ResultsResults forfor thethe NineNine MonthsMonths EndedEnded DecemberDecember 20102010
February 2, 2011 Mitsubishi Corporation
© 2011 Mitsubishi Corporation Change in Accumulated Quarterly Net Income (Loss) by Operating Segment
Net Income/loss (Year Ending March 2011) （billion yen） 450 400.0400.0 billionbillion yenyen -Resource-related Total （Energy Business, Metals）
400 -Non-Resource-related Total （Industrial Finance, Logistics & Development, 359.7359.7 billionbillion yenyen Machinery, Chemicals, Living Essentials） 85.0
350 73.2 Energy Business
300 267.8267.8 billionbillion yenyen Metals 305.0 250 55.8 220.0 261.5 Industrial Finance, 188.3 Logistics & 200 Development Machinery 140.4140.4 billionbillion yenyen 203.2 150 147.4 26.3 Chemicals 9.0 8.5 100 49.0 82.1 108.4 44.4 Living Essentials 123.5 3.6 111.7 50 27.2 21.4 22.0 1.0 16.4 13.2 44.0 Adjustments and 7.7 33.9 65.3 36.9 Eliminations 8.8 21.3 0 (0.7) (13.5) (1.9) (28.5)
(50) Three months ended Six months ended Nine months ended Forecast for year ending June 2010 September 2010 December 2010 March 2011 2 Change in Quarterly Net Income (Loss) by Operating Segment (Year Ending March 2011) Net Income/loss （billion yen） -Resource-related Total （Energy Business, Metals） 200 -Non-Resource-related Total （Industrial Finance, Logistics & Development, Machinery, Chemicals, Living Essentials） Energy Business 140.4140.4 billionbillion yenyen 150 127.4127.4 billionbillion yenyen Metals 26.3 91.991.9 billionbillion yenyen Industrial Finance, 29.5 Logistics & Development 100 17.4 Machinery
82.1 108.4 94.8 58.3 65.3 40.9 Chemicals 50 40.340.3 billionbillion yenyen 5.4 Living Essentials 1.0 2.6 17.2 16.4 10.8 33.9 31.4 8.2 46.4 40.3 7.7 5.5 Adjustments and 8.8 12.5 15.6 Eliminations 0 (1.9) 1.2 (12.8)
Three months Three months Three months Forecast for three ended June 2010 ended September 2010 ended December 2010 months ending March 2011 (50) 3 Market Prices Commodity Prices, Foreign Exchange and Interest Rate Sensitivities
Forecast for Three months Increase or six months ended decrease ending Dec. 2010 Net Income Sensitivities March 2011(*1) (a) (b) (b)-(a)
Foreign Exchange Appreciation (depreciation) of 1 yen per US$1 has a 2.1 billion yen negative (positive) 80.0 82.7 2.7 (YEN/$) impact for full year. Yen Interest(%) 0.40 0.34 (0.06) TIBOR The effect of rising interest rates is mostly offset by an increase in operating and investment profits. However, a rapid rise in interest rates can cause a temporary negative US$ Interest(%) 0.70 0.29 (0.41) effect. LIBOR Crude Oil Prices($/BBL) 75.0 84.3 9.3 US$1 rise (decline) per barrel increases (reduces) full-year earnings by 1.0 billion yen. (Dubai) US$100 rise (decline) per MT increases (reduces) full-year earnings by 0.5 billion yen. Besides copper price fluctuations, other variables such as the grade of mined ore, the Copper 6,834 8,638 1,804 status of production operations, and reinvestment plans (capital expenditures) affect ($/MT) earnings from copper mines as well. Therefore, the impact on earnings cannot be determined by the copper price alone. Aluminum 2,100 2,345 245 US$100 rise (decline) per MT increases (reduces) full-year earnings by 1.0 billion yen. ($/MT)
(*1) Assumptions for projected net income of 400.0 billion yen announced on Oct. 29, 2010 Share Price Sensitivities (Write-downs of Marketable Securities (Available for Sale))
Write-downs (after-tax) Nikkei Average at Fiscal Term-end
Nine months ended -8.0 billion yen 10,229 yen （December 31, 2010） December 2010 The calculation of write-downs assumes a Nikkei Average of Amount included in forecasts -9.0 billion yen around 9,000 yen at the fiscal year-end.
Forward-looking Statements Earnings forecasts and other forward-looking statements in this release are management’s current views and beliefs 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. 4 Shareholders’ Equity and Interest-Bearing Liabilities
(Billion yen) (x) 4,000.0 3.0 MainMain ReasonsReasons forfor ChangesChanges inin 3,551.2 TotalTotal Shareholders’Shareholders’ EquityEquity (Compared(Compared toto MarchMarch 31,31, 2010)2010) 3,067.2 3,149.3 2,955.2 2,961.4 2,930.2 2,905.0 1.1. NetNet incomeincome (359.7(359.7 billionbillion yen)yen) 3,000.0
2,383.4 2.0 2.2. PaymentPayment ofof dividendsdividends (-77.3(-77.3 billionbillion yen)yen)
3.3. NetNet unrealizedunrealized gainsgains onon securitiessecurities availableavailable forfor salesale 2,000.0 1.5 werewere unchanged.unchanged.
4.4. DeteriorationDeterioration inin foreignforeign currencycurrency translationtranslation 1.0 1.0 adjustments (-112.3 billion yen) 0.9 1.0 adjustments (-112.3 billion yen) 1,000.0 …impact…impact ofof yen’syen’s appreciationappreciation againstagainst thethe USUS dollar,dollar, etc.etc.
