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									Annual Report 2012
for the year ended March 31, 2012




                                    Pursuing Sustainable
                                    Corporate Value
Corporate Profile

Mitsubishi Corporation (MC) is a global integrated business enterprise that develops
and operates businesses across virtually every industry including industrial finance,
energy, metals, machinery, chemicals, foods, and environmental business.
    MC’s current activities are expanding far beyond its traditional trading
operations as its diverse business ranges from natural resources development to
investment in retail business, infrastructure, financial products and manufacturing
of industrial goods.
    With a presence in approximately 90 countries worldwide and a network of over
500 group companies, MC employs a multinational workforce of nearly 60,000 people.




About the Cover Message
MC is currently working on its three-year Midterm Corporate Strategy 2012 that was launched in the year ended March 2011.
When we devised this medium-term management plan we set out to create three forms of value: sustainable economic value,
sustainable societal value and sustainable environmental value. Our overarching aim in doing so is to create sustainable corporate value.
The cover theme for this year’s annual report—Pursuing Sustainable Corporate Value—expresses our strong determination to
work as one company to achieve this aim.




  < Enhanced CSR & Environmental Affairs Content in                          < Inclusion in SRI Indexes >
  Annual Reports >                                                           MC has earned a solid reputation for its past CSR and envi-
  MC is aiming to create sustainable corporate value, which                  ronmental affairs initiatives, and transparency in the disclosure
  consists of economic value, along with societal value and                  of information.
  environmental value.                                                       Underscoring this is MC’s inclusion in various socially respon-
  Since Annual Report 2011, which was published in 2011,                     sible investment (SRI) indices. (As of July 2012)
  MC has integrated information concerning the creation of
  societal value and environmental value (CSR and
  environmental initiatives) that was previously contained in
  our Sustainability Report. The report is thus designed to
  serve as a comprehensive report on our initiatives to create
  sustainable corporate value.


                                                                             < Website Information >
  < Financial Section of Annual Report 2012 >                                Annual Report (Online Version)
  Please refer to “Financial Section of Annual Report 2012” for              URL: http://www.mitsubishicorp.com/ar2012/en/
  detailed information for the year ended March 2012.                        Information Regarding CSR & Environment
  URL: http://www.mitsubishicorp.com/jp/en/ir/library/ar/financial/          URL: http://www.mitsubishicorp.com/jp/en/csr/
                                                                                                                            Mitsubishi Corporation       Annual Report 2012



ANNUAL REPORT 2012
CONTENTS

02   Top Message
       To Our Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02
       Interview with the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03

09   MC Summary
       A Message From the CFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             10
       Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       12
       Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       13
       Medium-term Management Plan Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           16
       Profiles of Groups Directly Under the President / Business Groups . . . . . . . . . . . . . . . . . . . . .                                      18
       Results of Business Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             20
       Metals and Energy Resource Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  22

24   Pursuing Sustainable Corporate Value
       Challenging New Possibilities in the Energy Field: Shale Gas. . . . . . . . . . . . . . . . . . . . . . . . . . 26
       Contributing to the Best Mix of Diverse Energy Sources: Power Business . . . . . . . . . . . . . . . . 28
       Supporting Robust Demand With Stable Supplies: Food Business . . . . . . . . . . . . . . . . . . . . . . 30

26 Shale Gas                                   28 Power Business                                       30 Food Business




32   Operations & Strategy
       Two Groups Directly Under the President
         Global Environment & Infrastructure Business Development Group. . . . . . . . . . . . . . . . . . .                                            34
         Business Service Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             35
       Industrial Finance, Logistics & Development Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              36
       Energy Business Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            40
       Metals Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   44
       Machinery Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      48
       Chemicals Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       52
       Living Essentials Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            56
       Global Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    60

62   Corporate Governance
       Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           64
       Internal Control System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          68
       International Advisory Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 70
       Board of Corporate Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              72

73   Sustainability
       Sustainability at MC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

85   Corporate Information
       Corporate Philosophy –Three Corporate Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
       Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
       Global Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
       Principal Subsidiaries and Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
       General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
       Members of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
       Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
       Corporate Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100


                                                                                                                                                                        01
Mitsubishi Corporation   Annual Report 2012




To Our Stakeholders




It is my pleasure to write to you in our annual report for the
year ended March 2012.
     The past fiscal year, the second of Midterm Corporate
Strategy 2012, was positioned as a year for action. In fact,
it turned out to be a year filled with challenges. The outlook
for the year was already uncertain in the aftermath of the
Great East Japan Earthquake and nuclear accident as well
as the Arab Spring that occurred in the year ended March
2011. But it became even more challenging as the European
debt crisis worsened and Thailand was engulfed by severe
flooding. However, we surmounted these challenges. We
drew on every ounce of strength we have as a company to
surpass our full-year earnings forecast and post net income
of ¥453.8 billion. Importantly for our future growth, we also
made progress executing our investment plan.
     The external operating environment remains extremely
uncertain as I write this letter. The European debt crisis
seemingly has no end in sight. The situation in the Middle
East is still unsettled. And we are seeing gyrations in crude
oil and other commodity prices. As we navigate through
these shifting obstacles, we have rededicated ourselves to
achieving the targets of Midterm Corporate Strategy 2012.
We will push ahead to strengthen our existing earnings
and develop new businesses for future growth.




                               Ken Kobayashi
                               President and CEO




02
                                                                                                                                Mitsubishi Corporation     Annual Report 2012




Interview with the President

                   How did you rate MC s performance in the year ended March
     Q     1       2012, the second year of Midterm Corporate Strategy 2012?


A. We drew on all of our strengths to deliver a
better-than-expected performance.
                                                       We viewed the past fiscal year as a year for action, as the second year of Midterm
                                                       Corporate Strategy 2012. And so it was as we made moves to achieve the goals of
                                                       our medium-term management plan.
                                                             We drew on our strengths in each business field to overcome uncertainty in our
                                                       operating environment in Japan and overseas. This produced results. Our net
                                                       income result of ¥453.8 billion bettered our ¥450.0 billion initial forecast. Of
                                                       course there were negative factors such as the impact of bad weather and strike
                                                       action at our Australian coking coal operations in the Metals Group, and the impact
                                                       of flooding in Thailand in the Metals and Machinery groups. We absorbed these neg-
                                                       ative factors, however, with record earnings in the Energy Business, Chemicals and
                                                       Living Essentials groups. So it was a more balanced performance than in the past,
                                                       one that drew on all our strengths.
                                                             While continuing to balance earnings from resource and non-resource fields, we
                                                       intend to build on our strengths in the resource field. In tandem, we will reinforce our
                                                       stable earnings platforms in non-resource fields.
                                                             A major feature of the past year was that we invested approximately ¥1,300.0
                                                       billion. That means we have made investments of approximately ¥1,700.0 billion
                                                       during the first 2 years of Midterm Corporate Strategy 2012. In terms of investments
                                                       related to resources, we made new and additional investments in copper, thermal
                                                       coal and other resources, as well as coking coal in the metal resources field. In
*1   Please refer to the feature section on pages
                                                       energy resources, we acquired more natural gas assets with the aim of ensuring an
     26 –27 for information on shale gas activities.
                                                       even more stable supply of LNG. Our investments in shale gas *1 during the year
*2   Please refer to the feature section on
     pages 30 –31 for information on food
                                                       eyed diversification in supply sources. We made investments in non-resource fields,
     business activities.                              too. In addition to investing in a meat and livestock business in China *2 , we exe-
                                                       cuted planned investments in the Machinery, Chemicals and Industrial Finance,
                                                       Logistics & Development groups. We are determined to reap the benefits of these
                                                       investments in the year ending March 2013 and thereafter to boost our earnings.


                                                       Three-Year Net Income Summary (Resource and Non-Resource Breakdown)
                                                       (¥ billion)

                                                       500
                                                                                                                          464.5
                                                                                                                                                         453.8


                                                       400

                                                                                          275.8                           325.5                          292.7
                                                       300


                                                       200                                210.8


                                                       100                                                                148.4                          163.1
                                                                                           89.7

                                                         0
                                                                                         2010.3                          2011.3                          2012.3

                                                          Resource segments: Energy Business, Metals
                                                          Non-resource segments: Industrial Finance, Logistics & Development, Machinery, Chemicals and Living Essentials

                                                       ** The totals in the graph include “Adjustments and Eliminations.”
                                                       ** Net income as used on this page and subsequent pages denotes net income attributable to Mitsubishi Corporation
                                                                                                                                                                           03
Mitsubishi Corporation   Annual Report 2012




                   How do you see the operating environment unfolding
     Q     2       over the medium and long terms?


 A. Vigilance is needed because there are certainly downside risks for
 the global economy. Regardless of the conditions we face, we will
 strengthen our ability to respond.
                                          A number of events impacted the global economy in 2011. The Great East Japan Earthquake,
                                          the Thailand floods and the European debt crisis were just some of them. Going forward, trends
                                          in energy resources require greater vigilance in light of the political unrest in the Middle East and
                                          development of shale gas resources in the U.S., for example.
                                              However, I believe the global economy will remain on an expansionary path over the long
                                          term due to a modest recovery in industrialized nations and high growth in emerging markets.
                                          That said, the European debt crisis continues to smolder, while there are noticeable concerns
                                          about an economic slowdown in China. Another factor to take into account is that a host of
                                          countries around the world are holding elections in 2012. This could very well see a change in
                                          leadership in many countries, not to mention increased protectionism. We could see a topsy-
                                          turvy political and economic environment develop. We must keep a watchful eye on the down-
                                          side risks for the global economy, including an economic downturn induced by fiscal austerity,
                                          energy price spikes caused by geopolitical risks, and mounting inflationary pressures in
                                          emerging nations.
                                              While uncertainty continues, the most important thing is to build up one’s strength to
                                          cope with any circumstances. In doing so, we will also leverage our inherent strength as a
                                          general trading company with connections in various fields and industries.




04
                                                                                                 Mitsubishi Corporation   Annual Report 2012




         The year ending March 2013 is the final year of Midterm Corporate Strategy
 Q   3   2012. How do you plan to manage the company over the next year?


A. I intend to make it a year in which we create sustainable
corporate value, in part by achieving the targets of Midterm
Corporate Strategy 2012.
                        The year ending March 2013 is the culmination of Midterm Corporate Strategy 2012. Even
                        though the external operating environment remains fraught with considerable difficulties, our
                        determination is stronger than ever to achieve the plan’s ¥500.0 billion net income target by
                        drawing on our comprehensive capabilities and having corporate officers and employees work
                        as one.
                           I see it as my mission to mold a company that can create sustainable corporate value no
                        matter what the economic environment throws at us. I will not let us be bound by the conven-
                        tional notion of a general trading company in this effort. Midterm Corporate Strategy 2012 sets
                        the goals of creating not only economic value but also societal and environmental value for ulti-
                        mately creating sustainable corporate value. I believe this is the basis for all companies and must
                        be adhered to over the long term. So we have renewed our commitment to making the current
                        fiscal year a year for creating sustainable corporate value. In the years ahead, we will demon-
                        strate the importance of our existence broadly across the economy.
                           Of course, the current fiscal year, as the last year of Midterm Corporate Strategy 2012, is
                        also a bridging year to the next medium-term management plan. We aim to make it a year for
                        laying sound stepping stones to the future.




                               Create Sustainable Corporate Value by helping to solve global problems
                                                through business activities in light of the needs
                                                                              and expectations of all stakeholders




                                                                                       Sustainable Economic Value
                                  Create Sustainable                                   Aim for sound earnings growth and
                                                                                       increased corporate value through the
                                   Corporate Value                                     proactive reshaping of our business
                                                                                       models and portfolio



                                                                           Sustainable Societal Value
                                                                           Contribute to economic development as a
                                                                           responsible corporate citizen




                                                         Sustainable Environmental Value
                                                         Aim to conserve and contribute to the global
                                                         environment, recognizing that our planet is our
                                                         greatest stakeholder




                                                                                                                                         05
Mitsubishi Corporation   Annual Report 2012




                   MC carried out an internal corporate reorganization in April 2012 that was first
     Q     4       announced in January. What do you hope to achieve from this reorganization?


 A. We aim to strengthen our framework for engaging in the
 infrastructure and global environmental businesses, which we
 designate as Strategic Domains.
                                                         Under Midterm Corporate Strategy 2012, we aim to create future earnings drivers of
                                                         scale. To this end, we have designated the infrastructure and global environmental busi-
                                                         nesses in particular as Strategic Domains that require a medium- to long-term approach.
                                                              Previously, the Global Environment Business Development Group and the Machinery
                                                         Group acted independently in the infrastructure domain. Recently, however, we have seen
                                                         a growing number of cases where greater cooperation and collaboration are required. As
                                                         can be seen in the power generation and power transmission businesses, an increasing
                                                         number of businesses are contiguous in terms of business sphere and regions. Further-
                                                         more, the infrastructure business is no longer a trading and EPC*1 domain. Indeed, I
*1 Engineering, Procurement,
   Construction                                          believe we will see more and more examples of projects that require the handling of risk
*2 Operation & Maintenance
                                                         with which we have no experience, as the business model in this area transforms into one
                                                         that extends to asset ownership and O&M*2. To cope with this, greater sharing of business
                                                         knowledge is required, as is the channeling of human and other business resources. This
                                                         was the thinking behind the need to reorganize internally so that we can grow more in the
                                                         infrastructure and environment fields.
                                                              Earnings are not our only goal in the infrastructure and global environmental
                                                         businesses. These are meaningful fields where we can directly create societal and
                                                         environmental value as well. We have a strong desire to create businesses that will
                                                         support future generations.


                                                               Global Environment &
                                                   Infrastructure Business Development Group

      New Energy & Power Generation Division                                      Environment & Infrastructure Business Division


           From former Globa
                    e Global
           F m former G al                          From former
                                                    F m rm  m                          From for e Gl al
                                                                                       F m former Global
                                                                                               rmer loba                  From former
                                                                                                                          F m rm  m
           Env nment Business
             viron      usine
           Environment Bu ess                       Ma
                                                    Machinery Grou
                                                      achin   Group
                                                                oup                    Environ
                                                                                       Environment Bu ess
                                                                                                    usine
                                                                                             nment Business               Maachin   Group
                                                                                                                                      oup
                                                                                                                          Machinery Grou
           Develo
           De            roup
           Development Group                                                           Development Group
                                                                                        evelo
                                                                                       Dev           roup

              Overseas power                        Power plant trading              Eco-friendly vehicle-related       Transportation infrastruc-
              generation business                   (Domestic and                    businesses                         ture business
              (Thermal power,                       overseas)                      • Lithium-ion batteries            • Railways/airports/ports
              renewable energy)                     Domestic power                 • Neodymium magnets                  Smart community
              Biofuel business                      generation business            • Rare earth and other               development
                                                    Offshore transmission            resource fields
                                                    business                         General water business
                                                                                     Emission reduction business/
                                                                                     Energy-saving business




      Concentrated solar power (Spain)        Offshore substation (UK)            Sewerage and water reuse plant    Subway railcars (Egypt)
                                                                                  (Australia)




06
                                                                                                          Mitsubishi Corporation   Annual Report 2012




                    What did MC do in the year ended March 2012 to contribute to the recovery from
     Q     5        the Great East Japan Earthquake? And what initiatives do you have planned?


A. We are developing initiatives that will help affected regions
recover economically.

                                                    In February this year, I went back to Sendai, the same area I visited in April last year
                                                    in the aftermath of the disaster. I saw for myself how the region is making steady
                                                    strides toward recovery, including restarted coastal factories that were damaged by
                                                    the tsunami. However, I left still feeling that there were major issues to address such
                                                    as rebuilding the lives of the people affected by the disaster and reviving local indus-
                                                    try, for example.
                                                        After the twin disasters, we established the Mitsubishi Corporation East Japan
*3   Please refer to page 84 for information on     Earthquake Recovery Fund with a total contribution of ¥10.0 billion. These funds
     support activities in affected regions after
     the Great East Japan Earthquake.
                                                    are to be used to help with relief and recovery efforts in disaster-stricken areas *3
                                                    over four years. They have been used to provide emergency relief supplies, to award
                                                    scholarships to university students whose studies have been affected, and to provide
                                                    grants to NPOs and other groups active in the affected regions. As of March 31,
                                                    2012, a total of ¥3.0 billion had been used for supporting the abovementioned and
                                                    other activities.
                                                        Our staff have pitched in too. Employees launched volunteer activities in affected
            Mitsubishi Corporation
     East Japan Earthquake Recovery Fund            regions on April 23, 2011. By March 2012, more than 1,300 employees had given
                                                    their time to recovery efforts. These employees have cleared rubble, cleaned houses

          Total contribution: ¥10 billion
                                                    and carried out other work in Sendai, Ishinomaki and Minamisanriku in Miyagi Prefec-
           (total for four-year period)             ture. Anybody can assess the situation and come up with strategies. But my experi-
                                                    ence reaffirmed for me that the most important thing is to actually see those plans
             Emergency Scholarship                  through with conviction. The road to a full recovery is still long, but employees will
                                                    continue volunteer activities in affected regions and broaden the geographical
                                                    scope of their activities.
             Recovery Support Grants
                                                        In March 2012, we established the Mitsubishi Corporation Disaster Relief Founda-
                                                    tion with some of the funds from the Mitsubishi Corporation East Japan Earthquake
             Donation and Other Aid                 Recovery Fund. We established this foundation to provide more flexible and continu-
                or Contribution
                                                    ous support based on the various needs of affected regions. Besides carrying on
                                                    the activities of the Mitsubishi Corporation East Japan Earthquake Recovery
                Volunteer Activities
                                                    Fund, the foundation will develop new initiatives for reviving industry and creating
                                                    employment to aid the recovery.




                                                                             Overview of Mitsubishi Corporation Disaster
                                                                             Relief Foundation

                                                                             Foundation Name
                                                                             Mitsubishi Corporation Disaster Relief Foundation
                                                                             Purpose of Establishment
                                                                             To contribute to the recovery of the regions afflicted by the
                                                                             Great East Japan Earthquake
                                                                             Main Activities
                                                                             1. Provision of scholarships
                                                                             2. Provision of grants for NPOs, social welfare
                                                                                corporations and the like
                                                                             3. Support for industry recovery and job creation


                                                                                                                                                  07
Mitsubishi Corporation   Annual Report 2012




    Q      6       What is your stance on returning profits to shareholders?


 A. Our basic policy is to reward shareholders by maintaining a
 consolidated payout ratio in the range of 20-25%.


                                              Our dividend policy is to maintain a consolidated dividend payout ratio in the
                                              range of 20-25%, taking into consideration the business environment, the expecta-
                                              tions of shareholders for a stable dividend, and other factors. We will continue to
                                              utilize retained earnings for investments to drive growth, while maintaining our finan-
                                              cial soundness. We aim to increase the annual dividend per share through earnings
                                              growth. For the year ended March 2012, we paid a ¥65 annual dividend per share
                                              as initially forecast, because we achieved our earnings target of ¥450.0 billion by
                                              posting net income of ¥453.8 billion. This dividend represented a consolidated
                                              payout ratio of 24%.
                                                                           We will continue to harness and leverage our know-how,
                                                                     human resources and networks to create sustainable corpo-
                                                                     rate value. As always, I really appreciate the understanding and
                                                                     support of our shareholders and other stakeholders.




                                                                    Net Income and Dividend per Share
                                                                    (¥ billion, yen)


                                                                     500                         471.3                               464.5   453.8   100
                                                                                       419.0
                                                                     400                                     371.0                                    80

                                                                                                                                       65     65
                                                                                                                        275.8
                                                                     300                           56                                                 60
                                                                                                              52
                                                                                        46
                                                                     200                                                  38                          40


                                                                     100                                                                              20


                                                                       0                                                                               0
                                                                                       07.3      08.3        09.3        10.3        11.3    12.3

                                                                                         Net income [left]      Dividend per share [right]
                                                                                                                                                                                                                               Mitsubishi Corporation   Annual Report 2012




MC Summary
An overview of MC’s performance and explanation of progress with the
current medium-term management plan


A Message From the CFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 10
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12
Financial Highlights                            ...................................................................................................                                                                            13
Medium-term Management Plan Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                 16
Profiles of Groups Directly Under the President / Business Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                    18
Results of Business Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   20
Metals and Energy Resource Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              22




                                                                                                                                                                                                                                                                       09
Mitsubishi Corporation   Annual Report 2012




A Message From the CFO


                                              It is my pleasure to greet you in delivering our annual report
                                              for the year ended March 2012. I would like to review our
                                              performance for the past fiscal year and discuss our capital
                                              structure policy.
                                                  In the year ended March 2012, our performance was
                                              impacted by bad weather, strike action at our Australian coking
                                              coal operations and flooding in Thailand. Nevertheless, net
                                              income was ¥453.8 billion, meaning we achieved our ¥450.0            1

                                              billion forecast. This achievement was largely due to the
                                              Energy Business, Chemicals and Living Essentials groups
                                              posting record earnings. The Energy Business Group benefited
                                              from high crude oil prices. The Chemicals and Living Essentials
                                              groups saw past investments generate results. I believe that
                                              our performance demonstrates the strengths of our balanced
                                              portfolio of resource and non-resource businesses.
                                                  Our basic capital structure policy is to sustain growth and
                                              maximize corporate value by balancing earnings growth,
                                              capital efficiency and financial soundness.
                                                  In the year ended March 2012, we made substantial invest-
                                              ments totaling approximately ¥1,300.0 billion. We continued to
                                              use diverse fund procurement channels to fund these invest-
                                              ments. For instance, we borrowed from banks, issued bonds and
                                              established a Renminbi-denominated commercial paper program.
                                              At the same time, total shareholders’ equity at March 31, 2012       2

                                              was a record ¥3,509.3 billion, despite the negative impacts of the
                                              yen’s appreciation and falling share prices. This ¥276.0 billion
                                              year-on-year increase was because of an increase in retained
                                              earnings thanks to the net income result. As a result, the net       2

                                              debt-to-equity ratio, which is an indicator of financial sound-
                                              ness, was 1.0 at March 31, 2012. We thus maintained it at
                                              around the same level as March 31, 2011.
                                                  Over the past 2 fiscal years, including the first year of
                                              Midterm Corporate Strategy 2012, we have made substantial
                                              investments amounting to approximately ¥1,700.0 billion, with
                                              the aim of generating future growth. While free cash flows in        3

                                              the year ended March 2012 were negative ¥550.2 billion, we
                                              expect to see an improvement from the year ending March
                                              2013 as we reap the benefits of our past investments.
                                                  The year ending March 2013 is the final year of Midterm
                                              Corporate Strategy 2012. As CFO of Mitsubishi Corporation, my
                                              aim is to continue to further buttress our financial base, which
                                              will support our ability to create sustainable corporate value.




