RNS Number:1226L
Mitsubishi Corporation
14 May 2003
MITSUBISHI CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED INCOME
FOR THE YEARS ENDED MARCH 31, 2003 AND 2002
AND
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2003
Based on US GAAP
Investor Relations Office
2-6-3 Marunouchi, Chiyoda-ku, Tokyo, JAPAN 100-8086
Phone: +81-3-3210-8580 Fax:+81-3-3210-8583
Email:ml.ir@mitsubishicorp.com
Consolidated Financial Results for the Year Ended March 31, 2003
(Based on US GAAP)
May 14, 2003
Mitsubishi Corporation
TOKYO, May 14, 2003 .. Mitsubishi Corporation announced today its consolidated
results, using accounting principles generally accepted in the United States,
for the year ended March 31, 2003.
I. Management Policies
1. Management Policies
To create new value, Mitsubishi Corporation has been implementing the following
measures in line with the MC2003 three-year plan that began in 2001. The goals
are further increasing the profitability of the Mitsubishi Corporation Group and
strengthening the management base. Mitsubishi Corporation will be stepping up
efforts in these regards during fiscal 2004, the final year of MC2003.
(1) Progress in Growth Strategies
The overall growth strategy in MC2003 consists of the following three parts.
First is the Portfolio Management Strategy. This strategy calls for the company
to aggressively reshape its portfolio of businesses with the viewpoint of
reallocating company resources and strengthen strategic business areas.
Mitsubishi Corporation has positioned energy and natural resources; project
development, including Independent Power Producer (IPP) projects and
infrastructure projects; and food distribution and other Supply Chain Management
(SCM) businesses as strategic fields. Having been started two years ago, the
Portfolio Management Strategy is making steady progress, yielding concrete
benefits in all areas of business.
In the past fiscal year, Mitsubishi Corporation leveraged its global network to
increase transactions worldwide by increasing its presence in promising
businesses. Two examples are participation in a company that will own and
operate LNG carriers for the Brunei LNG project and the establishment of an
export and sales company for pickup trucks manufactured in Thailand. Among
existing operations, Mitsubishi Corporation is altering its approach to
businesses that have reached a growth limit. Illustrating this policy was the
establishment of Metal One Corporation to integrate the steel products
operations of Mitsubishi Corporation with those of Nissho Iwai Corporation.
Mitsubishi Corporation is determined to restructure businesses to create new
value.
The second strategy is a blueprint for creating new business models and
expanding and carving out new business domains that leverage Mitsubishi
Corporation's so-called FILM functions (finance, IT, logistics and marketing) to
develop new business models and build on existing ones. During the past fiscal
year, Nippon Care Supply Co., Ltd. expanded activities in the healthcare sector
(medical care and nursing care) and the real estate investment trust business
was expanded through Japan Retail Fund Investment Corporation, a J-REIT whose
shares were listed in March 2002. The J-REIT is a new business model that is
made possible by adding financial expertise to the decades of experience in real
estate development at Mitsubishi Corporation's Development and Construction
Division.
Third is the New Technologies Strategy that aims to commercialize new business
models that draw on new technologies and other forms of intellectual property.
Mitsubishi Corporation will continue to aggressively identify businesses that
can become core sources of earnings in the future. Mitsubishi Corporation is
actively searching for new businesses that it can turn into future earnings
pillars. Strategic fields are nanotechnology, energy and the environment, life
sciences, and IT and communications. One focus is fullerenes and nanotubes,
which are grabbing the spotlight as new materials created with nanotechnology.
Mitsubishi Corporation affiliate Frontier Carbon Corporation has begun
commercial production of fullerenes. And in the past fiscal year, Mitsubishi
Corporation established a pilot company for the purpose of developing
mass-production technology and applications for double-wall nanotubes, a
material that may be used to produce next-generation field emission displays. In
this manner, Mitsubishi Corporation is making inroads in high-potential business
fields of the 21st century in many ways.
(2) Enhancing the Management System
Under MC2003, Mitsubishi Corporation introduced business units (BUs) to function
as the company's smallest unit for organizational control and earnings
responsibility. At the same time, Mitsubishi Corporation introduced a new
internal performance indicator, Mitsubishi Corporation Value Added (MCVA), which
measures whether businesses are able to cover the cost of capital associated
with a given level of risk. BUs are classified into three types: Stretch, Build
and Restructure.
- Stretch BUs aim to maintain and increase earnings by adding new functions.
- Build BUs aim to expand new business domains.
- Restructure BUs aim to drastically realign their business through downsizing,
restructuring and withdrawal from unprofitable areas.
All BUs will be assigned a clearly defined mission and MCVA is used to evaluate
their results in detail. This system is thus employed to implement the Portfolio
Management Strategy.
By firmly establishing this management cycle throughout the company, Mitsubishi
Corporation is now able to deploy resources in a bold and rapid manner to
high-potential fields of business.
(3) Corporate Governance
Within the framework of MC2003, Mitsubishi Corporation is taking measures to
improve the transparency and efficiency of its management systems. Goals are
upgrading the system for managing businesses and strengthening corporate
governance. For this purpose, the executive officer system was introduced to
clearly divide the roles and responsibilities of directors and executive
officers. Additionally, a Governance Committee and International Advisory
Committee were established to incorporate the views of prominent individuals
from outside Mitsubishi Corporation in the company's management.
In the past fiscal year, the Governance Committee met twice and the
International Advisory Committee met once. Discussions were held concerning
Mitsubishi Corporation's governance systems and management issues accompanying
the increasingly global nature of markets. Furthermore, steps are being taken to
strengthen auditing and compliance functions. Mitsubishi Corporation is
upgrading internal auditing capabilities, reports on audit plans and results are
submitted periodically to directors, and the company's policy regarding ODA
(Japanese government-supported) projects is being reviewed.
Note: Mitsubishi Corporation's Corporate Governance System
Mitsubishi Corporation has a corporate auditor system as well as a 17-member
Board of Directors that includes 14 internal directors and 3 outside directors.
There are 5 corporate auditors, 3 internal and 2 external. (There are no
significant related-party interests between Mitsubishi Corporation and any of
the external directors and corporate auditors.)
The Board of Directors is advised by the 7-member Governance Committee (composed
of 3 members from outside the company, 1 external director and 3 internal
directors) and a 9-member International Advisory Committee (composed of 6
prominent individuals from outside the company and representing different areas
of the world, 1 external director and 2 internal directors).
Oversight of the auditing function is performed by the Internal Audit Dept.,
which acts as an internal auditing body. This department is responsible for
ensuring that business activities are performed properly and efficiently.