0.0 0.0 Mar. 31, 2009 Mar. 31, 2010 Sept. 30, 2010 Dec. 31, 2010
Interest-bearing liabilities (net) Total shareholders' equity Debt-to-equity ratio (net) Effect of Currency on Foreign Currency Translation Adjustments
Effect of foreign Dec. 31, Sept. 30, Mar . 31, (Ref.) Dec. currency translation Currency 2010 rate2010 rate2010 rate 31, 2009 adjustments (Estimate, billion yen) (Yen) (Yen) (Yen) rate (Yen)
US$ (60.0) 81.49 83.82 93.04 92.10
AUS$ (10.0) 83.13 81.45 85.28 82.28
Eur o (15.0) 107.90 114.24 124.92 132.00
British Pound (10.0) 126.48 132.67 140.40 146.53
Thai Baht (10.0) 2.70 2.76 2.87 2.76 5 Investment Progress
（unit: billion yen）
Nine Months Ended Capital Allocation Three Months Ended December 2010 Regions/Domains December 2010 （three years） New Investments New Investments
Strategic Regions China, India, Brazil －
Infrastructure Strategic Domains Global Environmental Approx. 300 Water business in Australia, etc. 15 27 Businesses
Coking Coal/Thermal Coal Business Mineral Resources Approx. 100 in Australia, etc. － － 20 125 1,000-1,200 ～200 (*) (*) Oil and Gas Resources
Industrial Finance, Steel products, 600 Aircraft for leasing and Carbon Materials, Ships, Motor Vehicles, 35 118 ～800 ship-related operations, etc. Chemicals, Retail, Foods, etc.
Total （gross） 2,000～2,500 70 270
(*) ･･･less than 10 billion yen
6 AppendixAppendix
7 Industrial Finance, Logistics & Development Segment
Consolidated net income (Billion yen)
Three months ended June 30 Three months ended September 30 Three months ended December 31 Three months ended March 31 50.0
Equity in earnings of affiliated 2.2 7.4 － companies
Consolidated net income (7.7) 9.0 8.5
Segment assets 819.0 794.5 － 8 Energy Business Segment
Crude Oil (Dubai) Consolidated net income (US＄/BBL) Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. (Billion yen) Year ended March 2007 64.8 65.9 57.3 55.4 Three months ended June 30 Three months ended September 30 Year ended March 2008 64.8 70.1 83.2 91.4 Three months ended December 31 Three months ended March 31 Year ended March 2009 116.9 113.4 52.6 44.2 120 Forecast for three months ending March 31 Year ended March 31 Year ended March 2010 59.1 67.9 75.4 75.8 Year ending March 2011 78.1 73.9 84.3 － 100 94.2 82.8 85.0
Gross profit 28.9 35.8 36.0
Operating income (0.9) 5.9 －
Consolidated net income
Gross profit 171.2 275.2 378.0
Operating income 75.8 168.2 － ¾The achievement rate for the first nine months of the year ending March 2011 was 86% relative to the 220.0 billion yen full-year forecast. This reflected mainly gains on Equity in earnings of affiliated a share transfer at a Chilean iron ore-related subsidiary and higher equity-method companies 0.6 24.3 － earnings of related business investees, as well as higher sales volumes and sales prices at an Australian resource-related subsidiary (coking coal). Consolidated net income 84.7 188.3 220.0
Segment assets 2,960.3 3,188.7 － 10 Machinery Segment
Consolidated net income (Billion yen)
Three months ended June 30 Three months ended September 30
Gross profit 112.2 133.4 175.0
Operating income 28.6 49.8 －
Equity in earnings of affiliated 7.4 14.7 － companies
Consolidated net income 24.8 44.4 49.0 Segment assets 1,885.9 1,808.5 － 11 Chemicals Segment
Consolidated net income (Billion yen)
Three months ended June 30 Three months ended September 30 Three months ended December 31 Three months ended March 31
Equity in earnings of affiliated 13.9 9.7 － companies
Consolidated net income 25.7 21.4 22.0
Segment assets 719.1 699.8 － 12 Living Essentials Segment
Consolidated net income (Billion yen)
Three months ended June 30 Three months ended September 30
Gross profit 336.6 331.9 467.0
Operating income 41.3 45.9 －
Equity in earnings of affiliated 16.4 19.5 － companies
Consolidated net income 32.5 36.9 44.0 Segment assets 2,329.7 2,318.6 － 13 Global Resources-Related Businesses Imports to Japan and MC’s Share
Energy Resources *MC’s share includes imports where MC’s only involvement is trading.
LNG Iron Ore MC 6%
MC 66.4 40% 105 Mil. Ton Others Mil. Ton 60% Others 94% (Year ended （Year ended March 2010) December 2009）
Coal （Coking Coal） Copper MC18% MC 37% 49 1.4 Mil. Ton Metals Resources Mil. Ton Others Others 63% 82% （Year ended （Year ended December 2009） December 2009）
Coal （Thermal Coal） Aluminum MC MC 15% 15%
1.7 107 Mil. Ton Mil. Ton Others 85% Others 85% （Year ended （Year ended December 2009） December 2009） 14 Energy Resources Business （Million Ton / Year） Equity Share of LNG Production Tangguh* 8 7.05 7.05 Sakhalin II* 7 Qalhat (Oman） 6 5.34 4.97 4.97 5 4.71 4.85 Oman 4 North West Shelf*
3 Malaysia III*
2 Malaysia II
1 Malaysia I 0 Brunei December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2004 2005 2006 2007 2008 2009 2010 *Owns upstream working interest
Crude Equity Share of Oil and Gas Production (Yearly Average)* oil/condensate Equity Share of Production Natural gas Crude oil /condensate Dubai price Price (Thousand BBL/Day) (US$/BBL) 0.26 billion 160 140 barrels 130 140 120 116 110 120 100 90 100 90 Natural gas 84 82 84 49 80 80 76 70 0.99 billion 48 42 60 barrels 60 49 45 40 50 barrels 40 40 67 30 20 35 37 36 41 42 20 10 0 0 Year ended Dec. 31, Year ended Dec. 31, Year ended Dec. 31, Year ended Dec. 31, Year ended Dec. 31, Year ended Dec. 31, Year ending Dec. 31, 2004 2005 2006 2007 2008 2009 2010 (Est.) MC’s reserves Total 1.25 billion barrels*, ** * Oil equivalent. Includes consolidated subsidiaries and equity-method affiliates (As of December 31, 2009) ** Participating interest equivalent. Includes reserves based on original standards set by MC (non-U.S. GAAP). 15 Natural Gas Business
• MC owns upstream working interests in oil and natural gas as well as liquefied natural gas (LNG) working interests in various parts of the world in its energy resources business. Among these operations, LNG makes a significant contribution to earnings at present.
