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| Q.9 |
What sorts of materials does Mitsubishi Corporation prepare concerning its financial results? |
| A.9 |
We prepare quarterly financial results and announce them by issuing a document called a kessan tanshin (earning releases). Please click "Financial information" to view these documents. In addition, we prepare supplementary materials for distribution to investors when quarterly results are announced. Please click "Investor Meetings" to view these documents. |
| Q.10 |
Where can I find data of the company's performance in prior years? |
| A.10 |
We prepare an investors' guide that contains financial data for prior years. Please click here. |
| Q.11 |
To what degree are Mitsubishi Corporation's results affected by changes in the yen/US dollar exchange rate and other foreign exchange rates? |
| A.11 |
A relatively high percentage of Mitsubishi Corporation's earnings are denominated in foreign currencies. Examples are overseas commissions, equity in earnings of overseas companies in which we invest and dividends received from overseas business investments. As a result, the depreciation of the yen relative to foreign currencies raises consolidated earnings. Based on consolidated net income for the fiscal year ended March 2007, we estimate that a depreciation of 10 yen in relation to the US dollar would increase consolidated net income by about 24 billion yen. |
| Q.12 |
How do changes in interest rates affect Mitsubishi Corporation's earnings? |
| A.12 |
On a consolidated basis, we have almost 4,000 billion yen in interest-bearing liabilities. These funds are used as working capital and for investments associated with business activities. However, the vast majority of these interest-bearing liabilities are offset by trade receivables, loan receivables and other operating assets that are equivalently affected by changes in interest rates. Because a rise in interest rates produces an increase in income from these assets, while there is a time lag, any change in interest rates would be offset. For debt that funds investments, we believe that higher interest rates would coincide with higher earnings at business investments because interest rates normally climb when the economy is strong. Accordingly, while a rapid rise in interest rates may lead to a preceding increase in interest expenses, we don't believe that our net income would be significantly affected as this effect would in time be offset. |
| Q.13 |
Please explain how movements in prices of crude oil and metal resources affect Mitsubishi Corporation's operating results. |
| A.13 |
Based on projected net income in the fiscal year ended March 2007, we estimate that: a US$1/BBL increase in the price of crude oil (Dubai spot rate) would raise net income by approximately 1 billion yen; a US$100 per ton rise in the price of copper would raise net income by about 0.8 billion yen; and a US$100 per ton rise in the price of primary aluminum ingots would raise net income by about 1 billion yen. Furthermore, a US$1 per ton rise in the price of coking coal would raise net income by roughly 2 billion yen. However, coking coal prices are determined by annual negotiations with each buyer. Therefore, coking coal prices are unlike the prices for crude oil, copper and aluminum, which fluctuate constantly based on market prices.
(It should be noted that the above estimates are premised on everything else being constant. In actuality, movements in several external factors often occur simultaneously. Furthermore, there is a time lag of 3 months to 1 year before the effect of movements in crude oil prices shows up in our results. That means that market trends at a particular time will not necessary be reflected in earnings in the same fiscal period. Also, unusually large price fluctuations will not necessarily have the expected effect, as described above, on our results.)
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| Q.14 |
Where can I see the ROE, earnings per share and other important consolidated financial performance indicators? |
| A.14 |
These figures are contained in our investors' guide. |
| Q.15 |
Do you announce net income, assets and other financial data for individual business groups? |
| A.15 |
Business segment information is contained in our quarterly earnings releases. We also provide business segment information in other IR materials. Please refer to our annual report and investors' guide for business segment information for the most recent fiscal year. Please click here to view the most recent quarterly report and the annual report. |
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