Mitsubishi Corporation Supplementary Information to the Financial Results for the Six Months Ended September 2010

Transcription

1 Mitsubishi Corporation Supplementary Information to the Financial Results for the Six Months Ended September 2010 Based on US GAAP (page) Supplementary Information for Consolidated Balance Sheets ****** 2 Supplementary Information for Consolidated Statements of Income ****** 3 Supplementary Information for Consolidated Statements of Cash Flow ****** 4 Operating Segment Information ( Sept. 2010) ****** 5-6 Performance at Consolidated Subsidiaries and Affiliates ****** 7-10 Forecasts for the Fiscal by Operating Segment ****** 11 Asset Management Summary for Shares, Bonds, etc. (As of September 30, 2010, Consolidated) ****** 12 Balance of Risk Money Outstanding in 10 Countries (As of September 30, 2010) ****** 13 Forward-Looking Statements This release 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 release and that Mitsubishi Corporation bears no responsibility for any negative impact caused by the use of this release.

2 Supplementary Information for Consolidated Balance Sheets [Assets] Main items 2010/9 2010/3 Please refer to page 8 of the earnings release. Current assets 5, , Cash and cash equivalents 1, ,093.5 (20.7) Accounts receivables 2, ,245.6 (40.8) Inventories Investments and non-current receivables 5, ,366.1 (44.5) [Liabilities] Investments in and advances to affiliated companies 1, , Other investments 1, ,630.5 (135.9) Other assets Main items 2010/9 2010/3 Current liabilities 3, ,748.4 (115.0) Short-term debt Current maturities of long-term debt (135.3) Trade accounts payable 1, ,893.8 (104.3) Long-term liabilities 3, ,876.1 (17.2) Long-term debt 3, , Deferred income taxes (15.2) Decrease due to maturity of medium- and long-term funds. Reflects absence of seasonal factors at the end of in the food field, and collection of plant transaction receivables, etc. Increase in line with recovering demand for automobiles, steel products, etc. Increase in investments due to share transfer and subscription to a capital increase at a Chilean iron-ore business. Decrease in line with d sales of and unrealized gains on listed shares. Reflects increase in derivative assets due to changes in market prices. Increase due to increase in working capital and other demand for funds, etc. Decrease due to maturity of medium- and long-term funds. Reflects absence of seasonal factors at the end of in the food field, etc. and payment of plant transaction payables, etc. Increase due to the issuance of corporate bonds. Decrease in line with d sales of and unrealized gains on listed shares. [Shareholders' Equity] Main items 2010/9 2010/3 Total shareholders' equity 3, , Retained earnings 2, , Net unrealized gains on securities available for sale (40.2) Foreign currency translation adjustments (422.6) (324.4) (98.2) Net income attributable to noncontrolling interests (3.8) Reflects net income ( billion yen) and due to payment of dividends (-34.5 billion yen). Decrease in line with d sales of and unrealized gains on listed shares. Due to in net assets denominated in Australian dollars, U.S. dollars and the euro reflecting the yen's appreciation. AUS$ 2010/ yen 2010/ yen (4 yen appreciation) US$ 2010/ yen 2010/ yen (9 yen appreciation) Euro 2010/ yen 2010/ yen (11 yen appreciation) Major indices 2010/9 2010/3 2010/9 2010/3 Current ratio 152.5% 147.4% 5.1 ROE (*2) 8.9% 5.3% 3.6 Total shareholders' equity ratio (*1) 28.2% 27.2% 1.0 ROA (*2) 2.9% 1.3% 1.6 Total assets 10, ,891.3 (30.2) Interest-bearing liabilities (*3) 2010/9 2010/3 Interest-bearing debt (Gross) 4, ,154.7 (48.1) Interest-bearing debt (Net) 2, ,955.2 (25.0) Total shareholders' equity (*1) 3, , Interest-bearing debt to equity ratio (Gross) (0.1) Interest-bearing debt to equity ratio (Net) (*1)Total shareholders' equity shows the amount of total shareholders' equity attributable to Mitsubishi Corporation, excluding noncontrolling interests. (*2)ROE=Calculated with net income attributable to Mitsubishi Corporation as the numerator, ROA=Calculated with income before income taxes as the numerator. Short-term borrowings CP Current maturities of long-term borrowing and bonds Long-term borrowings Bonds Interest-bearing debt (Gross) (*3) 2010/ , ,106.6 (*3)Interest-bearing liabilities do not include the impact of adopting ASC Codification Topic 815. "Derivatives and Hedging." 2010/ , , (138.5) (42.1) (48.1) 2