• Japan is currently the world’s largest LNG importer, accounting for approximately 40% of the world’s LNG imports. MC handles around 40% of Japan’s LNG imports.
• LNG projects in which MC holds working interests where production is under way include projects in Brunei, Malaysia, Western Australia, Oman, Sakhalin II, and Tangguh. As of December 31, 2010, MC’s equity share of LNG production at these projects totaled approximately 7 million tons per year.
• Because most LNG destined for Japan and Far-East Asia is handled under long-term contracts for electricity and gas companies, annual sales volumes are pretty much definite. Furthermore, LNG prices are essentially linked to crude oil prices.
• Despite the possibility that demand in the U.S. will soften due to a rise in the use of unconventional gas, over the medium and long terms worldwide seaborne LNG trade, 180 million tons in 2009 (source: BP Statistical Review of World Energy June 2010), is expected to nearly double by 2020 as demand rises in emerging countries such as China and India as well as Europe, where there are efforts to decrease reliance on gas from Russian pipelines. MC is working to ramp up production based on this forecast and with the view to securing a stable LNG supply.
• As a specific plan for increased production, MC announced in January 2011 a final investment decision in the Donggi Senoro project, where production is planned to begin in 2014 and MC's equity share will be approximately 0.9 million tons per year.
• Meanwhile, MC announced in August 2010 participation in a shale gas development project in Western Canada, an unconventional gas development project where MC's equity share of production in 2014 will be approximately 250 million cubic feet per day or approximately 1.75 million tons in LNG equivalents per year. 16 Overview of MDP Coal Business
¾Mitsubishi Development Pty Ltd (MDP), MC's wholly owned Australian resource-related subsidiary, produces mainly coking coal, a steel raw material, in Queensland, Australia, through BMA. This coal is sold all over the world. BMA is a coal joint venture between MDP and resource major BHP Billiton Ltd.
¾BMA commanded the largest share of the world seaborne trade (approx. 150 million tons) in hard coking coal in 2009, accounting for around 30% of shipments. MC owned half that share.
¾The expansion of production capacity of the Ulan mine (thermal coal), owned 10% by MDP, was approved in November 2010. The first production from the expanded mine is expected in 2014.
17 Coal Business（Sales, Production, Price） ¾MDP’s sales volume has continued steadily MDP Annual Sales Volume (Million tons) because of recovery in demand in traditional 24 markets, in addition to the demand in emerging Apr-Jun Jul-Sep Oct-Dec Jan-Mar 19.9 19.8 countries such as China and India for imported 20 17.4 coking coal. 4.5 4.6 16 ¾However, due to bad weather starting in autumn 4.7 2010, production and sales volume have been 5.1 5.4 12 Total Total Total declining. 27.8 27.7 6.0 24.2 （ ） 8 Apr~Dec 5.4 5.3 5.0 5.1 4.2 2.9 1.1 4 0.5 1.2 2.8 1.4 1.4 6.7 2.6 1.6 Benchmark Price Trend of Australian High-Quality 4.9 0.7 0.7 1.1 4.5 0.7 1.3 0.9 1.5 0.9 0.7 0.8 0.8 1.3 1.3 0.9 1.1 0 0.7 (US$/Ton) Hard Coking Coal to Japan Semi soft Semi soft Semi soft Hard強粘結炭 coking 微粘結炭Thermal 一般炭 Hard強粘結炭 coking 微粘結炭Thermal 一般炭 Hard強粘結炭 coking 微粘結炭Thermal 一般炭 coal coking coal coal coal coking coal coal coal coking coal coal 350 2008年度 2009年度 2010年度 Year ended March 2009 Year ended March 2010 Year ending March 2011 300
＊Includes equity share of thermal coal sales other than from BMA. 250 BMA Annual Production Volume （50％ Basis） (Million tons) 200 30 150 Apr-Jun Jul-Sep 24.8 100 25 23.7 Oct-Dec Jan-Mar 5.2 50 5.9 20 18.1 0 6.8 4.5 Year2007年度 ended Year2008年度 ended Year2009年度 ended Year2010年度 ending 15 5.6 March(4月～3月） 2008 March(4月～3月） 2009 March(4月～3月） 2010 March(4月～3月） 2011
10 6.4 5.8 6.5 ＊The Japanese fiscal year begins April 1.
5 Source： The Australian Bureau of Agricultural and Resource Economics- 7.1 6.5 6.4 Bureau of Rural Sciences (ABARE-BRS) 0 “Australian commodities December quarter 2010”
Year ended2008年度 March 2009 Year ended2009年度 March 2010 Year ending2010年度 March 2011 18 Future Prospects of Metallurgical Coal Seaborne Demand
¾Metallurgical coal seaborne demand is expected to increase over the medium and long term, largely because of demand from emerging countries, including India, Brazil and China. ¾To meet this increase in demand, Mitsubishi Corporation remains committed to fulfilling its responsibility to ensure a stable supply to customers through BMA, as exemplified by BMA’s acquisition of Saraji East in 2008.