Compliance activities are conducted by making all Mitsubishi Corporation
personnel fully aware of the Mitsubishi Corporation Code of Conduct that was
formulated in 2000 (and partially amended in 2003), and are being strengthened
by the Chief Compliance Officer and the establishment of the Compliance
Committee, which provides advice to this officer.
Through the above actions, Mitsubishi Corporation is consistently improving its
basic ability to generate earnings and its internal organization. At the same
time, Mitsubishi Corporation will continue to work on shifting to the
high-profit structure envisioned in MC2003 by concentrating on building a
sounder operating base. Actions in this regard include reducing operating
expenses on a consolidated basis, reducing the occurrence of bad debt through a
rigorous risk management program, and reviewing assets in order to utilize
Mitsubishi Corporation's resources more productively.
Operating environment of Mitsubishi Corporation is undergoing rapid and dynamic
changes. All Mitsubishi Corporation executives and employees are determined to
view change as opportunities. Brand equity, human resources, business networks
and other intangible assets will be fully utilized to bring a company that is
attractive to shareholders and other stakeholders as an organization that can
create value.
2. Basic Policy Regarding the Appropriation of Profits
Basic policy of Mitsubishi Corporation is to exceed shareholders expectations by
maintaining a stable dividend, while using retained earnings to maximize the
corporate value of the Mitsubishi Corporation.
The dividend for the time being will be set in accordance with the company's
desire to stabilize and raise the dividend. As such, Mitsubishi Corporation
plans to set the annual dividend for fiscal 2002, ended March 31, 2002, at 8 Yen
per share, the same as for the preceding fiscal year, combined with the interim
dividend of 4 Yen per share.
Mitsubishi Corporation is also working to improve its competitiveness and
increase profitability on a consolidated basis by effectively using retained
earnings for business investments, capital expenditures and other corporate
purposes.
3. Policy Regarding a Reduction of the Trading Unit
Mitsubishi Corporation considers a reduction to its trading unit as an effective
means of widening its shareholder base and improving the liquidity of its
shares. The company will examine the merits of lowering the trading unit based
on the trading volumes of its shares as well as a cost-benefit analysis.
II. Operating Results and Financial Position
1. General Operating Environment
During the fiscal year under review, the global economy was strong for much of
the year due to growth of the U.S. economy. However, global economic expansion
began to slow late in 2002.
The U.S. economy performed well during the first half of the fiscal year as
robust consumer spending for automobiles and other products offset weakness in
capital expenditures that was caused by excessive purchases of capital equipment
in the past and declining corporate earnings. However, a worsening employment
picture and growing tension over Iraq caused consumer sentiment to cool.
Economic growth began to slow late in 2002 as a result, with this trend becoming
more pronounced as the fiscal year drew to a close.
In the EU region, economic growth was minimal as exports slowed in tandem with
the growth rate of the U.S. economy.
In Asia, rising exports to the U.S. and within Asia, the primary source of
growth, coupled with higher domestic demand driven by consumer spending led to
solid economic expansion.
In Japan, the economy expanded slowly in the fiscal year's first half as exports
to the U.S. and Asia increased. However, the economy was unable to stage a
broad-based recovery due to pressure from problem loans, deflationary forces and
other internal problems. As the end of the fiscal year approached, the economic
outlook became increasingly uncertain as the U.S. economy continued to slow and
stock prices plummeted.
2. Consolidated Results (US GAAP)
(1) Summary of Fiscal 2003 Results
Operating transactions increased Y 98.0 billion, or 0.7%, to Y 13,328.7 billion,
the net result of newly consolidated Living Essentials subsidiaries and growth
in transactions of petrochemical products in Chemicals and of declines in
transactions of crude oil and petroleum products in the Energy Business and
steel products in Metals.
Gross profit rose Y 74.7 billion, or 11.6%, to Y 718.6 billion. This increase
was mainly due to strong performances by metal resource subsidiaries, growth at
Living Essentials subsidiaries in the food sector, and newly consolidated
subsidiaries that wholesale food products to convenience stores.
Selling, general and administrative expenses increased in line with the
consolidation of new subsidiaries and higher early retirement and pension
expenses at the parent company. However, provision for doubtful receivables
improved due to a decrease in provisions for large-scale doubtful receivables.
Due to these factors, operating income increased Y 32.5 billion, or 47.6%, to Y
100.6 billion, exceeding Y 100 billion for the first time in a decade.
In other income (expenses), dividends received from resource projects declined.
And there was a Y 78.1 billion negative change in net loss on marketable
securities and investments, reflecting large write-offs of available-for-sale
marketable securities and the absence of substantial gains on sales of shares
recorded in the prior fiscal year.
Income from consolidated operations before income taxes decreased Y 38.7
billion, or 38.9%, to Y 60.8 billion.
Net equity in earnings of affiliated companies surged Y 30.9 billion to Y 39.7
billion, an all-time high. One reason for the large increase was the absence of
an impairment loss on equity method goodwill in Lawson, Inc. in the prior fiscal
year. In addition, there was a recovery in earnings from automobile operations
in Asia and Europe.
Net income increased Y 1.9 billion, or 3.2%, to Y 62.3 billion, the
third-highest level ever after fiscal 2001 and fiscal 1991.
(2) Outlook for the Fiscal Year Ending March 31, 2004
Due to the consolidation of Metal One, Mitsubishi Corporation estimates that
operating transactions will increase by about Y 970.0 billion to Y 14,300.0
billion. Gross profit is expected to increase by Y 56.4 billion to Y 775.0
billion because of the inclusion of Metal One and higher earnings at a
subsidiary that rents nursing care products. Along with a projected decline in
the provision for doubtful receivables, this is expected to produce an increase
in operating income.
Net income is expected to rise to Y 100.0 billion, about Y 37.7 billion more
than in fiscal 2003 when Mitsubishi Corporation recorded a large amount of
write-offs of marketable securities.
Mitsubishi Corporation forecasts assume an exchange rate of 115 JPY to US$1, a
crude oil price of US$25.9 / BBL and an interest rate (TIBOR) of 0.10%.
Reference: Changes of basic assumptions
FY 2004 (Est.) FY 2003 (Act.) Change
Exchange rate 115 .0JPY=US$1 122.0 JPY=US$1 -7.0 JPY to US$1
Crude oil price US$24.0 / BBL US$25.9 / BBL -US$1.9 / BBL
Interest rate (TIBOR) 0.10% 0.09% +0.01%
Note: Earnings forecasts and other forward-looking statements in this release
are current views and beliefs of management in accordance with data currently
available, and are subject to a number of risks, uncertainties and other factors
that may cause actual results to differ materially from those projected.
