notes
(1) Changes in significant subsidiaries during the period: Yes
New companies: 1 (Mitsubishi Corporation (Americas))
Excluded companies: 0
(2) Application of simplified accounting treatment and special accounting
treatment: Yes
NOTE: Fore more details, please see "5. Notes (2) Application of Simplified
Accounting Treatment and Special Accounting Treatment in Preparing Quarterly
Consolidated Financial Statements."
(3) Changes in accounting principles, procedures and presentation methods
-1- Changes due to accounting standards revisions: None
-2- Changes other than -1- : None
(4) Number of shares issued (Common stock)
-1- Number of shares issued at year-end (including treasury shares)
September 30, 2012 1,653,505,751
March 31, 2012 1,653,505,751
-2- Number of treasury shares at year-end
September 30, 2012 6,883,545
March 31, 2012 7,332,832
-3- Average number of shares during each of the following fiscal years
The three months ended September 30, 2012 1,646,331,697
The three months ended September 30, 2011 1,644,938,187
Disclosure Regarding Quarterly Review Procedures
As of the date of disclosure of this quarterly earnings release, a review of
the quarterly financial statements is being carried out in accordance with the
Financial Instruments and Exchange Act.
Forward-looking Statements
Earnings forecasts and other forward-looking statements in this release are
based on data currently available to management and certain assumptions that
management believes are reasonable.The achievement of said forecasts cannot be
promised. Actual results may therefore differ materially from these statements
for various reasons. For cautionary notes concerning assumptions for earnings
forecasts and use of earnings forecasts, please refer to "3.Qualitative
Information Concerning Consolidated Forecasts for the Year Ending March 2013."
Contents
1. Qualitative Information Concerning Consolidated Operating
Results··························· 2
(1) Summary of Results for the Six Months Ended September 2012
································· 2
(2) Segment Information
·················································································
3
2. Qualitative Information Concerning Consolidated Financial Position
·························· 6
(1) Changes in Assets, Liabilities and Equity
···························································· 6
(2) Cash Flows
····························································································
7
3. Qualitative Information Concerning Consolidated Forecasts for the Year
Ending March 2013
·······················································································
8
(1) Reasons for Revisions
·················································································
8
(2) Revisions to Full-Year Consolidated Earnings Forecasts for the Year
Ending March
2013······················································································
9
4. Business Risks*
···························································································
9
(1) Risks of Changes in Global Macroeconomic Climate
··············································· 10
(6) Risks Related to Specific Investments
······························································· 11
5. Notes
·······································································································
12
(1) Significant Changes in Subsidiaries During the Period
············································· 12
(2) Application of Simplified Accounting Treatment and Special Accounting
Treatment in
Preparing Quarterly Consolidated Financial
Statements············································· 12
6. Consolidated Financial Statements (US GAAP)
····················································· 13
(1) Consolidated Balance Sheets (US GAAP)
···························································· 13
(2) Consolidated Statements of Income (US GAAP)
···················································· 15
(3) Consolidated Statements of Comprehensive (Loss) Income (US GAAP)
························· 16
(4) Consolidated Statements of Cash Flows (US GAAP)
··············································· 17
(5) Notes Concerning Going Concern Assumption
······················································ 18
(6) Basis for Preparation of Consolidated Financial Statements
········································ 18
(7) Operating Segment Information
······································································· 19
(8) Notes Concerning Major Changes in Shareholders' Equity
·········································· 19
* The numbered items under Business Risks correspond to the numbered items in
"4. Business Risks" of "Operating Results and Financial Position" in the
financial results for the year ended March 2012.
※ Mitsubishi Corporation will hold an earnings conference for the six months
ended September 2012 on November 7, 2012 (Wednesday) from 16:00 to 17:30
(Japan Time), inviting institutional investors to join. The conference
material can be accessed live in Japanese from the following URL:
http://www.mitsubishicorp.com/jp/ja/ir/index.html
(English interpretation of the conference call will be posted in the Investor
Relations section of our web site as soon as it becomes available.)
1. Qualitative Information Concerning Consolidated Operating Results
(Consolidated net income, as used hereinafter, refers to Consolidated net
income attributable to Mitsubishi Corporation.)