（ ） (Mt) 2025（est.） 471Mt 500 2009-2025 450 CAGR 5.3％ 400 India, China, and Brazil 350 Approx. 80% 300 +265Mt 250 Other countries Approx. 20% 200 2009 150 206Mt 100 2009 2011 2013 2015 2017 2019 2021 2023 2025 （Source： Wood Mackenzie） ＊The graph above includes coking coal and PCI coal (Pulverized Coal Injection). 19 BMA Development / Expansion Options ¾ BMA has a number of development / expansion options, as illustrated below. ¾ BMA is currently considering the best timing and scale of development / expansion consistent with medium-and long-term metallurgical coal demand increase. Goonyella Riverside mine (9Mtpa expansion is currently expected) Underground Hard Coking Coal 4.5Mtpa Open cut Hard Coking Coal 4.5Mtpa Daunia mine (3-4Mtpa production is currently expected) Open cut Hard Coking Coal / PCI Caval Ridge mine （5.5Mtpa of production is currently expected） Open cut Hard Coking Coal
Peak Downs mine/Saraji mine Peak Downs mine・・・Open cut Hard Coking Coal Saraji mine・・・Open cut Hard Coking Coal
Saraji East mine Underground Hard Coking Coal
Blackwater mine Underground Hard Coking Coal / Weak Coking Coal Open cut Hard Coking Coal / Weak Coking Coal Kennedy mine /Humboldt mine Underground Weak Coking Coal / Thermal Coal Open cut Weak Coking Coal / Thermal Coal 20 Other Metals Resources *Equity share of production is from January to December each year. Annual/Quarterly Price 160 Equity Share of 5 （U$/ton） Production Jan-Mar Apr-Jun Jul-Sep Oct-Dec 140 （Mt） 4.1 Year ended 4 Dec 2008 3.9 3.6 Year ended Year ended 120 Total 7.0 Dec 2009 Dec 2010 1.0 1.0 2.9 Total 6.1 Total 6.5 100 Iron 3 1.1 2.5 2.6 1.1 0.9 80 Ore 0.6 1.0 0.7 2 0.7 60 0.6 0.6 1.1 1.1 0.7 1.2 40 1 0.7 0.6 Price of Australian iron ore (fine) for Japan 0.9 20 0.9 0.7 0.8 0.7 0.7 0.2 0 0 Year2008年度 ended Year2009年度 ended Year2010年度 ending IOCCMH IOCCMH IOCCMP March 2009 March 2010 March 2011 100 Monthly 2008年 Jan-Mar Apr-Jun2009年 Jul-Sep 2010年Oct-Dec Average Price Equity Share 87 （U$/ton） of 81 10,000 Production 80 18 75 （Thousand tons） Year ended Year ended Year ended Dec 2008 Dec 2009 22 Dec 2010 21 8,000 60 19 Total 136 Total 121 Total 128 Copper 16 18 6,000 40 27 32 30 8 26 28 4,000 20 8 7 17 16 19 20 8 7 7 444 23 9 5 7 6 LME Copper Cathode Price 16 4 17 7 2,000 7 4458 7 0 4 4 4 EscondidaEscondidaAntamina AntaminaLos Los EscondidaEscondidaAntamina Antamina LosLos EscondidaEscondidaAntamina AntaminaLos Los 0 PelambresPelambres PelambresPelambres PelambresPelambres Monthly Equity Share 200 Average Price 2008 2009 2010 of Jan-Mar Apr-Jun Jul-Sep Oct-Dec （U$/ton） Production （Thousand tons） 3,500 150 138 134 137 3,000 Year ended Year ended Year ended Aluminum 35 Dec 2008 35 Dec 2009 35 Dec 2010 2,500 Total 232 Total 230 Total 233 100 2,000 34 35 35 65 64 65 1,500 16 16 19 50 32 34 35 1,000 17 33 16 29 14 30 LME primary aluminum ingot price 16 8 16 7 8 500 33 9 33 7 33 18 7 16 8 16 6 14 8 0 8 9 7 0 MozalBoyneOthers MozalBoyneOthers MozalBoyneOthers 2008 2009 2010 2121 Copper Business
•MC owns working interests in the Escondida and Los Pelambres copper mines in Chile, and the Antamina copper mine in Peru.
•The Escondida copper mine is the world’s largest copper mine, producing more than 1 million tons of copper per year. In May 2010, MC acquired an additional 1.25% of indirect interest in the Escondida copper mine and now indirectly owns 8.25%.
•Expansion at Los Pelambres copper mine has been completed (increasing production capacity by approximately 30%) and the mine has started production at full capacity. Also, expansion at Antamina copper mine is being carried out. The production capacity is expected to increase by about 40% upon completion.
•The Escondida and Los Pelambres copper mines have more than 50 years’ mineable resources while the Antamina copper mine has more than 20 years’ mineable resources. We therefore expect these mines to contribute to our earnings over the long term.