(3) Cash Flows
Cash and cash equivalents as of March 31, 2003 were Y 348.8 billion, Y 46.4
billion, or 11.8%, less than one year earlier. Although there was an increase in
operating cash flows and proceeds from the reduction in portfolio assets by
financial subsidiaries, even more cash was used for the repayment of debt.
(Operating activities)
Net cash provided by operating activities was Y 270.3 billion, mainly a
reflection of growth in funds from trading in metal resources and food
businesses.
(Investing activities)
Net cash used in investing activities was Y 24.4 billion. Although cash was
provided by the reduction of investment assets at finance subsidiaries, a
substantial amount of cash was used overseas for the purchase of aircraft for
leasing and communications network equipment.
Free cash flows, the sum of operating and investing cash flows, was Y 245.9
billion.
(Financing activities)
Net cash used in financing activities was Y 282.7 billion. Funds were provided
by the issuance of bonds by the parent company. But cash from operating
activities and the reduction of investment assets at finance subsidiaries was
used to repay debt.
(4) Changes in Directors
As already announced.
Forward-Looking Statements
The statements included in this release contain forward-looking statements about
future plans, strategies, beliefs and performance of Mitsubishi Corporation that
are not historical facts. Such statements are based on the company 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.
# # #
For further information contact: Mitsubishi Corporation
Investor Relations Office
Phone: 81-3-3210-8580
Fax: 81-3-3210-8583
e-mail: ml.ir@mitsubishicorp.com
May 14, 2003
Mitsubishi Corporation
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED MARCH 31, 2003 (UNAUDITED)
(Mitsubishi Corporation and subsidiaries based on US GAAP)
1. Operating transactions and income
Operating Operating income Income from Net income
transactions consolidated
operations before
income taxes
For the year ended Millions of Yen Millions of Yen Millions of Yen Millions of Yen
March 31, 2003 13,328,721 100,639 60,834 60,265
March 31, 2002 13,230,675 68,189 99,519 60,318
Net income per Net income per Return on equity Pre-tax income to Pre-tax income
share share total assets ratio to total operating
(diluted basis) transactions ratio
For the year Yen Yen % % %
ended
March 31, 2003 39.76 37.26 6.3 0.7 0.5
March 31, 2002 38.50 38.50 6.0 1.2 0.8
2. Assets and shareholders' equity
Total assets Shareholders' equity Ratio of Shareholders' equity
shareholders' equity
to total assets per share
For the year Millions of Yen Millions of Yen % Yen
ended
March 31, 2003 8,097,937 937,058 11.6 598.51
March 31, 2002 8,146,262 1,029,859 12.6 657.40
3. Cash Flows
Operating activities Investing activities Financing activities Cash and cash
equivalents
end of year
For the year Millions of Yen Millions of Yen Millions of Yen Millions of Yen
ended
March 31, 2003 270,281 -24,388 -282,681 348,780
March 31, 2002 161,651 38,057 -129,620 395,227
4. Prospects for the year ending March 31, 2004
Operating Net income
transactions
For the year ending Millions of Yen Millions of Yen
March 31, 2004 14,300,000 100,000
(Forecast of Net income per share for the year ending March 31, 2004 : 63.87
Yen)
5. Number of consolidated subsidiaries : 365
Number of affiliated companies accounted for by the equity method : 162
(As written in 3-(1) of "Basis of Consolidated Financial Statements", only
companies to which consolidated accounting principles are directly applied are
accounted for as consolidated subsidiaries)
(1) The consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America
(2) Operating transactions and operating incomes, as presented above, are
voluntary disclosures solely for the convenience of Japanese investors.
Operating transactions represents 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 companiesf role is
limited to that of a broker.
Operating income reflects the companiesf (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-GAAP
measure 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.
(3) Certain restatement and reclassification for the year ended March 31, 2002
have been made to conform to presentation for March 31, 2003 see Note 2. of
"Basis of Consolidated Financial Statements".
(4) The translation of Japanese yen amounts into United States dollar amounts
with respect to the year ended March 31, 2003 are included solely for the
convenience of readers outside Japan and have been made at the rate of Y118=
USD1, the approximate rate of exchange at March 31, 2003.
Forward-looking Statements
This presentation 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
presentation.
Subsidiaries and Affiliated Companies
Mitsubishi Corporation
Mitsubishi Corporation's subsidiaries and affiliates are diverse organizations
engaged in a wide variety of activities on a global scale. We manufacture and
market a wide range of products, including fuels, metals, machinery, chemicals
and living essentials. Some of our basic functions -- information and
telecommunications, finance, logistics and retailing -- enhance the above
activities and enable us to provide comprehensive solutions to customers. We
also invest actively in energy, natural resources, project development and
information technology areas.
Mitsubishi Corporation organizes business groups according to products and
services. Business groups manage their products and services through
subsidiaries and affiliates (Subsidiaries: 921, Affiliates: 509).
The following table shows products and services by operating segment and major
subsidiaries and affiliates.
PRODUCTS OR SERVICES MAJOR SUBSIDIARIES MAJOR AFFILIATES
NEW BUSINESS IT,e-commerce, RYOKO LOGISTICS CORPORATION LAWSON, INC.
INITIATIVE Financial Services, MITSUBISHI CORPORATION FINANCE KENTUCKY FRIED CHICKEN JAPAN
(148) Logistics, PLC LTD.
Consumer Business, IT FRONTIER CORPORATION
Healthcare NIPPON CARE SUPPLY CO.,LTD
(89) (59)
IT & ELECTRONICS Telecommunication & Media MC AVIATION FINANCIAL SERVICES SPACE COMMUNICATIONS
BUSINESS business, Digital Systems & (EUROPE) B.V. CORPORATION
(62) Devices, Aerospaces JAPAN SPACE IMAGING CO., UNIDUX INC.
(35) (27)
ENERGY BUSINESS Petroleum Products, MITSUBISHI SHOJI SEKIYU JAPAN AUSTRALIA
(133) Carbon, Crude Oil, LPG, LNG CO.,LTD. LNG(MIMI)PTY.,LTD.
PETRO-DIAMOND INC. BRUNEI LNG SENDIRIAN BERHAD
DIAMOND GAS RESOURCES PTY.LTD.
(100) (33)
METALS Ferrous Products, Coals, METAL ONE CORPORATION JECO IRON ORE COMPANY OF CANADA
(274) Ore, MITSUBISHI DEVELOPMENT MOZAL S.A.R.L.
Nickel , Ferro-Alloy, PTY.,LTD.