                                                                               Ryoichi Ueda
                                                                               Member of the Board,
                                                                               Senior Executive Vice President,
                                                                               Chief Financial Officer
                                                                                                                                                                                           Mitsubishi Corporation   Annual Report 2012   Mitsubishi Corporation    Annual Report 2012




                                                                                                                                                                                                                                         Financial Overview

    1     Net income attributable to Mitsubishi Corporation
(¥ billion)

                                                                                                         471.3                                   464.5                                                                                           Achieved Net Income                     MC posted net income of 453.8 billion yen, achieving its 450.0 billion yen full-year forecast.
500                                                                                                                                                            453.8
                                                                                           419.0                                                                                                                                                                                             This achievement was largely due to the Energy Business, Chemicals and Living Essentials
                                                                                                                       371.0
                                                                                                                                                                                                                                                 Projection of 450.0
400                                                                          356.4                                                                                                                                                                                                       groups posting record earnings. The Energy Business Group benefited from high crude oil
                                                                                                                                                                                                                                                 Billion Yen
                                                                                                                                     275.8                                           Bettered full-year net income fore-                                                                 prices. The performances in these and other segments offset the performance in the Metals
300                                                                                                                                                                                                                                                                                      Group, where net income fell far short of forecast due to the impact of the Thai floods, strike
200
                                                               186.6                                                                                                                 cast by posting ¥      453.8 billion                                                                action in Australia and other factors.
                                                 117.6

100                    60.7          63.0                                                                                                                                                                                                                                                In non-resource fields, the Industrial Finance, Logistics & Development, Chemicals and Living
                                                                                                                                                                                                                                                 Earnings in Non-Resource
                                                                                                                                                                                                                                                                                         Essentials segments posted year-on-year net income rises of between 20% and 30%. The
    0
                                                                                                                                                                                                                                                 Fields Rise Approx. 10%
                       02.3         03.3         04.3          05.3           06.3          07.3         08.3           09.3          10.3        11.3         12.3                                                                                                                      Machinery Group, however, saw net income decline due to the impact of the Thai floods. As a
                                                                                                                                                                                                                                                                                         whole, non-resource segments recorded net income of 163.1 billion yen, up approximately 14.7
                                                                                                                                                                                                                                                                                         billion yen, or 10%, year on year.
 2   Total Mitsubishi Corporation shareholders’ equity / Net interest-bearing liabilities /
Net debt-to-equity ratio                                                                                                                                                                                                                         Shareholders’ Equity                    Shareholders’ equity rose 276.0 billion yen from March 31, 2011 to 3,509.3 billion yen, despite
(¥ trillion, times)
                                                                                                                                                                                                                                                 Reaches a Record                        the negative impacts of the yen’s appreciation and falling share prices. This was because of an
                                                                                                                                                                                                                                                                                         increase in retained earnings boosted by the net income result.
4
                             3.81         3.53                                                                                                                                                                                                   3,509.3 Billion Yen
                                                        3.52          3.42                                      3.44
                                                                                                                              3.57                             3.51
                                                                                                                                                                      3.65                                                                                                                   The net debt-to-equity ratio, an indicator of financial soundness, was 1.0 times, largely the
                       3.7          3.7                                                                                                          3.23
                                                                                    3.13          3.08                                                                                Shareholders’ equity reached a                                                                     same as at March 31, 2011.
                                                                                           2.88          2.83                        2.93 2.97          2.95
3                                                 2.9
                                                                             2.35                                      2.36                                                           record ¥   3,509.3 billion                                                                             MC plans to pay an annual dividend per common share applicable to the year ended March
                                                                                                                                                                                                                                                                                         2012 of 65 yen, the same record level as in the previous fiscal year.
                                                                2.3
2                                                                                                                        1.5                                                          Maintained a net debt-to-equity
                                                               1.49


1
                      1.03          0.94
                                                 1.22
                                                                              1.3
                                                                                             1.1           1.2
                                                                                                                                        1.0        0.9
                                                                                                                                                                        1.0           ratio of   1.0
0                      02.3         03.3         04.3          05.3           06.3          07.3         08.3           09.3          10.3        11.3         12.3                                                                      Consolidated Net Income by Segment                                     [Major Changes (Increase or decrease)]
                                                                                                                                                                                                                                         (¥ billion)
                              Shareholders’ equity    Net interest-bearing liabilities                                                                                                                                                                                                                          Industrial Finance, Logistics & Development: 28% increase
                              Net debt-to-equity-ratio                                                                                                                                                                                                                                                          Increase due to improved earnings in the lease-related and real estate
                                                                                                                                                                                                                                                500.0
                                                                                                                                                                                                                                                                                                                finance businesses.
    3     Cash flows                                                                                                                                                                                                                                       464.5
                                                                                                                                                                                                                                                            11.6                453.8                           Energy Business: 28% increase
(¥ billion)                                                                                                                                                                                                                                                                             Industrial Finance,
                                                                                                                                                                                                                                                                                 14.9   Logistics &             Despite the absence of gains recognized on the sale of shares in the
                                                                                                                                                                                                                                                                                        Development
 1,500                                                                                                                                                                                                                                                                                                          previous fiscal year, the Energy Business Group recorded higher earn-
                                                                                                                                                                                                                                                400.0       94.0                                                ings due to increased equity-method earnings from overseas
 1,000                                                                                                                                623.1                                                                                                                                                                     resource-related companies in line with higher crude oil prices, along
        500                         245.9        177.4                        292.4                                                                                                                                                                                             120.6   Energy Business         with increased dividend income from overseas resource-related busi-
                       200.6                                   152.3                       145.3
                                                                                                                                                    68.6                              Free cash flows were negative                                                                                              ness investees.

    –500
          0                                                                                              –25.8         –135.3
                                                                                                                                                                             550.2
                                                                                                                                                                                      ¥   550.2 billion                                                                                                         Metals: 26% decrease
                                                                                                                                                                                                                                                                                                                The decrease reflects mainly the absence of gains on a share transfer
                                                                                                                                                                                                                                                300.0
–1,000
                                                                                                                                                                                                                                                                                                                at a Chilean iron ore-related subsidiary recorded in the previous fiscal
                                                                                                                                                                                                                                                                                                                year, lower dividend income from copper mines, and lower sales
–1,500                 02.3         03.3          04.3          05.3          06.3          07.3          08.3          09.3          10.3        11.3          12.3                                                                                                                                            volume at an Australian resource-related subsidiary (coking coal).
                                                                                                                                                                                                                                                           231.5
                             Cash flows from operating activities   Cash flows from investing activities
                                                                                                                                                                                                                                                                                172.1   Metals                  Machinery: 11% decrease
                              Free cash flows    Cash flows from financing activities                                                                                                                                                                                                                           Despite higher transactions mainly in the construction machinery
                                                                                                                                                                                                                                                200.0
                                                                                                                                                                                                                                                                                                                business, segment net income declined mainly due to lower sales in
                                                                                                                                                                                                                                                                                                                overseas automobile operations because of the impact of the Thai
    4     Cash dividends declared for the year / Payout ratio                                                                                                                                                                                                                                                   floods and foreign exchange effects, a loss stemming from the with-
(¥, %)
                                                                                                                                                                                                                                                                                                                drawal from a business, and the absence of gains recognized on the
                                                                                                                                                                                                                                                                                                                sales of shares in the previous fiscal year.
70                                                                                                                                                 65            65
                                                                                                                                                                                                                                                                                 54.5   Machinery
60
                                                                                                           56                                                                        Maintained an annual dividend per                          100.0       61.4                                                Chemicals: 27% increase
                                                                                                                         52
50
                                                                                             46
                                                                                                                                       38
                                                                                                                                                                                     common share of ¥         65                                                                37.1   Chemicals
                                                                                                                                                                                                                                                                                                                Increased mainly due to higher equity-method earnings from strong
                                                                                                                                                                                                                                                                                                                transactions, primarily at a petrochemical business-related company,
40                                                                             35                                                                                                                                                                           29.1
                                                                                                                                                                                     Recorded a consolidated dividend                                                                                           and bargain purchase gains from the acquisition of a plastics business
                                                                                                                                                                                                                                                                                                                subsidiary and earnings on transactions.
30

20
                         21           20
                                                   16            18            16
                                                                                             19            20
                                                                                                                         23            23          23
                                                                                                                                                                        24
                                                                                                                                                                                     payout ratio of      24% in line with                                  46.3                 56.6   Living Essentials

                         8            8                          15
                                                                                                                                                                                                                                                       0                                                        Living Essentials: 22% increase
10                                                 12                                                                                                                                basic policy                                                                                                               Despite recording a write-down of shares (The Nisshin OilliO Group,
                                                                                                                                                                                                                                                           –9.4                  –2.0   Adjustments and         Ltd.) and lower equity method earnings at general merchandise-
    0                                                                                                                                                                                                                                                                                   Eliminations
                       02.3         03.3         04.3          05.3           06.3          07.3         08.3           09.3          10.3        11.3         12.3                                                                             – 50.0                                                          related businesses, segment net income rose on account of the
                             Cash dividends                     Payout ratio                                                                                                                                                                               11.3                  12.3
                                                                                                                                                                                                                                                                                                                absence of tax expenses recorded in the past fiscal year from adopt-
                                                                                                                                                                                                                                                                                                                ing the consolidated tax filing system, higher earnings on transactions
                                                                                                                                                                                                                                                                                                                at food-related subsidiaries, and gains on share sales.
                                                                                                                                                                                                                                   11    12
Mitsubishi Corporation      Annual Report 2012




Financial Highlights                                              Mitsubishi Corporation and Subsidiaries Years ended March 31 (U.S. GAAP)

Figures from the year ended March 2006 through the year ended March 2011 have been retrospectively adjusted to reflect a change in year-end at certain
consolidated subsidiaries.
However,
1) No retrospective adjustments have been made to figures in the year ended March 2009 or prior years for gross interest-bearing liabilities, net interest-
   bearing liabilities, net debt-to-equity ratio or ROIC.
2) No retrospective adjustments have been made to figures for the year ended March 2008 or prior years for cash flows.
                                                                                                                                                                                                                                                                               Millions of
                                                                                                                                                                                 Millions of Yen                                                                              U.S. Dollars
                                                                                                  2002.3            2003.3            2004.3         2005.3         2006.3          2007.3            2008.3         2009.3         2010.3         2011.3         2012.3        2012.3

Performance Measure:
  Operating transactions*1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           ¥13,230,675       ¥13,604,304       ¥15,177,367    ¥17,122,034    ¥19,085,562     ¥20,526,402       ¥23,105,053    ¥22,393,595    ¥17,102,782    ¥19,233,443    ¥20,126,321     $245,443
Results of Operations:
  Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       3,142,597         3,313,554         3,475,848      4,133,338      4,813,468       5,068,199         6,050,654      6,156,365      4,540,793      5,206,873      5,565,832         67,876
  Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       643,922           723,615           766,080        878,707      1,054,371       1,144,982         1,172,665      1,465,027      1,016,597      1,149,902      1,127,860         13,754
  Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              68,189           100,550           130,069        185,192        351,040         409,563           354,931        590,502        182,253        316,141        271,122          3,306
  Equity in earnings of Affiliated companies . . . . . . . . . . . . . . . .                         9,293            44,878            57,037         99,624        124,867         153,973           155,614        163,256        117,857        167,002        190,509          2,323
  Net income attributable to Mitsubishi Corporation 1 . . . . . .                                   60,702            62,969           117,556        186,641        356,444         418,965           471,262        370,987        275,787        464,543        453,849          5,535
  Core earnings*2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          134,813           183,081           212,977        336,905        548,453         685,438           628,821        858,781        380,325        606,184        580,451          7,079
Financial Position at Year-End:
     Total assets 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        8,148,902         8,113,317         8,397,868      9,048,561     10,283,887      11,350,293        11,638,265     10,837,537     10,803,702     11,272,775     12,588,513       153,518
     Working capital*3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       694,282           682,715           828,971      1,017,681      1,243,841       1,335,452         1,429,764      1,613,776      1,780,008      2,012,098      1,709,310        20,845
     Gross interest-bearing liabilities*4. . . . . . . . . . . . . . . . . . . . . . .           4,239,764         3,938,720         4,017,130      4,040,199      3,766,343       3,829,060         4,183,592      4,879,397      4,154,692      4,257,563      5,016,383        61,175
     Long-term debt, less current maturities . . . . . . . . . . . . . . . . . .                 3,238,871         3,119,391         3,033,276      2,975,701      2,877,050       2,863,558         3,096,818      3,467,766      3,246,029      3,188,749      3,760,101        45,855
     Net interest-bearing liabilities*5 2 . . . . . . . . . . . . . . . . . . . .                3,813,947         3,531,372         3,521,951      3,423,498      3,130,046       3,081,050         3,443,861      3,567,633      2,968,151      2,947,308      3,647,408        44,481
     Total Mitsubishi Corporation shareholders’ equity 2                          5    ...       1,032,499           942,067         1,224,256      1,493,175      2,347,451       2,882,924         2,832,293      2,359,397      2,926,094      3,233,342      3,509,328        42,796
Cash Flows:
  Cash flows from operating activities 3 . . . . . . . . . . . . . . . .                          162,500            270,281          247,710        145,700         384,278          448,573          327,712        558,226        761,573        331,204        550,694          6,716
  Cash flows from investing activities 3 . . . . . . . . . . . . . . . . .                          38,057            (24,388)         (70,329)         6,597         (91,851)       (303,251)        (353,480)      (693,550)      (138,502)      (262,601)    (1,100,913)       (13,426)
  Cash flows from financing activities 3 . . . . . . . . . . . . . . . . .                        (130,469)         (282,681)          (56,203)       (60,414)      (239,415)        (108,363)          69,700        650,608       (755,347)        76,749        599,059          7,306
  Net cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            70,088            (36,788)        121,178          91,883          53,012          36,959           43,932        515,284       (132,276)       145,352         48,840            596

Financial Measures:
Return on average shareholders’ equity (ROE) (%) 5 . . . . . . .                                           6.1               6.4           10.9           13.7           18.6              16.0            16.5           14.3           10.4           15.1           13.5              —
Return on average total assets (ROA)*6 (%) 6 . . . . . . . . . . . . .                                     1.2               0.7            1.8            2.5            5.0               5.5             4.8            3.4            2.7            4.8            3.8              —
Net debt-to-equity ratio (times) 2 . . . . . . . . . . . . . . . . . . . . . .                             3.7               3.7            2.9            2.3            1.3               1.1             1.2            1.5            1.0            0.9            1.0              —
ROIC (core earnings) (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       2.8               4.1            4.5            6.9           10.0              11.5            10.0           14.5            6.5            9.8            8.1              —
Dividend on equity ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       1.2               1.2            1.7            2.1            3.0               2.9             3.2            3.3            2.4            3.5            3.2              —
Stock Price Information:
Stock price (annual average) (yen, U.S. dollar) 7          ..........                                 919               822               965           1,202          2,042             2,371           3,110          2,299          1,969          2,102          1,840          22.44
                           7
Price Earnings Ratio (PER)* (times)  7     ..................                                        23.73             20.45             12.86          10.09           9.67              9.56           11.18          10.51          12.11           7.68           6.70             —
Price Book-value Ratio (PBR)*8 (times) . . . . . . . . . . . . . . . . . . . .                         1.4               1.4               1.2             1.3            1.5               1.4            1.9            1.7             1.1            1.1            0.9            —
Common Stock:
Number of shares outstanding at year-end*9
 (thousands of shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           1,566,553         1,565,647         1,565,557      1,565,749      1,685,767       1,688,303         1,641,203      1,642,904      1,643,532      1,644,074      1,646,173               —
Net income attributable to Mitsubishi Corporation per share:
  Basic EPS (yen, U.S. dollar) . . . . . . . . . . . . . . . . . . . . . . . . . .                   38.74             40.21             75.09         119.21         219.32           248.34           284.06         225.88         167.85         282.62         275.83            3.36
  Diluted EPS (yen, U.S. dollar) 8 . . . . . . . . . . . . . . . . . . . . .                         38.74             37.69             69.31         110.11         209.39           246.99           282.79         225.38         167.46         281.87         275.22            3.36
Mitsubishi Corporation shareholders’ equity per share
  (yen, U.S. dollar) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          682.28            601.71            781.99         953.65       1,392.51         1,728.22         1,725.74       1,436.11       1,780.37       1,966.66       2,131.81              26
Cash dividends declared for the year (yen, U.S. dollar) 4 . . . .                                     8.00              8.00             12.00          18.00          35.00            46.00            56.00          52.00          38.00          65.00          65.00            0.79
Payout ratio*10 (%) 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   21                20                16             15             16               19               20             23             23             23             24              —
Others:
Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 44,034            47,370            49,219         51,381         53,738           55,867           60,664         60,095         58,583         58,470         63,058               —
Outside Director Ratio (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   22.2              17.6              16.7           25.0           23.5              22.2            25.0           33.3           33.3           33.3           38.5              —
 1       2    3     4   Please refer to the graphs on page 11.
 5       6    7     8   Please refer to the graphs on page 15.
13
                                                                                                                                                                               Mitsubishi Corporation                 Annual Report 2012




  5       Total Mitsubishi Corporation Shareholders’ Equity /                                                               6       Total Assets / Return on Average Total Assets (ROA)
          Return on Average Shareholders’ Equity (ROE)
(¥ billion, %)                                                                                                            (¥ billion, %)

4,000                                                                                                                40   15,000                                                                                                           8
                                                                                                         3,509.3
                                                                                                                                                                                            11,638.3                           12,588.5
                                                                                               3,233.3
                                                                                                                                                                                   11,350.3                         11,272.8
                                                                                       2,926.1                            12,000                                                                     10,837.5 10,803.7
                                                           2,882.9 2,832.3
3,000                                                                                                                30                                                   10,283.9 5.5                                                     6

                                                                                                                                                8,113.3       9,048.6                          4.8                      4.8
                                                   2,347.5                   2,359.4                                                                                          5.0
                                                                                                                                                       8,397.9
                                                                                                                            9,000       8,148.9
                                                    18.6
2,000                                                                                                                20                                                                                                              3.8   4
                                                                     16.5
                                         1,493.2                                                 15.1
                                                                              14.3
                                                             16.0                                                           6,000                                                                       3.4
                                 1,224.3                                                                      13.5
                                            13.7                                                                                                                                                                2.7
             1,032.5                                                                                                                                        1.8    2.5
                         942.1
                                    10.9                                                                                                                                                                                                   2
1,000                                                                                   10.4                         10                    1.2
                 6.1
                                                                                                                            3,000
                          6.4
                                                                                                                                                     0.7

      0          02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3 10.3 11.3 12.3                                              0              0      02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3 10.3 11.3 12.3                                          0


                       Shareholders’ equity [ left]             ROE [ right]                                                                     Total assets [ left]        ROA [ right]




  7       Stock Price (Annual Average) / Price Earnings Ratio (PER)*7                                                       8       Net Income Attributable to Mitsubishi Corporation
                                                                                                                                    per Share (Diluted)
(¥, times)                                                                                                                (¥)

4,000                                                                                                                40   300                                                                 282.8                    281.9
                                                                                                                                                                                                                                275.2

                                                                                                                                                                                    247.0
                                                                     3,110                                                250
                                                                                                                                                                                                       225.4
3,000                                                                                                                30                                                    209.4

                 23.7                                        2,371                                                        200
                                                                             2,299                                                                                                                             167.5
                           20.5                    2,042                                         2,102
                                                                                       1,969
                                                                                                         1,840
2,000                                                                                                                20   150
                                                                                                                                                                  110.1
                                    12.9                                                12.1
                                           1,202                     11.2                                                 100
                                   965               9.7
                 919                                                                                                                                       69.3
1,000                     822              10.1                               10.5                                   10
                                                              9.6
                                                                                                  7.7         6.7                          38.7     37.7
                                                                                                                            50



      0          02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3 10.3 11.3 12.3                                               0         0          02.3 03.3 04.3 05.3 06.3 07.3 08.3 09.3 10.3 11.3 12.3

                   Stock price (annual average) [ left]                 PER [ right]




Notes: The U.S. dollar amounts represent translations, for convenience, of yen amounts at the rate of ¥82=$1.
*1 Operating transactions is a voluntary disclosure commonly made by Japanese trading companies, and is not meant to represent sales or revenues in accordance
    with U.S. GAAP. See Note 1 to consolidated financial statements, financial section.”
*2 Core earnings = Operating income (before the deduction of provision for doubtful receivables) + Interest expense (net of interest income) + Dividend income +
    Equity in earnings of affiliated companies”
*3 Working capital consists of all current assets and liabilities, including cash and short-term debt.
*4 Gross interest-bearing liabilities is defined as short-term debt and long-term debt, including current maturities, less the effect of markdowns on liabilities.
*5 Net interest-bearing liabilities is defined as gross interest-bearing liabilities minus cash and cash equivalents and time deposits.
*6 ROA is calculated by dividing income from continuing operations before income taxes and equity in earnings of Affiliated companies by the average of total assets
    at the beginning and end of the fiscal year.
*7 PER is calculated by dividing market capitalization, as determined by multiplying the average share price during the fiscal year by the number of shares issued at
    the fiscal year-end, by net income attributable to Mitsubishi Corporation.
*8 PBR is calculated by dividing market capitalization, as determined by multiplying the average share price during the fiscal year by the number of shares issued at
    the fiscal year-end, by total Mitsubishi Corporation shareholders’ equity.
*9 Excluding treasury stock held by the Company.
*10 Payout ratio was calculated based on net income attributable to Mitsubishi Corporation for the fiscal year before reclassification.
                                                                                                                                                                                                                                           15
                             Mitsubishi Corporation   Annual Report 2012



                             Medium-term Management Plan Progress


                                                          MC2003                                                               INNOVATION 2007– 2009

                                             Management system reform                                      Business model reform
                                             (“Select & Focus” approach to business)                        (Building value chains and changing the business portfolio)
                                                                                                           Stepped up initiatives in the environment and water business,
                                                                                                           and new energy

                                    MC2003 Performance                                                  INNOVATION 2007–2009 Performance
Net Income by Operating Segment




                                   (¥ billion)
                                                      Industrial Finance, Logistics
                                      600             & Development Group
                                                      Energy Business Group
                                      500             Metals Group
                                                                                                                                                     471.3
                                                      Machinery Group
                                                                                                                                      419.0                         371.0
                                                      Chemicals Group
                                      400             Living Essentials Group                                          356.4
                                                      Others                                                                                                                       275.8
                                      300             Adjustments and
                                                      Eliminations                                      186.6
                                      200                                                117.6
                                                                           63.0
                                      100                  60.7


                                           0

                                    –100
                                                           02.3            03.3          04.3           05.3           06.3           07.3           08.3           09.3           10.3




                                    MC2003 Investments                                                  INNOVATION 2007–2009 Investments
Level of Investments




                                       (¥ trillion)
                                        5.0
                                                      Gross investments (Resources)
                                                                                                                                                             3.86
                                                      Gross investments (Non-resources)                                                                                                    3.80
                                                      Asset realignments, etc.                                                                                              3.71
                                                                                                                                              3.54
                                        4.0           Balance of investment assets



                                                                                                                               3.19
                                                                                                                2.80
                                        3.0
                                                                  2.70            2.75           2.73




                                        2.0
                                                           02.3            03.3          04.3           05.3           06.3           07.3           08.3           09.3           10.3
                                  Gross investments              —              —              —             0.33             0.37        0.45           0.75           0.70           0.27
                                    (Resources)                  —              —              —             0.10             0.14        0.16           0.30           0.27           0.07
                                    (Non-resources)              —              —              —             0.24             0.23        0.29           0.45           0.43           0.20
                                  Asset realignments, etc.       —              —              —            –0.26             0.02       –0.10          –0.43          –0.85          –0.18
                                  Change                         —            0.05          –0.02            0.07             0.39        0.35           0.32          –0.15           0.09
                                  Balance of investment assets 2.70           2.75           2.73            2.80             3.19        3.54           3.86           3.71           3.80



                                  Investment Assets
                                  • Investment assets include related investments and non-current receivables, cost of available-for-sale securities (shares only), unlisted
                                    securities, property and equipment (excluding real estate held for development and resale), intangible assets, and goodwill.
                                  • Prior-year investment assets have not been reclassified to take into account the impact of unifying domestic subsidiaries’ fiscal
                                    year-ends.
                             16
                                                                                                                                                           Mitsubishi Corporation             Annual Report 2012




                                                          Midterm Corporate Strategy 2012

        Create Sustainable                   Designate strategic domains                 Initiatives to leverage MC’s diversified                             Initiatives to solidify MC’s
        Corporate Value                      and regions:                                business portfolio:                                                  diversified business portfolio:
                                             MC will respond to fast-growing             MC will cultivate several earnings drivers                           MC will enhance the MC Group’s
                                             emerging economies and new                  by leveraging its diversified business                               strengths by solidifying its diversi-
                                             growth markets.                             portfolio and business models.                                       fied business portfolio.
                                                                                               1
Midterm Corporate Strategy 2012 Performance                                                                  Midterm Corporate Strategy 2012 Target and Progress

                                                                                         < Target >                                                      < Progress >                                  13.3
                                                                                                                                        11.3                            12.3                           (est.)

                                            Target                             ROE                                                     15.1%
                                      500.0 billion yen
        464.5          453.8
                                                                               12 –15%                                                                                                               13.6%

                                                                                                                                                                     13.5%
                                                                               Net debt-to-equity ratio
                                                                                                                                                                     1.0 times                       1.0 times
                                                                               1.0 –1.5 times                                         0.9 times


                                                                               Payout ratio
                                                                                                                                                                       24%
        11.3            12.3                13.3 (est.)                        20 –25%                                                  23%                                                           23%


                                                                     1      Under Midterm Corporate Strategy 2012 we set targets for the plan period. As of the end of the year
                                                                            ended March 2012, we were making steady progress against each of these targets.