3 Please refer to page 10 of the earnings release. Supplementary Information for Consolidated Statements of Income 1 Revenues (361.4 billion yen increase) Revenues from trading, manufacturing and other activities Trading margins and commissions on trading transactions Total Sept Sept , , Increase due to higher resource prices and trading volumes , , Gross profit (95.7 billion yen increase) Sept Sept (Reference: Operating income (loss)) Sept Sept Industrial Finance, Logistics & Development Industrial Finance, Logistics & Development Energy Business Energy Business 7.0 (2.6) 9.6 Metals Metals Machinery Machinery Chemicals Chemicals Living Essentials (4.9) Living Essentials Food (5.1) Food (0.5) Textile, General Merchandise, etc Textile, General Merchandise, etc. 2.5 (1.0) 3.5 Others Others (23.6) (23.1) (0.5) Total Total SG&A expenses (6.5 billion yen ) Sept Sept Decrease Parent company (104.9) (105.7) 0.8 Overseas subsidiaries (19.3) (19.5) 0.2 Subsidiaries and affiliates (281.5) (287.0) 5.5 Total (405.7) (412.2) Provision for doubtful receivables (1.0 billion yen increase) Increase due to small provisions. 5 Net interest expense (2.8 billion yen ) Decrease due to lower yen interest rates. 6 Dividend income (28.4 billion yen increase) (Reference: Net financial income) Sept Sept Sept Sept Resource related Interest income (4.4) Production, sales and others Interest expense (20.5) (27.7) 7.2 Total Net interest expense (4.0) (6.8) 2.8 Dividends Net financial income Gain (loss) on marketable securities and investments (net) (36.5 billion yen improvement) Write-down of marketable securities (available for sale) : -4.2 ( Sept. 2010: Sept. 2009: -6.6) Impairment losses on non-performing assets : -1.0 ( Sept. 2010: -8.0 Sept. 2009: -7.0) Other realized gains and unrealized gains on shares, etc. : ( Sept. 2010: Sept. 2009: +18.4) 8 Loss on property and equipment (2.3 billion yen increase) Gains on sale : -1.5 ( Sept. 2010: +1.3 Sept. 2009: +2.8 ) Retirement and disposal losses : -0.5 ( Sept. 2010: -1.6 Sept. 2009: -1.1 ) Impairment losses : -0.3 ( Sept. 2010: -1.0 Sept. 2009: -0.7 ) Reflects 36.6 billion yen gain on share transfer at Chilean iron ore business. 9 Other income-net (3.5 billion yen improvement) Improvement in foreign exchange gains and losses, etc. 10 from affiliated companies-net (22.7 billion yen improvement) Reflects higher resource prices, etc. 3