Non-Ferrous Metals &
Minerals, Non-Ferrous Metal
Products
(193) (81)
MACHINERY Power & Electrical Systems, NIKKEN CORPORATION NORELEC DEL MITSUBISHI AUTO CREDIT-LEASE
(316) Plants, Ships, Automobiles, NORTE,S.A.DE C.V. CORP.
Industrial Machinery, TRI PETCH ISUZU SALES CO.,LTD. DIAMOND CITY CO.,LTD.
Project Development &
Construction
(203) (113)
CHEMICALS Chemical Products, MITSUBISHI SHOJI PLASTICS METANOL DE
(103) Inorganic Chemicals CORP. ORIENTE,METOR,S.A.
Products, MITENI S.P.A. EXPORTADORA DE SAL,S.A. DE
Fertilizer, Chlor-Alkali, C.V.
Functional Chemicals
(55) (48)
LIVING ESSENTIALS Foods & Food Products, RYOSHOKU LTD. COCA-COLA CENTRAL JAPAN
(296) Textiles, General TOYO REIZO CO.,LTD. CO.,LTD
Merchandise MITSUBISHI SHOJI CONSTRUCTION MITSUBISHI PAPER SALES
MATERIALS LTD. CORPORATION
PRINCES LTD.
ALPAC FOREST PRODUCTS
INCORPORATED
(169) (127)
CORPORATE STAFF Finance, Accounting, MITSUBISHI CORPORATION KOHJIN CO.,LTD.
SECTION Personnel, FINANCIAL & MANAGEMENT
(58) General affairs SERVICES(JAPAN)LTD.
(38) (20)
OVERSEAS SUBSIDIARIES Handling of a Broad
Range of Products, MITSUBISHI INTERNATIONAL
(40) similar to the Parent CORPORATION
Company in Japan MITSUBISHI CORPORATION
INTERNATIONAL N.V.
MITSUBISHI CORPORATION
(HONG KONG)LTD.
(39) (1)
Note: 1. As of April 1st,2003, Mitsubishi Corporation reclassified certain
business group. The IT & Electronics Business Group was disbandled as follows:
The IT & Electronics Business Group's Telecommunication & Broadcasting Division
will be included in the New Business Initiative Group; The Aerospace Division,
the Telecommunication & Broadcasting Division's Satellite Communications
Business Unit will be included in Machinery Group.
2. Among the above-listed subsidiaries, "Ryoshoku LTD." is listed on Tokyo
Stock Exchange (1st section). In addition, "Nitto Flour Milling CO.,LTD.",which
is not included in the above major subsidiaries, is also listed on Tokyo Stock
Exchange (1st section).
Mitsubishi Corporation and subsidiaries
STATEMENTS OF CONSOLIDATED INCOME (US GAAP)
Years ended March 31, 2003 (unaudited) and 2002
Millions of yen Millions of
U.S. dollars
2003 2002 Increase or 2003
(-)decrease
%
Operating transactions 13,328,721 13,230,675 98,046 0.7 112,955
Gross profit 718,580 643,922 74,658 11.6 6,090
Gross profit ratio 5.39 4.87
Selling, general and administrative expenses (595,392) (542,813) -52,579 9.7 (5,046)
Provision for doubtful receivables (22,549) (32,920) 10,371 - (191)
Operating income 100,639 68,189 32,450 47.6 853
Other income (expenses) :
Interest expense - net (13,984) (11,767) -2,217 18.8 (119)
Dividends 28,244 36,277 -8,033 -22.1 239
Gain (loss) on marketable securities (43,155) 34,908 -78,063 - (366)
and investments - net
Loss on property and equipment-net (5,573) (8,489) 2,916 - (47)
Other - net (5,337) (19,599) 14,262 - (44)
Other income (expenses) - net (39,805) 31,330 71,135 - (337)
Income from consolidated operations 60,834 99,519 -38,685 -38.9 516
before income taxes
Income taxes
Current (56,268) (45,542) -10,726 - (477)
Deferred 17,966 (333) 18,299 - 152
Income from consolidated operations 22,532 53,644 -31,112 -58.0 191
Minority interests in income of consolidated (8,071) (2,136) -5,935 - (68)
subsidiaries
Equity in earnings of affiliated companies-net
(less applicable income taxes) 39,704 8,810 30,894 350.7 336
Income before cumulative effect of changes in 54,165 60,318 -6,153 -10.2 459
accounting principles
Cumulative effect of a change in accounting 8,100 - 8,100 - 69
principle - net of tax
Net income 62,265 60,318 1,947 3.2 528
Note:Certain restatements and reclassifications for the year ended March 31,
2002 have been made to conform to the presentation for March 31, 2003.