                                                                                                                                                                                                                 (¥ billion)
Midterm Corporate Strategy 2012 Investments                                                            Midterm Corporate Strategy 2012 Investment Plan and Progress

                               4.90                                            Regions/Domains               < Investment Plan >                                     < Performance >
                                                                                                                 (three years)             11.3                               12.3

                                                                                                                                                                                                                Aggregate
            3.90                                                         Strategic
                                                                                      China, India, Brazil                                        Strategic Regions include the following amounts:
                                                                         Regions


                                                                                         Infrastructure                                                e North American IPP business
                                                                         Strategic                           Approx.
                                                                                      Global Environmen-                                    42                                                        46           88
                                                                         Domains                               300                                     e Lithium-ion battery business, etc.
                                                                                        tal Businesses


                                                                               Mineral Resources                                                      n Canada shale gas business
                                                                                                              1,000–                                  k Coking / thermal coal business in
                                                                                                                                           165                                                       930         1,095
                                                                                                               1,200     100–200                        Australia
                                                                             Oil and Gas Resources                                                    k Copper business in Chile and Peru, etc.


                                                                                                                                                       s China real estate business
                                                                                                                                                       s Aircraft leasing-related business
        11.3           12.3                                          Industrial Finance, Steel Products,                                              m Ship owning and chartering business
                                                                       Carbon Materials, Ships, Motor                                                  c Development of a rock phosphate mine
            0.37           1.34         2
                                                                     Vehicles, Chemicals, Retail, Foods,
                                                                                                             600–800                       163                                                       360          523
                                                                                                                                                         in Peru
            0.17           0.93                                                      etc.
                                                                                                                                                       c Acquisition of Chuo Kagaku
            0.21           0.41                                                                                                                          Co., Ltd.
           –0.27          –0.34                                                                                                                        l Meat business in China, etc.
            0.10           1.00
            3.90           4.90                                                      Total                      2,000–2,500                370                         1,336                                     1,706


            2   In the years ended March 2011 and 2012,              e Global Environment & Infrastructure               k Metals
                we made gross investments totaling approxi-            Business Development                              m Machinery
                mately ¥1,700.0 billion.                             t Business Service                                  c Chemicals
                                                                     s Industrial Finance, Logistics &
                                                                                                                         l       Living Essentials
                                                                       Development
                                                                     n Energy Business

                                                                                                                                                                                                                   17
Mitsubishi Corporation   Annual Report 2012



Profiles of Groups Directly Under the President / Business Groups

Profiles of Groups Directly Under the President


                                              The Global Environment & Infrastructure Business Development Group covers infra-
                                              structure projects in power generation, water, and transportation, plus environmental
                                              and related projects in the manufacturing of lithium-ion batteries for electric vehicles,
Global Environment &
                                              emissions trading, ESCO business, and so on.
Infrastructure Business
                                              Main Products and Services
Development Group                             Power generation, including solar photovoltaic, solar thermal, and wind, undersea power transmission,
                                              bio-fuels, emissions credits, lithium-ion batteries, neodymium magnets, water and sewage, desalination,
                                              ESCO, district heating, smart community development, development of harbors, railways, and airports,
                                              nanotechnology.




                                              The Business Service Group coordinates with MC’s companywide IT strategies, cover-
                                              ing everything from individual business strategies to planning, development, and admin-
                                              istration. Our comprehensive services provide vital IT support for MC’s businesses.
Business Service
Group                                         Main Products and Services
                                              SI (System Integration), consulting, IT outsourcing (data centers, etc.), BPO (Business Process Outsourcing),
                                              construction industry ASP, etc.




Profiles of Business Groups


                                              The Industrial Finance, Logistics & Development Group is developing industrial finance
                                              businesses, including asset management, buyout investment, leasing, real estate devel-
                                              opment, and logistics services.
Industrial Finance,
                                              Main Products and Services
Logistics &                                   Asset management business, infrastructure related finance business, leasing business, airline-related busi-
Development                                   ness, buyout investment business, healthcare fund business, real estate funds business, real estate portfolio
Group                                         management, real estate development (commercial facilities and logistics), sales of condominiums, urban
                                              development, construction, real estate consulting, equipment supply, hospital revitalization, Private Finance
                                              Initiative (PFI) business, global real estate investment, integrated logistics business, bulk carrier ownership and
                                              operations, others




                                              The Energy Business Group, in addition to developing and investing in oil and gas
                                              projects, conducts trading activities in areas such as crude oil, petroleum products,
                                              liquefied petroleum gas (LPG), liquefied natural gas (LNG), and carbon materials
Energy Business                               and products.
Group
                                              Main Products and Services
                                              LNG, LPG, crude oil, gasoline, naphtha, kerosene, diesel oil, fuel oil, lubricating oil, asphalt, other petroleum
                                              products, coal coke, petroleum coke, carbon black feedstock, coal tar and tar products, carbon fibers and
                                              activated carbon, artificial graphite electrodes, oil and gas exploration and production, others




18
                                                                                             Mitsubishi Corporation   Annual Report 2012




                    The Metals Group handles a wide range of steel products, ferrous raw materials, and
                    non-ferrous metals. Forging a strong value chain from upstream raw materials to
                    downstream products, the group is focusing on trade and investments to develop its
Metals Group        diverse businesses.
                    Main Products and Services
                    Coking coal, thermal coal, iron ore, raw materials for stainless steel such as nickel and chrome, ferro-alloys,
                    non-ferrous metal raw materials such as copper and aluminum, non-ferrous metals, precious metals, automo-
                    tive body parts, pig iron, scrap steel, steel sheets and coils, steel tubes and pipes, stainless steel, other steel
                    products, others




                    The Machinery Group trades machinery in a broad range of fields in which it also
                    invests and provides finance and distribution services. These fields extend from large-
                    scale plants for the production of natural gas, petroleum, chemicals and steel, to ships,
Machinery Group     automobiles, aerospace equipment, and mining, construction, industrial machinery,
                    elevators, and escalators.
                    Main Products and Services
                    Plant equipment for oil, gas, chemical, steel, non-ferrous metals and cement industries, off-shore marine
                    structures; agricultural machinery, construction machinery, industrial machinery, mining equipment, elevators
                    and escalators; ships and vessels, marine machinery, ship owning and management business, space-related
                    equipment, defense-related equipment, satellite imagery sales business; automobiles (built-up vehicles,
                    assembly parts, spare parts), export, overseas production, sales, sales finance, others




                    The Chemicals Group is developing businesses in the commodity chemicals field,
                    which involves handling raw materials in the upstream sector of the product chain, and
                    the functional chemicals field, which involves handling products such as synthetic
Chemicals Group     plastics and electronic materials in the midstream and downstream sectors of the value
                    chain. We also develop businesses in the life science field, which includes food science,
                    pharmaceuticals and agrochemicals.
                    Main Products and Services
                    Petrochemical products, salt, caustic soda, polyester raw materials, olefins and aromatics, methanol, ethanol,
                    ammonia, fertilizers, inorganic chemical products, synthetic plastics and plastic products, PVC, functional
                    materials, electronic materials, synthetic rubber, urethane, pharmaceutical and agricultural chemical intermedi-
                    ates manufacturing, food science business, bio business, others




                    The Living Essentials Group provides products and services, develops businesses, and
                    invests in various fields that directly impact our quality of life. Covering everything from
                    the procurement of raw materials to delivery of goods to consumer markets, these opera-
Living Essentials   tions include foods, textiles, daily necessities, healthcare, distribution, retail, and so on.
Group
                    Main Products and Services
                    Dispensing pharmacy business, hospital management solutions through procurement of medical supplies and
                    pharmaceuticals, rental of nursing care equipment, strategy planning, project planning of retail business,
                    mail-order and marketing business, point-based loyalty programs, payment and settlement service business-
                    es; rice, wheat, barley, wheat flour, corn, milo, fresh produce, marine products, sugar, starch, corn syrup and
                    other sweeteners, corn grits, salt, brewing malt/hops, soybean, canola, sesame seed, oils & fats, oil and fat
                    products, chicken, pork, beef, processed meat products, livestock and fish feed ingredients; coffee ingredi-
                    ents, confectionery ingredients, fruit juices, raw tea products, cheese, dairy products, processed foods, frozen
                    and chilled products, confectionery, mineral water, canned foods, liquor, pet food; brand business, fashion
                    apparel, footwear, furniture and interior products, household goods, cotton, yarn, textile, knitted fabric,
                    industrial materials, high-function materials; paper & paperboard, packaging materials, woodchips, pulp,
                    afforestation, printing and photosensitive materials and equipment, cement, ready-mixed concrete, lumber,
                    housing and construction materials, silica sand, kaolin clay, tires, industrial rubber materials, others
                                                                                                                                     19
Mitsubishi Corporation       Annual Report 2012



Results of Business Groups
                                                                                                         Fiscal 2012 Results

                                                                                                         Operating transactions . . . . . . . . . . . .         ¥ 193,107 million
Share of Net Income                                                                                      Gross profit . . . . . . . . . . . . . . . . . . . .   ¥ 48,224 million
                                                                                                         Equity in earnings of Affiliated
                                                                                                          companies . . . . . . . . . . . . . . . . . . . .     ¥   9,157 million
                                                                                                         Net income . . . . . . . . . . . . . . . . . . . . .   ¥ 14,911 million
                                                                Industrial Finance,                      Segment assets . . . . . . . . . . . . . . . . .       ¥ 868,456 million
                                                                Logistics &                              No. of employees*2
                                                                                                           Consolidated. . . . . . . . . . . . . . . . . .           2,613
                                                                Development                                Parent company . . . . . . . . . . . . . . .                398
                FY2012                                                                                   No. of consolidated subsidiaries and
                                                                Group                                    equity-method affiliates*3 . . . . . . . . . .                 86
              Net Income*1
             ¥453.8 billion                                                                              Operating transactions . . . . . . . . . . . .         ¥4,564,470 million
                                                                                                         Gross profit . . . . . . . . . . . . . . . . . . . .   ¥ 61,828 million
                                                                                                         Equity in earnings of Affiliated
                                                                                                          companies . . . . . . . . . . . . . . . . . . . .     ¥ 71,939 million
                                                                Energy Business                          Net income . . . . . . . . . . . . . . . . . . . . .
                                                                                                         Segment assets . . . . . . . . . . . . . . . . .
                                                                                                                                                                ¥ 120,639 million
                                                                                                                                                                ¥1,594,140 million
                                                                Group                                    No. of employees*2
                                                                                                           Consolidated. . . . . . . . . . . . . . . . . .           1,617
                                                                                                           Parent company . . . . . . . . . . . . . . .                524
                                                                                                         No. of consolidated subsidiaries and
■ Industrial Finance, Logistics &                                                                        equity-method affiliates*3 . . . . . . . . . .                 86
  Development Group . . . . . . . . . . . . .         3.3%
■ Energy Business Group . . . . . . . . . .          26.6%                                               Operating transactions . . . . . . . . . . . .         ¥4,399,553 million
■ Metals Group . . . . . . . . . . . . . . . . . .   37.9%                                               Gross profit . . . . . . . . . . . . . . . . . . . .   ¥ 267,553 million
■ Machinery Group . . . . . . . . . . . . . . .      12.0%                                               Equity in earnings of Affiliated
■ Chemicals Group . . . . . . . . . . . . . . .                                                           companies . . . . . . . . . . . . . . . . . . . .     ¥ 36,415 million
                                                      8.2%
■ Living Essentials Group. . . . . . . . . . .       12.5%
                                                                Metals Group                             Net income . . . . . . . . . . . . . . . . . . . . .
                                                                                                         Segment assets . . . . . . . . . . . . . . . . .
                                                                                                                                                                ¥ 172,141 million
                                                                                                                                                                ¥3,571,196 million
                                                                                                         No. of employees*2
                                                                                                           Consolidated. . . . . . . . . . . . . . . . . .          11,681
                                                                                                           Parent company . . . . . . . . . . . . . . .                410
                                                                                                         No. of consolidated subsidiaries and
                                                                                                         equity-method affiliates*3 . . . . . . . . . .                 27


Share of Total Assets                                                                                    Operating transactions . . . . . . . . . . . .         ¥3,251,670 million
                                                                                                         Gross profit . . . . . . . . . . . . . . . . . . . .   ¥ 178,877 million
                                                                                                         Equity in earnings of Affiliated
                                                                                                          companies . . . . . . . . . . . . . . . . . . . .     ¥ 22,634 million
                                                                Machinery Group                          Net income . . . . . . . . . . . . . . . . . . . . .
                                                                                                         Segment assets . . . . . . . . . . . . . . . . .
                                                                                                                                                                ¥ 54,462 million
                                                                                                                                                                ¥1,932,941 million
                                                                                                         No. of employees*2
                                                                                                           Consolidated. . . . . . . . . . . . . . . . . .           9,713
              FY2012                                                                                       Parent company . . . . . . . . . . . . . . .              1,078
                                                                                                         No. of consolidated subsidiaries and
            Total Assets                                                                                 equity-method affiliates*3 . . . . . . . . . .                140
          ¥12,588.5 billion
                                                                                                         Operating transactions . . . . . . . . . . . .         ¥2,218,587 million
                                                                                                         Gross profit . . . . . . . . . . . . . . . . . . . .   ¥ 86,564 million
                                                                                                         Equity in earnings of Affiliated
                                                                                                          companies . . . . . . . . . . . . . . . . . . . .     ¥ 17,968 million
                                                                Chemicals Group                          Net income . . . . . . . . . . . . . . . . . . . . .
                                                                                                         Segment assets . . . . . . . . . . . . . . . . .
                                                                                                                                                                ¥ 37,085 million
                                                                                                                                                                ¥ 806,218 million
                                                                                                         No. of employees*2
                                                                                                           Consolidated. . . . . . . . . . . . . . . . . .           5,404
                                                                                                           Parent company . . . . . . . . . . . . . . .                642
                                                                                                         No. of consolidated subsidiaries and
■ Industrial Finance, Logistics &                                                                        equity-method affiliates*3 . . . . . . . . . .
                                                                                                                                                                        48
  Development Group . . . . . . . . . . . . .         6.9%
■ Energy Business Group . . . . . . . . . .          12.7%
                                                                                                         Operating transactions . . . . . . . . . . . .         ¥5,450,689 million
■ Metals Group . . . . . . . . . . . . . . . . . .   28.4%
                                                                                                         Gross profit . . . . . . . . . . . . . . . . . . . .   ¥ 462,996 million
■ Machinery Group . . . . . . . . . . . . . . .      15.4%                                               Equity in earnings of Affiliated
■ Chemicals Group . . . . . . . . . . . . . . .       6.4%                                                companies . . . . . . . . . . . . . . . . . . . .     ¥ 25,792 million
■ Living Essentials Group. . . . . . . . . . .       18.9%      Living Essentials                        Net income . . . . . . . . . . . . . . . . . . . . .
                                                                                                         Segment assets . . . . . . . . . . . . . . . . .
                                                                                                                                                                ¥ 56,642 million
                                                                                                                                                                ¥2,383,577 million
■ Adjustments and Eliminations . . . . . .           11.4%      Group                                    No. of employees*2
                                                                                                           Consolidated. . . . . . . . . . . . . . . . . .          25,840
                                                                                                           Parent company . . . . . . . . . . . . . . .                891
                                                                                                         No. of consolidated subsidiaries and                          115
                                                                                                         equity-method affiliates*3 . . . . . . . . . .

*1 Net income includes “Adjustments and Eliminations” of minus ¥2.0 billion.
*2 Data as of March 31, 2012. The number of Corporate Staff Section employees not shown on this page was 6,190 on a consolidated basis and 1,853 on a parent
   company basis. Accordingly, the total number of employees was 63,058 on a consolidated basis and 5,796 on a parent company basis.
*3 Data as of March 31, 2012. Figures do not include companies consolidated by subsidiaries. Not shown on this page are 33 consolidated subsidiaries and equity-
   method affiliates belonging to the Global Environment Business Development Group, 6 consolidated subsidiaries and equity-method affiliates belonging to the
   Business Service Group, 13 consolidated subsidiaries and equity-method affiliates belonging to the Corporate Staff Section, and 40 overseas regional subsidiaries.
   Accordingly, the total number of consolidated subsidiaries and equity-method affiliates was 594.
*4 Figures for Metals have been restated through the year ended March 2010 due to the equity-method consolidation of Coal & Allied Industries Limited.
20
                                                                                                                         Mitsubishi Corporation        Annual Report 2012




                                           Equity in Earnings of
Gross Profit                               Affiliated Companies                        Net Income (Loss)                           Segment Assets, ROA
(¥ billion)                                (¥ billion)                                 (¥ billion)                                 (¥ billion, %)



                        48                                                                                        15                                             869
       45      47                                  11                                                                                     798           793
                                                                                                         12
                                                           9         9

                                                                                                                                                        1.5       1.8
                                                                                                                                                                         ROA*6
                                                                                        0

                                                                                                                                    0
                                                                                               –8
                                                                                                                                                –0.9
     10.3*5   11.3     12.3                     10.3*5   11.3      12.3                      10.3*5     11.3     12.3                   10.3*5          11.3     12.3



                        62                                          72                                           121                                            1,594
                                                           56                                            94                             1,323          1,280
               44
        40                                                                                                                                                               ROA*6
                                                   40                                          72                                                                8.4
                                                                                                                                                        7.2
                                                                                                                                         5.4



      10.3    11.3     12.3                      10.3    11.3      12.3                      10.3       11.3     12.3                   10.3           11.3     12.3



               326                                         42                                            232                                                    3,571
                        268                                         36                                                                                 3,030
                                                                                                                                        2,813
       232                                                                                                       172
                                                                                              139
                                                                                                                                                        7.9
                                                                                                                                                                         ROA*6
                                                  11                                                                                     4.9                     5.2



     10.3*4   11.3*4   12.3                     10.3*4   11.3*4    12.3                      10.3*4     11.3*4   12.3                   10.3*4      11.3*4      12.3



               182      179                                         23                                   61                             1,914                   1,933
                                                                                                                                                       1,849
       155                                                18                                                      55


                                                                                                                                                        3.3              ROA*6
                                                   11                                                                                                            2.9
                                                                                               18

                                                                                                                                         0.9

     10.3*5   11.3     12.3                     10.3*5   11.3      12.3                     10.3*5 *8   11.3     12.3                   10.3*5         11.3     12.3



               84       87                                          18                                            37                                             806
       78                                          17                                                                                    733
                                                                                               32                                                      709
                                                           15                                            29

                                                                                                                                                                         ROA*6
                                                                                                                                         4.8                     4.9
                                                                                                                                                        4.0



      10.3    11.3     12.3                      10.3    11.3      12.3                      10.3       11.3     12.3                   10.3           11.3     12.3



       457     457      463                                         26                                            57                                            2,384
                                                           23                                                                           2,184          2,184
                                                   20                                         47         46


                                                                                                                                                                         ROA*6
                                                                                                                                                                 2.5
                                                                                                                                         2.2            2.1



     10.3*7   11.3     12.3                     10.3*7   11.3      12.3                      10.3*7     11.3     12.3                   10.3*7         11.3     12.3

*5 Effective April 1, 2010, MC transferred parts of the business of the Industrial Finance, Logistics & Development and Machinery segments to Other. Figures for the
   related operating segments for the year ended March 2010 have been restated accordingly.
*6 ROA is calculated by dividing net income by the average of total assets at the beginning and end of the fiscal year. The ROA figure for the year ended March 2010
   has not been restated.
*7 Restated figures are shown for the year ended March 2010 due to a change in year-end at certain subsidiaries in the Living Essentials from December to March.
*8 Figures less than one million yen have been rounded.



                                                                                                                                                                        21
Mitsubishi Corporation         Annual Report 2012



Metals and Energy Resource Data


    Metals Resource Related
                                                                                     BMA (Australia)
            Coking coal                                                              Through our subsidiary                          JCU
                                                                                                                             (Japan Canada Uranium)
            Iron ore                                                                 MDP*, we decided to                           (Canada)                              Anglo American Sur (Chile)
            Nickel, Chrome                                                           expand our BMA coking                                      West McArthur            In November 2011, we
            Copper                                  Uranium exploration              coal operations.                                           (Canada)                 acquired a 24.5% stake of
            Aluminum                                     (Mongolia)                                                                                                      Anglo American Sur, S.A.,
            Uranium                                                                                     Quellaveco (Peru)                                   IOC          which owns copper assets
                                                                                                                                            Marathon                     in Chile. As a result, our
            PGM (Platinum Group Metals)          PACIFIC METALS CO., LTD.                               In February 2012, we acquired       (Canada)      (Canada)
            Existing project                                     (Japan)                                an 18.1% stake of Anglo                                          attributable annual copper
            Exploration and                                                                             American Quellaveco S.A.                                         production is expected to
                                                            Furuya Metal                                                                                                 rise to 250,000 tons per
             development project                                 (Japan)                                from International Finance
                                                                                                        Corporation (IFC). Our attrib-                                   annum in 2012.
                                                          Asahan      Weda Bay                          utable copper production is
                                                        (Indonesia)   (Indonesia)                       expected to increase by                                    Albras
                                                                                                        approximately 40,000 tons        Antamina                  (Brazil)
                                         Gresik                                                         per annum in 2016 after             (Peru)
                       Mozal         (Indonesia)                       Kintyre              BMA         production commences.
                    (Mozambique)                                      (Australia)         (Australia)                                                                   Quellaveco
                              Crosslands Resources                                                Boyne                                  Escondida                      (Peru)
                                           (Australia)                                            (Australia)                                 (Chile)
                                                                                                                                                                   CMP (Chile)
                                           Oakajee Port & Rail                                  Ulan                                Los Pelambres
                                                    Australia          Clermont                 (Australia)                                 (Chile)
          Hernic Ferrochrome                                          (Australia)
             (South Africa)                                                              Warkworth/Coal & Allied                                                    Anglo American Sur
                                        Coal & Allied (Australia)                             (Australia)                                                           (Los Bronces, etc.)
                                        Our subsidiary MDP and Rio Tinto                                                                                CAP (Chile)
                                        Limited acquired all shares of Australian
                                        coal producer Coal & Allied Industries
                                        Limited that they did not hold as of                                                                             * MITSUBISHI DEVELOPMENT PTY LTD.
                                        December 2011.


BMA annual production volume                                            MDP annual sales volume                                               Imports to Japan and MC’s Share*
(50% basis)                                                                                                                                   (Year ended December 31, 2011)
(Million tons)                                                          (Million tons)


25                      24.8                                            30                                      29.0
                 23.7            23.7                                                    28.7   27.8    27.7                                                             59 million tons (total)
                                          22.1                                                                         26.7
                                                                        25
20                                                19.4                                                                                        Coking       30%                Others 70%
                                                                        20                                                                    Coal
15
                                                                        15
                                                                                                                                                                       113 million tons (total)
10
                                                                        10
                                                                                                                                              Thermal 16%                Others 84%
    5                                                                     5                                                                   Coal

    0                                                                     0
                 08.3   09.3     10.3     11.3    12.3                                   08.3   09.3    10.3    11.3   12.3
   1Q       2Q       3Q     4Q                                              Hard coking coal    Semi soft coking coal                         * MC’s share includes imports where MC’s only
* Total from April to March                                                 Thermal coal                                                        involvement is trading.
                                                                        * Includes equity share of thermal coal sales volume
                                                                           other than from BMA
                                                                        ** Adjustments have been made to figures from the year
                                                                           ended March 2011 in order to reflect the impact of
                                                                           the equity-method consolidation of Coal & Allied.