22 Mineral Resources Expansion/Development Projects ＊This excludes coking coal projects.
Greenfield/ Production Capacity Product Project Location MC’s Share Status Brownfield (Project 100%basis) ・Started production in April 2010 Clermont Australia Greenfield 12.2Mtpa 31.4% ・Will reach full capacity in Thermal Coal 2013 ・Will start production in Ulan Australia Brownfield 6.2→12.9Mtpa 10% 2014 18→22Mtpa ・Will complete in December IOC Canada Brownfield 26.18% ＊Concentrate capacity 2011 ・Combination of expansion of Los Colorados mine and Greenfield/ CMP Chile 10→16Mtpa 25% development of Cerro Negro Brownfield Norte mine Iron Ore ・Will start production in 2013 ・Under F/S ・FID in late 2011 ~ early 2012 Jack Hills Australia Greenfield 20-30Mtpa 50% (est.) ・Will start production in late 2014 ~ early 2015 ・Has multiple interests JCU Canada Greenfield --- 33.3% ・Under exploration ～ F/S Kintyre Australia Greenfield --- 30% ・Under Pre F/S Uranium West McArthur Canada Greenfield --- 50% ・Under exploration (34%) --- Mongolia Greenfield --- ＊MC has option ・Under exploration of acquiring 34% 65ktpa ・Under F/S Nickel Weda Bay Indonesia Greenfield 30.06% ＊Target ・FID in around 2012 (est.) Los Pelambres Chile Brownfield Increase by about 30% 5.0% ・Completed in 2010 Copper Antamina Peru Brownfield Increase by about 40% 10.0% ・Will complete in 2012 23 Global Automobile-Related Business (MMC-Related) As of December 2010
Country・District UK Germany ① Overall Demand ① ① 2.01Mil Units 3.81Mil Units ② Vehicle sales of MC’s partner ② MMC 16K Units(0.8%) ②MMC 30K Units(0.8%) car maker (share) Portugal CCC MCEB ① 220K Units Distributor Sales Financing *from Jan to Dec, 2009 ② MMC 4K Units(1.8%) SDS China MMSCN（Shanghai） Distributor Production MFTBC 1K Units(0.5%) Poland SAME Sales Financing ① 13.64Mil Units Distributor （Shengyang） MMP ① 320K Units Distributor/ ② ② MMC 29KUnits CFA（Changsha） Engine Production Exports Distributor MMC 9K Units (0.2%)※ Assembling Spain Exports from Japan (2.8%) MFTBC 210 Units DAE Sales ① 960K Units MCP (0.0％) AXA（Anfei） （Harbin） Financing Others ②MMC 7K Units(0.6%) Distributor Exports from Japan Engine Production MFTBC 0.3K Units(0.03%)
MMCE Distributor Russia ① 980K Units (Import Car) ②MMC 41K Units(4.2%) ROLF IMPORT Distributor Japan ① 4.61Mil Units MALH Sales Financing Taiwan ① 294K Units ② MMC 42K Units(14.3%) MFTBC 5K Units(1.8%) CMC Distributor/ Peru Production ① 77K Units Ukraine ② MMC 2K Units(2.1%) Turkey ① 160K Units MFTBC 1K Units(1.6%) ① 560K Units ②MMC 7K Units(4.4%) ② MMC 4K Units (0.7%) MCAP MFTBC 3K Units (0.6%) NIKO Distributor TEMSA Export from Japan Export from Japan Chile ① 180K Units India Indonesia ② MMC 5K Units(2.8%) ① 1.8Mil Units MFTBC 0.5K Units（0.3%） South Africa (Passenger car) Vietnam ① 486K Units MMCC ② MMC 2K Units（0.1%) ① 500K Units ②MMC 30K Units(6.3%) Distributor ① 77K Units Brazil ②MMC 5K Units(0.9%) HML MFTBC 31K Units(6.5%) ① ② MMC 2K Units(3.1%) 3.0Mil Units MFTBC 1K Units(0.2%) ② Export from Japan MFTBC 1K Units(1.6%) MMC 37K Units(1.2%) MBSA KTB DSF Sales Financing Export from Japan VSM Distributor MMCB Distributor・Assembling Export from Japan Malaysia KRM BAS Used car sales and ① 537K Units Assembling rental cars ② MMC 7K Units（1.3％） MKM BSI Enginge / Press MMM Components IT system sales Distributor production
※ MMC’s sales in China only includes Mitsubishi Brand Cars 24 Global Automobile-Related Business (Isuzu-Related)
Germany Results for FY2010 3Q ISD LCV: Light Commercial vehicle CV: Commercial vehicle Germany, Austria and Czech Import and sales Germany Distributor Production LCV 0.8K Units IAE Distributor/assembly Export/sales All of Europe Marketing The Philippines Mexico Auto finance Services LCV 13.1K Units Marketing Other *Handling units IPC IMEX Import, assembly and sales Import, assembly and sales Isuzu car sales LCV 7.2K Units CV 1K Units CV 3K Units Belgium IBX Benelux and Poland Import and sales
LCV 0.5K Units
Thailand (Export) Thailand (Domestic) Malaysia IOT Australia Export and sales Export vehicles TIS TIL IMCT IMSB (Entire cars) Sole distributor Auto finance Production company Import, assembly and sales IUA LCV 46.2K Units Import and sales (*Mainly destined for the Middle East, Europe and TISCO ictus IEMT Services and parts sales for Software development, LCV 4.4K Units LCV 4K Units Latin America) maintenance and Diesel engine production Isuzu vehicles management administration
AUTEC PTB TID Bus and truck maintenance, Molds and pressed parts sales and services for GM Driver dispatch vehicles production and sales MC is jointly developing business with Isuzu centered on Thailand, IAS where MC has been selling vehicles for 50 years. LCVs produced in Dealership LCV: 106.4K Units Thailand are exported and sold throughout the world. MC is also CV: 9.8K Units expanding sales of CVs to resource-rich and other nations. 25 Automobile Operations
MC has built a robust value chain in which it is involved in one way or another with everything from vehicle and engine assembly to automobile finance and dealerships downstream. This value chain centers on overseas distribution-related businesses of Mitsubishi Motors Corporation (MMC) and Isuzu Motors Limited brand vehicles.
MMC-Related Operations • MC is strengthening the base of its automobile operations for MMC brand vehicles, in which it is already active in 20 countries worldwide.
• In particular, in the key strategic market of Indonesia, MC is developing broad-based automobile operations and building a solid value chain.
• Indonesia in 2010 has seen a expansion in domestic demand due to a more stable government, currency, stock prices and interest rate conditions. As a result, the auto market has set a new record of 765,000 vehicles in Indonesia.
• In China, where the country’s auto market is expected to continue growing, an import and distribution company (Mitsubishi Motor Sales (China) Co., Ltd.) set up as a joint venture with MMC with the aim of expanding sales of imported vehicles, began operations on April 1, 2009, which are proceeding as planned.