See Note 2. of "Basis of Consolidated Financial Statements"
Mitsubishi Corporation and subsidiaries
CONSOLIDATED BALANCE SHEETS (US GAAP)
March 31, 2003 (unaudited) and 2002
ASSETS Millions of yen Millions of
U.S. dollars
March 31 March 31 Increase or March 31
2003 2002 (-)decrease 2003
Current assets:
Cash and cash equivalents 348,780 395,227 -46,447 2,956
Time deposits 38,069 30,590 7,479 323
Short-term investments 128,670 242,345 -113,675 1,090
Receivables-trade:
Notes and loans 514,338 483,150 31,188 4,359
Accounts 1,884,041 1,870,365 13,676 15,966
Affiliated companies 278,090 253,510 24,580 2,357
Allowance for doubtful receivables (66,506) (51,070) -15,436 (564)
Inventories 485,071 474,456 10,615 4,111
Advance payments to suppliers 138,746 133,770 4,976 1,176
Deferred income taxes 55,651 48,170 7,481 472
Other current assets 117,198 99,383 17,815 993
Total current assets 3,922,148 3,979,896 -57,748 33,239
Investments and non-current receivables:
Investments in and advances to affiliated companies 712,774 647,166 65,608 6,040
Other investments 1,189,107 1,344,930 -155,823 10,077
Non-current notes, loans and accounts 724,195 831,270 -107,075 6,137
receivable-trade
Allowance for doubtful receivables (116,085) (117,840) 1,755 (984)
Total investments and non-current receivables 2,509,991 2,705,526 -195,535 21,270
Property and equipment- Net 1,176,613 1,074,183 102,430 9,971
Other assets 489,185 386,657 102,528 4,145
Total 8,097,937 8,146,262 -48,325 68,627
Mitsubishi Corporation and subsidiaries
CONSOLIDATED BALANCE SHEETS (US GAAP)
March 31, 2003 (unaudited) and 2002
LIABILITIES AND SHAREHOLDERS' EQUITY Millions of yen Millions of
U.S. dollars
March 31 March 31 Increase or March 31
2003 2002 (-)decrease 2003
Current liabilities:
Short-term debt 572,708 681,745 -109,037 4,853
Current maturities of long-term debt 388,957 417,689 -28,732 3,296
Payables-trade:
Notes and acceptances 206,575 210,519 -3,944 1,751
Accounts 1,586,112 1,493,995 92,117 13,442
Affiliated companies 70,972 62,145 8,827 601
Advances from customers 110,814 99,829 10,985 939
Accrued income taxes 34,682 31,928 2,754 294
Other accrued expenses 90,950 95,655 -4,705 771
Other current liabilities 211,684 192,109 19,575 1,794
Total current liabilities 3,273,454 3,285,614 -12,160 27,741
Long-term debt, less current maturities 3,085,016 3,238,871 -153,855 26,144
Accrued pension and severance liabilities 215,679 104,629 111,050 1,828
Deferred income taxes 62,336 33,735 28,601 529
Other long-term liabilities 313,747 319,162 -5,415 2,659
Minority interests 210,647 134,392 76,255 1,785
Shareholders' equity:
Common stock 126,609 126,609 - 1,073
Additional paid-in capital 179,491 179,491 - 1,521
Retained earnings:
Appropriated for legal reserve 35,550 35,524 26 301
Unappropriated 872,939 823,236 49,703 7,398
Accumulated other comprehensive income (loss):
Net unrealized gains on securities available for 54,745 79,261 -24,516 464
sale
Net unrealized losses on derivatives (10,000) (6,145) -3,855 (85)
Minimum pension liability adjustments (148,126) (78,623) -69,503 (1,255)
Foreign currency translation adjustments (173,401) (129,390) -44,011 (1,470)
Less treasury stock (749) (104) -645 (6)
Total shareholders' equity 937,058 1,029,859 -92,801 7,941
Total 8,097,937 8,146,262 -48,325 68,627
Note: Certain restatements and reclassifications for the year ended March 31,
2002 have been made to conform to the presentation for March 31, 2003. See Note
2. of "Basis of Consolidated Financial Statements".
Mitsubishi Corporation and subsidiaries
Statements of Consolidated Shareholders' Equity and
Comprehensive Income
Years ended March 31, 2003 (unaudited) and 2002
Millions of yen Millions of U.S.
dollars
2003 2002 2003
Apr. 2002 - Mar. Apr. 2001 - Mar. Apr. 2002 - Mar. 2003
2003 2002
Shareholders' Equity
Common stock
Balance, beginning and end of year 126,609 126,609 1,073
Additional paid-in capital
Balance, beginning and end of year 179,491 179,491 1,521
Retained earnings appropriated for legal
reserve:
Balance, beginning of year 35,524 35,220 301
Transfer from unappropriated retained earnings 26 304 0
Balance, end of year 35,550 35,524 301
Unappropriated retained earnings:
Balance, beginning of year 823,236 775,759 6,976
Net income 62,265 60,318 528
Total 885,501 836,077 7,504
Deduct:
Cash dividends paid (12,536) (12,537) (106)
Transfer to retained earnings appropriated for
legal reserve (26) (304) 0
Total (12,562) (12,841) (106)
Balance, end of year 872,939 823,236 7,398
Accumulated other comprehensive loss (net of
tax):
Balance, beginning of year (134,897) (146,664) (1,143)
Other comprehensive income (loss) (141,885) 11,767 (1,203)
Balance, end of year (276,782) (134,897) (2,346)
Treasury stock:
Balance, beginning of year (104) (3) (1)
Purchases-net (645) (101) (5)
Balance, end of year (749) (104) (6)
Statements of Consolidated Comprehensive Income(Loss)
Years ended March 31, 2003 (unaudited) and 2002
Millions of yen Millions of U.S.
dollars
2003 2002 2003
Apr. 2002 - Mar. Apr. 2001 - Mar. Apr. 2002 - Mar. 2003
2003 2002
Comprehensive Income (Loss)
Net income 62,265 60,318 528
Other comprehensive income (loss):
Unrealized gains on securities available for (24,516) (43,291) (208)
sale
Unrealized losses on derivative instruments (3,855) (6,145) (33)
Minimum pension liability adjustments (69,503) (12,987) (589)
Foreign currency translation adjustments (44,011) 74,190 (373)
Other comprehensive income (loss) (141,885) 11,767 (1,203)
Comprehensive Income(Loss) (79,620) 72,085 (675)
NOTE: (1)Dividends and appropriations for legal reserve shown for each year
represent dividends paid out during the year and the appropriation for legal
reserve made in relation to the respective dividends.
(2)Certain restatements and reclassifications for the year ended March 31, 2002
have been made to conform to the presentation for March 31, 2003. See Note ,Q.
of "Basis of Consolidated Financial Statements".
Mitsubishi Corporation and subsidiaries
STATEMENTS OF CASH FLOWS (US GAAP)
Years ended March 31, 2003 (unaudited) and 2002
Millions of Millions of Millions of
Yen Yen U.S. Dollars
2003 2002 2003
I. Operating activities:
Net income 62,265 60,318 528
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 103,094 90,286 874
Provision for doubtful receivables 22,549 32,920 191
(Gain) loss on marketable securities and investments - 43,155 (34,908) 366
net
Loss on property and equipment - net 5,573 8,489 47
Equity in earnings of affiliated companies, less (17,718) 7,797 (150)
dividends received
Deferred income taxes (17,966) 333 (152)
Cumulative effect of a change in accounting (8,100) - (69)
principle-net of tax
Changes in operating assets and liabilities:
Short-term investments -trading securities (4,942) 17,675 (42)
Notes and accounts receivable - trade 115,342 101,465 978
Inventories 3,097 27,394 26
Notes, acceptances and accounts payable - trade (116,593) (210,384) (988)
Other - net 80,525 60,266 682
Net cash provided by operating activities 270,281 161,651 2,291
II. Investing activities:
Expenditures for property and equipment and other (133,772) (112,474) (1,134)
assets
Net decrease in investments 58,464 50,840 495
Net decrease in loans receivable 69,499 66,194 589
Net decrease (increase) in time deposits (18,579) 33,497 (157)
Net cash provided by (used in) investing activities (24,388) 38,057 (207)
III. Financing activities:
Net decrease in short-term debt (171,319) (228,456) (1,452)
Net increase (decrease) in long-term debt (98,826) 111,373 (838)
Payment of dividends (12,536) (12,537) (106)
Net cash used in financing activities (282,681) (129,620) (2,396)
IV. Effect of exchange rate changes on cash and cash (9,659) 10,259 (82)
equivalents
V. Net increase (decrease) in cash and cash equivalents (46,447) 80,347 (394)
VI. Cash and cash equivalents, beginning of year 395,227 314,880 3,350
VII. Cash and cash equivalents, end of year 348,780 395,227 2,956
Note: Certain restatements and reclassifications for the year ended March 31,
2002 have been made to conform to the presentation for March 31, 2003. See Note
2. of "Basis of Consolidated Financial Statements".