Equity Share of Production (Total from January to December)
IRON ORE                                                                COPPER                                                                ALUMINUM
(Million tons)                                                          (Thousand tons)                                                       (Thousand tons)

7                       7.0                                             150               148
                                          6.5     6.5                                                                                         250           240
                  6.3            6.1                                                             138                                                               232        230   233    230
6                                                                                                               128
                                                                                                        121            119                    200
5
                                                                        100
4                                                                                                                                             150
3                                                                                                                                             100
                                                                          50
2
                                                                                                                                               50
1
0                                                                          0                                                                    0
                 07. 2 08.12 09.12 10.12 11.12
                   1                                                                       1
                                                                                         07. 2 08.12 09.12 10.12 11.12                                       1
                                                                                                                                                           07. 2 08.12 09.12 10.12 11.12

    IOC      CMP                                                           Escondida         Antamina      Los Pelambres                        Mozal      Boyne      Others


        For detailed information on the Metals Group, please refer to the business group introduction section (pages 44 to 47).
22
                                                                                                                                                   Mitsubishi Corporation     Annual Report 2012




     Energy Resource Related
                                                                                                                                                      Shale Gas Development (Canada)
                                         Oil and gas E&P projects                                                              Canada
    U.K. North Sea                                                                                                            Shale Gas               In February 2012, we acquired a
Development /Production                  LNG and natural gas projects                                                    Development Projects         partnership interest in Encana Corpo-
       (Crude oil)                                                                                                                                    ration’s shale gas business. We are
                                                                                                                                                      already engaged in shale gas devel-
                                                                                                                                                      opment with Penn West Energy Trust.
                                                                                      Sakhalin II LNG
                                                                                                                                            U.S. Gulf of Mexico
                                                                                                                                          Development / Production
                                                                                                                                                 (Crude oil)
                                    Oman LNG
    Liberia
 Exploration
  (Crude oil)
                   Gabon
                   Exploration/Development /Production                                                                                                            Venezuela
                   (Crude oil)                                                                                                                                Development of
                                                                                                                    Brunei LNG                                Orinoco heavy oil
                                                                                                                                                                  (Crude oil)
                  Angola                                                                          Malaysia LNG
                  Exploration/Development /Production                                                                              Donggi-Senoro LNG
                  (Crude oil)                                                                                                                                       Talisman
                                                      Western Australia LNG                    Investment in MEDCO                        Tangguh LNG               (Papua New Guinea)
    Liberia Exploration                                                                                                                                             In February 2012, we
    In October 2011, we entered                                                                                Kangean    Papua New Guinea                          agreed to participate in nine
    into an agreement with U.S.                                                               Exploration/Development/ Exploration/Development                      of Calgary-headquartered
                                                                                                             Production      (Natural gas)                          Talisman Energy Inc.’s
    company Anadarko Petroleum                                                                    (Crude oil/Natural gas)
    Corporation to participate in                                                                                                                                   natural gas licenses in
    the Liberia Block 10 oil and                                                                                                                                    Papua New Guinea’s
    gas field, offshore of the                                                                                                                                      onshore Western Province.
    Republic of Liberia.



           LNG Imports to Japan and                                     Equity Share of LNG Production                                                                      End of 2014
                                                                                                                                                                           Donggi-Senoro
           MC’s Share*                                                  (Million tons/year)
                                                                                                                                                                            LNG Project
                                                                        8
                                                                        7                                                         7.05            7.05            7.05
                                                                        6
                                                                                                                   5.34
                                                                        5                          4.97
                              83.2                                      4
                             Mil. Tons
                                                                        3
                                                                        2
                                                                        1
                                                                        0
                                                                                                   07.12          08.12          09.12           10.12           11.12
                  (Year ended March 31, 2012)
        * MC’s share includes imports where MC’s only                       Brunei    Malaysia I    Malaysia II    Malaysia III*         Western Australia*      Oman
          involvement is trading.                                           Qalhat (Oman)     Sakhalin II*    Tangguh*
                                                                         * Owns upstream working interest


           MC’s Reserves                                                 Equity Share of Oil and Gas Production (Yearly Average)*
           (Billion BBL)                                                 (Thousand BBL/Day)

                Crude oil/condensate
                           0.22                                         160
                                                                                                                                                  146              141
                                                                        140
                                                                        120                                                        116
                                                 Total *1*2             100
                      Natural gas                1.13                                               90              84
                                                                            80
                           0.91
                                                                            60
                                                                            40
                                                                            20
                                                                             0
                (As of December 31, 2011)
                                                                                                   07.12          08.12           09.12           10.12           11.12       12.12
           *1 Oil equivalent. Includes consolidated subsidiaries and
              equity-method affiliates                                      Natural gas       Crude oil/condensate
           *2 Participating interest equivalent. Includes reserves       * Oil equivalent. Includes consolidated subsidiaries and equity-method affiliates
              based on original standards set by MC


        For detailed information on the Energy Business Group, please refer to the business group introduction section (pages 40 to 43).
                                                                                                                                                                                                23
Mitsubishi Corporation   Annual Report 2012




Pursuing Sustainable
                                              Here we look at some of our key projects under our medium-term
                                              management plan.




24
                                                                                                                           Mitsubishi Corporation   Annual Report 2012




Corporate Value
 Challenging New Possibilities in the Energy Field:

 Shale Gas           ...................................................................................................   26

 Contributing to the Best Mix of Diverse Energy Sources:
 Power Business                      ..........................................................................            28

 Supporting Robust Demand With Stable Supplies:

 Food Business                   ..............................................................................            30




                                                                                                                                                                   25
Mitsubishi Corporation   Annual Report 2012



Purs u i n g S u s t ai n a b le C o r p o r a te Va lu e

Challenging New Possibilities in the Energy Field




Shale Gas
Global energy consumption is expected to rise further due to economic expansion in emerging coun-
tries, population growth and other factors. This is raising concerns about a shortage of energy in the
future. In this context, shale gas is attracting the limelight as a new source of natural gas. MC is
engaged in the shale gas business with the aim of stably supplying energy resources.


                                                                                                                                        Shale gas fracturing operation worksite



       Background                                 Dramatic Advances in Exploration Technologies
                                                                 Observation well                                Production wellhead
                                                                                                                                                 Three main technological
A form of unconventional natural gas, shale gas                                                                                                  innovations:
is found trapped in shale beneath the earth. For                                                                                                 1. Horizontal drilling technology
                                                                                                                                                 2. Fracturing
this reason, the composition is no different from                                                                                                3. Microseismic technology
conventional natural gas. Recoverable reserves                                                                                                   These technologies have dra-
                                                                                                                                                 matically raised the viability of
are said to rival the world’s conventional natural             Groundwater
                                                                                                                                                 shale gas.
gas reserves. No wonder then that shale gas is                                                                                                   We are extracting shale gas in a
                                                                                                                                                 sustainable manner by taking into
garnering attention as a “dream resource.”                                                                        Water          Gas
                                                                                  Microseismic technology                                        consideration the impact on the
While shale gas has been known about for a                                        Measurement of seismic waves                                   local environment. Besides reus-
                                                                                  due to fracturing                                              ing water resources used for frac-
long time, extracting it is more difficult than                 2,100m
                                                                                                                                                 turing, we are conscious of noise
conventional natural gas, creating a barrier to                                                                                                  and air pollution and so forth.
commercial viability. That is no longer the case.
                                                                                                                 Fracturing: A mixture of highly
Dramatic advances in extraction technology                                                                       pressurized water and sand is forced
                                                                                                                 through fractures in the shale rock.
have been a game changer, raising expectations                           Horizontal drilling                     This releases gas, which is drawn to
                                                                         technology                              the surface.
for shale gas as a new energy resource.


                                              We are developing two shale gas assets in Western Canada. We are working hard so that soon in the future we
                                              can supply LNG from Canada’s West Coast to Japan using this shale gas as a feedstock. Our office was estab-
                                              lished at the end of 2010 with just two people. Now we are working with secondees from project investors
                                              Tokyo Gas Co., Ltd., Osaka Gas Co., Ltd., Chubu Electric Power Co., Inc., Japan Oil, Gas and Metals National
                                              Corporation (“JOGMEC”) and Korea Gas Corporation (“KOGAS”). Adding in local hires, and there should be 20
                                              people here by midway through 2012. Driven by one goal, this multinational team of professionals from differ-
                                              ent companies aims to make this project a success.

                                              Minoru Aizawa Vice President, Diamond Gas Management Canada

26
                                                                                                                           Mitsubishi Corporation   Annual Report 2012




      Milestones                           How We Have Ridden New Energy Trends

                                     • We imported LNG from Alaska for the first time                We have worked to expand our LNG business
 1969                                  in Japan.                                                     over forty years, since supplying LNG to Japan
 Alaska LNG import agent business    • We began acting as an import agent for Japanese
                                       power and gas utilities.                                      from Alaska in 1969. In recent times, expectations
                                                                                                     for the shale gas business have mounted due to
                                     • This was the first project in which we participated
 1972                                  in the natural gas liquefaction and sales sector              dramatic advances in extraction technology.
 Brunei Project                        (production began the same year).

       Malaysia LNG Project (I)
       Arun Project (Indonesia)


 1989                                • We created an LNG value chain from gas field devel-
                                      opment to sales (production began the same year)
 Western Australia NWS Project


       Malaysia LNG Project (II)
       Oman Project                                      Shale Gas Aspirations
                                                         We began debating in earnest how we
       Malaysia LNG Project (III)                        should respond to the shale gas revolu-
       Qalhat Project (Oman)                             tion in 2008. In the end, we decided that
                                                         we should build up insight and expertise
       Sakhalin II Project                               for the future without being slow to
       Tangguh Project (Indonesia)                       catch the wave, so that we could fulfill
                                                         our mission of ensuring stable energy
                                                         supplies. This led us to embark on busi-
 2010                                                    ness in this field.
 Shale gas business


                                     • With shareholders coming from Japan, Indonesia and South
 2011 Project
  Donggi-Senoro
                                       Korea, this is the first all-Asian LNG project.
                                     • MC is spearheading this project as its largest shareholder.




      Strategy                       Stably Supplying Energy
In 2010, we acquired an interest in shale gas assets in the                          Location            Cordova Embayment, British Columbia, Canada
Cordova Embayment in British Columbia from owner Penn                                Estimated           Approximately 5-8 trillion cubic feet (equivalent to over
                                                                                     Resources*          100-160 million tons in LNG)
West Exploration (PWE). This move gave us a strong foothold
                                                                                     Output*             500 million cubic feet per day in 2014 (equivalent to 3.5
from which to develop the shale gas business in North Amer-                                              million tons of LNG per year)
ica, which is estimated to have enormous reserves of shale                           Shareholdings       PWE (50%), MC (30%), KOGAS (5%), JOGMEC (3.75%),
                                                                                                         Chubu Electric Power (3.75%), Tokyo Gas (3.75%), Osaka
gas. In 2011, four Japanese companies—Tokyo Gas, Osaka                                                   Gas (3.75%)
Gas, Chubu Electric Power and JOGMEC—along with Korea
Gas (KOGAS) joined the project. This is the first time that elec-
tricity and gas companies have joined a shale gas project.
     In 2012, we agreed with Encana Corporation to acquire a
                                                                                     Location            Montney region, British Columbia, Canada
40% partnership interest in the Cutbank Ridge Partnership
                                                                                     Estimated           35 trillion cubic feet (equivalent to approximately 720
(CRP). Originally formed by Encana and an Encana affiliate,                          Resources*          million tons of LNG)

CRP is developing natural gas resources in the Montney region                        Production*         CRP is aiming to produce approximately 3 billion cubic feet
                                                                                                         per day over 10 years (equivalent to approximately 22.5
of British Columbia. The partnership plans to drill more than                                            million tons of LNG per year)

approximately 600 horizontal production wells to develop the                         Shareholdings       Encana (60%) and MC (40%)

asset over the next 5 years.                                                       * Reserves and production figures are MC estimates

     At present, we are looking at exporting natural gas pro-
duced in Canada in the form of liquefied natural gas (LNG)
together with Shell, China National Petroleum Corporation
(CNPC) and KOGAS. In the future, we hope to contribute to
the stable supply of energy to East Asia, including Japan.
                                                                                                                                                                     27
Mitsubishi Corporation   Annual Report 2012



Purs u i n g S u s t ai n a b le C o r p o r a te Va lu e

Contributing to the Best Mix of Diverse Energy Sources




Power Business
MC has been involved in supplying and constructing power generation plants for many years based
on a firsthand understanding of national and regional needs. We have also leveraged our expertise in
structuring project finance and other areas to enter the power generation and transmission business.
MC responds to demand for electricity, using diverse energy sources such as thermal power as well
as wind and solar power.


                                                                                       The Rockland wind farm and the Mariposa gas-fired peaker plant in the U.S.


       Background                                 Rising Global Demand for Electricity
Demand for electricity continues to rise, fueled by population                        Electricity Source Composition in Major Countries
                                                                                      (%)
growth and economic expansion in emerging nations. Since the
                                                                                     U.S.                        45.4                            22.8           19.9          6.6
1990s, more and more countries have initiated systemic reforms
designed to encourage private-sector companies to enter the                          Germany                     43.9                     13.5          23.0                 14.9

electricity market. What’s more, global warming and surging                          India                                    68.6                             12.4          11.9
resource prices have prompted a drive to spread new and differ-
ent ways to generate electricity.                                                    Japan         14.4            25.0                          39.5                 10.7    9.0

    The electricity market is clearly changing. Along with this                                0             20                  40                60            80                 100

change, we are meeting new needs on two fronts: supplying                                          Oil    Coal          Gas     Nuclear      Hydro      Other Renewables

plants and equipment, and operating electricity sales and trans-                      Source: Japan figures come from The Federation of Electric Power Companies of Japan
                                                                                              (year ended March 2012); other figures are based on information from Japan
mission businesses. Wind power and peaker plants are an exam-                                 Electric Power Information Center, Inc./OECD/IEA (2009)
ple of how we are working to meet new needs. Wind power
generation is environmentally friendly. One of its drawbacks,                           It is vital to respond to the different needs of each country. The U.S. is
                                                                                        seeing a rapid increase in gas-fired power generation; European coun-
however, is that output can be unstable. To compensate for this,                        tries are actively embracing wind and solar photovoltaic power; and
we operate gas turbine peaker plants in California, U.S., which                         many Asian countries are using low-cost coal-fired power generation.
generate electricity to cover peak demand.                                              Meanwhile, Japan places emphasis on a balance of energy sources.




                                              I am in charge of promoting the development of wind power generation projects in France and four other
                                              European countries. A long-term approach is required to install giant wind turbines the size of Ferris wheels on
                                              windy expansive sites. Our days are busy holding explanatory meetings for locals in community halls, explain-
                                              ing road repairs leading up to power plant sites to mayors, and visiting governors to lobby for approval. We
                                              often face unexpected issues, given that there are many stakeholders. However, that’s what makes develop-
                                              ment an interesting challenge. It’s like solving a difficult puzzle. The result, in this case a splendid power plant,
                                              is well worth the effort.

                                              Satoru Tamiya Director, Wind Development Fund Management

28
                                                                                                                                      Mitsubishi Corporation   Annual Report 2012




       Milestones                            Local Production for Local Consumption—a Power
                                             Business Promoted by Strategic Affiliates

                                    • We established a subsidiary in Los Angeles,                    In 1988, we began operating power plants and selling elec-
 1988                                 capitalizing on deregulation in the U.S. power
                                      industry, to enter the power business in earnest.              tricity in earnest as a power producer in the U.S., drawing
 Launched a power generation
 business in the U.S.                                                                                on our experience delivering power generation plants in
                                                                                                     Japan and overseas. At present, we see North America,
                                    • Established Diamond Generating Corporation
 1999                                 (DGC) in Los Angeles. Developed business under
                                                                                                     Southeast Asia and Europe as key markets. Strategic
 Formed an alliance with Tenaska,     an alliance with U.S. power company Tenaska.                   affiliates set up in those regions are leading vehicles in
 Inc. in the U.S.
                                                                                                     developing and operating power businesses.
                                    • In an alliance with Kyushu Electric Power Co., Inc. in
 2002                                 Mexico and with Korea Electric Power Corporation in
                                      the Philippines, we began in earnest the operation of              Europe
 Started selling electricity in       power stations and power wholesaling.                              (Wind power, solar photovoltaic,
                                                                                                                                                           DGC
 Mexico and the Philippines                                                                              solar thermal power and offshore
                                                                                                                                                           (Gas-fired power
                                                                                                         transmission business)
                                                                                                                                                           generation, wind
                                    • We acquired power generating assets in Thailand                                                                      power)
 2006                                 and Taiwan in an alliance with Hong Kong-based
                                      power company CLP Holdings Limited. We also
 Expanded business to Southeast       initiated project development in Indonesia,
 Asia and Taiwan                      Vietnam and elsewhere.

                                    • We established a wind power development fund
 2008                                 in Amsterdam, which is developing projects
                                      across Europe.
 Established a wind power fund
 in the Netherlands

                                    • We formed an alliance with Acciona S.A., which                                                                        Mexico
 2009                                 focuses on renewable energy, under which we
                                      are jointly investing in solar photovoltaic and
                                                                                                                 DGA
                                                                                                                 (Thermal, solar photovoltaic,              (Gas-fired power gen-
 Formed an alliance with Spanish      solar thermal power businesses.                                            geothermal and hydro)                      eration, geothermal)
 company Acciona S.A.               • We established Diamond Generating Asia Limited
                                      (DGA) in Hong Kong.
                                    • In addition to a business in the U.K., we entered
 2011                                 into an alliance with TenneT Holding B.V. to
                                      develop an offshore transmission business
 Entered the offshore transmis-       operation in Germany.
 sion business in the U.K.          • We started developing a wind power project in
                                      Mexico and a solar photovoltaic project in Canada.




       Strategy                     Diverse Initiatives to Respond to Diverse Needs
In order to respond to diversifying electricity needs, we are                                  able energy source, namely offshore wind power generation on
developing projects under alliances with joint investors pos-                                  the North Sea coast and UK west coast. These are seen as
sessing technological capabilities or deep regional knowledge.                                 locations that can generate large amounts of electricity given the
With Tenaska in the U.S. and Acciona S.A. in Spain, for exam-                                  strong winds that blow constantly. This has spawned the need
ple, we have chosen best-fit partners according to the nature                                  for offshore transmission to carry electricity generated by colos-
of the project.                                                                                sal wind turbines placed offshore to land. Responding to this
     For launching wind power generation projects in Europe,                                   need, we are the first Japanese company to operate an offshore
we structured wind power funds and solicited investors. This                                   transmission business in the UK and Germany. We continue to
approach has enabled us to widen the scope of projects                                         expand this infrastructure business, in which we see prospects
undertaken and expand our fund procurement sources.                                            for developing worldwide.
     In Japan, meanwhile, we operate an on-site (inside-the-
fence) power generation business. We install power generation                                  Onshore
                                                                                                 Grid       Offshore Transmission Owner (OFTO)                 Generator
systems within the boundaries of customers’ plants (sites) to
supply electricity and steam. Based on long-term energy                                            Connection to
                                                                                                   Onshore Network                           Offshore
supply agreements with these customers, we undertake every-                                                                                 Substation
thing from procuring finance to plant engineering, fuel procure-                                     Onshore                                 Offshore
                                                                                                    Substation                               Platform
ment and maintenance. The on-site power generation business
is the epitome of a field in which we can draw on all of our
strengths. As such, we are also determined to develop this
                                                                                                                               132kV Cable         33kV Inter-Array Cables
business model overseas.
     In Western Europe, there are high hopes for a new renew-                                  Offshore Transmission Scheme



                                                                                                                                                                              29
Mitsubishi Corporation   Annual Report 2012



Purs u i n g S u s t ai n a b le C o r p o r a te Va lu e

Supporting Robust Demand With Stable Supplies




Food Business
MC aims to ensure a stable supply of food. Our approach is to control the entire supply chain, from
the procurement of raw materials to the final product. And we do this in part by operating businesses
in the supply chain ourselves as owners. Asia in particular is seeing a rapid increase in demand for
food. Eyeing this trend, we are strengthening our food businesses in China and Brazil.


                                                                                                                                      Soybean harvest at a Ceagro farm



       Background                                Rising Demand for Stable Food Supplies
The global supply-demand equation for food                 Supply and Demand of Grains (Rice, Corn, Wheat, Barley, etc.)
                                                           (Million tons)                                                    (%)
is unstable for many reasons. These include
                                                           2,500                                                            100
population growth centered on developing                                                                                               According to Japan’s Minis-
                                                                                          Production volume [ left]
                                                                                                                                       try of Agriculture, Forestry
countries, economic development in emerging                2,000                                                              80       and Fisheries, global grain
markets, and the impact of abnormal global                                                                                             demand has doubled since
                                                           1,500                                                              60       1970 because of population
weather conditions such as heavy rains and                                                Consumption volume                           growth in developing coun-
droughts on food production. Because pro-                  1,000                          [ left]                             40       tries, higher incomes and
                                                                                                                                       other factors. In China,
duction of key agricultural produce such as                  500                                                              20       where demand growth has
grains is concentrated in certain countries                                        Ending stocks/use ratio                             been particularly strong,
                                                                                   [ right]                                            demand for grains for live-
such as the U.S., Canada, Australia, Brazil                     0                                                                 0
                                                                                                                                       stock feed has risen 9-fold
                                                                1970 1975 1980 1985 1990 1995 2000 2005 2010
and Argentina, persistently lean harvests and                                                                                          as the amount of meat con-
                                                            Source: “Changes in Supply and Demand and Prices for Grains                sumed has increased.
export controls in these countries could trig-
                                                                    Worldwide,” Ministry of Agriculture, Forestry and Fisheries
ger a worldwide shortage of grains.

                                              Our mission is to supply safe and reliable meat products to the Chinese market. We are headquartered in Beijing,
                                              and have production bases in Tianjin, Shandong, Jiangsu (2 locations), Hubei and Guangdong provinces. Our sales
                                              activities are focused on major metropolitan areas, including Beijing, Shanghai and Guangzhou. Going forward, we
                                              plan to construct production bases also in Jilin and Sichuan provinces. We have approximately 6,000 employees,
                                              and there are 15 people on loan from MC and its subsidiaries, Itoham Foods, Inc. and YONEKYU CORPORATION.
                                              These people from Japan are transferring their many years of knowledge and experience in business management,
                                              livestock and meat processing. Together, we are thinking about working to create greater corporate value. I’m
                                              confident we will be successful in the Chinese market by drawing on COFCO’s strong ability to promote business
                                              and the technological strengths of Japanese companies.

                                              Takamasa Wakaki Deputy General Manager, COFCO Meat (Beijing) Co., Ltd.

30
                                                                                                                            Mitsubishi Corporation   Annual Report 2012




      Milestones                             Taking Up the Challenge of Stably Procuring and
                                             Supplying Grains
                                                                                                      Our grain business began in earnest when we
                                     • We began developing a grain storage business in                established AGREX in the U.S. Since then, over
 1981                                  the grain belt of the U.S.                                     more than 30 years, we have built a framework for
 Established AGREX, Inc.             • We jointly own grain storage and export facilities at
                                     present with partners such as a U.S. grain major.                stably procuring and supplying grain.
       1995 Consolidated Riverina (Australia) Pty., Ltd. as a subsidiary.
       2007 Made Nitto Fuji Flour Milling Co., Ltd., Nosan Corporation
       and Nihon Shokuhin Kako Co., Ltd. subsidiaries.

 2007                                • Invested in the holding company for the
                                       agri-industrial business of COFCO as a
 Invested in China Agri-Industries     strategic partner.
 Holdings Limited                                                                                         OF
                                                                                                          O
                                                                                                         COFCO
                                                                                                                                                           X
                                                                                                                                                       AGREX
       2009 Made Nosan Corporation a wholly owned subsidiary.

                                     • We absorbed Ohio-based FGDI, LLC, which
 2010                                  operate grain storage facilities, by a merger
                                                                                                                                                                      Ceagro
 Absorbed FGDI by merger               through AGREX.

                                                                                                                    River na
                                                                                                                    Riverin
                                                                                                                    R
                                     • We are participating in management of a meat
 2011                                  business (COFCO Meat (Beijing) Co., Ltd.)
 Strengthened cooperation with       • We also signed an agreement to supply soybeans.                          Consuming                             Procurement
 COFCO                                                                                                            region                                 region



                                     • We subscribed to a third-party allocation of new                   Grain Business Global Development
 2012                                  shares in Los Grobo Ceagro do Brasil S.A. (Ceagro).                We have built a framework for stably procuring
 Invested in Ceagro                  • We also secured the prerogative to purchase grain                  grain from supply countries and supplying
                                       preferentially from Ceagro.                                        customers around the world.