4 I. Cash Flows From Operating Activities [First Six Months of ] Net cash provided by operating activities: billion yen [Comparison With First Six Months of ] Decreased billion yen Please refer to page 12 of the earnings release. Supplementary Information to the Consolidated Statements of Cash Flows Net cash provided by operating activities was billion yen. Operating activities provided net cash due to strong cash flows from operating transactions primarily at resource-related subsidiaries and firm growth in dividend income mainly from resource-related business investees, despite an increase in working capital requirements. Net cash provided by operating activities d billion yen year on year, the result of an increase in working capital requirements, although cash flows from operating transactions increased year on year. (*) Breakdown of depreciation and amortization Sept Sept Tangible fixed assets Intangible fixed assets Total II. Cash Flows From Investing Activities [First Six Months of ] Net cash used by investing activities was billion yen Investing activities used net cash of billion yen. Net cash was used in investing activities mainly for subscribing to a capital increase at a Chilean iron ore business, and for capital expenditures and the acquisition of working interests, primarily at overseas resource-related subsidiaries, despite proceeds from the sale of shares. [Comparison With First Six Months of ] Increase of 41.1billion yen There was an increase of 41.1 billion yen year on year in cash used by investing activities. This was due mainly to subscribing to a capital increase at a Chilean iron ore business, and capital expenditures and the acquisition of working interests, primarily at overseas resource-related subsidiaries, despite higher proceeds from the sale of shares year on year. III. Cash Flows From Financing Activities [First Six Months of ] Net cash used by financing activities was 58.9 billion yen Net cash used in financing activities was 58.9 billion yen. Cash was primarily used for the payment of dividends at the Parent. [Comparison With First Six Months of ] Decreased billion yen There was a billion yen in cash used in financing activities from the corresponding period of the previous fiscal year when cash was used to repay debt in line with a in working capital requirements. Note: Reconciliation With the Balance Sheet Movements in cash flows are generally consistent with changes on the balance sheet. However, due to new consolidations and exclusions as well as eliminating the effect of mark-tomarket valuations and foreign exchange rate fluctuations, some cash flow movements may be inconsistent with balance sheet changes. 4

5 Please refer to page 14 of the earnings release. Operating Segment Information (Six Months Ended Sept. 2010) [Gross Profit] Foreign exchange: Exchange rate for U.S. currency: Average for six months ended Sept. 2010: yen Average for six months ended Sept. 2009: yen (6.63 yen (6.94%) appreciation) Crude oil: Average for six months ended Sept. 2010: US$76.01/BBL Average for six months ended Sept. 2009: US$63.51/BBL (US$12.50/BBL (19.68%) up) Six months Six months ended Sept ended Sept Industrial Finance, Logistics & Development Energy Business Increase due to higher earnings on transactions at overseas resource-related subsidiaries because of higher crude oil prices and production volumes, etc. Metals This increase resulted primarily from higher sales volumes and sales prices at an Australian resource-related subsidiary (coking coal), as well as higher transactions at a steel products-related subsidiary. Machinery Increase due to higher sales in overseas automobile-related operations, particularly in Asia. Chemicals Increased earnings on strong transactions at overseas regional subsidiaries and specialty paper business-related subsidiaries. Living Essentials (4.9) Although earnings on transactions increased at general merchandise-related subsidiaries, the overall reflects the deconsolidation of and lower earnings on transactions at healthcare and marketing service-related subsidiaries, as well as lower earnings on transactions at food-related subsidiaries. Total Adjustments and Eliminations Consolidated [ of affiliated companies] Six months Six months ended Sept ended Sept Industrial Finance, Logistics & Development Reflects improvement in earnings at lease-related businesses. Energy Business Increased equity-method earnings from overseas resource-related business investees due to higher oil prices. Metals Increased equity-method earnings from a Canadian iron ore-related company and steel products-related companies. Machinery Reflects increase in equity in earnings at Asian automobile-related operations. Chemicals (4.7) Although transactions were strong at petrochemical-related companies, the overall reflects the absence of gains on the reversal of deferred tax liabilities in the previous fiscal year. Living Essentials Increase in earnings due to higher equity in earnings of general merchandise- and food-related companies. Total Adjustments and Eliminations (2.9) Consolidated

6 Please refer to page 14 of the earnings release. [Net income (loss)] Six months Six months ended Sept ended Sept Industrial Finance, Logistics & Development 3.6 (0.6) 4.2 Increased due to absence of write-downs of investment securities recorded in the previous fiscal year, higher transaction volumes in distribution-related businesses, and an improvement in lease-related business earnings. Energy Business In addition to gains on the sale of shares, this increase reflected higher gross profit at overseas resource-related subsidiaries and higher equity in earnings of overseas resource-related business investments because of rising oil prices. Metals This increase resulted primarily from higher sales volumes and sales prices at an Australian resource-related subsidiary (coking coal), as well as gains on a share transfer at a Chilean iron ore-related subsidiary and higher equity-method earnings of related business investees. Machinery Increase due to strong results at overseas automobile-related businesses, notably in Asia. Chemicals (6.3) The reflects the absence of gain on reversal of deferred tax liabilities of a petrochemical business-related company in the previous fiscal year, offset in part by higher earnings due to strong transactions at petrochemical business-related companies. Living Essentials Increased due to higher earnings on transactions and equity-method earnings at general merchandise-related businesses, as well as an increase in equity-method earnings at food-related companies. Total Adjustments and Eliminations (0.7) (5.5) 4.8 Consolidated