Basis of Consolidated Financial Statements
1. Basic Accounting Policies
The accompanying consolidated financial statements of Mitsubishi Corporation
(the Company) and its subsidiaries (collectively, the companies) have been
prepared in accordance with accounting principles generally accepted in the
United States of America (U.S. GAAP). However, geographic segment information is
presented in the form of Japanese accounting principles.
The principle differences between U.S. and Japanese accounting standards
applicable to the companies relate to the followings:
(1) Valuation of investments
(2) Valuation of long-lived assets (Impaired assets are written down to
estimated fair value for U.S. GAAP)
(3) Deferral of gain on sales of properties for tax purpose (Not permitted under
U.S. GAAP)
(4) Derivative instruments and hedge accounting
(5) Pension and retirement benefit accounting (Unfunded obligations are
recognized as liabilities and other comprehensive income (loss) for U.S. GAAP)
(6) Business combinations and Goodwill and other intangible assets accounting
2. Restatement of Prior Year's Consolidated Financial Statements
During the year ended March 31, 2003, the companies acquired additional
investment in a cost method investee. The companies investment in the investee,
results of operations and retained earnings were retroactively restated in
accordance with Accounting Principles Board Opinion No. 18 The Equity Method of
Accounting for Investment in Common Stock, to account for the companies
ownership interest in the investee under the equity method. As a result, the
companies retroactively restated the consolidated statement of income,
consolidated balance sheets, statement of consolidated comprehensive income,
statement of consolidated cash flows, segment information, and fair value
information of investments for 2002.
The previously reported amounts, adjustments and the restated amounts for
consolidated net income, shareholders equity and total assets as of and for the
year ended March 31, 2002 are as follows:
(Millions of Yen)
As Previously Reported Adjustments As Restated
Net income 60,225 93 60,318
Total shareholders' equity 1,028,523 1,336 1,029,859
Total assets 8,144,926 1,336 8,146,262
3. Scope of Consolidation and Application of the Equity Method
(1) Number of consolidated subsidiaries and equity-method affiliates
As of Mar.31, 2003 As of Mar.31, 2002 Change
Consolidated subsidiaries 365 387 -22
Equity-method affiliates 162 177 -15
Total 527 564 -37
Note: The numbers of consolidated subsidiaries stated above represent companies,
which the parent company directly consolidates or applies equity method. To
conform to the presentation as of March 31, 2003, the previously reported number
of consolidated subsidiaries as of March 31, 2002 was restated resulting in a
decrease in consolidated subsidiaries by 187 and a decrease in equity-method
affiliates by 29, totaling 216 companies. As for the numbers as of March 31,
2003, the change of presentation decreased the number of consolidated
subsidiaries and equity method affiliates by 356 companies in total.
(2) Changes in scope of consolidation and application of the equity method
(Consolidated subsidiaries)
New: MC AVIATION FINANCIAL SERVICES (EUROPE), METAL ONE CORPORATION,
HERNIC FERROCHROME (PTY) LIMITED, ISUZU OPERATIONS (THAILAND),
FOOD SERVICE NETWORK CO., LTD and others
Excluded: BEL TRAMP SHIPPING S.A., RINORU OIL MILLS CO., LTD.,
(Transferred to Equity-method affiliates)
SANRIKU MOKUZAI KOGYO and others
(Equity-method affiliates)
New: LAWSON CS CARD, INC., BRUNEI SHELL TANKERS, FRONTIER CARBON CORPORATION and
others
The change in the number of consolidated subsidiaries and equity-method
affiliates includes 47 subsidiaries and affiliates that the Company ceased to
directly consolidate due to transfer of steel products subsidiaries and
affiliates to Metal One Corporation, a new subsidiary established through the
integration of steel products operations with Nissho Iwai Corporation.
3. Application of New Accounting Standards
Effective April 1, 2002, the companies adopted Statement of Financial Accounting
Standards (SFAS) No. 141 (SFAS 141) Business Combinations and SFAS No. 142 (SFAS
142) Goodwill and Other Intangible Assets. SFAS 141 prohibits the use of the
pooling-of-interest method, and all business combinations are required to be
accounted for under the purchase method. SFAS 142 addresses the accounting for
acquired goodwill and other intangible assets.
Upon the adoption of SFAS 142, the companies determined that goodwill,
intangible assets with indefinite useful lives and equity method goodwill are no
longer amortized, but are tested for impairment at least annually or more
frequently if events or changes in circumstances indicate that the asset might
be impaired. As a result, the companies net income for the year ended March 31,
2003 increased by approximately Y10.3 billion (USD 87 million). In addition, as
a result of the companies impairment testing required by SFAS 142, a goodwill
impairment loss of Y0.5 billion (USD 4 million) was recognized in the first
quarter of the year ended March 31, 2003, and unamortized negative goodwill and
equity-method goodwill of approximately Y8.6 billion (USD 73 million) were
recognized as required by SFAS 141. Approximately Y8.1 billion (USD 69
million) in total were included in Cumulative effect of change in accounting
principles.
Effective April 1, 2002, the companies adopted SFAS No. 144 (SFAS144),
Accounting for the Impairment or Disposal of Long-Lived Assets. SFAS 144
supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to Be Disposed Of, and requires that long-lived assets be
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. Where the impairment test
indicates that an assets estimated undiscounted cash flows are less than its
carrying amount, an impairment loss is required to be recognized on the market
value or fair value of the asset. The adoption of SFAS 144 did not have a
material impact on the companies results of operations and financial position.
Effective January 1, 2003, the companies adopted SFAS No. 146 (SFAS 146),
"Accounting for Costs Associated with Exit or Disposal Activities. SFAS 146
addresses the accounting rules for costs associated with exit and disposal
activities on or after January 1, 2003. It requires that liabilities for such
costs be recognized at fair value when incurred. The adoption of SFAS 146 did
not have a material impact on the companiesf results of operations and financial
position.
In November 2002, the FASB issued Interpretation No. 45 (FIN 45), Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others. FIN 45 addresses the disclosure
requirements associated with obligations for certain guarantees and is
applicable to such guarantees issued or modified on or after January 1, 2003.