      Strategy                       Pursuing More Business Opportunities

In 2012, we made another strategic move by subscribing to a                        Grain and Food Business Model
third-party allocation of new shares in Los Grobo Ceagro do                              Grain                                    Production /
                                                                                                           Distribution                                     Sales
Brasil S.A. (Ceagro), which runs a grain business in Brazil, one                       Collection                                 Processing
of the world’s leading grain growing regions. In addition to this
equity interest, we acquired the right to purchase grain prefer-                   Overview of Ceagro
entially from Ceagro. Ceagro handles and exports upwards of                            Company           Los Grobo Ceagro do Brasil S.A.
                                                                                       Name
1 million tons of grain annually. By securing a new grain supply
                                                                                       Head Office       Goiânia, Goiás, Brazil
region to expand procurement beyond North America, we
                                                                                       Established       1994
expect to handle approximately 20 million tons of grain for
                                                                                       Business          Storage, logistics, commercialization, production of grain
customers mainly in Japan and China by 2015.                                                             commodities and sales of agricultural materials (seeds,
                                                                                                         fertilizers and agricultural chemicals)
    In China, where demand for food is rising rapidly, we
decided to make an investment in the business of livestock
                                                                                   Overview of COFCO
and poultry breeding, slaughtering, processing, selling and
                                                                                       Company           COFCO Limited
importing meat products run by COFCO Limited (COFCO). We                               name
also signed a basic agreement with COFCO for supplying up to                           Headquarters      Beijing, China
5 million tons of soybeans a year. In these and other ways, we                         Established       1949

continue to strengthen our partnership with COFCO, with the                            Business          Agro-trading and logistics, agro-processing, branded food
                                                                                                         products, real estate and financing
goal of creating business in the Chinese market.
    Our foods business is based on a vertically integrated busi-
ness model that integrates everything from the procurement and
storage of raw materials to processing and sales. By securing
supplies from Brazil and tapping into growth in China, we are
strengthening our ability to procure grain and solidifying demand
bases for expanding in Asia. This should lead to expansion in
our food business, from the procurement of raw materials
                                                                                                  Signing ceremony with COFCO for the meat
upstream to retail sales downstream in the supply chain.                                          business agreement
                                                                                                                                                                      31
Mitsubishi Corporation   Annual Report 2012




                                              Operations
                                              A look at activities and strategies in two groups directly
                                              under the president and business groups.




32
                                                                                                                                                                                                                  Mitsubishi Corporation   Annual Report 2012




& Strategy
 Two Groups Directly Under the President
     Global Environment & Infrastructure Business Development Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                   34
     Business Service Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   35
 Industrial Finance, Logistics & Development Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                             36
 Energy Business Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  40
 Metals Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   44
 Machinery Group                        ............................................................................................                                                                              48
 Chemicals Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        52
 Living Essentials Group                               ....................................................................................                                                                       56
 Global Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    60




                                                                                                                                                                                                                                                          33
Mitsubishi Corporation   Annual Report 2012



Two Groups Directly Under the President

          Global Environment & Infrastructure Business Development Group


                                               Group CEO Message

                                               The Global Environment & Infrastructure Business Development Group focuses
                                               on infrastructure projects and related trading operations that have a direct
                                               impact on our quality of life, such as power generation, water, and transporta-
                                               tion. We are active in a number of areas that help to combat global warming
                                               and secure sustainable supplies of energy, such as our renewable energy and
                                               emissions reduction businesses. We are also involved in smart community
                                               projects and production of the high capacity lithium-ion batteries that are so
                                               essential to today’s environmentally friendly vehicles and electricity storage.
                                                    Our aims are to foster the growth of stable, long-term earnings drivers and
                                               raise our corporate value, all the while working towards the realization of a sus-
                                               tainable society. Ours is a long-term approach, and we remain committed to
                                               developing the mechanisms, technologies, and systems that will enable more
                                               people to live on fewer resources.




                                                                                                  Nobuaki Kojima
                                                                                                  Executive Vice President, Group CEO
                                                                                                  Global Environment & Infrastructure Business Development Group




 Global Environment & Infrastructure
    Business Development Group                   New Energy & Power Generation Division


       Global Environment & Infrastructure
       Business Development Group CEO Office
       Global Environment & Infrastructure
       Business Development Group
       Administration Department

       New Energy & Power Generation
       Division

       Environment & Infrastructure
       Business Division                       ACCIONA Termosolar is a concentrated solar power (CSP)               Diamond UK Transmission Corporation Limited (DUTC) was
                                               business in Spain that is operated as a joint venture with           established in the UK in 2011. The new company is a joint
                                               Spanish company ACCIONA, one of the world’s leading                  investment by MC (90%) and MCIE* (10%), and specializes in
                                               integrated renewable energy enterprises.                             undersea electricity transmission. DUTC owns, operates, and
                                               ACCIONA Termosolar owns 4 CSP plants in southern Spain.              maintains cables and infrastructure that connect three offshore
                                               Together, the 4 plants produce 200,000 kW of electricity             wind plants (with a combined capacity of 683,000 kW) to onshore
                                               per year.                                                            power grids. (Offshore power plant off the UK west coast)
                                                                                                                    *Mitsubishi International Corporation (Europe)


                                                 Environment & Infrastructure Business Division




                                               Lithium Energy Japan (LEJ) began mass producing large-capacity       TRILITY Pty Ltd, a water business company that is 59%
                                               lithium-ion batteries in the year ended March 2010. LEJ is a joint   owned by MC, conducts operations and maintenance man-
                                               venture with GS Yuasa International and Mitsubishi Motors            agement in 14 projects across Australia, including water
                                               Corporation (MMC). LEJ recently commenced operations at a new        supply, sewerage and water reuse, seawater desalination, and
                                               plant (pictured) in Ritto City, Shiga Prefecture, to meet demand     industrial wastewater processing and recycling.
                                               stemming from the uptake of electric vehicles and electricity        (Pictured: The Victor Harbor sewerage and water reuse plant)
                                               storage, among other applications.
34
                                                                                                 Mitsubishi Corporation      Annual Report 2012




    Business Service Group


                                         Group CEO Message

                                         The Business Service Group is busy developing systems for consolidated man-
                                         agement and IT governance, playing its part to build a management platform for
                                         the MC Group – a key objective under “Midterm Corporate Strategy 2012”.
                                              With greater diversity in the business climate, systems and mechanisms that
                                         can solidify that diversity are essential, and this is where IT plays an integral role.
                                         Our group handles a comprehensive array of IT services, from companywide IT
                                         strategies to individual strategies, planning, development, and administration. By
                                         strengthening collaborations with our subsidiaries, we provide IT support vital to
                                         overseeing a sophisticated and integrated management platform.
                                              Furthermore, our comprehensive services help to raise the enterprise value
                                         of MC and MC Group Companies, reform administrative procedures, and
                                         develop operations. We offer IT support in promoting new projects and help to
                                         identify new business opportunities.




                                                                                           Hideyuki Nabeshima
                                                                                           Member of the Board,
                                                                                           Senior Executive Vice President,
                                                                                           Group CEO, Business Service Group




Business Service Group            IT Service Business Division                                Key Business Investments
                                 The IT Service Business Division is working to enhance
  Business Service Group CEO     system integration (SI) and consulting services through
  Office                         business investments such as IT Frontier Corporation         IT Frontier Corporation: One of the MC Group’s
                                                                                              core IT companies, IT Frontier helps to refine
                                 and SIGMAXYZ Inc. Our aims are to help solve issues          consolidated management. The company is a
  IT Service Business Division
                                 faced by MC Group companies and customers, and               trustworthy partner in the field of IT, providing
                                 raise their enterprise value. We are also developing         comprehensive customer support ranging from
  Information Systems                                                                         planning and development, to execution and
  Development Department         outsourcing businesses and enhancing our functions           administration. Areas covered include IT strate-
                                 to provide more integrated IT services.                      gies, systems design, and IT infrastructure.
  Corporate Systems
  Development Department          Information Systems Development
                                  Department
                                 The Information Systems Development Department is
                                 responsible for the management of IT budgets and
                                 expenditure as well as the planning and promotion of
                                 IT internal control and Information security measures
                                 across MC Group companies. In addition, this depart-
                                 ment plans and supports the deployment of the MC
                                 Group standard ERP* System as part of the MC
                                                                                              SIGMAXYZ Inc.: SIGMAXYZ is a business consult-
                                 Group Management System.                                     ing services firm that helps clients boost their
                                 *ERP: Enterprise Resource Planning                           corporate value. It provides consulting services
                                                                                              that help solve corporate issues, including
                                                                                              business model formation, business process
                                  Corporate Systems Development                               design, and support for IT system implementation.
                                  Department
                                 Core systems for consolidated management are
                                 being developed as part of the MC Group’s manage-
                                 ment platform. The Corporate Systems Development
                                 Department plans, builds, and develops these core
                                 systems, as well as new foundations to ensure and
                                 enhance compatibility.


                                                                                                                                                  35
Mitsubishi Corporation   Annual Report 2012




          Industrial Finance, Logistics & Development Group




The Industrial Finance, Logistics & Development Group is engaged in the development of innovative and distinctively
MC industrial finance businesses that provide finance to industry and offer investment opportunities to investors. For
this, we leverage MC’s strengths in terms of extensive knowledge of and expertise in industrial fields and assets,
plus a vast global network of contacts in all industries. And we organically connect the three elements of asset man-
agement utilizing third-party financing, ownership and leasing, and trading real assets.




                                               Group CEO Message

                                               Midterm Corporate Strategy 2012 Targets and Progress
                                               Our main business domains under Midterm Corporate Strategy 2012 are
                                               the real estate business, the leasing business, the infrastructure-related
                                               finance business, the buyout investment* business, and the logistics-
                                               related finance business. In these businesses, we are structuring blue-
                                               chip asset portfolios and reinforcing and expanding our asset
                                               management skills. At the same time, we are launching private equity
                                               investment businesses and real estate development businesses with
                                               leading Chinese corporations to capture growth in emerging markets. In
                                               these and other ways, we are making steady progress expanding our
                                               business base so the industrial finance business grows over the medium
                                               and long terms.
                                                    In the year ended March 2012, we had some concerns about the
                                               impact of the Great East Japan Earthquake and the Thailand floods on
                                               our performance. Nevertheless, we posted net income of ¥14.9 billion,
                                               up ¥3.3 billion year on year.


                                               Business Environment and Outlook for
                                               Year Ending March 2013
                                               Our business environment is tinged with uncertainty, with the European
                                               debt crisis and the yen’s appreciation. That said, for the year ending
                                               March 2013, we are projecting a ¥7.1 billion year-on-year increase in net
                                               income to ¥22.0 billion. This forecast assumes steady earnings growth in
                                               our businesses, particularly leasing and real estate.
                                                    Looking ahead, we will continue to capitalize on change to meet the
                                               expectations of industry and needs of investors. We aim to be a business
                                               group with a real presence in our business field.

                                               * Buyout investment: an investment technique for earning a return by investing in an existing company and
                                                 providing management support to increase the invested company’s corporate value.




                                                                                                          Eiichi Tanabe
                                                                                                          Executive Vice President,
                                                                                                          Group CEO, Industrial Finance,
                                                                                                          Logistics & Development Group
                                                                                                               Mitsubishi Corporation   Annual Report 2012




   Industrial Finance, Logistics
   & Development Group

          Industrial Finance, Logistics &
          Development Group CEO Office

          Industrial Finance, Logistics &
          Development Group Administration Dept.

          Real Estate Investment &
          Management Unit

          Asset Finance & Business
          Development Div.

          Real Estate Development &
          Construction Div.

          Logistics Div.




Net Income (Loss)
(¥ billion)

                                        22.0

                           14.9 14.2*
               11.6




                                                                                   Ichiro Miyahara                 Hiroyuki Nakamura
                                                                                   Senior Vice President,          Senior Vice President,
                                                                                   Division COO,                   Division COO,
                                                                                   Real Estate Development &       Logistics Div.
  −7.6
                                                                                   Construction Div.
   10.3        11.3          12.3       13.3             Yuichi Hiromoto                                           Koichi Murata
                                        (est.)
                                                         Senior Vice President,                                    Senior Vice President,
                                                         Division COO, Asset Finance &                             Real Estate Investment &
   1Q         2Q      3Q       4Q
                                                         Business Development Div.                                 Management Unit
* Following a reorganization on April 1, 2012, a part
  of the Logistics Division (Insurance Business Unit)                                                              Executive Assistant to Group
  was transferred to the Corporate Staff Section. The                                                              CEO, General Manager
  figures for the year ended March 2012 have been
  restated according to this reorganization.


    Creating Social and Environmental Value
    Promoting the Creation of Eco-Friendly
    Towns and Cities
    MC is promoting the creation of eco-friendly new
    towns and cities based on the “Smart & Share
    Town Concept,” which draws on advanced envi-
    ronmental technologies, community building initia-
    tives and other measures. One example is
    FUNABASHI MORINO CITY in Funabashi City,
    Chiba Prefecture. This is one of the Tokyo metro-
    politan area’s largest town development projects
    with a total site area of approximately 176,000 m2.         FUNABASHI MORINO CITY in Funabashi City
    The “city” will feature around 1,500 condominium
    units, a hospital, a large park, supermarket and other amenities.       supply systems by combining EVs, lithium-ion batteries and solar
    Plans call for completion in 2014, while working in various ways        power generation. What’s more, activities will be implemented to
    with adjoining large commercial facilities. In order to bring the       foster greater awareness of energy conservation among residents
    eco-friendly concept to fruition, the project will introduce a variety  such as by making energy usage visible in each condominium unit
    of elements from MC’s environmental businesses, including creat-        and publicizing an energy-saving ranking. These and other initia-
    ing an “Electric Vehicle (EV) Mobility Town” by introducing EV and      tives are designed to develop a town that continuously generates
    other infrastructure, as well as installing emergency backup power      environmental value even after residents move in.

                                                                                                                                                       37
Mitsubishi Corporation    Annual Report 2012




           Industrial Finance, Logistics & Development Group



  Asset Finance & Business                                          Financial Business Development Unit        Leasing & Finance Unit             Merchant Banking Unit
  Development Division                                              Infrastructure & Project Finance Unit      Airline Business Unit



Adopting an industrial finance perspec-                       infrastructure investment alliances, the
                                                                                                                                 Global Infrastructure Funds
tive, the Asset Finance & Business                            Global Strategic Investment Alliance                               (US$ billion)
Development Division focuses on four main                     (GSIA). GSIA was formed by Canada’s
                                                                                                                           200
fields: (1) asset management, (2) leasing,                    Ontario Municipal Employee Retirement
(3) buyout investment, and (4) infrastructure-                System. Through GSIA, MC aims to                             150
related finance. The division provides risk                   invest in large-scale infrastructure
capital*1 to industry, and varied investment                  assets as well as establish itself as a                      100

opportunities to investors.                                   financial intermediary in this sector.
                                                                                                                            50
     The use of private-sector funds and                           In the asset management business,
knowhow for infrastructure-related proj-                      MC established MC Asset Management                             0
                                                                                                                                   03    04      05   06   07   08   09   10   11
ects and growing industry is expected to                      Holdings, LLC after acquiring a U.S.
                                                                                                                                 (2011, preqin)
increase due to government debt prob-                         asset management company. In the
lems and other factors. This should spell                     leasing business, in March 2012 the
more investment and business opportu-                         division teamed up with MC’s Machinery                     Chinese private investment company,
nities for this division.                                     Group to establish a construction                          launched a Sino-Japan joint fund in
     In this environment in the infrastruc-                   machinery leasing business in China.                       order to support Japanese companies
ture-related business, MC joined forces                       We also continue to build up our portfo-                   in the expansion of their business in
with the Pension Fund Association,                            lio of prime assets in the aircraft leasing                China.
Japan Bank for International Coopera-                         and aircraft engine leasing businesses.
tion and Mizuho Corporate Bank to                             In the buyout investment business, MC
participate in one of the world’s largest                     and Creat Group Company Limited, a

*1 Risk capital: Funds exposed to business risk such as shares, equity share in investments, etc.




  Real Estate Development &                                         Commercial Real Estate Development Unit           Global Real Estate Unit
  Construction Division                                             Urban Real Estate Development Unit



This division leverages MC’s access to                              Overseas in China, where economic
a broad range of industries and an                            growth continues unabated, the division
extensive global network to provide                           is developing condominiums totaling
customers with sophisticated solutions                        approximately 4,000 units in Shenyang,
in the construction and real estate                           Liaoning Province, and operating an
fields, as well as develop value-added                        urban commercial facility in Tianjin. In
real estate in Japan and overseas.                            these and other projects, the division is
     In Japan, the division develops and                      fusing the advanced development capa-
manages commercial properties in                              bilities of MC amassed in Japan and the
urban locations as well as provides                           local know-how of Chinese partners.
solutions for developing healthcare                                 In the U.S., the world’s largest real                Approximately 4,000 condominiums and 28,500 m2
facilities. One example is FUNABASHI                          estate market, in addition to developing                   of space for retail stores make up this project in
                                                                                                                         Shenyang. (Artist’s rendering)
MORINO CITY*2, a large-scale, eco-                            apartments and logistics facilities over
friendly complex under development on                         many years, the division has in recent
a former factory site of a major manufac-                     years been putting its energy into
turer in Funabashi City, Chiba Prefecture.                    developing student housing, a unique
The complex consists of an approximate                        investment target which is fairly resilient
1,500-unit condominium, commercial                            to economic trends.
facilities, a hospital and other amenities.

*2 Based on the concept of building communities with sustainable environmental values, this project incorporates
   advanced technology for reducing CO2 emissions and saving energy.


38
                                                                                                                           Mitsubishi Corporation   Annual Report 2012




 Logistics Division                                                   Logistics Business Unit   Tank Terminals Business Unit
                                                                      Dry Bulk Business Unit    Logistics Business Development Unit



Freight volumes in all regions around the                       customer needs in other ways, such as
world remain solid, and continue since                          by conducting domestic logistics ser-
the global financial crisis to be affected                      vices in China.
by economic trends in emerging markets                               In our dry bulk business, we conduct
and the delivery of a large number of                           comprehensive bulk cargo logistics oper-
new vessels.                                                    ations, which includes ownership and
    Against this market backdrop, this                          operation of an international shipping fleet
division is leveraging the MC Group’s                           for transporting coal, grains and other
integrated global network of operating                          cargo, and terminal operations.
bases to provide distinctively MC value-                             Moreover, the division is integrating
added logistics services, and is chalking                       financial elements by leveraging the             Mitsubishi Corporation LT, Inc.’s Keihin Operations
up results on a global basis.                                   expertise of the Industrial Finance, Logis-      Dept. (Yokohama City)
    In the logistics business field, MC                         tics & Development Group to create
subsidiary Mitsubishi Corporation LT,                           logistics finance business models unique
Inc. is engaged in the ship operation of                        to a trading company like MC, as well as
car carriers as well as warehousing and                         entering new fields with an eye on the
transportation in Japan and overseas,                           future. One example of the latter is the
and integrated international logistics                          logistics real estate business.
services. We are also meeting various




 Real Estate Investment &
 Management Unit                                                  funds. It also creates and manages
                                                                  REITs and private funds utilizing third-
  There is an emerging sense that the                             party financing through a portfolio
  Japanese real estate market has bot-                            management subsidiary.
  tomed out after slumping due to the                                  At present, assets under man-
  global financial crisis and suffering the                       agement in funds total ¥1,200.0
  effects of the Great East Japan Earth-                          billion. The unit is providing prime
  quake. Japanese and overseas inves-                             investment opportunities to inves-
  tors are once again seeking listed                              tors in Japan and elsewhere in a
  REITs and private real estate funds                             broad range of asset classes* 3,
  that generate stable earnings. The                              including commercial facilities, logis-        mozo wondercity is a large-scale shopping center
  Japanese real estate market is valued                           tics facilities and other industrial and       owned by MC in Nagoya City.

  at ¥2,200 trillion, yet the securitized                         infrastructural property, as well as
  sector of this market still represents a                        office buildings and residential
  mere 1% or so. Such a low figure has                            accommodation.
  aroused expectations that it can grow                                Looking ahead, we will extend our
  to account for 5% of the overall                                business base in Japan by increasing
  market in Japan, as it does in the U.S.                         assets under management in funds.
      The unit is developing and manag-                           We will also build business overseas,
  ing a prime portfolio through acquisi-                          aiming to connect investors around
  tions and medium- to long-term                                  the world with overseas real estate
  holding of revenue-generating real                              investment opportunities, mainly in
  estate using internally generated                               China and the U.S.

  *3 Asset class: Refers to types of assets with similar return and risk profiles.



                                                                                                                                                                    39
Mitsubishi Corporation   Annual Report 2012




          Energy Business Group



The Energy Business Group’s business model extends throughout the energy value chain, from upstream to down-
stream sectors. It encompasses oil and gas exploration, development and production (E&P) business; investment in
LNG (Liquefied Natural Gas) liquefaction projects; importation and offshore trading of crude oil, petroleum products,
carbon materials and products, LNG, and LPG (Liquefied Petroleum Gas); and domestic trading and retail operations
related to these commodities and products.




                                               Group CEO Message

                                               Midterm Corporate Strategy 2012 Targets and Progress
                                               Under MC’s Midterm Corporate Strategy 2012, we have several key
                                               strategies: maintain and expand existing projects, particularly natural gas
                                               projects, and bring online new projects or ones under development;
                                               develop and strengthen E&P business; create new business models for
                                               tapping into globalization and growth markets; and strengthen MC’s
                                               strategies and functions in support of these activities. We conduct our
                                               businesses mindful of creating social and environmental value. As the
                                               energy arm of a major general trading company, we aim to be a unique
                                               and sustainable energy business group over the medium and long terms.
                                               We intend to develop our businesses globally.
                                                  Specifically, in an effort to meet rising demand for natural gas, we are
                                               developing the Donggi-Senoro LNG Project and a shale gas business in
                                               Canada. Furthermore, to create new business models, we are working to
                                               strengthen value chains, including investing in carbon manufacturers.
                                                  For the year ended March 2012, this business group posted net
                                               income of ¥120.6 billion, up ¥26.6 billion year on year.


                                               Business Environment and Outlook for
                                               Year Ending March 2013
                                               In the year ending March 2013, we expect demand for energy to increase
                                               on the back of ongoing high growth in emerging countries, despite pos-
                                               sible economic instability in Europe and uncertainty surrounding the
                                               Middle East. Based on this outlook, we are projecting net income for this
                                               business group of ¥130.0 billion for the year ending March 2013. We
                                               must closely monitor changes in supply-demand dynamics. Factors such
                                               as the development of shale gas resources in the U.S., the increased
                                               supply capacity of shale oil, and geopolitical risks associated with Iran
                                               and other countries and regions must be watched.




                                                                                         Jun Yanai
                                                                                         Executive Vice President,
                                                                                         Group CEO, Energy Business Group
                                                                                                                Mitsubishi Corporation   Annual Report 2012




        Energy Business Group

         Energy Business Group CEO
         Office
         Energy Business Group
         Administration Dept.
         Africa, Europe and America E&P
         Business Unit

         Asia E&P Business Unit

         E&P New Business Development
         Unit

         Natural Gas Business Div. A

         Natural Gas Business Div. B

         Petroleum Business Div.

         Carbon & LPG Business Div.




Net Income
(¥ billion)

                                   130.0
                           120.6

                   94.0                                                Kenichi Koyanagi                              Makoto Nakazato
                                                                       Senior Vice President,                        Senior Vice President,
   71.9                                                                Officer for E&P, Energy                       Division COO, Carbon &
                                                                       Business Group                                LPG Business Div.


                                                 Hajime Hirano                  Kazuyuki Mori                                 Junichi Iseda
                                                 Senior Vice President,         Senior Vice President,                        Senior Vice President,
                                                 Division COO, Petroleum        Division COO, Natural                         Division COO, Natural
                                                 Business Div.                  Gas Business Div. A                           Gas Business Div. B
    10.3           11.3    12.3    13.3
                                   (est.)