7 Performance at Consolidated Subsidiaries and Affiliates Number of Consolidated Subsidiaries and Affiliates (No. of companies) Overseas /Overseas Total Sept Sept Profit Loss Total Profit Loss Total subsidiaries affiliates total subsidiaries affiliates total subsidiaries affiliates total Increase / Profit Loss Total (3) (20) (23) 9 (9) 0 6 (29) (23) 7 (8) (1) (8) (28) 1 (24) 11 (9) 2 15 (37) (22) Profit/Loss of Consolidated Subsidiaries and Affiliates (based on MC's equity earnings) Overseas /Overseas Total Profit Sept Loss subsidiaries 36.2 (4.6) affiliates 21.0 (0.8) total 57.2 (5.4) subsidiaries (8.2) affiliates 49.5 (5.6) total (13.8) subsidiaries (12.8) (4.4) (15.4) Sept Total Profit Loss Total (8.2) (3.9) (12.1) (11.0) (19.2) affiliates 70.5 (6.4) (8.3) 46.8 total (19.2) (27.5) Profit 15.7 (6.1) Increase / Loss (1.2) Total 19.3 (3.0)

8 Performance at Principal Subsidiaries and Affiliates * "" represents the share of voting rights held. * Group: S (Industrial Finance, Logistics & Development ), N (Energy Business), K (Metals), M (Machinery), C (Chemicals), L (Living Essentials), E (Global Environment Business Development Group), X (Corporate Staff) / Subsidiary/ Group Overseas Subsidiary K Mitsubishi Development Pty Ltd (Australia) Investment, production and sales of coal and other metals resources Overseas Subsidiary K M.C. Inversiones Limitada (Chile) Investment company for iron ore mine in Chile K Iron Ore Company of Canada (Canada) Iron ore production and sales (0.2) - Subsidiary K JECO Corporation Investment company for Minera Escondida Ltda. copper mines in Chile Subsidiary K Metal One Corporation Steel products operations (1.7) Overseas Subsidiary M Tri Petch Isuzu Sales Co, Ltd. (Thailand) Distribution of automobiles Affiliate C SPDC Ltd. Investment and petroleum and petrochemicals-related businesses (7.9) (10.1) 7.4 Affiliate L LAWSON, INC. Franchise chain of LAWSON convenience stores (1.2) (0.7) - M P.T. Krama Yudha Tiga Berlian Motors (Indonesia) Automobile finance Overseas Subsidiary X Mitsubishi International Corporation Trading (1.5) Subsidiary N Mitsubishi Shoji Sekiyu Co., Ltd. Marketing and sales of petroleum products Overseas Subsidiary E Diamond Generating Asia, Limited (Hong Kong) Independent power producer (1.2) (0.1) 3.6 Overseas Subsidiary M Isuzu Operations (Thailand) Co, Ltd.