The Interpretation requires that a liability be recognized for the fair value of
the guarantee obligation. The adoption of this interpretation did not have a
material impact on the companiesf results of operations and financial position.
In January 2003, the FASB issued FIN No. 46 (FIN 46), Consolidation of Variable
Interest Entities. FIN 46 requires primary beneficiaries to consolidate variable
interest entities (VIEs). This interpretation is effective from January 1, 2003
for all new VIEs created or acquired on or after February 1, 2003. For VIEs
created or acquired prior to February 1, 2003, the provisions of FIN 46 become
effective for the companies during the second quarter of the fiscal year ending
March 31, 2004. The adoption of this interpretation did not have an impact on
the companiesf results of operations and financial position because there were
no VIEs created or acquired on or after February 1, 2003. The companies are
presently determining the impact for VIEs created or acquired prior to February
1, 2003.
4. Contingent Liabilities
The Company and/or a U.S. subsidiary have been named as a defendant in several
lawsuits in the U.S. and Canada by graphite electrode users and also as a
defendant in a lawsuit by UCAR International Inc. (UCAR, now known as GrafTech
International Ltd.), a graphite electrode manufacturer in connection with the
sales and marketing of graphite electrodes.
Four of the lawsuits brought by graphite electrode users have been resolved
between the parties, and one reached a settlement, which is subject to the
approval of the court, while three others remain active.
The lawsuits brought by graphite electrode users, that remain active do not
specify the amount of damages that are sought. UCAR is seeking damages in the
amount of $406 million and other unspecified damages, plus interest.
It is not possible for the Company to predict at this time what, if any,
liability the company may sustain on account of these lawsuits.
Mitsubishi Corporation and subsidiaries
SEGMENT INFORMATION (US GAAP)
Years ended March 31, 2003 (unaudited) and 2002
OPERATING SEGMENT INFORMATION
The companies' operating segment information at and for the years ended March
31, 2003 and 2002 is as follows:
Year ended March 31, 2003
Millions of yen
New Busi IT & Energy Metals Mach Chemicals Living Total Other Adjust Consoli
ness Elec Bus inery ments dated
Initia tronics iness Essen and
tive Bus tials Elimina
iness tions
Oper
ating
trans
actions:
Exter 208,728 306,251 3,267,853 1,740,961 2,237,000 1,443,903 4,167,057 13,371,753 48,243 (91,275) 13,328,721
nal
custo
mers
Inter 8,406 788 41,762 5,650 12,982 2,974 5,430 77,992 3,492 (81,484)
seg
ment
Total 217,134 307,039 3,309,615 1,746,611 2,249,982 1,446,877 4,172,487 13,449,745 51,735 (172,759) 13,328,721
Gross 38,424 22,264 54,658 121,561 123,192 64,922 282,490 707,511 8,695 2,374 718,580
profit
Opera (6,639) 5,582 10,338 45,921 24,984 20,403 61,211 161,800 (46,098) (15,063) 100,639
ting
in
come
(loss)
Net in (5,251) (540) 23,955 23,929 19,666 10,479 34,129 106,367 (11,302) (32,800) 62,265
come
(loss)
Seg 933,764 296,021 841,601 1,498,040 1,789,381 595,230 1,459,156 7,413,193 955,544 (270,800) 8,097,937
ment
assets
Deprec 10,667 8,085 9,305 16,654 24,288 5,113 15,883 89,995 12,008 1,091 103,094
iation
and
amorti
zation
Capital 11,209 32,907 9,062 24,728 30,992 7,210 20,434 136,542 4,644 141,186
expen
ditures
for
long-
lived
assets
Millions of U.S. dollars
New Bus IT & Energy Metals Mach Chemicals Living Total Other Adjust Consoli
iness Elec Bus inery ments dated
Ini tronics iness Essen and
tiative Bus tials Elimina
iness tions
Oper
ating
trans
actions:
Exter 1,769 2,595 27,693 14,754 18,958 12,237 35,314 113,320 409 (774) 112,955
nal
cus
tomers
Inter 71 7 354 48 110 25 46 661 29 (690)
seg
ment
Total 1,840 2,602 28,047 14,802 19,068 12,262 35,360 113,981 438 (1,464) 112,955
Gross 326 189 463 1,030 1,044 550 2,394 5,996 74 20 6,090
profit
Oper (56) 47 87 389 212 173 519 1,371 (391) (127) 853
ating
income
(loss)
Net (45) (5) 203 203 167 89 289 901 (96) (277) 528
income
(loss)
Seg 7,913 2,509 7,132 12,695 15,164 5,045 12,366 62,824 8,098 (2,295) 68,627
ment
assets
Depre 90 69 79 141 206 43 135 763 102 9 874
ciation
and
amorti
zation
Capital 95 279 77 209 263 61 173 1,157 39 1,196
expen
ditures
for
long-
lived
assets
Year ended March 31, 2002
Millions of yen
New IT & Energy Metals Mach Chemicals Living Total Other Adjust Consoli
Bus Elec Bus inery Essen ments dated
iness tronics iness tials and
Ini Bus Elimi
tiative iness nations
Operating
transactions:
External 163,333 428,435 3,436,847 1,962,462 2,147,173 1,298,371 3,777,821 13,214,442 31,694 (15,461) 13,230,675
customers
Inter 5,853 1,889 36,527 4,545 11,356 2,108 3,271 65,549 724 (66,273)
segment
Total 169,186 430,324 3,473,374 1,967,007 2,158,529 1,300,479 3,781,092 13,279,991 32,418 (81,734) 13,230,675
Gross 30,954 30,095 49,932 106,553 122,829 50,139 239,227 629,729 12,144 2,049 643,922
profit
Operating (10,076) 8,690 3,898 27,065 23,746 9,903 51,311 114,537 (29,701) (16,647) 68,189
income
(loss)
Net (20,290) 8,671 21,717 13,856 12,201 6,545 29,266 71,966 (9,502) (2,146) 60,318
income
(loss)
Segment 1,047,290 311,521 834,524 1,211,116 1,950,836 554,036 1,463,152 7,372,475 971,769 (197,982) 8,146,262
assets
Depre 9,958 8,298 9,201 13,097 17,701 2,480 15,602 76,337 5,076 8,873 90,286
ciation
and
amorti
zation
Capital 15,938 1,016 8,070 11,671 64,530 10,253 16,211 127,689 8,498 10,513 146,700
expendi
tures
for
long-
lived
assets
1. The segment information has been prepared in accordance with accounting
principles generally accepted in Japan (Japanese GAAP).