Isuzu-Related Operations • MC is building a value chain for manufacturing and selling Isuzu Motors vehicles and parts, particularly in Thailand. We have been working for over 50 years with Isuzu Motors in Thailand.
• We are now making efforts to strengthen the value chain, such as by exporting and selling light commercial vehicles manufactured in Thailand, and expanding sales of commercial vehicles to resource-rich countries and other destinations.
• From 2010, the Thai market prices of agricultural products have remained high and exports have recovered. Total demand in the Thai auto market increased by approximately 46% to 800,000 units (the highest ever).
• MC plans to leverage the expertise it has developed in Thailand in other regions as it strives to expand sales of Isuzu brand vehicles around the world and grow its automobile business.
26 Mitsubishi Motors Corporation (MMC)
(Source: MMC September 2010 Results Announcement)
SummarySummary ofof MMCMMC’’ss ResultsResults forfor thethe Three Months Three Months Year Ending ended SixSix MonthsMonths EEndednded SeptemberSeptember 20201010 ended (2) – (1) March 2011 Target September 2009 September 2010 Announced on (Billion yen, thousand units) (1) (2) October 28, 2010 Operating transactions 573.0 864.7 291.7 1,900.0 Operating Income (loss) (32.5) 6.9 39.4 45.0 Ordinary Profit (loss) (34.2) 7.0 41.2 30.0 Net Profit (loss) (36.4) (4.9) 31.5 15.0 Sales Volume (Retail) 445 527 82 1,124 Note 1: Sales volume excludes OEM sales. Sales volume (Retail) is a preliminary figure. Note 2: MMC is scheduled to release its December 2010 results announcement on February 2nd, 2011.
MCMC’s’s RiskRisk ExposureExposure
(Billion yen) Approx. 500 Approx. Approx. Approx. 465 Approx. 420 410 Approx. Approx. Approx. Approx. 400 400 370 380 365 360 360 Unrealized gains on shares 2,150 2,050 1,700 2,150 300 1,900 1,450 2,200 1,350 1,400 Risk exposure to MMC proper 200 2,500 Risk exposure to related 100 2,150 2,400 2,200 2,250 2,200 1,500 1,850 1,900 businesses 0 31-Mar-07 30-Sep-07 31-Mar-08 30-Sep-08 31-Mar-09 30-Sep-09 31-Mar-10 30-Sep-10 31-Dec-10
27 Foods Business
FoodFood BusinessBusiness ValueValue ChainChain
Procurement (Storage and Distribution) Production Distribution and Sales Retailing
General Merchandise National Stores distributors (AEON, etc.) Grains, sugar, oils, Consolidated subsidiaries Marketing livestock and marine Affiliated companies Sales promotion （Ryoshoku, Foods Supermarkets products, coffee beans, Strategic partners Information systems, Meidi-ya, (Life Corp., etc.) etc. Important customers etc. etc.) Convenience stores Local Trading (LAWSON, etc.) distributors Trading Restaurant Investment Investment Trading business (Kentucky Fried Investment Chicken, etc.) Investment
Finance
28 Foods Business
MC is working to build and strengthen integrated value chains extending from raw materials procurement to shipping, processing, product distribution and retailing to meet market needs, such as for a stable supply of safe food. A Stable Supply of Food The highest priority for MC is to reliably deliver quality products that customers want when they want them at competitive prices. To this end, we are upgrading our collection and handling and processing base networks.
•Strengthening Collection and Handling Bases MC collects and handles agricultural produce at bases in the U.S. (AGREX) and Australia (RIVERINA) for supply to raw materials processing companies.
•Upgrading Processing Bases We are building a stable supply/demand base by strengthening relationships with MC subsidiaries such as Nitto Fuji Flour Milling Co., Ltd., Nihon Shokuhin Kako Co., Ltd. and Nosan Corporation as well as raw material processing companies. Responding to Consumer Needs MC has built a value chain encompassing processed food manufacturers, wholesalers, retailers, restaurateurs and other businesses. We are constantly improving this value chain so as to meet rapidly changing market needs, such as by improving our ability to source raw materials globally and by providing products for a wide range of food categories. 29 List of CDM and JI projects by Mitsubishi Corporation (as of December 31, 2010)
Date of registration A. CDM and JI projects registered with the UN Emissions reduction with the UN (ton-CO2e/year) Global Emissions Credit Business 1 China HFC23 project of Dongyue in Shandong March 13, 2006 10,110,117 2 The Philippines Methane gas recovery project of Absolut Chemicals, Inc. October 1, 2006 95,896
3 Pakistan N2O project of Pakarab Fertilizer Ltd. November 5, 2006 1,050,000
4 China N2O project of Jinkai in Kaifeng April 7, 2007 349,822 South Korea N O project of Hanwha Corp. May 3, 2007 281,272 WorldWorld’’ss thirdthird largestlargest developerdeveloper 5 2
6 Chile N2O project of Enaex S.A. October 13, 2007 822,842 7 China Hydropower project of Yuming in Guangdong April 18, 2008 45,088
8 China N2O project of Liuzhou in Guangxi May 9, 2008 901,850 9 ～ 10 China Hydropower projects in Sichuan June 12, 2008, etc 176,444 11 China LNG Generataion Project of Fujian Putian January 14, 2009 2,771,826 Poland Uzbekistan 12 ～ 22 China Hydropower projects in China January 26, 2009, etc 1,672,732 ～ 28 Uzbekistan N O projects in Uzbekisutan March 14, 2009, etc 1,020,478 China 23 2 29 China N2O project of Shaanxi Xinghua April 30, 2009 575,316 30 China Hydropower project in Fujian June 13, 2009 70,093 Russia 31 Thailand N2O project of the Caprolactam production plant in Thailand June 16, 2009 142,402 50 32 ～ 35 China Hydropower projects in China July 20, 2009, etc 216,693