(1) Summary of Results for the Six Months Ended September 2012
In the first six months of the year ending March 2013, the economic
environment saw the U.S. continue to experience a modest recovery. In Europe,
however, the deepening impact of the debt crisis stymied economic activity.
Emerging nations saw growth slow due to the anemic European market. In Japan,
whilst consumer spending picked up temporarily, supported in part by
government subsidies on environmentally friendly vehicles, the economy marked
time as the global economy slowed.
Against this backdrop, consolidated operating transactions for the first six
months of the year ending March 2013 declined 358.5 billion yen, or 4%, year
over year to 9,650.6 billion yen. This decrease in operating transactions was
mainly due to lower sales prices and lower sales volume because of strike
action at an Australian resource-related (coking coal) subsidiary.
Gross profit declined 100.2 billion yen, or 17%, to 488.5 billion yen for the
same reason that operating transactions decreased.
Selling, general and administrative expenses increased 14.0 billion yen, or
3%, to 432.0 billion yen, due mainly to higher expenses in line with business
expansion.
In other P/L items, although other income-net decreased due to factors such as
deterioration in foreign exchange gains and losses, net financial income
improved because of higher dividend income from resource-related business
investees.
As a result, income before income taxes and equity in earnings of Affiliated
companies declined 106.9 billion yen, or 41%, to 151.5 billion yen.
Net equity in earnings of Affiliated companies declined 2.8 billion yen, or
3%, to 95.4 billion yen.
Accordingly, net income attributable to Mitsubishi Corporation for the six
months ended September 2012 declined 56.2 billion yen, or 23%, to 190.4
billion yen.
(2) Segment Information
1) Industrial Finance, Logistics & Development Group
The Industrial Finance, Logistics & Development Group is developing
shosha-type industrial finance businesses. These include asset management
businesses, buyout investment businesses, leasing businesses, real estate
development and financing businesses, and logistics services.
The segment recorded consolidated net income of 9.3 billion yen, a 5.6 billion
yen increase year over year. The increase reflects mainly higher earnings in
real estate- and lease-related businesses.
2) Energy Business Group
The Energy Business Group conducts oil and gas exploration, development and
production (E&P) business; investment in LNG (Liquefied Natural Gas)
liquefaction projects; and sales of crude oil, petroleum products, carbon
materials and products, LNG, and LPG (Liquefied Petroleum Gas) and so forth.
The segment recorded consolidated net income of 93.2 billion yen, a 27.8
billion yen increase year over year. This increase reflects increased dividend
income from overseas resource-related business investees.
3) Metals Group
The Metals Group trades, develops businesses and invests in a range of fields.
These include steel products such as steel sheets and thick plates, steel raw
materials such as coking coal and iron ore, and non-ferrous raw materials and
products such as copper and aluminum.
The segment recorded consolidated net income of 13.3 billion yen, a 97.3
billion yen decrease year over year. The decrease reflects mainly lower sales
prices and lower sales volume due to strike action at an Australian
resource-related subsidiary (coking coal), and lower dividend income from
copper mines.
4) Machinery Group
The Machinery Group handles sales, finance and logistics for machinery across
many different sectors, in which it also invests. These fields range from
large-scale plants for production of natural gas, petroleum, chemicals or
steel, to marine, automotive and other transport equipment, as well as
aerospace-related equipment, mining equipment, construction machinery,
industrial equipment and elevating machines.
The segment recorded consolidated net income of 34.5 billion yen, a 6.7
billion yen increase year over year. The increase reflects mainly higher sales
in Asian automobile-related operations and the absence of a loss on withdrawal
from a business recorded in the corresponding period of the previous fiscal
year.
5) Chemicals Group
The Chemicals Group trades chemical products in a broad range of fields, in
which it also develops businesses and invests. These fields extend from raw
materials used in industrial products such as ethylene, methanol and salt
produced from crude oil, natural gas, minerals, plants, marine resources and
so forth, to plastics, electronic materials, food ingredients, fertilizer and
fine chemicals.
The segment recorded consolidated net income of 13.6 billion yen, a 4.3
billion yen decrease year over year. The decrease was mainly due to lower
earnings on transactions at the Parent and a petrochemical business-related
company.