(Thailand) Distribution of automobiles Affiliate Subsidiary S Mitsubishi UFJ Lease & Finance Company Ltd. Leasing, installment sales, other financing (0.9) L RYOSHOKU LIMITED Wholesale of food products (1.0) Overseas Subsidiary X Mitsubishi Corporation International(Europe) Plc. Trading (0.5) (0.2) Overseas Subsidiary K MC Copper Holdings B.V. (The Netherlands) Investment company for Los Pelambres copper mine in Chile Overseas Subsidiary L PRINCES Limited (U.K.) Manufacturing of food products and soft drinks (0.1) Overseas Subsidiary N MCX Exploration (USA) Ltd. (U.S.A.) Exploration, development and production of oil and natural gas (1.2) (0.5) (0.5) K JECO 2 LTD. (U.K.) Investment company for Minera Escondida Ltda. copper mines in Chile Affiliate L Hokuetsu Kishu Paper, Co., Ltd. Manufacturing, processing, and sales of paper and pulp (0.1) (0.3) M Isuzu Motors Co., (Thailand) Ltd. (Thailand) Manufacturing of automobiles Affiliate N Astomos Energy Corporation Import, trading, domestic distribution and sales of LPG (1.8) (1.6) 1.3 Subsidiary L Alpac Forest Products Inc. (Canada) Manufacturing and sales of wood pulp (0.9) (0.5) Subsidiary L Dai-Nippon Meiji Sugar Co., Ltd. Manufacturing and wholesale of sugar products Overseas Subsidiary L Indiana Packers Corporation (U.S.A.) Processing and sales of pork (0.1) Subsidiary S Mitsubishi Corporation LT, Inc. Warehousing and total logistics services Overseas Subsidiary K Hernic Ferrochrome (Pty) Ltd. (Republic of South Africa) Mining of chrome ore, production and sales of ferrochrome (0.7) (0.2) Subsidiary C Kohjin Co., Ltd. Manufacturing of specialty papers, plastic films, biochemicals and fine chemicals Subsidiary K Mitsubishi Corporation Unimetals Ltd. Metal trading company (0.2) (0.3) Overseas Subsidiary M Tri Petch Isuzu Leasing Co, Ltd. (Thailand) Automobile finance Subsidiary C Mitsubishi Shoji Food Tech Co., Ltd. Manufacturing and marketing of functional food ingredients Overseas Subsidiary X Mitsubishi Corporation (Shanghai) Ltd. Trading (0.1) 1.3 Overseas Subsidiary M Mitsubishi Motor Sales (China) Co., Ltd. Distribution of automobiles Subsidiary S MC Aviation Partners Inc. Aircraft leasing and management sevices Subsidiary C Mitsubishi Shoji Plastics Corp. Marketing of Synthetic raw materials and plastics N Energi Mega Pratama Inc.(Indonesia) Exploration, development, and production of oil and natural gas in Indonesia (0.7) 0.0 (0.7) (0.4) (1.7) K Strand Minerals (Indonesia) Pte. Ltd. (Singapore) Investment company for nickel mine in Indonesia (0.8) (0.3) (0.4) (0.2) (0.4) (0.1) - Overseas Subsidiary K MCA Metals Holding GMBH (Austria) Investment company for Mozambican MOZAL aluminum smelter (0.9) (1.2) (0.4) (0.6) (0.5) (0.6) - Subsidiary L LOYALTY MARKETING, INC. Managing the operations of Multi-Partner Loyalty Program "Ponta" (1.0) (0.7) (0.2) (0.1) (0.8) (0.6) - 8