   1Q         2Q      3Q    4Q




    Creating Social and Environmental Value
    Cooperating With Brunei’s Energy Policy

    In August 2008, MC began a large-scale solar photovoltaic power
    generation demonstration project in Brunei. Aiming to diversify its
    energy supply, Brunei is looking at promoting the introduction of
    renewable energy. In this context, much is expected of solar pho-
    tovoltaic power generation as an energy source with a relatively
    lower environmental impact. In order to cooperate with Brunei’s
    energy policy, MC has installed a solar photovoltaic power gen-
    eration system with a nominal capacity of 1.2 MW, which is one
    of the largest in Southeast Asia. The system was completed at
    the end of July 2010.
         At present, MC, the Energy Department, Prime Minister’s Office
    (EDPMO) of Brunei and the Department of Electrical Services are
    jointly carrying out verification tests and evaluations. The data and
    know-how obtained in this project will help the promotion and
    commercialization of solar photovoltaic power generation in the
    future. MC is committed to contributing to the promotion of new             A solar photovoltaic power generation system, currently the largest in
    energy usage for the future of Brunei through this project.                 Southeast Asia (Brunei)



                                                                                                                                                         41
Mitsubishi Corporation   Annual Report 2012




          Energy Business Group



 Natural Gas Business Division A                  Brunei Project Unit               Australia Unit
                                                  Malaysia Project Unit             Indonesia Project Unit



The global LNG market amounted to             resulting LNG from the world’s main
                                                                                                         Global LNG Demand
222 million tons as a whole in 2010. In       exporting countries and regions of                         (million tons/year)           Others
2011, this market grew around 8% to           Brunei, Malaysia, Australia and Indone-                                          368     (Middle East, Central &
                                                                                                                                       South America)
240 million tons. More growth is fore-        sia. MC is also an LNG import agent for                                                  North America
                                                                                                                    285                (Excl. Pacific Coast)
cast on the back of increasing demand         the Japanese market. LNG is an energy                                                    Europe
                                                                                                             241                       Chile, Mexico (Pacific Coast)
from China, India and other emerging          source that is expected to see long-                                                     Other Asia
                                                                                                                                       India
markets.                                      term growth in demand. Amid expected
                                                                                                                                       China
    MC handles around 40% of the LNG          expansion in the LNG business, we will                                                   Taiwan
                                                                                                                                       Korea
imported into Japan by volume. MC             continue building the earnings base of
boasts strong capabilities in executing       LNG businesses by expanding existing                                                     Japan
LNG projects based on experience              projects and adding to gas reserves
                                                                                                             2011   2015       2020
gained over the years. This division is       within existing franchises while also
                                                                                                         * 2015 and 2020 are MC’s estimate
developing business across many parts         seeking to enhance the division’s func-
                                                                                                      Source: Poten & Partners
of the LNG value chain. MC produces           tional strengths in the LNG value chain.
and liquefies natural gas and ships the




 Natural Gas Business Division B                  Middle East Natural Gas Business Unit   New Business Development Unit          Donggi-Senoro Project Unit
                                                  Sakhalin Project Unit                   Global Gas Unit                        Shale Gas Business Unit



Besides involvement in gas projects in        Oil. This project involves the collection
Russia (Sakhalin II) and Oman, this           and effective utilization of associated
division trades globally in LNG, which        gas produced during crude oil produc-
has seen demand increase rapidly in the       tion in Basra, in southern Iraq. We are
wake of the Great East Japan Earth-           also involved in efforts to develop
quake. At the Donggi-Senoro LNG Proj-         unconventional gas resources. In the
ect in Indonesia where MC is acting as        year ended March 2011, we acquired
overall business operator, progress is        shale gas assets in Western Canada
being made on upstream development            and increased our asset holdings in the
and construction of a liquefaction plant      year ended March 2012. We aim to sell
with the aim of commencing production         the gas produced at these assets as                     Plant construction is underway at the Donggi-
by the end of 2014. In Iraq, we are           LNG in the future. The year ended                       Senoro LNG Project, with the aim of commencing
                                                                                                      production at the end of 2014.
taking part in the South Gas Utilisation      March 2012 also saw us enter into
Project, being developed by Royal             onshore licenses in Papua New Guinea.
Dutch Shell plc and the Iraqi Ministry of




 Petroleum Business Division                      Petroleum Supply & Marketing Unit         Utility Feedstock Unit
                                                  Industrial Petroleum Marketing Unit       Petroleum Feedstock Unit



Although demand for petroleum is              and emerging markets.                                   stake in Showa Yokkaichi Sekiyu Co.,
declining in Japan, petroleum remains a           MC is involved in the marketing of                  Ltd.; the ownership and operation of oil
vital energy lifeline. Furthermore,           crude oil and petroleum products; in                    tankers; the operation of petroleum
demand is expected to increase in Asia        petroleum refining through an equity                    terminals; sales of petroleum products




42
                                                                                                                 Mitsubishi Corporation   Annual Report 2012




to electric utilities, petrochemical and      maintain strong, long-standing relation-
industrial firms; and in the operation of a   ships with oil-producing nations and
fuel retailing business through service       corporate oil majors. We are also
stations in Japan owned by Mitsubishi         engaged in petroleum products whole-
Shoji Sekiyu Co., Ltd., their subsidiaries    saling and retailing in the U.S., in
and partners. MC is thus developing           California, and Asia, where we are
businesses in a wide range of domains         developing business closely tied to local
in the midstream and downstream sec-          markets.
tors of the petroleum value chain. We


                                                                                                     MC sells petroleum products produced by Showa Yokkaichi
                                                                                                     Sekiyu Co., Ltd., in which it is a 19.68% shareholder.



 Carbon & LPG Business Division                   Carbon Materials Unit            Specialty Carbon & Graphite         LPG Business Unit
                                                  Petroleum Coke Unit              Business Unit                       Namikata Terminal Business Unit



< Carbon Business>                            < LPG Business >
In the carbon business, MC handles            Through Astomos Energy Corporation,
exports and imports as well as domestic       which boasts the world’s largest fleet of
and overseas trading for a broad range of     LPG carriers, MC’s LPG business
carbon materials and products, including      imports LPG into Japan, sells LPG over-
petroleum cokes, coal cokes and tar           seas and markets LPG in Japan through
distillates. In the year ended March 2012,    nationwide branches and domestic
MC invested in a carbon manufacturer,         distributors. The high potential utility of
established a joint venture and brought       LPG has been rediscovered in the wake
into service a vessel for transporting raw    of the Great East Japan Earthquake in
materials, among other actions to             the year ended March 2012. Capitalizing                MC, South Korea’s POSCO Group and Mitsubishi
strengthen its hand in the value chain.       on this, MC aims to expand the LPG                     Chemical Corporation have agreed to establish a
                                                                                                     company to manufacture and sell needle coke.
The carbon business has a close connec-       business, such as by promoting the
tion with the steel, aluminum and renew-      uptake of residential fuel cell systems.
able energy fields, and aims to expand
business in these areas going forward.




 E&P Business                                     Africa, Europe and America E&P       Asia E&P Business Unit
                                                  Business Unit                        E&P New Business Development Unit



  The E&P Business is conducting MC’s          Africa, in the U.S. Gulf of Mexico, in the
  oil and natural gas exploration, devel-      U.K. North Sea, and in Indonesia, Ven-
  opment and production (E&P) opera-           ezuela and elsewhere. We are actively
  tions around the world in Africa,            engaged in these operations, while
  Europe, the U.S. and Asia in conjunc-        taking all possible measures to protect
  tion with subsidiary Mitsubishi Corpora-     the environment and ensure safety.
  tion Exploration Co., Ltd. We contribute         In November 2011, we drew on our
  to the development and stable supply         many years of expertise in West Africa
  of finite oil and natural gas, as an         to enter into an agreement to acquire oil
  important part of the value chain in the     exploration participation interests in the            This FPU (floating production unit) leaves a ship-
                                                                                                     yard headed for the Terang Sirasun Batur (TSB)
  LNG and oil businesses. Specifically,        Republic of Liberia, making us the first
                                                                                                     gas field in the Kangean block offshore Indonesia
  MC is conducting offshore E&P activi-        Japanese company to do so.                            where production is set to begin in earnest.
  ties in Gabon and Angola in West

                                                                                                                                                          43
Mitsubishi Corporation   Annual Report 2012




          Metals Group




The Metals Group handles a broad range of products in the fields of steel products, ferrous raw materials and non-
ferrous metals. With the two business models of resource investment and trading, we aim to raise our enterprise
value and grow continuously by stably supplying world markets with quality raw materials and products based on an
accurate understanding of customer needs.




                                              Group CEO Message
                                              Midterm Corporate Strategy 2012 Targets and Progress
                                              Under Midterm Corporate Strategy 2012 in the resource investment busi-
                                              ness, we have steadily made investments in existing and new projects in
                                              fields such as coking coal, thermal coal, iron ore, copper and PGM*.
                                              Meanwhile, in our trading business, we have actively expanded business
                                              overseas, particularly in growth markets, while rebuilding businesses in Japan.
                                                   As we go forward, we will step up measures to solidify our business
                                              base by pushing ahead with various strategies and continuing to grow
                                              the human resources to support these operations.
                                                   In the year ended March 2012, this business group posted net
                                              income of ¥172.1 billion, which was ¥59.4 billion lower year on year. One
                                              in
                                              main reason for this decline was the absence of the gains on a share
                                              m
                                              exchange at a Chilean iron ore-related company that were recorded in
                                              e
                                              the year ended March 2011. The other main reason was lower sales
                                              th
                                              volumes at an Australian resource-related subsidiary (coking coal) due to
                                              v
                                              strike action and bad weather, which affected site operations.
                                              s

                                              B
                                              Business Environment and Outlook for
                                              Y
                                              Year Ending March 2013
                                              In terms of the business environment in the year ending March 2013,
                                              there are some uncertainties clouding the outlook, most notably a hint of
                                              th
                                              an economic slowdown in China and other emerging markets. Neverthe-
                                              a
                                               lless, over the medium and long terms, demand for metals resources and
                                                 products as well as prices are expected to increase firmly, with economic
                                                 growth in emerging markets driving the global economy.
                                                       As the culmination of Midterm Corporate Strategy 2012, the year
                                                  ending March 2013 is a year in which we will continue working steadily
                                                   to execute initiatives to achieve our targets. In tandem, we intend to
                                                    quicken the pace of business and human resource development glob-
                                                    ally in this business group, with an eye toward the next medium-term
                                                   management plan.
                                                        For the year ending March 2013, we are projecting a ¥12.9 billion
                                                  year-on-year increase in net income to ¥185.0 billion. This projection is
                                                  premised mainly on higher earnings from copper-related businesses
                                                  and higher earnings from a steel product-related subsidiary.

                                               * PGM: Platinum Group Metals (platinum, palladium, and other platinum group metals)




                                                                                                        Jun Kinukawa
                                                                                                        Executive Vice President,
                                                                                                        Group CEO, Metals Group
                                                                                                             Mitsubishi Corporation    Annual Report 2012




               Metals Group


         Metals Group CEO Office


         Metals Group Administration Dept.


         Steel Business Div.


         Ferrous Raw Materials Div.


         Non-Ferrous Metals Div.




Net Income
(¥ billion)


               231.5

                                   185.0
                           172.1
   138.9




                                                                                                  Kanji Nishiura                      Iwao Toide
                                                                Noriyuki Tsubonuma                Senior Vice President,              Senior Vice President,
    10.3           11.3    12.3    13.3                         Division COO,                     Division COO,                       Division COO,
                                   (est.)
                                                                Ferrous Raw Materials Div.        Non-Ferrous Metals Div.             Steel Business Div.

   1Q         2Q      3Q    4Q




    Creating Social and Environmental Value
    Developing Stronger Relationships With
    Local Communities

    Mitsubishi Development Pty Ltd (MDP), a wholly owned MC
    subsidiary, has been mining ferrous raw materials, mainly
    coal, in Australia since its establishment in 1968. Since its
    earliest days, it has also actively engaged in regionally rooted
    CSR activities.
         Specific contributions to local communities include support
    for building infrastructure such as road, electricity and water
    systems through mine development. It also makes financial
    endowments for courses at local universities and medical insti-
    tutions, provides employment opportunities, conducts surveys
    of cultural heritage, and runs programs that ensure cultural
                                                                          Oakajee Port and Rail, a wholly owned subsidiary of MDP, holds an
    continuity. In these ways, MDP is strengthening relationships
                                                                          exhibition every year of paintings by Aborigines. In this way, it supports
    with indigenous communities.                                          their artistic creation in the Mid West region of Western Australia.
                                                                          (left: Colin Barnett, Premier of Western Australia)


                                                                                                                                                        45
Mitsubishi Corporation   Annual Report 2012




          Metals Group



 Steel Business Division                          Metal One Business Unit
                                                  Components Business Development Unit



Harnessing the collective capabilities of     to expand, mainly in emerging markets
MC and working together with Metal One        experiencing continued economic
Corporation (a trading firm specializing in   growth. In Japan, however, it is hard to
steel products that is owned 60% by           foresee major growth due to a limited
MC), the Steel Business Division is con-      recovery in steel demand.
structing and developing a global value            Under these circumstances, Metal
chain for steel products. In the upstream     One Corporation plans to strengthen its
sector of this value chain, the division is   position further in businesses in Japan,
taking capital stakes in overseas steel       while increasing profits and promoting a
businesses in countries such as Brazil as     growth strategy in overseas businesses
part of efforts to deepen ties with steel-    under its fourth medium-term manage-                           Metal One Corporation has more than 70 service
makers. In the downstream sector, MC is       ment plan, which began in April 2012.                          centers in Japan and other countries around the
                                                                                                             world, providing comprehensive services, includ-
developing manufacturing operations for            Looking ahead, this division will con-
                                                                                                             ing steel processing, storage and delivery
automobile parts and components in            tinue to strategically develop businesses                      management.
Thailand, Australia, Europe and else-         in the upstream and downstream areas of
where. Within the midstream sector, MC        the steel business and automobile parts
is conducting a distribution and process-     and components business, centered on
ing business for the entire range of steel    Metal One Corporation. Our aim is to
products through Metal One Corporation,       provide optimum steel products business
a core entity in this division.               functions and services in tune with
    Steel demand overseas is projected        market needs.



 Ferrous Raw Materials Division                   Ferrous Raw Materials Sales   Thermal Coal Business Unit     Stainless and Specialty Steel Raw Materials Business Unit
                                                  and Marketing Business Unit   Iron Ore Business Unit         MDP Unit



This division is focusing efforts on rein-         In November 2011, we made a
forcing resource investment operations        decision regarding large-scale expan-
as well as the resource sales business.       sion of our BMA coking coal business in
    The investment business provides a        Queensland, Australia, through our
major pillar of sustained earnings growth     Australian subsidiary Mitsubishi Devel-
for the division. MC has substantial          opment Pty Ltd (MDP). The following
investments across a wide range of            December, through MDP we acquired
businesses. These include the coking          additional shares in Coal & Allied Indus-
coal business, where BMA is a central         tries Limited, one of Australia’s largest
figure; BMA is one of the world’s largest     thermal coal producers, along with Rio
coking coal producers. Among other            Tinto Limited. This move raised our                            Pictured is a BMA-owned coking coal loading and
businesses are production of stainless        shareholding to 20%.                                           shipping port in Queensland, Australia.
steel raw materials and iron ore, as well          In the Mid West region of Western
as the production of coal and uranium         Australia, in February 2012 we acquired
for use as fuel for power generation.         all of Murchison Metals Ltd’s interests in
    In trading, the division conducts         an iron ore deposit and rail and port
sales activities for ferrous raw materials    infrastructure. We had been developing
such as coking coal, thermal coal, iron       these assets with this local company.
ore, and materials for production of          We are now working on restructuring the
stainless and specialty steels on a           joint venture by inviting new partners, as
global basis.                                 well as completing feasibility studies.




46
                                                                                                                                                                           Mitsubishi Corporation         Annual Report 2012




 Non-Ferrous Metals Division                                                                Base Metals Business Unit                Precious Metals Business Unit
                                                                                            Aluminum Business Unit                   Unimetals Unit



This division operates in the non-ferrous                                            Peru. In March 2012, we entered into an
metals field, which includes copper,                                                 agreement to acquire a 25% interest in
aluminum, precious metals, platinum,                                                 the Marathon PGM Project, which is
palladium and other PGM. It invests in                                               owned by Canadian company Stillwater
resources to secure long-term supply                                                 Canada Inc. We have been looking at
sources, and aims to stably supply                                                   investing in platinum and palladium as a
non-ferrous metals to world markets                                                  new field.
through its trading activities.                                                          In trading, we are working to
    In resource investment, we made                                                  strengthen our global supply system for
substantial investments in the year                                                  non-ferrous metals, centered on wholly
ended March 2012, aiming to strengthen                                               owned subsidiary Mitsubishi Corpora-                                      The Escondida mine in Chile produces more than
our base for sustainable growth by                                                   tion Unimetals Ltd. We aim to stably                                      one million tons of copper each year. It is the
securing new prime resource assets. In                                               supply non-ferrous metals to world                                        world’s largest copper mine, with reserves for at
                                                                                                                                                               least another 50 years of operation.
copper, in November 2011 we acquired                                                 markets, and provide high-quality ser-
a 24.5% interest in Chilean company                                                  vices that meet various needs.
Anglo American Sur, S.A. (AAS). Then in
February 2012 we acquired an 18.1%
stake in Anglo American Quellaveco
S.A., which is developing the Quellaveco
copper project (“Quellaveco”) located in




   Metals Group Value Chain
                                                    Raw Materials          Procurement                 Production                            Processing, Distribution & Marketing                             End Users

                               Coking Coal
                               Iron Ore             BMA                                                                                                                                                      Power
                               Nickel & Chrome                                                                                 Sales & Marketing        Processing & Distribution                            Companies
                                                    IOC
                               Steel Sheets &                             Mitsubishi Corporation                                                           Isuzu Corporation
   Ferrous Raw Materials




                                                    CMP                                                                         Metal One                                                                    Oil & Gas
                               Plates                                                                                           Corporation               Metal One Steel Service    Component               Companies
                                                                                                     Integrated Steel Mills
                                                    Hernic
        & Products




                               Specialty Steel &                                                                                 (Worldwide sales         Keiyo Blanking Kogyo        Manufacturers
                               Wire                                                                                             network)                                                                     Construction
                                                          etc.                                                                                            Solutions Usiminas                                 Companies
                                             etc.                                                                                                                                    DMET
                                                                                                                              Metal One America etc.
                                                                                                                                                          ISTW               etc.    Hirotec Australia
                                                                                                                                                                                                             Automobile
                                                                                                                      Metal One Group                                                              etc.      Manufacturers
                                                                         Metal One Structural       EAF Mills
                               Scrap Steel                                                                                                                                                                   Machinery
                                                                         Steel & Resource                                                                                                                    Manufacturers
                                                                                                    Kyushu Steel
                                                                         Corporation
                                                                                                    Shinkansai Steel etc.
                                                                                                                                                                                                             Home
                                                                                                                                                                                                             Appliance
                                                                                                                                                                                                             Manufacturers
                               Copper                                                               Makers of Copper &
                                                    Escondida                                                                                                                                                Can
                               Aluminum                                                             Copper Alloy Wire &                                  Processing & Distribution
                                                    Los Pelambres                                                              Sales & Marketing                                                             Manufacturers
                               Platinum                                                             Other Products                                         Component Manufacturers
   Non-Ferrous Raw Materials




                                                    Anglo American Sur   Mitsubishi Corporation
                               Other Non-Ferrous                                                    Rolling Mills &            Mitsubishi Corporation                                                        Shipbuilders
                               Raw Material         Antamina             Mitsubishi International                                                          Tata Toyo Radiator
                                                                         Corporation (MIC)          Foundries Varopakorn         Unimetals
           & Products




                               Non-Ferrous          Mozal                                                                                                  T.RAD Czech s.r.o.                                Cable
                                                                                                    Muang-Max etc.                                                                                           Manufacturers
                               Products             Boyne                Mitsubishi Corporation                                                            Qingdao Toyo Heat Exchanger
                                                               etc.                                 Precious Metal             Thai-MC Company
                                             etc.                        International (Europe)                                                            Toyo Radiator Zhongshan
                                                                                                    Processors                                                                                               Beverage
                                                                                                                              Mitsubishi Corporation                                                         Makers
                                                                         Mitsubishi Corporation     Furuya Metal
                                                                         Unimetals                                              (Shanghai)
                                                                                                    Other Manufacturers                                                                                      Jewelry
                               Non-Ferrous Scrap                         Triland Metals (UK)                                                                                                                 Makers




                                                                                                                                                                                                                             47
Mitsubishi Corporation   Annual Report 2012




          Machinery Group




The Machinery Group handles machinery across many different sectors, ranging from large-scale plants for produc-
tion of natural gas, petroleum, chemicals or steel, to ships, automobiles, and aerospace equipment, as well as mining
and industrial machinery, and elevators and escalators. Leveraging our knowledge and customer network across
these fields, we aim to expand value chains spanning finance, distribution and our extensive business investments.




                                               Group CEO Message
                                               Midterm Corporate Strategy 2012 Targets and Progress
                                               The Machinery Group has designated four key domains under Midterm
                                               Corporate Strategy 2012: social infrastructure projects, including power
                                               generation, transport and ports; resource- and energy-related projects; ship-
                                               related business; and automobile-related business. During the past year, we
                                               worked to reinforce our existing operations and to create new businesses.
                                                   In the year ended March 2012, we posted net income of ¥54.5 billion,
                                               a year-on-year decline of ¥6.9 billion. This result reflected lower motor
                                               vehicle sales overseas due to the impact of the historically strong yen
                                               and major floods in Thailand, as well as the absence of gains on share
                                               sales recorded in the year ended March 2011.

                                               Business Environment and Outlook for
                                               Year Ending March 2013
                                               On April 1, 2012, we carried out an internal reorganization, which
                                               resulted in the integration of five units responsible for power generation,
                                               transport, ports, smart community and other projects into the Global
                                               Environment & Infrastructure Business Development Group. In addition,
                                               industrial equipment, rental businesses, construction and mining
                                               machinery businesses, and the elevator business within the group were
                                               brought together to form the Industrial Machinery Business Division.
                                               These and other moves were made so that we use our business
                                               resources as productively as possible.
                                                       In resource- and energy-related projects, we are focusing on
                                                   FPSO* projects and the gas pipeline business. In ship-related busi-
                                                   ness, Diamond Star Shipping, which was established in Singapore in
                                                   May 2011, is leading our efforts to expand our ship owning and char-
                                                   tering business. In automobile-related businesses, we are making
                                                   progress expanding business in emerging markets, including Russia,
                                                   China, India and Brazil, as well as our mainstay markets of Indonesia
                                                   and Thailand. In construction machinery, we plan to strengthen sales
                                                   and sales finance operations in China and elsewhere.
                                                       For the year ending March 2013, we are projecting net income of
                                                   ¥60.0 billion.
                                                  * A Floating Production, Storage & Offloading System (FPSO) is a facility for producing oil and gas offshore.
                                                    Oil is stored in tanks on the facility, from where it is loaded directly onto tankers for transportation.




                                                                                                            Osamu Komiya
                                                                                                            Executive Vice President,
                                                                                                            Group CEO, Machinery Group
                                                                                                                         Mitsubishi Corporation   Annual Report 2012




              Machinery Group


          Machinery Group CEO Office

          Machinery Group Administration
          Dept.

          Plant & Engineering Business Div.

          Industrial Machinery Business Div.

          Ship & Aerospace Div.

          Motor Vehicle Business Div.

          Isuzu Business Div.




Net Income (Loss)
(¥ billion)

               61.4                      60.0
                       54.5
                              49.8*



   18.1                                                                                                   Kozo Shiraji
                                                              Keiichi Toma                                Senior Vice President,     Morikazu Chokki
                                                              Division COO,                               Division COO,              Senior Vice President,
                                                              Industrial Machinery                        Motor Vehicle              Division COO,
                                                              Business Div.                               Business Div.              Isuzu Business Div.

   10.3        11.3        12.3          13.3                                        Hirotsugu Ishiyama                       Kazushi Okawa
                                         (est.)
                                                                                     Senior Vice President,                   Senior Vice President,
                                                                                     Division COO,                            Division COO,
   1Q         2Q      3Q     4Q
                                                                                     Ship & Aerospace Div.                    Plant & Engineering Business Div.
* Following a reorganization on April 1, 2012, the Power
  & Electrical Systems Division and part of the Infrastruc-
  ture Project Division were transferred to the Global
  Environment and Infrastructure Business Development
  Group. The figures for the year ended March 2012
  have been restated according to this reorganization.