6) Living Essentials Group
The Living Essentials Group provides products and services, develops
businesses and invests in various fields closely linked with people's lives,
including food products and food, textiles, essential supplies, healthcare,
distribution and retail. These fields extend from the procurement of raw
materials to the consumer market.
The segment recorded consolidated net income of 23.3 billion yen, a 0.8
billion yen increase year over year. Although it recorded lower earnings on
transactions at food- and general merchandise-related subsidiaries, the
segment saw earnings rise year over year in the absence of a share write-down
recorded in the previous fiscal year and other factors.
2. Qualitative Information Concerning Consolidated Financial Position
(1) Changes in Assets, Liabilities and Equity
Total assets at September 30, 2012 were 12,588.6 billion yen, up 0.3 billion
yen from March 31, 2012. Investments in Affiliated companies and property and
equipment increased due to the execution of new investments. On the other
hand, there was a decline in unrealized gains on listed shareholdings because
of a fall in share prices, and a decrease in accounts receivables due mainly
to decreased sales volumes.
Total liabilities were 8,784.4 billion yen, up 22.8 billion yen from March 31,
2012. While long-term debt increased due to the procurement of funds for
making new investments, accounts payables decreased commensurate with accounts
receivables.
Interest-bearing liabilities (net), which are interest-bearing liabilities
(gross) minus cash and cash equivalents and time deposits, increased 232.6
billion yen from March 31, 2012 to 3,880.0 billion yen. The net debt-to-equity
ratio, which is net interest-bearing liabilities divided by total equity, was
1.1.
Total shareholders' equity decreased 22.7 billion yen from March 31, 2012 to
3,485.1 billion yen. The decrease was mainly due to the payment of dividends,
a decrease in unrealized gains on listed shareholdings and a decrease in
foreign currency translation adjustments accompanying the yen's appreciation,
despite an increase in retained earnings because of the consolidated net
income.
(2) Cash Flows
Cash and cash equivalents at September 30, 2012 were 1,195.0 billion yen, down
58.0 billion yen from March 31, 2012.
(Operating activities)
Net cash provided by operating activities was 156.5 billion yen. This was
mainly due to cash flows from operating transactions at subsidiaries and
dividend income from investees, mainly resource-related businesses, despite an
increase in cash requirements due to changes in assets and liabilities
associated with operating activities.
(Investing activities)
Net cash used in investing activities was 386.5 billion yen. Investing
activities used net cash mainly for capital expenditures at resource-related
subsidiaries, the acquisition of aircraft and real estate, and investments in
Affiliated companies.
As a result, free cash flow, the sum of operating and investing cash flows,
was negative 230.0 billion yen.
(Financing activities)
Net cash provided by financing activities was 185.6 billion yen. Financing
activities provided net cash due to fund procurement for new investments,
despite the payment of dividends at the Parent.
3. Qualitative Information Concerning Consolidated Forecasts for the Year
Ending March 2013
Mitsubishi Corporation has revised its full-year projections for the year
ending March 2013, as below and announced in a press release issued on October
19, 2012 titled "Revision of Full-year Consolidated Earnings Forecasts."
(1) Reasons for Revisions
The European debt crisis has had a deepening impact on the global economy
while emerging nations such as China have seen an even slower pace of growth.
As a result of these factors, prices of certain commodities such as coking
coal have fallen below the initially anticipated range. In light of these
developments in the recent business environment, Mitsubishi Corporation
reviewed its full-year consolidated earnings forecasts for the year ending
March 2013. As a result, Mitsubishi Corporation reflected the following
factors into its forecasts: the impact of longer-than-anticipated strike
action and the impact of lower sales prices and so forth at an Australian
resource-related (coking coal) subsidiary in the Metals Group, (-150.0 billion
yen reduction in net income attributable to Mitsubishi Corporation);
deterioration in market conditions in the Chemicals Group (-10.0 billion yen
reduction in net income attributable to Mitsubishi Corporation); and
additional risk of write-downs of marketable securities (available for sale)
due to weak stock prices and so forth (-10.0 billion yen reduction in net
income attributable to Mitsubishi Corporation).