36 Poland N2O project of ZAT in Poland August 31,2009 688,439 1 4 7 8 9 10 11 37 China Hydropower project in Xinjiang September 14, 2009 908,606 36 12 13 14 15 16 17 18 38 Malaysia Bintulu Combined Cycle Project in Sarawak September 18, 2009 595,460 23 24 25 26 19 20 21 22 29 30 32 39 ～ 49 China Hydropower projects in China January 21, 2010, etc 1,931,807 27 28 33 34 35 37 39 ～ 49 50 Russia Oil Field Associated Gas Recovery and Utilization Project July 23, 2010 900,000 51 58 ～ 72 ～ 5 51 ～ 58 China Hydropower Projects in China, etc September 18, 2010, etc 2,145,379 3 Total 58 Projects (Share in the world: 6.6%) Total 27,472,562 South Korea B. CDM and JI projects that were approved by the governments of host countries and the Emissions reduction Japanese government and now in the process of registration with the UN (ton-CO2e/year) 31 Philippines 59 ～ 72 Total 14 Projects Total 2,707,641 2 C. CDM and JI projects now under review other than those mentioned above 20-30 projects 38 Pakistan 【Reference 】 CDM Projects registered by UN ： 2,703 Projects Annual emission reductions amount ： 418,747,165 ton/year Thailand
Malaysia 6 Chile
CDM UN registered
JI UN registered
CDM/JI under registration 30 New Energy, Power Generation, Environmental and Water Business
1 2 3 4 5 Alliance with Acciona Photovoltaic (PV) PV Power Wind Power Thermal Power Power Generation Generation Business Generation Business Generation Business Jointly developing Business in Portugal in USA renewable energy in Thailand Develop, own and operate projects globally, based Operating 46 MW PV World’s largest PV Operating 130 MW thermal power plants （ on the alliance with plant in Moura, Plant (73 MW) wind power station worldwide especially in North America and Acciona under construction in Idaho, USA Portugal with Acciona in Lop Buri, Thailand Southeast Asia）
6 7 8 9 10 Forest Energy Lithium Energy Japan Ebara Engineering Water Business Energy Conservation Manufacturing lithium Service In Australia (ESCO) Operating first and ion batteries for electric Co., Ltd. (EES) Acquired United Utilities ESCO business by largest bio-pellet mass vehicles (EV) such as Invested in EES, forming a Australia in 2010, production plant iMiEV, the first JFS (Japan Facility J/V between MC, Ebara, nd in Japan commercialized EV in the the 2 largest Australian Solutions: and JGC, to combine the world water business company a J/V with TEPCO, strength of each company etc.) since 2000 in the water business.
31 Earnings and Share Price
(Consolidated net income: Billion yen) (Share price: Yen)
Consolidated net income PER PBR Share price (Annual average) (PER, PBR: Times) 500 25 470.9 450 419.3 400 400.0 20 356.7 369.9 350 3,110 300 273.1 15 2,299 250 13 2,371 12 2,041 11 11 200 10 10 10 10 9 186.6 150 117.6 2,042 1,969 100 1,202 5 50 966 1.5 1.8 1.6 1.2 1.3 1.4 1.1 1.1 0 0 Year ended Year ended Year ended Year ended Year ended Year ended Year ended Year ending March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 March 2010 March 2011
(Forecast)
(Note) PER and PBR were calculated based on market capitalization, Price-earnings ratio: Shows the relationship between share price and as determined by multiplying the average share price for the PER earnings per share fiscal year by the number of shares issued at period end. PBR Price book-value ratio: Shows the relationship between share price (Year ended March 2011 (Forecast) is based on share price and net assets per share and shares of common stock issued as of the six months ended September 2010) 32 Major Year-on-Year P/L Statement Changes (Nine Months Ended Dec.)
Forecasts for year ending Nine months ended Nine months ended Increase or Percentage of Percentage of (Billion yen） Mar. 2011 Dec. 2009 Dec. 2010 decrease change Achievement (Announced Oct. 2010) Operating transactiions 12,451.5 14,338.4 1,886.9 15% 19,000.0 75% Gross profit 748.6 888.2 139.6 19% 1,200.0 74% Operating income 124.4 266.5 142.1 114% 335.0 80% Net income 185.6 359.7 174.1 94% 400.0 90% Core earnings 253.1 479.2 226.1 89% 575.0 83%
Core earnings = Operating income (before the deduction of provision for doubtful receivables) + Interest expense-net + Dividend income + Equity in earnings of affiliated 450.0companies 400.0 Industrial Finance, Comparisons With Past Performance (Quarterly Basis) Gross Profit by Operating Segment Comparisons With Past Performance (Quarterly Basis) （Billion yen） Logistics & 350.0 Development (Billion yen) Gross profit Energy Business 300.0 1,000.0 36.3 900.0 35.8 250.0 Metals 800.0 34.7 28.9 700.0 275.2 200.0 Ｑ Ｑ Ｑ 171.2 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2 09/3 09/4 10/1Q 10/2Q 10/3Q 600.0 Machinery 150.0 500.0 112.2 133.4 400.0 62.3 100.0 57.3 Chemicals 50.0 300.0 200.0 0.0 200.0 336.6 331.9 Living Essentials 100.0 (Billion yen) 0.0 7.7 13.3 150.0 Net income Adjustments and Nine months ended Dec. 2009Nine months ended Dec. 2010 Eliminations （※） (*) Figures for the first nine months of the year ended March 2010 have been restated 100.0 on the basis of the new organization structure, following an internal corporate 08/1Q 08/2Q 08/3Q 08/4Q 09/1Q 09/2Q 09/3Q 09/4Q 10/1Q 10/2Q 10/3Q reorganization in April 2010. 50.0
Net income in this presentation shows the amount of net income attributable to Mitsubishi Corporation, excluding noncontrolling 0.0 interests. Total shareholders' equity shows the amount of total equity attributable to Mitsubishi Corporation, excluding noncontrolling interests. (50.0) 33 Major P/L Statement Changes vs Previous Quarter (Three Months Ended Dec.)