     Creating Social and Environmental Value
     A Lineup in Tune With Changing Times
     Nikken Corporation (Nikken, Rental Company), which is 96.83%
     owned by MC, was the first in its industry to utilize electric vehi-
     cles. The company has also gradually introduced hybrid excava-
     tors, trucks and other vehicles, small cranes for decreasing CO2,
     generators for reducing exhaust gas and LED lighting. These
     actions demonstrate how Nikken is proactively reshaping its
     rental asset portfolio to stay in tune with changing times.
           Furthermore, Nikken is steadily expanding its lineup of New
     Technology Information System (NETIS)-registered products. NETIS
     is a technology utilization system for public works and other projects
     developed by Japan’s Ministry of Land, Infrastructure, Transport
     and Tourism.
           Moreover, Nikken is working to bolster its rental services in
     order to improve work environments and ensure safety and secu-
     rity. For instance, utilizing IT, the company is developing a propri-
     etary recording system that integrates noise and vibration
                                                                                     Hybrid excavators
     measurement, and an access management system for worksites.


                                                                                                                                                                  49
Mitsubishi Corporation   Annual Report 2012




          Machinery Group



 Plant & Engineering Business                     Engineering Business Unit
 Division                                         Plant Project Business Unit



This division proposes best-fit solutions     performed well throughout the year,
leveraging MC’s resources and capabili-       despite the obvious challenges presented
ties in order to help customers around        by temporary stagnation of the Japanese
the world realize their plans in basic        economy brought on by the Great East
industry sectors. The division’s funda-       Japan Earthquake, and the impact of
mental policy is to contribute to the         increased sovereign risk in Europe.
development of the Japanese economy               In the year ending March 2013, we
and the rest of the world over the            expect to see higher orders for offshore
medium and long term in cooperation           gas and oil production facilities, gas
with customers and business partners in       pipelines and other projects involving the
the oil, gas, chemical-related, steel,        ownership of assets. Our confidence                   This LNG plant in Qatar is one of the world’s
cement and other plant fields. Under          stems from increasing demand for                      largest, with one train capable of producing 7.8
                                                                                                    million tons of LNG per year.
this fundamental policy, the division is      energy. We also expect to see higher
                                                                                                    (Photograph provided by Qatargas Operating
committed to taking the necessary             sales of plants and machinery as emerg-               Company Limited/Chiyoda Corporation)
actions for sustainable growth.               ing economies maintain solid growth.
    In the year ended March 2012, we



 Industrial Machinery Business                    Elevator & Escalator Operation & Marketing Unit    Construction & Mining Equipment Project Unit
 Division                                         Industrial Equipment Business Unit



This division was formed in the year          power of business investees belonging
ended March 2012 to sell high-volume          to this division. At the same time, we
products such as construction and             will pursue opportunities to grow by
mining machinery, machine tools, agri-        promoting new initiatives in emerging
cultural machinery, and elevators and         markets. One initiative will be to launch
escalators, as well as to conduct related     sales finance companies for construc-
business investments. We are taking the       tion machinery in China. In our con-
lead in exercising MC’s strengths and         struction machinery rental business, the
functions to provide multifarious sales       fulcrum of which is Nikken Corporation,
and services functions. In this way, we       we plan to improve our service network
aim to develop and grow as a business         to contribute as much as we can to                    Rental assets at the Toyosu site, Nikken
partner of customers and machinery            Japan’s reconstruction efforts following              Corporation
manufacturers.                                the devastating earthquake and
     In the year ending March 2013, we        tsunami.
will look to further raise the earnings




 Ship & Aerospace Division                        Commercial Vessel Unit           Defense and Aerospace Unit
                                                  Offshore and Gas Carrier Unit



This division is involved in ship-            sales and purchases and brokering                     our business globally by taking
ping, as well as aerospace-related            transactions of newly built ships                     advantage of the strengths of each
businesses. In the ship-related               and marine machinery; chartering                      business, which fit together organi-
business, MC conducts wide-ranging            of company-owned vessels; ship                        cally. The marine transport market
business activities in four pivotal           finance; and offshore and gas car-                    continues to face tough conditions,
businesses: trading centered on               rier business. We are developing                      but we are focusing on securing


50
                                                                                                          Mitsubishi Corporation   Annual Report 2012




prime contracts and assets to                based on the National Defense
strengthen our competitiveness.              Program Guidelines. Moreover, we
    As for the aerospace and                 are involved in space-related busi-
defense business, we aim to con-             nesses that cater to social needs.
tribute more to Japan’s national             This includes satellite imagery-
security. To this end, we will pro-          related services provided through
mote the defense business and                MC business investee Japan Space
provide services, as well as comply          Imaging Corporation.
with new procurement methods


                                                                                                 A 53,000 DWT Supramax bulk carrier




 Motor Vehicle Business Division                 Motor Vehicle Asean & South West Asia Unit     Motor Vehicle Europe, Middle East & Africa Unit
                                                 Motor Vehicle North Asia Unit                  Motor Vehicle Americas & Australia Unit



This division conducts business through      which is the most important market for
a broad-based value chain encompass-         this division, the auto market in the year
ing automobile distribution and auto loan    ended March 2012 posted record sales
operations. The products concerned are       for the second straight year. In this
motor vehicles produced by Mitsubishi        expanding market, MC affiliate PT.
Motors Corporation (MMC) and Mitsubishi      Krama Yudha Tiga Berlian Motors (KTB)
Fuso Truck & Bus Corporation.                registered record unit sales, as it turned
    In the year ended March 2012, we         in another strong performance.
encountered a difficult operating environ-        Over the medium and long term, we
ment, with challenges presented by the       will look to further enhance the value of
Great East Japan Earthquake, wide-           our businesses by strengthening the                 Our motor vehicle business in Indonesia is
spread flooding in Thailand and the          value chain centered around our core                working to strengthen the value chain, including
                                                                                                 auto loan operations, centered on KTB.
record strength of the yen. Nevertheless,    automotive distribution business, and by
our operations were supported by             stepping up sales in emerging markets
robust economic conditions in Asian and      such as China, Russia, Brazil and India
ASEAN member nations. In Indonesia,          in particular.




 Isuzu Business Division                         ASEAN Unit                                      India Unit
                                                 Europe, Middle East, Americas & Oceania Unit



This division manufactures and sells         was around 140,000 units, and exports
Isuzu brand vehicles around the world,       of vehicles from Thailand were around
along with engaging in automobile            40,000 units. Both figures were around
finance, services, export and other asso-    20,000 units down on the previous fiscal
ciated operations. In specific terms, we     year due to the impact of the floods in
operate businesses in ASEAN nations,         Thailand and other factors. On a brighter
Europe, Mexico and Australia, and            note, sales of a new model pickup truck,
export Isuzu pickup trucks from Thailand     which was launched in Thailand in Octo-
to more than 100 countries. We also          ber 2011, are trending well, thanks to
export trucks from Japan to ASEAN            continued growth in auto markets mainly
nations, the Middle East, Mexico and         in emerging markets.                                The new model D-MAX pickup truck was unveiled
elsewhere.                                       We will continue to work with Isuzu             on September 29, 2011 at a launch event in
                                                                                                 Thailand.
    In the year ended March 2012, the        Motors to take on new markets and
number of vehicles sold in Thailand, the     introduce new business models, as we
most important market for this division,     aim for more growth.
                                                                                                                                                  51
Mitsubishi Corporation   Annual Report 2012




          Chemicals Group




The Chemicals Group is developing businesses in the commodity chemicals field, which involves handling raw materi-
als in the upstream sector of the product chain, and the functional chemicals field, which involves handling products
such as synthetic plastics and electronic materials in the midstream and downstream sectors of the value chain. We
also develop businesses in the life science field, which includes food science, pharmaceuticals and agrochemicals.
     A shift in the global economy’s center of gravity, the uneven distribution of resources, declining birthrates and
aging populations in industrialized nations, and rising interest in the environment and health are some of the social
changes shaping our business environment. While maintaining a focus on the role expected of the chemical industry
in terms of ensuring a sustainable society, we aim to achieve further growth by strengthening our core businesses
and creating new businesses.




                                               Group CEO Message
                                               Midterm Corporate Strategy 2012 Targets and Progress
                                               The Chemicals Group aims to be a strong group with sustainable earn-
                                               ings power, as well as have an influential presence in the marketplace. In
                                               April 2011, we established the Life Sciences Division, which subse-
                                               quently entered the new business domain of custom manufacturing bio-
                                               pharmaceuticals. In the commodity chemicals field, we invested in a rock
                                               phosphate producer in Peru, seeing this as a promising growth business
                                               that can cater to demand stemming from the need to produce more food
                                               worldwide. In the functional chemicals field, we made Chuo Kagaku Co.,
                                               Ltd. a consolidated subsidiary. This company is engaged in the plastic
                                               food packaging and container business where demand is expected to
                                               increase in Japan and overseas.
                                                    For the year ended March 2012, we recorded net income of ¥37.1
                                               billion. This ¥8.0 billion year-on-year increase shows that our actions in
                                               various fields are steadily producing results.

                                               Business Environment and Outlook for
                                               Year Ending March 2013
                                               We foresee more business opportunities in the year ending March 2013
                                               spawned by structural change. These include the emergence of shale
                                               gas as a feedstock in the North American petrochemical industry, and
                                               the completion of large petrochemical manufacturing facilities in China.
                                               There are other dynamics that offer opportunities as well. One is expan-
                                               sion in the fertilizer industry in line with burgeoning demand for food
                                               worldwide. Others are expanding consumer markets in emerging coun-
                                               tries as their economies grow solidly, and ever-increasing interest in
                                               health, safety, comfort and the environment.
                                                   Under this environment, in the year ending March 2013, we aim to gener-
                                               ate net income of ¥40.0 billion. We will continue to strengthen our businesses,
                                               particularly in key fields, while remaining cognizant of capital efficiency.




                                                                                          Takahisa Miyauchi
                                                                                          Executive Vice President,
                                                                                          Group CEO, Chemicals Group
                                                                                                               Mitsubishi Corporation     Annual Report 2012




              Chemicals Group


         Chemicals Group CEO Office

         Chemicals Group Administration Dept.

         Phoenix Unit

         Saudi Petrochemical Project Unit

         Commodity Chemicals Div. A

         Commodity Chemicals Div. B

         Functional Chemicals Div.

         Life Sciences Div.




Net Income
(¥ billion)

                                     40.0
                           37.1
   32.4
                   29.1

                                                                                    Shinichi Nakayama            Tatsuya Kiyoshi
                                                                                    Senior Vice President,       Senior Vice President,
                                                                                    Division COO,                Division COO,
                                                         Tetsuro Momosaki           Commodity Chemicals          Commodity
                                                         Senior Vice President,     Div. B                       Chemicals Div. A            Takeshi Hagiwara
                                                         Division COO,                                                                       Division COO,
                                                         Life Sciences Div.                                                                  Functional Chemicals Div.
    10.3           11.3    12.3      13.3
                                     (est.)

   1Q         2Q      3Q      4Q




    Creating Social and Environmental Value
    Focused on Safeguarding the Natural
    Environment by Protecting Wild Birds
    Exportadora de Sal, S.A. de C.V. (ESSA), a salt manufacturer in
    which MC and the Mexican government have equity interests of
    49% and 51%, respectively, operates the world’s largest solar salt
    fields. ESSA stably supplies Japan, the rest of Asia, the U.S. and
    other countries and regions with high-quality salt.
         In developing salt field operations, ESSA adheres to three key
    policies—preventing pollution, protecting natural resources, and
    fostering local culture. In September 2009, ESSA’s salt fields were
    designated as a site of international importance within the Western
    Hemisphere Shorebird Reserve Network (WHSRN), a U.S.-based
    wild bird protection group. ESSA cooperates with the activities of
    WHSRN such as surveys of bird species in the salt fields, and main-
    tenance and protection of nesting sites. In addition, ESSA is work-
    ing to protect the natural environment by installing around 200           Salt harvesting at the solar salt fields
    roosts that protect birds from coyotes and other dangers.

                                                                                                                                                         53
Mitsubishi Corporation   Annual Report 2012




          Chemicals Group



 Commodity Chemicals Division A                   Olefins & Aromatics Unit               Polyester Unit
                                                  Petrochemical Intermediates Unit       Chlor-Alkali Unit



In the Commodity Chemicals Division A,        increasing, led by emerging markets. In
we trade raw materials for plastics and       addition, we also expect to see major
synthetic fibers, salt and caustic soda,      structural changes in the petrochemical
among other commodities in the petro-         industry and in distribution flows. These
chemical and chlor-alkali fields. We also     changes are being catalyzed by a nota-
make investments in businesses in             ble resurgence in the petrochemical
these fields.                                 industry in North America on the back of
    Demand for products in the year           shale gas development. In response, we
ended March 2012 was solid as a               will leverage our expansive worldwide
whole. Our transaction volumes grew           network to grasp changes in the busi-
steadily as a result of efforts to develop    ness environment and customer needs,                     PC Aromatics is a joint venture between Japanese
within China and other markets, with a        and by correcting imbalances between                     and Malaysian companies that is capable of pro-
                                                                                                       ducing 540,000 tons of paraxylene and 200,000
focus on petrochemical raw materials          supply and demand in the market, we
                                                                                                       tons of benzene per year. It began operations in
such as polyester raw materials.              will strive to deliver value.                            July 2000 as a base for basic materials for syn-
    Demand is expected to continue                                                                     thetic fibers and resin, where demand continues
                                                                                                       to increase.




 Commodity Chemicals Division B                   Methanol Unit                      Fertilizer Unit
                                                  Ammonia Unit                       Inorganic Chemicals Unit



In the Commodity Chemicals Division B,        our trading functions and responding to
we trade chemical commodities such as         growing demand centered on emerging
methanol, ethanol, ammonia, fertilizers       countries are key themes. We will
and inorganic chemicals. We also make         pursue opportunities to make business
investments in businesses.                    investments in resource countries and
    Transaction volumes of all products       regions with natural resources such as
in this division grew steadily as a whole     natural gas, mining products and agri-
in the year ended March 2012. During          cultural products that serve as feed-
the past year, we decided to invest in a      stocks for the mainstay products of this
rock phosphate mine developer in Peru,        division. Our overarching aim here is to
eyeing the global expansion in fertilizer     ensure that we secure competitive prod-                  METOR is a joint venture between MC, Venezuelan
demand and to counter the uneven              ucts and ultimately can deliver even                     state-owned company Pequiven, Mitsubishi Gas
                                                                                                       Chemical Company, Inc. and others. In the year
regional distribution of raw materials.       greater value to customers.
                                                                                                       ended March 2011, METOR completed construction
    In our business domain, upgrading                                                                  of an 850,000 ton/year second facility adjoining an
                                                                                                       existing plant that is capable of producing 750,000
                                                                                                       tons of methanol a year. Commercial operations at
                                                                                                       the new facility began in August 2010.




 Functional Chemicals Division                    Plastics Unit                      Functional Materials Unit
                                                  PVC Unit                           Specialty Chemicals Unit



This division conducts trading activities     materials and other materials used in                    shaped by the Great East Japan Earth-
and makes investments to reinforce            plastics, functional products and elec-                  quake, the yen’s appreciation, the Euro-
these activities in the midstream and         tronic materials fields, to parts and                    pean debt crisis and slower growth in
downstream sections of the chemicals          products.                                                emerging markets. We acquired a con-
industry. Businesses extend from raw              The year ended March 2012 was                        trolling interest in Chuo Kagaku Co.,




54
                                                                                                     Mitsubishi Corporation   Annual Report 2012




Ltd., Japan’s No. 2 plastic food packag-       with this company in terms of procuring
ing and container manufacturer in terms        plastic raw materials and product sales.
of sales, with the aim of strengthening        We will also work to develop our busi-
the key plastics business.                     nesses within the functional products
    In the year ending March 2013, we          and electronic materials fields through
intend to focus on expanding our food          investments, as we seek to sustain
packaging materials business in China          growth globally and answer customer
through Chuo Kagaku. This drive will           needs.
see us try to capture greater synergies


                                                                                            Chuo Kagaku Co., Ltd. is a leading manufacturer
                                                                                            of plastic food packaging and containers. Ranked
                                                                                            number two in Japan in terms of sales, the com-
                                                                                            pany has manufacturing bases in nine locations in
                                                                                            Japan and in five locations in China.



 Life Sciences Division                            Bio- Fine Chemicals Unit
                                                   Life Science Products Unit



The Life Sciences Division is active in a      custom manufacturing biopharmaceuti-
wide range of fine chemical fields, centered   cals in the U.K. and U.S. Meanwhile, we
on food science, pharmaceuticals and           decided to invest in a South Korean
agrochemicals. Although uncertainty is         company manufacturing agrochemicals.
increasing regarding the global economy,            In the year ending March 2013,
life science-related markets are growing       besides advancing these activities in the
steadily. Driving this growth are calls for    pharmaceuticals and agrochemicals
higher standards of living in emerging         fields, we plan to invest business
markets, and changing social needs in          resources to further expand the food
developed countries, where low birthrates      science business. We will continue
and aging populations are spurring reduc-      efforts to capture market growth in          FUJIFILM Diosynth Biotechnologies U.S.A. Inc.
tions in medical expenses and a shift in       terms of health, safety, comfort and         (FDBUS) and FUJIFILM Diosynth Biotechnologies
                                                                                            UK Limited (FDBUK) are leading biopharmaceuti-
mindset from treatment to prevention.          good taste by making full use of our
                                                                                            cal contract manufacturing subsidiaries estab-
      In the year ended March 2012, in         chemical and technological strengths as      lished by FUJIFILM Corporation in April 2011.
addition to bolstering existing busi-          well as the inherent strength of a trading
nesses, we entered the business of             company network.



 Saudi Petrochemical Project Unit               tion of third-stage expansion, which
                                                came onstream in 2010. SHARQ has
  MC owns an equity interest of 30% in          grown to become one of the leading
  SPDC Ltd., which is a 50% share-              petrochemical plants in the world, with
  holder in Eastern Petrochemical Co.           a production capacity equivalent to
  (SHARQ), a Saudi Arabian polyethyl-           2.5 million tons of ethylene. MC sells
  ene and ethylene glycol producer. The         the products produced by SHARQ to
  petrochemical operations of SPDC are          customers in Japan, China and else-
  one of the Chemicals Group’s most             where in Asia as well as Europe, while
  important businesses as a source of           contributing to the development of          After the completion of stage expansion,
                                                SHARQ’s business through SPDC. We           SHARQ has the capacity to produce 2.5 million
  raw materials in the upstream part of
                                                                                            tons of ethylene, 1.55 million tons of polyethyl-
  fields such as packaging, film, PET           plan to continue strengthening the          ene, and 1.4 million tons of ethylene glycol per
  resins and polyester fiber.                   value chain from basic materials to         year, almost double the existing capacity.
                                                finished products to capitalize on          SHARQ thus has the largest annual production
       SHARQ’s production volume has
                                                                                            capacity for a single plant in the world.
  nearly doubled following the comple-          SHARQ’s increased supply capacity.

                                                                                                                                                55
Mitsubishi Corporation   Annual Report 2012




          Living Essentials Group




The Living Essentials Group conducts businesses in a broad range of fields closely tied with people’s lifestyles, such
as food products and food, textiles, essential supplies, healthcare, distribution and retail. In each of these fields, we
organically manage supply chains extending from the procurement of raw materials to production and processing,
intermediary distribution, retail and services. Our goal is to stably and continuously supply various products and
services demanded by customers.




                                                Group CEO Message

                                                Midterm Corporate Strategy 2012 Targets and Progress
                                                Under Midterm Corporate Strategy 2012, the Living Essentials Group is
                                                focusing on three key themes: (1) expanding and improving our raw
                                                materials procurement network, (2) strengthening our Japan business
                                                base, and (3) targeting overseas growth markets.
                                                    With regards to the first theme in the year ended March 2012, we worked
                                                to enhance our grain procurement network in North and South America,
                                                which included investing in a Brazilian grain trading company. In addition, we
                                                acquired a company running a salmon farming business in Chile, and
                                                invested in Brazil’s largest coffee plantation. In terms of the second theme,
                                                four intermediary food distribution subsidiaries completed their merger, start-
                                                ing anew as Mitsubishi Shokuhin Co., Ltd. in April 2012. In targeting over-
                                                seas growth markets, we made various moves with the aim of nurturing new
                                                growth businesses. One was to invest in a meat and livestock business of
                                                COFCO Limited, one of China’s largest state-owned food companies.
                                                    In the year ended March 2012, this business group recorded net
                                                income of ¥56.6 billion, up ¥10.3 billion year on year. This earnings
                                                increase resulted mainly from higher earnings at food- and textile-related
                                                companies which strengthened their business platforms in Japan.


                                                Business Environment and Outlook for
                                                Year Ending March 2013
                                                With competition to secure food and other resources as strong as ever,
                                                in the year ending March 2013, we will continue work to enhance our
                                                grain procurement network, while strengthening the functions of existing
                                                businesses in Japan. Furthermore, we aim to build an earnings platform
                                                for driving further growth. Here, we will step up efforts with leading part-
                                                ners and develop across business domains where we are strong in
                                                emerging markets in Asia and elsewhere.
                                                    For the year ending March 2013, we are forecasting net income of
                                                ¥66.0 billion, up ¥9.4 billion year on year. This forecast assumes higher
                                                earnings from food-related businesses.




                                                                                            Toru Moriyama
                                                                                            Executive Vice President,
                                                                                            Group CEO, Living Essentials Group
                                                                                                                 Mitsubishi Corporation   Annual Report 2012




        Living Essentials Group


         Living Essentials Group CEO Office

         Living Essentials Group
         Administration Dept.
         Living Essentials Group
         Information System Office
         Global Consumer Business
         Development Unit

         Retail & Healthcare Div.

         Foods (Commodity) Div.

         Foods (Products) Div.

         Textiles Div.

         General Merchandise Div.




Net Income
(¥ billion)

                                     66.0
                           56.6
   46.8            46.3                                                   Morinobu Obata                              Osamu Miyashita
                                                                          Senior Vice President,                      Senior Vice President,
                                                                          Division COO,                               Division COO,
                                                                          Textiles Div.                               Retail & Healthcare Div.

                                                                                                   Takehiko Kakiuchi
                                                        Akira Murakoshi                            Senior Vice President,          Kunio Hishida
                                                        Senior Vice President,                     General Manager,                Senior Vice President,
                                                        Division COO,                              Living Essentials Group         Division COO,
    10.3           11.3    12.3      13.3               General Merchandise Div.                   CEO Office (Concurrently)       Foods (Products) Div.
                                     (est.)                                                        Division COO,
                                                                                                   Foods (Commodity) Div.
   1Q         2Q      3Q    4Q



    Creating Social and Environmental Value
    Stably Supplying High-Quality Coffee

    MC Coffee do Brasil Ltda (MCCB), a key hub of MC’s coffee opera-
    tions, purchases harvested coffee beans from producers across
    Brazil and carefully processes and selects them for overseas cli-
    ents. MCCB is proud of its ability to ensure full traceability of coffee
    by storing and blending by production region and producer. Also, it
    satisfies clients’ broad quality demands not only from Japan but
    also from many other consuming nations.
        Also in Brazil, MC has acquired 20% equity interests in Ipanema
    Agricola S.A. and Ipanema Comercial e Exportadora S.A., which
    run Ipanema Plantation, one of the largest coffee plantations in the
    world. The plantation is well known for its high-quality coffee in the
    industry and has been certified by several organizations in the U.S.
    and Europe for its environmental friendliness and emphasis on
    corporate social responsibility. By stationing staff at the plantation
    and collaborating with MCCB, MC continues to stably supply high-               Ipanema Plantation

    quality coffee.


                                                                                                                                                         57
Mitsubishi Corporation   Annual Report 2012




          Living Essentials Group



 Retail & Healthcare Division                     Healthcare Business Unit       New Channel Development Unit
                                                  Retail Business Unit           Consumer Service Unit



This division aims to generate mutual         Japan Ltd., supermarket chain Life
synergies in responding to the retail         Corporation, Ponta multi-partner loyalty
and healthcare sectors. At the same           program operator Loyalty Marketing,
time, it provides products and services       Inc., and mobile handset sales company
matched with changing consumer                T-Gaia Corporation target the consumer
needs, promotes sales and develops            market. Whereas MC Healthcare, Inc.,
other businesses.                             which provides outsourcing services for
    Many of the division’s businesses         hospitals, is helping hospitals across
are run through business investees.           Japan in various ways in the healthcare-
Entities such as convenience store            related field.
chain operator LAWSON, INC., restau-                                                               The multi-partner loyalty program “Ponta” has
rant chain Kentucky Fried Chicken                                                                  attracted 48 corporate partners, including
                                                                                                   LAWSON INC. (as of May 1, 2012).