(2) Revisions to Full-Year Consolidated Earnings Forecasts for the Year Ending
March 2013
Operating Income Net Income
Operating Income Before Attributable to
Transactions Income Taxes Mitsubishi
(million Corporation
(million yen) yen) (million
yen) (million yen)
Previous Forecast
(Announced on May 8, 21,000,000 340,000 490,000 500,000
2012) (A)
Revised Forecast
(Announced October 19, 20,000,000 140,000 280,000 330,000
2012) (B)
Difference (B-A) -1,000,000 -200,000 -210,000 -170,000
Difference (%) -4.8% -58.8% -42.9% -34.0%
Note:
Earnings forecasts and other forward-looking statements in this release are
based on data currently available to management and certain assumptions that
management believes are reasonable. Therefore, they do not constitute a
guarantee that they will be achieved. Actual results may differ materially
from these statements for various reasons.
4. Business Risks
Major changes to Business Risks contained in the financial results for the
year ended March 2012 during the six months ended September 2012 are as
follows:
Forward-looking statements contained herein are management's judgment as of
September 30, 2012.
The numbered items with titles below correspond to the numbered items in "4.
Business Risks" of "Operating Results and Financial Position" in the financial
results for the year ended March 2012 and the underlined sections correspond
to the sections that have been revised.
(1) Risks of Changes in Global Macroeconomic Climate
As we conduct businesses on a global scale, our operating results are impacted
by economic trends in overseas countries as well as those in Japan.
For instance, a decline in prices of energy and metal resources could have a
large impact on our resource-related import transactions and earnings from
business investments. Furthermore, the worldwide economic slowdown could
affect our entire export-related business, including plants, construction
machinery parts, automobiles, steel products, ferrous raw materials, chemical
products, and other products.
In Thailand and Indonesia, we have various automobile businesses, including
automobile assembly plants, distribution and sales companies and financial
services companies jointly established with Japanese automakers. Because
automobile sales volume reflects internal demand in each of these countries,
economic trends in both Thailand and Indonesia may have a significant bearing
on earnings from our automobile operations.
In the year ending March 2013, the economies of industrialized nations have
slowed due to the impact of the implementation of austerity measures and
turbulence in the financial markets as a result of the deepening of the
European debt problems. Meanwhile, in emerging economies, the rate of growth
has slowed due to sluggish export growth as well as structural problems
domestically even in major countries such as China.
(6) Risks Related to Specific Investments
(Acquisition of Interest in Chilean Copper Asset)
On November 10, 2011, Mitsubishi Corporation completed the acquisition of
24.5% of Anglo American Sur, S.A. (AAS) for US$5.39 billion (approximately
420.0 billion yen).AAS is a Chilean copper mining and smelting company wholly
owned by Anglo American plc (AAC).The acquisition was the result of a sales
process initiated by AAC. AAS holds a significant portfolio of copper assets
in Chile, including the Los Bronces mine, the El Soldado mine, the Chagres
smelter and large-scale prospective exploration properties. The Los Bronces
expansion project was completed in November 2011, and in 2012 when the Los
Bronces mine is at full production, AAS will produce approximately 440,000
tonnes of copper per annum.
On August 23, 2012, Mitsubishi Corporation agreed to transfer 4.1% of its
24.5% shareholding in AAS to AAC for the sum of US$895 million. As a result of
this deal, Mitsubishi Corporation's risk exposure to this project at September
30, 2012 was approximately 350.0 billion yen.
AAC sold a 29.5% shareholding in AAS to a joint venture between Chile's
state-run copper producer Corporación Nacional del Cobre de Chile and Mitsui &
Co., Ltd., comprising this 4.1% share from Mitsubishi Corporation and 25.4%
owned by AAC. Following completion of these transactions, AAC has a 50.1%
shareholding in AAS, the aforementioned joint venture has a 29.5%
shareholding, and Mitsubishi Corporation has a 20.4% shareholding, thereby
forming a strong 4-company partnership.
Mitsubishi Corporation has designated the expansion of high-quality resource
investments and the expansion of its resource portfolio with sustainable
growth as an important area. Mitsubishi Corporation will continue to grow its
business in this area.
5. Notes
(1) Significant Changes in Subsidiaries During the Period
Mitsubishi Corporation (Americas) became a consolidated subsidiary from April
1, 2012.
(2) Application of Simplified Accounting Treatment and Special Accounting
Treatment in Preparing Quarterly Consolidated Financial Statements
Consolidated income taxes are calculated based on the estimated tax rate,
taking into account tax effects, for the fiscal year relating to the quarterly
period under review.
6.Consolidated Financial Statements
Mitsubishi Corporation and subsidiaries
(1) CONSOLIDATED BALANCE SHEETS (US GAAP)
March 31, 2012 and September 30, 2012
Millions of Yen
ASSETS March 31 September 30 Increase or
2012 2012 [-]decrease
Current assets:
Cash and cash equivalents 1,252,951 1,194,992 -57,959
Time deposits 116,024 127,284 11,260
Short-term investments 19,327 18,150 -1,177
Notes receivables 363,130 329,515 -33,615
Accounts receivables 2,379,899 2,267,515 -112,384
Loans and other receivables 389,678 369,009 -20,669
Receivables from Affiliated companies 250,469 221,612 -28,857
Inventories 965,057 1,012,063 47,006
Advance payments to suppliers 157,817 168,630 10,813
Deferred income taxes 45,780 50,564 4,784
Other current assets 258,953 298,688 39,735
Allowance for doubtful receivables (23,809) (24,261) -452
Total current assets 6,175,276 6,033,761 -141,515
Investments and noncurrent receivables:
Investments in and advances to Affiliated 2,097,976 2,200,834 102,858
companies
Joint investments in real estates 62,290 60,634 -1,656
Other investments 1,414,584 1,280,736 -133,848
Noncurrent notes, loans and accounts 549,712 566,856 17,144
receivable-trade
Allowance for doubtful receivables (30,508) (28,094) 2,414
Total investments and noncurrent 4,094,054 4,080,966 -13,088
receivables
Property and equipment:
Property and equipment 3,265,380 3,411,578 146,198
Less accumulated depreciation (1,294,466) (1,310,360) -15,894
Property and equipment - net 1,970,914 2,101,218 130,304
Other assets 348,076 372,657 24,581
Total 12,588,320 12,588,602 282
6.Consolidated Financial Statements
Mitsubishi Corporation and subsidiaries
(1) CONSOLIDATED BALANCE SHEETS (US GAAP)
March 31, 2012 and September 30, 2012
Millions of Yen
LIABILITIES AND EQUITY March 31 September 30 Increase or
2012 2012 [-]decrease
Current liabilities:
Short-term debt 886,431 873,430 -13,001
Current maturities of long-term debt 435,221 533,740 98,519
Notes and acceptances payables 206,049 219,504 13,455
Accounts payables 2,108,171 2,014,164 -94,007
Payables to Affiliates companies 186,094 179,961 -6,133
Advances from customers 160,795 169,695 8,900
Accrued income taxes 32,360 35,798 3,438
Other accrued expenses 118,877 97,661 -21,216
Other current liabilities 331,968 300,790 -31,178
Total current liabilities 4,465,966 4,424,743 -41,223
Long-term liabilities:
Long-term debt 3,760,101 3,874,960 114,859
Accrued pension and severance liabilities 51,345 51,856 511
Deferred income taxes 199,051 152,748 -46,303
Other noncurrent liabilities 285,080 280,068 -5,012
Total noncurrent liabilities 4,295,577 4,359,632 64,055
Total liabilities 8,761,543 8,784,375 22,832
Mitsubishi Corporation shareholders'
equity:
Common stock 204,447 204,447 0
Additional paid-in capital 262,039 262,059 20
Retained earnings:
Appropriated for legal reserve 44,133 44,854 721
Unappropriated 3,300,588 3,435,047 134,459
Accumulated other comprehensive income:
Net unrealized gains on securities 230,362 156,859 -73,503
available-for-sale
Net unrealized losses on derivatives (8,433) (9,380) -947
Defined benefit pension plans (78,303) (74,807) 3,496
Foreign currency translation adjustments (426,450) (514,500) -88,050
Less treasury stock (20,565) (19,503) 1,062
Total Mitsubishi Corporation shareholders' 3,507,818 3,485,076 -22,742
equity
Noncontrolling interest 318,959 319,151 192
Total equity 3,826,777 3,804,227 -22,550
Total 12,588,320 12,588,602 282
As written in Note 2) of "(6) Basis for Preparation of Consolidated Financial
Statements," the figures at March 31, 2012 have been retrospectively adjusted.
Mitsubishi Corporation and subsidiaries
(2) CONSOLIDATED STATEMENTS OF INCOME (US GAAP)
for the six months ended September 30, 2011 and 2012
Millions of Yen
Six months Six months
Increase or
ended ended
[-] decrease %
September 30, September 30,
2011 2012
Revenues:
Revenues from trading,
manufacturing and other 2,367,758 2,503,573 135,815 /
activities
Trading margins and commissions 308,287 293,838 -14,449 /
on trading transactions
Total revenues 2,676,045 2,797,411 121,366 /
Cost of revenues from trading,
manufacturing and other (2,087,347) (2,308,929) -221,582 /
activities
Gross profit 588,698 488,482 -100,216 -17.0
Other income and expenses:
Selling, general and (418,012) (431,978) -13,966 /
administrative
Provision for doubtful (2,080) (846) 1,234 /
receivables
Interest expense - net (1,328) (3,827) -2,499 /
Dividend income 60,750 81,225 20,475 /
Loss on marketable securities (6,700) (7,666) -966 /
and investments - net
Loss on property and equipment (1,333) (704) 629 /
- net
Other income - net 38,442 26,780 -11,662 /
Total (330,261) (337,016) -6,755 /
Income before income taxes and
equity in earnings of 258,437 151,466 -106,971 -41.4
Affiliated companies and other
Income taxes (95,302) (45,988) 49,314 /
Income before equity in
earnings of Affiliated 163,135 105,478 -57,657 /
companies and other
Equity in earnings of 98,197 95,440 -2,757 /
Affiliated companies and other
Net income 261,332 200,918 -60,414 -23.1
Less net income attributable to (14,717) (10,500) 4,217 /
the noncontrolling interest
Net income attributable to 246,615 190,418 -56,197 -22.8
Mitsubishi Corporation
NOTE:
1. The companies display revenues and cost of revenues in accordance with ASC
Paragraph 605-45 [Revenue Recognition - Principal Agent Considerations].
Operating transactions and operating income, as presented below, are voluntary
disclosures solely for the convenience of investors in Japan.
The figures are as follows:
Six months ended
Six months ended Increase or
September 30,
September 30, 2011 2012 [-] decrease
%
Operating transactions 10,009,074 9,650,606 -358,468 -3.6
Operating income 168,606 55,658 -112,948 -67.0
Operating transactions represent the gross transaction volume or the aggregate
nominal value of the sales contracts in which the companies act as principal
and transactions in which the companies serve as agent.
Operating income reflects the companies' (a) gross profit, (b) selling,
general and administrative expenses, and (c) provision for doubtful
receivables.
Operating transactions and operating income, as presented above, are non-US
GAAP measures commonly used by similar Japanese trading companies and should
not be construed as equivalent to, or a substitute or proxy for, revenues, or
as an indicator of our operating performance, liquidity or cash flows
generated by operating, investing or financing activities.
2. As written in Note 2) of " (6) Basis for Preparation of Consolidated
Financial Statements," the figures for the six months ended September 30, 2011
have been retrospectively adjusted.
Mitsubishi Corporation and subsidiaries
(3) CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (US GAAP)
for the six months ended September 30, 2011 and 2012
Millions of Yen
Six months ended Six months ended
September 30, 2011 September 30, 2012
Comprehensive (loss) income
Net income 261,332 200,918
Other comprehensive (loss) income, net
of tax:
Net unrealized losses on securities (87,318) (76,657)
available for sale
Net unrealized losses on derivatives (41,838) (1,050)
Defined benefit pension plans 3,281 3,333
Foreign currency translation (159,147) (91,423)
adjustments
Total other comprehensive loss, net of (285,022) (165,797)
tax
Comprehensive (loss) income (23,690) 35,121
Comprehensive income attributable to (6,689) (3,707)
the noncontrolling interest
Comprehensive (loss) income (30,379) 31,414
attributable to Mitsubishi Corporation
NOTE: As written in Note 2) of " (6) Basis for Preparation of Consolidated
Financial Statements," the figures for the six months ended September 30, 2011
have been retrospectively adjusted.
Mitsubishi Corporation and subsidiaries
(4) CONSOLIDATED STATEMENTS OF CASH FLOWS (US GAAP)
for the six months ended September 30, 2011 and 2012
Millions of Yen
Six months ended Six months ended
September 30, 2011 September 30, 2012
Operating activities:
Net income 261,332 200,918
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 70,736 74,368
Provision for doubtful receivables 2,080 846
Loss on marketable securities and 6,700 7,666
investments - net
Loss on property and equipment - net 1,333 704
Equity in earnings of Affiliated
companies and other, less dividends (63,310) (49,687)
received
Changes in operating assets and
liabilities:
Short-term investments - trading (555) 394
securities
Notes and accounts receivable - trade (15,462) 121,900
Inventories (108,761) (41,290)
Notes, acceptances and accounts 48,609 (50,516)
payable - trade
Other - net 56,389 (108,782)
Net cash provided by operating 259,091 156,521
activities
Investing activities:
Expenditures for property and (179,484) (268,589)
equipment and other assets
Proceeds from sales of property and 8,342 8,734
equipment and other assets
Investments in and advances to (122,744) (223,514)
Affiliated companies
Proceeds from sales of investments in
and collection of advances to 58,184 89,984
Affiliated companies
Purchases of available-for-sale (135,088) (44,837)
securities and other investments
Proceeds from sales and maturities of
available-for-sale securities and 99,445 55,611
other investments
Increase in loans receivable (137,506) (75,727)
Collection of loans receivable 81,293 83,761
Net increase in time deposits (28,931) (11,888)
Net cash used in investing activities (356,489) (386,465)
Millions of Yen
Six months ended Six months ended
September 30, 2011 September 30, 2012
Financing activities:
Net decrease in short-term debt (21,085) (12,866)
Proceeds from long-term debt - net of 359,054 607,595
issuance cost
Repayment of long-term debt (183,292) (343,166)
Payment of dividends (64,129) (54,333)
Payment of dividends to the (15,823) (11,702)
noncontrolling interest
Payment for acquisition of
subsidiary's interests from the (181) (36)
noncontrolling interest
Proceeds from sales of subsidiary's
interests to the noncontrolling 2,928 125
interest
Other - net 595 29
Net cash provided by financing 78,067 185,646
activities
Effect of exchange rate changes on (28,200) (13,661)
cash and cash equivalents
Net decrease in cash and cash (47,531) (57,959)
equivalents
Cash and cash equivalents, beginning 1,208,742 1,252,951
of period
Cash and cash equivalents, end of 1,161,211 1,194,992
period
As written in Note 2) of " (6) Basis for Preparation of Consolidated Financial
Statements," the figures for the six months ended September 30, 2011 have been
retrospectively adjusted
(5) Notes Concerning Going Concern Assumption
None
(6) Basis for Preparation of Consolidated Financial Statements
1) Basic Accounting Policies
The accompanying consolidated financial statements of Mitsubishi Corporation
and its subsidiaries have been prepared in accordance with accounting
principles generally accepted in the United States of America (U.S. GAAP).
The significant differences between U.S. and Japanese accounting standards
applicable to the companies relate to the following:
a) Valuation of investments
b) Deferral of gain on sales of properties for tax purposes (Not permitted
under U.S. GAAP)
c) Derivative instruments and hedge accounting
d) Pension and retirement benefit accounting (Underfunded obligations and
overfunded obligations are recognized as assets, liabilities and accumulated
other comprehensive income(loss) under U.S. GAAP)
e) Accounting for business combinations and goodwill and other intangible
assets
2) Retrospective Adjustment of the Previous Fiscal Year's Consolidated
Financial Statements
The company has retrospectively adjusted the consolidated statements of income
and comprehensive income, consolidated statements of cash flows, operating
segment information for the six months ended September 30, 2011, since the
Company acquired additional investments in cost method investees, and
accounted for the company's ownership interest in investees under the equity
method.
In addition, the Company has retrospectively adjusted the consolidated balance
sheet at March 31, 2012, since the Company was able to exert significant
influence over the operating and financial decisions by concluding the
shareholder's agreement, and accounted for the company's ownership interest in
investees under the equity method.
(7) Operating Segment Information (US GAAP)
Six months ended September 30, 2011
Millions of Yen
Industrial Adjustments
Finance, Energy Living
Logistics & Business Metals Machinery Chemicals Essentials Total Other and Consolidated
Development
Eliminations
Gross profitt 21,452 33,569 162,481 80,238 42,849 228,650 569,239 20,546 (1,087) 588,698
･･････････
Equity in
earnings of
affiliated 3,374 36,424 17,852 15,077 10,423 11,624 94,774 4,035 (612) 98,197
companies and
other
･･･････････････
Net income
(loss)
attributable to 3,686 65,386 110,623 27,781 17,911 22,516 247,903 (2,463) 1,175 246,615
Mitsubishi
Corporation･･
Segment assets 805,399 1,334,536 2,826,745 1,495,464 720,080 2,238,389 9,420,613 2,619,834 (811,718) 11,228,729
･･･････
Operating 88,721 2,211,374 2,229,062 1,111,303 1,135,240 2,718,124 9,493,824 566,723 (51,473) 10,009,074
transactions ･･
Six months ended September 30, 2012
Millions of Yen
Industrial Adjustments
Finance, Energy Living
Logistics & Business Metals Machinery Chemicals Essentials Total Other and Consolidated
Development
Eliminations
Gross profit 26,450 23,322 65,529 87,710 46,379 220,428 469,818 19,465 (801) 488,482
･･････････
Equity in
earnings of
affiliated 7,474 37,917 16,251 10,884 6,857 11,713 91,096 4,565 (221) 95,440
companies and
other
･･･････････････
Net income
attributable to 9,300 93,228 13,295 34,479 13,635 23,332 187,269 2,382 767 190,418
Mitsubishi
Corporation･･
Segment assets 954,330 1,708,857 3,463,073 1,623,509 759,354 2,414,041 10,923,164 2,723,462 (1,058,024) 12,588,602
･･･････
Operating 100,613 2,343,114 1,999,797 1,139,917 1,111,910 2,662,307 9,357,658 340,037 (47,089) 9,650,606
transactions ･･
NOTE:
(1) Operating transactions, as presented above, are voluntary disclosures
solely for the convenience of investors in Japan. Operating transactions
represent the gross transaction volume or the aggregate nominal value of the
sales contracts in which the companies act as principal and transactions in
which the companies serve as agent. Operating transactions exclude the
contract value of transactions in which the companies' role is limited to that
of a broker.
(2) "Other" represents corporate departments which primarily provide services
and operational support to the Company and Affiliated companies.
This column also includes certain revenues and expenses from business
activities related to financing and human resource services that are not
allocated to reportable operating segments.
Unallocated corporate assets categorized in "Other" consist primarily of cash,
time deposits and securities for financial and investment activities.
(3) "Adjustments and Eliminations" include certain income and expense items
that are not allocated to reportable operating segments and intersegment
eliminations.
(4) The six months ended September 30, 2011 have been retrospectively adjusted
as described in 2) under "(6) Basis for Preparation of Consolidated Financial
Statements."
(5) Effective April 1, 2012, the Company transferred parts of the business of
the "Industrial Finance, Logistics & Development" and "Machinery" to "Other."
The consolidated financial position and the results of operations of related
reportable operating segments for the six months ended September 30, 2011 have
also been reclassified accordingly.
(8) Notes Concerning Major Changes in Shareholders' Equity
None
November 2, 2012
Responsibility Statement
Ryoichi Ueda, Member of the Board, Senior Executive Vice President and Chief
Financial Officer, confirms that the condensed set of financial statements
have been prepared in accordance with accounting principles generally accepted
in the United States of America and that, to the best of his knowledge, the
interim management report was prepared fairly in all material respects
including the information required by DTR 4.2.7 and DTR 4.2.8.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QLLBBLFFFFBZ -0- Nov/02/2012 07:00 GMT
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page