9 Performance at Principal Subsidiaries and Affiliates (by Business Group) * "" represents the share of voting rights held. < Industrial Finance, Logistics & Development Group > / Subsidiary/ Affiliate Mitsubishi UFJ Lease & Finance Company Ltd. Leasing, installment sales, other financing (0.9) Subsidiary Mitsubishi Corporation LT, Inc. Warehousing and total logistics services Subsidiary MC Aviation Partners Inc. Aircraft leasing and management sevices < Energy Business Group > / Subsidiary/ Subsidiary Mitsubishi Shoji Sekiyu Co., Ltd. Marketing and sales of petroleum products Overseas Subsidiary MCX Exploration (USA) Ltd. (U.S.A.) Exploration, development and production of oil and natural gas (1.2) (0.5) (0.5) Affiliate Astomos Energy Corporation Import, trading, domestic distribution and sales of LPG (1.8) (1.6) 1.3 Energi Mega Pratama Inc.(Indonesia) Exploration, development, and production of oil and natural gas in Indonesia (0.7) 0.0 (0.7) (0.4) (1.7) < Metals Group > / Subsidiary/ Overseas Subsidiary Mitsubishi Development Pty Ltd (Australia) Investment, production and sales of coal and other metals resources Overseas Subsidiary M.C. Inversiones Limitada (Chile) Investment company for iron ore mine in Chile Iron Ore Company of Canada (Canada) Iron ore production and sales (0.2) - Subsidiary JECO Corporation Investment company for Minera Escondida Ltda. copper mines in Chile Subsidiary Metal One Corporation Steel products operations (1.7) Overseas Subsidiary MC Copper Holdings B.V. (The Netherlands) Investment company for Los Pelambres copper mine in Chile JECO 2 LTD. (U.K.) Investment company for Minera Escondida Ltda. copper mines in Chile Overseas Subsidiary Hernic Ferrochrome (Pty) Ltd. (Republic of South Africa) Mining of chrome ore, production and sales of ferrochrome (0.7) (0.2) Subsidiary Mitsubishi Corporation Unimetals Ltd. Metal trading company (0.2) (0.3) Strand Minerals (Indonesia) Pte. Ltd. (Singapore) Investment company for nickel mine in Indonesia (0.8) (0.3) (0.4) (0.2) (0.4) (0.1) - Overseas Subsidiary MCA Metals Holding GMBH (Austria) Investment company for Mozambican MOZAL aluminum smelter (0.9) (1.2) (0.4) (0.6) (0.5) (0.6) - < Machinery Group > / Subsidiary/ Overseas Subsidiary Tri Petch Isuzu Sales Co, Ltd. (Thailand) Distribution of automobiles P.T. Krama Yudha Tiga Berlian Motors (Indonesia) Automobile finance Overseas Subsidiary Isuzu Operations (Thailand) Co, Ltd.(Thailand) Distribution of automobiles Isuzu Motors Co., (Thailand) Ltd. (Thailand) Manufacturing of automobiles Overseas Subsidiary Tri Petch Isuzu Leasing Co, Ltd. (Thailand) Automobile finance Overseas Subsidiary Mitsubishi Motor Sales (China) Co., Ltd. Distribution of automobiles < Chemicals Group > / Subsidiary/ Affiliate SPDC Ltd. Investment and petroleum and petrochemicals-related businesses (7.9) (10.1) 7.4 Subsidiary Kohjin Co., Ltd. Manufacturing of specialty papers, plastic films, biochemicals and fine chemicals Subsidiary Mitsubishi Shoji Food Tech Co., Ltd. Manufacturing and marketing of functional food ingredients Subsidiary Mitsubishi Shoji Plastics Corp. Marketing of Synthetic raw materials and plastics

10 < Living Essentials Group > / Subsidiary/ Affiliate LAWSON, INC. Franchise chain of LAWSON convenience stores (1.2) (0.7) - Subsidiary RYOSHOKU LIMITED Wholesale of food products (1.0) Overseas Subsidiary PRINCES Limited (U.K.) Manufacturing of food products and soft drinks (0.1) Affiliate Hokuetsu Kishu Paper, Co., Ltd. Manufacturing, processing, and sales of paper and pulp (0.1) (0.3) Subsidiary Alpac Forest Products Inc. (Canada) Manufacturing and sales of wood pulp (0.9) (0.5) Subsidiary Dai-Nippon Meiji Sugar Co., Ltd. Manufacturing and wholesale of sugar products Overseas Subsidiary Indiana Packers Corporation (U.S.A.) Processing and sales of pork (0.1) Subsidiary LOYALTY MARKETING, INC. Managing the operations of Multi-Partner Loyalty Program "Ponta" (1.0) (0.7) (0.2) (0.1) (0.8) (0.6) - < Global Environment Business Development Group > / Subsidiary/ Overseas Subsidiary Diamond Generating Asia, Limited (Hong Kong) Independent power producer (1.2) (0.1) 3.6 < Corporate Staff Section > / Subsidiary/ Overseas Subsidiary Mitsubishi International Corporation Trading (1.5) Overseas Subsidiary Mitsubishi Corporation International(Europe) Plc. Trading (0.5) (0.2) Overseas Subsidiary Mitsubishi Corporation (Shanghai) Ltd. Trading (0.1)

11 Forecasts for by Operating Segment [Gross profit] Mar Mar Results Industrial Finance, Logistics & Development Energy Business (3.8) Metals Machinery Chemicals Based on projected higher earnings on transactions in real estate and logistics-related businesses and higher aircraft lease-related earnings Projecting a due to the deconsolidation of certain domestic subsidiaries and conversion to affiliated companies. Projection reflects higher sales prices at an Australian resource-related subsidiary (coking coal) and higher earnings on transactions at a steel products-related subsidiary. Reflects recovery in the automobile market and projected higher earnings on transactions of machinery and equipment sold in large volumes. Projecting an increase due to strong commodity chemical transactions at the parent company. Living Essentials Projecting an increase due to strong transactions at overseas consolidated subsidiaries. Other (1.3) Total 1, , [Net income] Mar Mar Results Industrial Finance, Logistics & Development 8.5 (7.6) 16.1 Energy Business Metals Machinery Chemicals (10.4) Living Essentials (1.1) Reflects the expected absence of share write-downs and real estate-related losses recorded in the previous fiscal year. The projected increase is based on gains on the sale of shares and higher oil prices, despite the absence of tax benefits of foreign tax credits on dividend income received from overseas resource-related companies. The projected increase is based on gains on a share exchange at a Chilean iron ore-related subsidiary and higher sales prices at an Australian resource-related subsidiary (coking coal). The projected increase is based on the absence of share write-downs recorded in the previous fiscal year, a recovering auto market and an improvement in machinery and equipment sold in large volumes. A is projected despite higher earnings on strong commodity chemical transactions at the Parent. The projection is based on the absence of the increase in equitymethod earnings from the reversal of deferred tax liabilities of a petrochemical businessrelated company recorded in the previous fiscal year, as well as one-time tax expenses associated with adoption of the consolidated tax filing system. A is projected despite the absence of losses at a LAWSON, INC. subsidiary in the previous fiscal year. The projection is based on recording one-time tax expenses associated with adoption of the consolidated tax filing system and other factors. Other (28.5) (24.7) (3.8) Total Basic Assumptions for Forecasts Mar Mar Results Foreign Exchange (YEN/USD) (8.4) Crude Oil Price (USD/BBL) Yen Interest (TIBOR) 0.39% 0.53% (0.14%) 11

12 Asset Management Summary for Shares, Bonds, etc. (As of September 30, 2010, Consolidated) On balance position (Note 4) Off balance position (Note 4) Realized gain (loss) (Note 5) Held-to-maturity debt securities (Note 1) Trading (Bonds and swaps) (Fund investments, others) (Note 2) Private equity investments, etc. (Note 3) (0.1) Total outstanding Notes: 1. Apart from the above table, the investment balance of bonds (including securitized products) held to enhance liquidity, not for asset management purposes, was 98.6 billion yen (on-balance position). 2. Fund investments with a high level of liquidity such as hedge fund investments. 3. Investments with a low level of liquidity such as private equity investments (fund investments and direct investments). 4. The on-balance position represents the carrying amount, while the off-balance position represents either the notional principal in the case of swaps or the contract balance in the case of financial futures transactions. 5. Gain or loss reflected in the statement of income (after income taxes). * The figures in the above table are the sum of the asset management positions in the Treasurer Office; Merchant Banking, M&A Division. 12

13 Balance of Risk Money Outstanding in 10 Countries (As of September 30, 2010) 1. Balance of Risk Money Outstanding (Investments, Loans and Guarantees: Consolidated Basis) Investments Loans Guarantees Risk Money Total Amounts Hedged Net Risk Money 2010/9/ /3/31 Change 2010/9/ /3/31 Change 2010/9/ /3/31 Change 2010/9/ /3/31 Change 2010/9/ /3/31 Change 2010/9/ /3/31 Change India Indonesia Thailand Korea China Hong Kong Philippines countries total Russia country total Mexico Brazil countries total Risk Money Outstanding (Trade Receivables, etc.: Non-consolidated Basis; Incl. Regional Subsidiaries) Gross Amounts Hedged Net Risk Money 2010/9/ /3/31 Change 2010/9/ /3/31 Change 2010/9/ /3/31 Change India Indonesia Thailand Korea China Hong Kong Philippines countries total Russia country total Mexico Brazil countries total