2. "Adjustment or Eliminations" includes certain adjustments and
reclassifications (which have been incorporated in the accompanying consolidated
financial statements) to conform with U.S. GAAP along with certain income and
expense items that are not allocated to reportable operating segments and
intersegment eliminations.
3. "Other"reperesents the Corporate Staff Section which primarily provide
services and operational support to the companies and affiliates.
This column also includes certain revenue 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" were Y 955,544 million (USD 8,098 million) and Y 971,769 million at
March 31, 2003 and 2002 respectively, which consist primarily of cash, time
deposits and securities for financial and investment activities.
4. Certain restatements and reclassifications for the year ended March 31,
2002 have been made to conform to the presentation for March 31, 2003. See Note
2.of "Basis of Consolidated Financial Statements".
Mitsubishi Corporation and subsidiaries
SEGMENT INFORMATION (US GAAP)
Years ended March 31, 2003 (unaudited) and 2002
GEOGRAPHIC SEGMENT INFORMATION
The companies' segment information by geographic areas at and for the years
ended March 31, 2003 and 2002 is as follows:
Year ended March 31, 2003
Millions of yen
Japan North Europe Asia, Other areas Eliminations Consolidated
America Oceania or
Unallocated
Operating
transactions:
External 11,424,676 638,811 422,684 691,381 151,169 - 13,328,721
customers
Intersegment 422,455 543,268 86,083 233,510 53,715 (1,339,031) -
Total 11,847,131 1,182,079 508,767 924,891 204,884 (1,339,031) 13,328,721
Operating 11,832,021 1,177,002 498,397 861,889 197,010 (1,338,237) 13,228,082
expenses
Operating income 15,110 5,077 10,370 63,002 7,874 (794) 100,639
Segment assets 6,015,403 480,719 644,099 754,333 503,229 (299,846) 8,097,937
Millions of U.S. dollars
Japan North Europe Asia, Other areas Eliminations Consolidated
America Oceania or
Unallocated
Operating
transactions:
External 96,819 5,414 3,582 5,859 1,281 - 112,955
customers
Intersegment 3,580 4,604 730 1,979 455 (11,348) -
Total 100,399 10,018 4,312 7,838 1,736 (11,348) 112,955
Operating 100,271 9,975 4,224 7,304 1,669 (11,341) 112,102
expenses
Operating income 128 43 88 534 67 (7) 853
Segment assets 50,978 4,074 5,458 6,393 4,265 (2,541) 68,627
Year ended March 31, 2002
Millions of yen
Japan North Europe Asia, Other areas Eliminations Consolidated
America Oceania or
Unallocated
Operating
transactions:
External 11,148,925 691,933 395,323 745,945 248,549 - 13,230,675
customers
Intersegment 462,884 547,431 95,928 271,519 174,123 (1,551,885) -
Total 11,611,809 1,239,364 491,251 1,017,464 422,672 (1,551,885) 13,230,675
Operating 11,599,124 1,240,552 486,174 978,160 411,636 (1,553,160) 13,162,486
expenses
Operating income 12,685 (1,188) 5,077 39,304 11,036 1,275 68,189
Segment assets 5,846,906 599,261 769,174 706,394 558,428 (333,901) 8,146,262
1. The Geographic segment information is presented in accordance with Japanese
Securities and Exchange Act.
2. The Geographic areas were classified by geographic proximity.
3. Main countries or areas included in each geographic segments;
North America: U.S.A., Canada
Europe: United Kingdom, Germany
Asia, Oceania: Hong Kong, Thailand, Australia
Other areas: Central and South America, Africa
4. The amounts of unallocated common assets in the column of "Eliminations and
Unallocated" were Y 712,774 million (USD 6,040 million) and Y 644,065 million as
of March 31, 2003 and 2002, respectively, which consist of investments in and
advances to affiliates.
5. Certain restatements and reclassifications for the year ended March 31,
2002 have been made to conform to the presentation for March 31, 2003. See Note
2. of "Basis of Consolidated Financial Statements".
Mitsubishi Corporation and subsidiaries
FAIR VALUE IMFORMATION OF INVESTMENTS (US GAAP)
Pursuant to SFAS NO.115, substantially all of the companies' marketable equity
securities and debt securities, principally corporate bonds and commercial
paper, were classified as available-for-sale or held-to-maturity securities,
except for certain items categorized as trading securities. Fair value
information regarding each category of the securities classified as trading,
available-for-sale and held-to-maturity at March 31, 2003 and 2002, including
securities of which certain of the companies are the beneficial owners under
trust agreements with trust companies, is as follows.
March 31, 2003
Millions of Yen
Cost Unrealized Unrealized Fair
Gains Losses Value
Trading 44,565
Available-for-sale
Equity securities 340,648 153,064 (10,407) 483,305
Debt securities 252,488 0 (3,430) 249,058
Held-to-maturity 168,439 902 (764) 168,577
March 31, 2002
Millions of Yen
Cost Unrealized Unrealized Fair
Gains Losses Value
Trading 36,204
Available-for-sale
Equity securities 399,276 213,775 (31,403) 581,648
Debt securities 345,249 79 (1) 345,327
Held-to-maturity 245,129 6,012 (1,237) 249,904
March 31, 2003
Millions of U.S.Dollars
Cost Unrealized Unrealized Fair
Gains Losses Value
Trading 378
Available-for-sale
Equity securities 2,887 1,297 (88) 4,096
Debt securities 2,139 0 (29) 2,110
Held-to-maturity 1,427 8 (6) 1,429
The changes in net unrealized holding gains and losses on trading securities
that were included in earnings were losses of Y1,039 million (USD9 million), and
gains of Y 120 million for the years ended March 31, 2003 and 2002,
respectively.
"Other investments" include investments in non-traded and unaffiliated companies
and non-current time deposits amounting to Y372,410 million(USD3,156million) and
Y378,967 million at March 31, 2003 and 2002 respectively.
Note:Certain restatements and reclassifications for the year ended March 31,
2002 have been made to conform to the presentation for March 31, 2003. See Note
2. of "Basis of Consolidated Financial Statements".
(For Reference:Fair value of marketable securities regarding subsidiaries and
affiliated companies held by the parent company)
(as of March 31, 2003)
Millions of Yen Millions of U.S.Dollars
Cost Fair Difference Cost Fair Difference
value value
Subsidiaries 12,592 76,159 63,567 107 646 539
Affiliated 44,358 100,193 55,835 376 849 473
Total 56,950 176,352 119,402 483 1,495 1,012
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFAFILSDSELI