Mitsubishi Corporation

Press Room

May 8, 2009

FY2009 "MC's Response to the Current Business Environment"
- A Year for Corrective Action -

In light of unprecedented changes in the business environment, MC has resolved fiscal year 2009 (FY2009) to be a "Year for Corrective Action". The ongoing changes facing MC include a   deteriorating world economy, diminishing profitability, and increasing write-downs. With our priority being to maintain a sound balance sheet, top management has determined that the following urgent measures will be swiftly implemented in the months ahead.
(1) Revise investment plans
(2) Adopt management system for listed stocks
(3) Improve low profit or loss-making businesses
(4) Cut operating expenses
 
Despite the severity of the business environment, new industry needs are certain to arise from structural changes that are occurring globally. These changes could prove to be excellent opportunities for MC to build new growth pillars in the coming era. As such we will be making a companywide commitment to shoring up our future, in next-generation sectors like “new energy”, “environment”, and “water”, where growth is expected over the medium to long term, “IT business development”, which is likely to play a big role in strengthening our companywide functions, and infrastructure projects, which globally look to be a very promising area.
A summary of our urgent measures for FY2009 is as follows:
 
1. Revise investment plans
(1) Continuing with investments to ensure a sound balance sheet
Last December, we determined that for the time being MC would, in principle, not increase its investment assets (investment balance), but instead carry out new investments by reshuffling its existing portfolio. We will be continuing with this focus on “financial soundness”, and executing a very selective approach to projects whenever new investment opportunities arise.  Existing funds will be reallocated to new investments if and when they are approved.
(2) Investment Plan for FY2009
In order to bring the ratio of investment assets to shareholders’ equity closer to our end-of-FY2009 target of 1.5 times, investment funds in this fiscal year will be kept at around 400 billion yen, to be obtained through a review of our investment plan and reshuffling of our assets.
 
2. Adopt management system for listed stocks
In order to diminish the risks of impairment losses or fluctuations in accumulated other comprehensive income, we will be introducing a system to manage our listed stock portfolio.
Through this system we will determine the pros and cons of obtaining new stock, or maintaining/selling off our existing holdings of a given stock. The system will consider both the significance as well as the profitability of holding stock in listed companies.
 
3. Improve low-profit or loss-making businesses
Considering diminishing revenues is an unfortunate consequence of a worsening economy, we will be bolstering our monitoring of low-profit or money-losing businesses. Our goal will be to establish and execute effective action plans that can improve these businesses’ profitability and ultimately get them operating in the black.
 
4. Cut operating expenses
A plan will be devised and implemented to reduce general management expenses, such as travel, transportation, and entertainment expenses.

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Mitsubishi Corporation
Telephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705
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