Three months ended Sept. 2010 Three months ended Dec. 2010 Increase or (Billion yen) Percent change (Jul.-Sept. 2010) (Oct.-Dec. 2010) decrease
Operating transactions 4,805.7 4,798.0 (7.7) 0%
Gross profit 300.2 282.1 1 (18.1) -6%
Operating income 95.1 68.8 2 (26.3) -28%
Net income 127.4 91.9 3 (35.5) -28%
Core earnings 180.4 141.6 (38.8) -22%
1 Decrease in Gross Profit From Previous Quarter
Industrial Finance, Gross profit decreased 18.1 billion yen, or 6%, from the previous (Billion yen) Gross Profit by Operating Segment Logistics & quarter, due primarily to lower sales volumes at an Australian resource-related subsidiary (coking coal). 350.0 Development Energy Business 300.0 11.9 11.5 13.2 10.0 Metals 250.0 2 99.0 69.1 Decrease in Operating Income From Previous Quarter 200.0 Machinery Operating income decreased 26.3 billion yen, or 28%, from the 46.5 150.0 43.3 previous quarter, due primarily to the lower gross profit and higher 18.5 22.2 Chemicals selling, general and administrative expenses. 100.0
115.4 Living Essentials 50.0 111.9
0.0 4.1 5.7 3 Adjustments and Decrease in Net Income From Previous Quarter Three months ended Sept. 2010 Three months ended Dec. 2010 Eliminations Net income dropped 35.5 billion yen, or 28%, from the previous quarter, mainly due to the lower operating income as well as lower dividend income from overseas resource subsidiaries.
34 Year-on-Year Change of Net Income (Loss) by Operating Segment （Billion yen) Reasons for Changes by Operating Segment 400.0 185.6 billion yen 359.7 billion yen Reasons for Changes by Operating Segment
9.0 Industrial Finance, Logistics & Development (+16.7 billion yen) Industrial Finance, Industrial Finance, Logistics & Development (+16.7 billion yen) 350.0 IncreasedIncreased duedue toto thethe absenceabsence ofof shareshare write-downswrite-downs (investment(investment Logistics & impairments)impairments) onon JapanJapan AirlinesAirlines CorporationCorporation (JAL)(JAL) andand otherother sharesshares recorded in the corresponding period of the previous fiscal year, gains on 73.2 Development recorded in the corresponding period of the previous fiscal year, gains on thethe salesale ofof overseasoverseas realreal estate,estate, andand anan improvementimprovement inin lease-relatedlease-related business earnings. Energy Business business earnings. 300.0 EnergyEnergy BusinessBusiness (+76%)(+76%) IncreaseIncrease duedue toto higherhigher grossgross profitprofit atat overseasoverseas resource-relatedresource-related subsidiariessubsidiaries andand higherhigher equityequity inin earningsearnings ofof overseasoverseas resource-relatedresource-related businessbusiness investmentsinvestments becausebecause ofof risingrising oiloil prices.prices. AnotherAnother factorfactor waswas thethe 250.0 Metals absenceabsence ofof losseslosses relatedrelated toto fuelfuel derivativederivative transatransactionsctions forfor aa JALJAL subsidiarysubsidiary recordedrecorded inin thethe correspondingcorresponding periodperiod ofof thethe previousprevious fiscalfiscal year.year. MetalsMetals (+122%)(+122%) IncreaseIncrease resultedresulted primarilyprimarily fromfrom gainsgains onon aa shareshare transfertransfer atat aa ChileanChilean ironiron ore-related subsidiary and higher equity-method earnings of related 200.0 ore-related subsidiary and higher equity-method earnings of related 188.3 Machinery businessbusiness investees,investees, asas wellwell asas higherhigher salessales volumesvolumes andand salessales pricesprices atat anan 41.6 AustralianAustralian resource-relatedresource-related subsidiarysubsidiary (coking(coking coal).coal). MachineryMachinery (+79%)(+79%) IncreaseIncrease duedue toto strongstrong resultsresults atat overseasoverseas automobile-relatedautomobile-related businesses,businesses, 150.0 Chemicals notablynotably inin Asia.Asia. ChemicalsChemicals (-17%)(-17%) 84.7 DecreaseDecrease reflectsreflects absenceabsence ofof gaingain onon reversalreversal ofof deferreddeferred taxtax liabilitiesliabilities ofof aa petrochemicalpetrochemical business-relatedbusiness-related companycompany inin thethe previousprevious fiscalfiscal year,year, offsetoffset 100.0 inin partpart byby higherhigher earningsearnings duedue toto strongstrong transactionstransactions atat aa petrochemicalpetrochemical Living Essentials business-relatedbusiness-related company.company. 44.4 24.8 LivingLiving EssentialsEssentials (+14%)(+14%) IncreasedIncreased duedue toto higherhigher earningsearnings onon transactionstransactions andand equity-methodequity-method 50.0 21.4 earningsearnings atat generalgeneral merchandise-relatedmerchandise-related businesses,businesses, asas wellwell asas anan 25.7 increase in equity-method earnings at food-related subsidiaries. Adjustments and increase in equity-method earnings at food-related subsidiaries.
32.5 36.9 Eliminations Resource Prices Nine months Nine months 0.0 Increase or (16.0) (13.5) ended Dec. ended Dec. decrease ( 7.7) 2009 2010 Nine months ended Dec. 2009(* ) Nine months ended Dec. 2010 Crude oil (Dubai) 67.5 78.8 +11.3 (50.0) ($/BBL) Copper ($/MT) 5,724 7,636 +1,912 (*) Figures for the first nine months of the year ended March 2010 have been restated on the basis of the new organization structure, Aluminum ($/MT) 1,767 2,177 +410 following an internal corporate reorganization in April 2010. 35 36