 Foods (Commodity) Division                       Produce Unit               Marine Products Unit                 Oils & Fats Unit
                                                  Grain Unit                 Sweetener & Starch Products Unit     Feed & Meat Business Unit



This division handles grains, rice, fresh     sufficiency ratio.
produce, marine products, sweeteners                Demand for food around the world
and starch products, oils and fats, feed      continues to increase due to economic
and meat, and other products, and is          and population growth in emerging
developing a business platform, extend-       markets. This division is creating a
ing from the procurement of raw materi-       framework for the stable supply of food
als to processing and manufacturing,          by strengthening its procurement capa-
and sales to the consumer market.             bilities in food-producing regions,
Together with business investees pos-         including building on its grain procure-
sessing various functions, the division is    ment base in North and South America.
meeting the needs of society such as          It is also responding to demand in Asia,             A grain storage facility owned by AGREX, Inc.
for the stable supply of safe and reliable    a growth market, such as through a                   This MC subsidiary is strengthening its grain
                                                                                                   procurement capabilities in the U.S.
food, more efficient production and           meat and livestock business in China.
logistics, and improving the food self-




 Foods (Products) Division                        Beverage Materials Unit         Processed Foods A Unit
                                                  Dairy Foods Unit                Processed Foods B Unit



Utilizing an expansive network in Japan       market environment, we are refining our
and overseas, this division responds to       business models in all sectors, from
customers’ varying needs, from the            procurement to processing, sales and
procurement of food and beverage raw          intermediary distribution. These efforts
materials such as coffee, cocoa, juice        are geared toward supporting the food
and dairy products, to the sale of pro-       products sector as a vital part of every-
cessed foods and finished products.           day life. By expanding and enhancing
     The consumer market in Japan is          our procurement capabilities, we are
being radically altered by such factors       ensuring ongoing stable supplies and
as a declining birthrate and aging popu-      improving quality management. The
lation, and diversification in consumer       division also provides comprehensive                 Princes Limited, a UK-based food and drink
preferences and values. In order to           support to the consumer market.                      manufacturer, is expanding business in the European
                                                                                                   market. The company is wholly owned by MC.
respond accurately and flexibly to this
58
                                                                                                         Mitsubishi Corporation    Annual Report 2012




 Textiles Division                                  Textile Business Unit
                                                    S.P.A. Development Unit



This division handles a wide range              apparel continued to languish, exacer-
of products. We handle not only                 bating the tough business climate. This
lifestyle-related products such as              division supplies products matching
fashion apparel, shoes, furniture and           market needs in Japan and overseas,
interior furnishing goods, but also             with functional subsidiary Mitsubishi
fiber, yarn, fabrics and high-function          Corporation Fashion at the heart of
materials like optical fiber.                   activities. We are also expanding busi-
    In the year ended March 2012, our           ness development with customers as
market underwent change because of              partners. We aim to expand our busi-
soaring raw materials prices, increased         ness domains in cooperation with cus-
China-related risk and other factors. In        tomers going forward.                           Mitsubishi Corporation Fashion holds exhibitions
addition, consumer spending on                                                                  twice a year as a forum for communicating design
                                                                                                concepts and information to customers.




 General Merchandise Division                       Living Materials Unit      Housing & Construction Materials Unit
                                                    Paper & Packaging Unit



This division provides various products         emerging markets such as China, India,
and services together with more than 20         Brazil and Russia, and Southeast Asian              Global Cement Production Volume
                                                                                                    (Billion tons)
manufacturing- and sales-related busi-          countries. These business fields could                                                     3.40
                                                                                                                                   3.31
ness investees in fields such as tires,         thus offer enormous business opportu-                                    3.06
                                                                                                      2.81      2.86
paper products and raw materials for            nities. We will work vigorously to cap-
paper making, packaging, cement, and            ture this demand to drive our business
silica sand, which is used to make              expansion.
glass. We meet the needs of customers
in more than 80 countries around the
world, including Japan.
                                                                                                      2007      2008     2009      2010   2011
     Demand is expected to increase                                                                                                       (est.)
globally in these fields, especially in
                                                                                                  Source: U.S. Geological Survey




 Global Consumer Business
 Development Unit                                by ongoing population growth and
                                                 fast-paced economic development. In
  This business unit was formed in April         2011, the Living Essentials Group
  2012 as a dedicated internal organi-           invested in the Alfa Group, which is
  zation, with the aim of planning, exe-         one of the retailing leaders in Indone-
  cuting and promoting new businesses            sia. These and other moves are
  in emerging markets across the busi-           designed to enable us to respond
  ness group. Emerging markets, par-             rapidly and capture growth in these
  ticularly in Asia, are rising in stature as    emerging markets.
  consumer markets. In China, Indone-                                                           Alfamart operated by Alfa Group, one of the
                                                                                                retailing leaders in Indonesia.
  sia, India and other Asian countries,
  demand is increasing rapidly, driven




                                                                                                                                                   59
Mitsubishi Corporation   Annual Report 2012



Global Strategy

                                                              Message From Senior Executive Vice President,
                                                              Global Strategy & Business Development
                                                              MC has designated China, India and Brazil as Strategic Regions under Midterm
                                                              Corporate Strategy 2012, unveiled in July 2010, as it recognizes that capturing eco-
                                                              nomic growth in emerging markets is key for building MC’s future earnings drivers.
                                                                       MC is aware that it needs to enter these markets proactively, and has there-
                                                              fore been focusing financial and human resources on those regions. Specifically,
                                                              we have reinforced our organizational structures to facilitate expeditious busi-
                                                              ness promotion in these countries at the local level. We have also introduced
                                                              measures to identify and develop individual projects and strengthened our Company-
                                                              wide structures for key fields.
                                                                       As a result, we are steadily growing our earnings drivers for the future,
                                                              including developing new businesses in the food resources industry and enter-
                                                              ing new business domains such as financial services in these strategic regions.
                                                                       MC also has adopted a global management structure with the aim of gaining
                                                              a thorough understanding of local conditions and thereby enabling better-
                                                              informed management decisions. Specifically, in addition to Japan, we have
                                                              mapped out five key overseas regions (North America; Latin America; Europe-
                                                              CIS, Middle East & Africa; East Asia; and Asia & Oceania), and assigned a
                                                              Regional CEO to each. Each Regional CEO is endeavoring to ensure that opti-
                                                              mal activities are conducted on a consolidated basis within their respective
                                                              regions. In April 2012, we established a new holding company called Mitsubishi
                                                              Corporation (Americas) to strengthen regional coordination and consolidated
                                                              management of group companies in North America. By adopting this frame-
                                                              work, MC will improve the dissemination of information from each region, includ-
                                                              ing Japan, with the goal of developing a more sophisticated global strategy and
                                                              strengthening consolidated management.




                                                                                                                            Hideto Nakahara
                                                                                                                            Member of the Board,
                                                                                                                            Senior Executive Vice President,
                                                                                                                            Global Strategy & Business Development




 Structure to Promote Companywide Global Strategies


                                                                                President and CEO

                                                 Senior Executive Vice President, Global Strategy & Business Development



                                                                                          Regional CEO, Europe-CIS,
         EVP,                  Regional                Regional                              Middle East & Africa                                                 Regional
                                                                                                                                             Regional
       Regional                 CEO,                    CEO,                                                                                                        CEO,
                                                                                                                                              CEO,
       Strategy                 North                   Latin                   Europe-              CRO,               CRO,                                       Asia &
                                                                                                    Middle                                   East Asia
        (Japan)                America                 America                    CIS                                   Africa                                    Oceania
                                                                                                     East

        Heads of                Heads of                Heads of               Heads of            Heads of            Heads of               Heads of             Heads of
       MC Offices              MC Offices              MC Offices             MC Offices          MC Offices          MC Offices             MC Offices           MC Offices
      & Subsidiaries          & Subsidiaries          & Subsidiaries         & Subsidiaries      & Subsidiaries      & Subsidiaries         & Subsidiaries       & Subsidiaries


  ** CRO used herein such as “CRO, Middle East” and “CRO, Africa” means Chief Regional Officer.
  ** Those responsible for MC’s offices and/or subsidiaries throughout the world including Japan are collectively called “Heads of MC Offices & Subsidiaries.”



60
                                                                                                                  Mitsubishi Corporation    Annual Report 2012




East Asia                                                                           Japan

                                   Economic ties in East Asia have strength-                                    The industrial structure and business environ-
                                   ened considerably in recent years. Attentive                                 ment in Japan’s mature economy is changing,
                                   to the rapidly growing demand in China, MC                                   and companies are increasingly looking to
                                   has taken strides to expand its business in                                  develop business overseas. These moves may
                                   this market, and is working more closely with                                be accelerated due to challenges facing Japa-
                                   leading Chinese, Taiwanese, and Korean                                       nese companies such as the taxation system
                                   enterprises to create new business around                                    and foreign exchange rates.
                                   the world.                                                                      In response, MC’s branches and offices in
                                                                                                                Japan will diversify the roles they play, includ-
Masahide Yano                                                                       Yasuo Nagai                 ing drawing on MC’s collective capabilities
Member of the Board,                                                                Member of the Board,        through cooperation with MC Group compa-
Senior Executive Vice President,                                                    Executive Vice President,   nies. In this way, we will solidify our business
Regional CEO, East Asia                                                             Regional Strategy (Japan)   platform and, at the same time, work to
                                                                                                                develop new business opportunities.




North America                                                                       Europe-CIS, Middle East & Africa

                                   The U.S., Canada and Mexico have close                                       Europe-CIS
                                   economic ties and are starting to benefit
                                   from an economic recovery which is gaining
                                   momentum. The U.S., with its great eco-                                      While closely following the European debt and
                                   nomic importance, continues to play a                                        financial crisis and its impact, MC will continue
                                   central role in the global economy, driving                                  to develop new businesses in Europe, where
                                   innovation across many industries and                                        many world-leading sectors and companies,
                                   regions. Canada’s strength is underpinned                                    especially those in the environmental and
                                   by its surging resource sector, while Mexico                                 renewable energy field, are present. In Western
Seiei Ono                          offers great potential not only in infrastruc-   Tetsuro Terada              Europe, we will bolster our core operations,
Executive Vice President,          ture development and the consumer sector         Executive Vice President,   including Metals, Machinery, Chemicals, and
Regional CEO,                      but also as a thriving manufacturing base.       Regional CEO,               Living Essentials. Meanwhile, in the developing
North America                      MC is striving to build on its existing busi-    Europe-CIS,                 and higher-growth regions such as Turkey, CIS
                                   nesses and remains focused on creating           Middle East & Africa        and Russia as well as Central and Eastern
                                   new businesses in infrastructure, environ-                                   Europe, we will actively pursue businesses in
                                   mental and new energy fields, particularly                                   growing consumer markets and the burgeoning
                                   shale gas development.                                                       infrastructure sector. Also, we remain steadfast
                                                                                                                in our efforts to solidify relations with leading
                                                                                                                enterprises throughout Europe and CIS.


Latin America                                                                                                   Middle East

                                   Latin America boasts abundant reserves of                                    Our focus in the Middle East is on three
                                   metals, energy and food resources, and                                       points: the overwhelming competitive advan-
                                   growth in its consumer markets has been                                      tage in energy resource reserves, robust
                                   extraordinary. MC looks to unearth business                                  infrastructure demand, and the expanding
                                   opportunities that can exploit demand within                                 consumer market. In addition to trading oil and
                                   Latin America, spanning not only resource                                    gas, developing energy and resources busi-
                                   fields, but also infrastructure projects.                                    nesses, and engaging in global environment
                                   Together with overseas offices, subsidiaries                                 and infrastructure businesses such as power,
                                   and business investees in Latin America, MC                                  water and transportation projects, we are
Seiji Shiraki                      is working along with technologically            Shigeaki Yoshikawa          engaged in trading activities for automobiles,
Executive Vice President,          advanced manufacturers and leading local         Senior Vice President,      chemical products and general merchandise,
Regional CEO,                      companies to identify high-quality invest-       Chief Regional Officer,     as well as leasing operations. At the same
Latin America                      ments and to elevate the MC Group’s              Middle East                 time, MC will strengthen its regional network
                                   presence in Latin America.                                                   capabilities and its ties with leading local
                                                                                                                partners, in order to pursue investment oppor-
                                                                                                                tunities in a wide range of industries.

Asia & Oceania                                                                                                  Africa

                                   In Asia & Oceania, where economic growth                                     In addition to developing commercial trans-
                                   continues, MC is promoting infrastructure                                    actions in automobiles, general merchandise,
                                   projects and businesses that address the                                     foods, chemical raw materials and other
                                   region’s ever-growing internal demand. MC is                                 products, MC is strengthening its ties with
                                   also stepping up operations in resource and                                  leading local partners and is active in infra-
                                   energy fields, and strengthening activities in                               structure development, which will be essen-
                                   the environmental, new energy and agricul-                                   tial to regional growth. MC is also focusing
                                   ture sectors. The Company will continue to                                   on viable greenfield and brownfield projects
                                   deepen its affiliations with important custom-                               that may come to fruition in the future, the
Masayuki Mizuno                    ers, and devise ways to expand its               Haruki Hayashi              aim being to bolster its holdings of metals
Executive Vice President,          businesses.                                      Senior Vice President,      and energy resources. The company has
Regional CEO,                                                                       Chief Regional Officer,     made great progress in its ODA and CSR
Asia & Oceania                                                                      Africa                      activities as well, helping to build and con-
                                                                                                                tribute to sustainable local communities.

                                                                                                                                                             61
Mitsubishi Corporation   Annual Report 2012




                                              Corporate
                                              An introduction to corporate governance at MC.




62
                                                                                                                                                                                                                                          Mitsubishi Corporation   Annual Report 2012




Governance
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      64
     Basic Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   64
     Governance & Compensation Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                         65
     Selection Criteria for Outside Directors and Outside Corporate Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                        65
     Policy for Setting Directors’ and Corporate Auditors’ Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                 66
     Message From an Outside Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                             67
Internal Control System                                    ..............................................................................................                                                                                 68
     BCP (Business Continuity Plan) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     68
     Message From the Chief Compliance Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                            69
International Advisory Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                        70
     International Advisory Committee: purpose, function and recent news . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                                                        70
     Letter From an International Advisory Committee Member                                                                                            ............................................                                       70
Board of Corporate Auditors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              72




                                                                                                                                                                                                                                                                                  63
Mitsubishi Corporation   Annual Report 2012



Corporate Governance

Basic Policy

MC’s corporate philosophy is enshrined in the Three Corporate                         ■ Board of Directors’ Advisory Bodies
Principles—Corporate Responsibility to Society, Integrity and                         MC also has a Governance & Compensation Committee and an
Fairness, and Global Understanding Through Business. Through                          International Advisory Committee as advisory bodies to the
corporate activities rooted in the principles of fairness and integ-                  Board of Directors. These committees are made up mostly of
rity, MC strives to continuously raise corporate value. MC                            outside directors and outside corporate auditors as well as other
believes that by helping to enrich society, both materially and                       experts from outside MC. The Governance & Compensation
spiritually, it will also meet the expectations of shareholders,                      Committee conducts continuous reviews of corporate gover-
customers and all other stakeholders. In order to ensure sound,                       nance-related issues at MC and also discusses the remuneration
transparent and efficient management, MC is working to put in                         system for directors and corporate auditors, including the policy
place a corporate governance system, based on the Corporate                           for setting remuneration and appropriateness of remuneration
Auditor System, that is even more effective. This includes                            levels for these corporate officers, and monitors operation of this
strengthening management supervision by appointing indepen-                           system. The International Advisory Committee holds discussions
dent directors and independent corporate auditors, and using                          on management issues and advises MC management from a
the executive officer system to expedite and bolster decision-                        global perspective.
making and business execution.
                                                                                      ■ Business Execution
■ Board of Directors                                                                  The president, as the Company’s Chief Executive Officer, man-
MC’s Board of Directors has 12 members, including five outside                        ages the Company’s business through the Executive Committee,
directors. Outside directors represent more than one-third of all                     a decision-making body of executive officers. Important manage-
directors. Board meetings are also attended by the five corporate                     ment issues are first determined by the Executive Committee,
auditors, three of whom are outside corporate auditors.                               which meets around twice a month, and then referred to the
     As a rule, the Board convenes once a month and is responsible                    Board of Directors for deliberation and final determination.
for making decisions concerning important management issues                              Furthermore, in order to clarify the functions and responsibili-
and overseeing business execution. The objective and expert                           ties of officers for executing duties, we introduced the executive
viewpoints of outside directors and outside corporate auditors                        officer system, thereby promoting faster and more efficient busi-
ensure appropriate decision-making and management oversight.                          ness execution.



     Corporate Governance Framework                           (As of June 26, 2012)




                                                          General Meeting of Shareholders
                                                            Appointment/Dismissal                         Appointment/Dismissal            Appointment/
                                                            Determination of                              Determination of                 Dismissal
                                                            Remuneration Parameters                       Remuneration Parameters

                             Request                                                      Corporate Auditors
                                              Board of Directors                         (Board of Corporate                        Independent
                                                7 Executive Directors       Report/           Auditors)                   Report      Auditors
                             Advice                                         Audit
                                                 5 Outside Directors                     2 Full-time Corporate Auditors
                                                                                          3 Outside Corporate Auditors
                                       Appointment and                     Report
          Governance &       Oversight of                                                                                                  Accounting
          Compensation                                       Submit Important Matters                   Audit                              Audit
                             Executive
            Committee                                        and Report on Execution
                             Officers
                                                             of Operations
      International Advisory
            Committee
                                                                                         Executive Structure

                                                                                                                                       Refer to page 68




64
                                                                                                     Mitsubishi Corporation   Annual Report 2012




Governance & Compensation Committee

  Operation of the Governance & Compensation Committee
  1. Position                                                        2. Member Composition (Fiscal Year Ending March 2013)
  ■ We established the Governance Committee in 2001 as an            8 members (3 in-house and 5 outside)
     advisory body to the Board of Directors.                        In-house members: Yorihiko Kojima* (Chairman),
  ■ The committee discusses corporate governance-related                               Ken Kobayashi (President & CEO),
     issues in order to strengthen the supervisory function of the                     Yukio Ueno (Senior Corporate Auditor)
     Board of Directors. The committee meets around twice a          Outside members: Kunio Ito (Outside director),
     year, offering its views to the Board of Directors.                               Ryozo Kato (Outside director),
  ■ The Governance Committee was reorganized as the Gover-                             Hidehiro Konno (Outside director),
     nance & Compensation Committee in 2010 to strengthen                              Tadashi Kunihiro (Outside corporate auditor),
     the monitoring of directors’ and corporate auditors’                              Sakie Tachibana Fukushima
     remuneration.
                                                                                                                        *Committee Chairperson


                                                                     3. Discussion Topics (Recent Examples)
                                                                     • Operation of the Board of Directors
                                                                     • Operation of the General Meeting of Shareholders
                                                                     • Review and monitoring of the executive compensation system
                                                                     • Amendments to the Companies Act and other laws
                                                                     • Policy for various disclosure documents, etc.




Selection Criteria for Outside Directors and Outside Corporate Auditors
MC has worked to expand and improve the number and quality           outside directors and outside corporate auditors to clarify the
of outside directors and outside corporate auditors in order to      role and selection policy for these individuals.
strengthen supervision. We have established selection criteria for


   Selection Criteria for Outside Directors                            with this potential issue through the procedural exclusion
   1. Outside directors are elected from among those individuals       of the director in question from matters related to the con-
      who have an eye for practicality founded on a wealth of          flict of interest, and by preserving a variety of viewpoints
      experience as corporate managers, as well as an objective        through the selection of numerous outside directors.
      and specialist viewpoint based on extensive insight regard-
      ing global conditions and social and economic trends.          Selection Criteria for Outside Corporate Auditors
      Through their diverse perspectives, outside directors help     1. Outside corporate auditors are selected from among indi-
      ensure levels of decision-making and management over-             viduals possessing a wealth of knowledge and experience
      sight appropriate to the Board of Directors.                      across various fields that is helpful in performing audits.
   2. To enable outside directors to fulfill their appointed task,      Neutral and objective auditing, in turn, will ensure sound
      attention is given to maintain their independent stance;          management.
      individuals incapable of preserving this stance will not be    2. To enable outside corporate auditors to fulfill their
      selected to serve as outside directors.                           appointed task, attention is given to maintain their
   3. MC operations span a broad range of business domains;             independent stance; individuals incapable of preserv-
      hence there may be cases of conflict of interest stemming         ing this stance will not be selected to serve as outside
      from business relationships with firms home to the corpo-         corporate auditors.
      rate managers appointed as outsider directors. MC copes




                                                                                                                                             65
Mitsubishi Corporation    Annual Report 2012




Policy for Setting Directors’ and Corporate Auditors’ Remuneration

1. Basic Policy                                                                                tors and Outside Corporate Auditors is limited to monthly
The remuneration system for Mitsubishi Corporation’s Directors                                 remuneration only, and there is no results-linked element.
has been designed in order to provide further incentive and                                    2. Composition and Method for Setting Directors’ Remuneration
motivation to improve performance, further align the Directors’                                The remuneration of Directors, excluding Outside Directors,
interests with those of the shareholders, and strengthen the link                              consists of monthly remuneration, bonuses, reserved retirement
with business results. The level of Directors’ remuneration is                                 remuneration and stock options as remuneration. Details of each
commensurate with performance and also takes into consider-                                    type of remuneration are as follows:
ation levels of remuneration at other companies. The Gover-                                          Mitsubishi Corporation has an Executive Officer System;
nance & Compensation Committee, where the majority of the                                      and, for in-house Directors who also serve as Executive Officers,
members are Outside Directors and Outside Corporate Auditors,                                  the position as an Executive Officer is taken into account as one
discusses and monitors the policy for setting remuneration,                                    factor when setting Director remuneration.
appropriateness of remuneration levels, and operation of remu-                                       Remuneration for Outside Directors is limited to monthly
neration system for Directors. Remuneration for Outside Direc-                                 remuneration only, as stated above.


       Remuneration Type                                                                  Remuneration Composition
              Monthly                  Monthly remuneration is determined and paid on an individual basis taking comprehensively into con-
            remuneration               sideration factors such as evaluation of an individual’s performance in the prior year.
                                       Bonuses are determined and paid on an individual basis after deciding whether or not bonuses will be
                                       paid and what the total amount will be based on the prior-year consolidated earnings and other factors.
              Bonuses                  Bonuses are distributed from earnings where Mitsubishi Corporation achieves a level of earnings that
                                       leads to improved corporate value. Specifically, bonuses are only paid when consolidated net income
                                       exceeds consolidated capital cost, and an upper limit is set for the total amount to be paid.
              Reserved                 Reserved retirement remuneration is set aside in a certain amount every year as consideration for the
              retirement               performance of duties, and the accumulated amount is calculated and paid in full upon retirement of a
            remuneration               director by resolution of the Board of Directors.
                                       Stock options as remuneration are grants from the perspective of aligning Directors’ interests with those
       Stock-option-based              of shareholders and creating value over the medium and long terms. As a basic policy, incumbent Direc-
          remuneration                 tors cannot sell shares during their terms until their shareholdings reach a certain level stipulated by the
                                       position in Mitsubishi Corporation’s shareholding guidelines.


     Regarding Directors’ monthly remuneration, reserved retire-                               remuneration limit subject to approval of the Board of Directors.
ment remuneration and stock options as remuneration, the 2010                                        Meanwhile, bonuses are subject to approval by the Ordinary
Ordinary General Meeting of Shareholders approved a payment                                    General Meeting of Shareholders every year, given their strong
limit of ¥1.6 billion per annum. Remuneration is paid within this                              linkage to Mitsubishi Corporation’s net income.


Directors’ and Corporate Auditors’ Remuneration                                                                                                                                (¥ million)

                                                                      Monthly                                               Reserved Retirement
                                                                                                        Bonuses                                                 Stock Options
                                         Total                      Remuneration                                               Remuneration
              Title
                                      Remuneration              Eligible                       Eligible                       Eligible                       Eligible
                                                                                  Total                         Total                          Total                          Total
                                                                Persons                        Persons                        Persons                        Persons

  Directors (In-house)                       1,214                    10           629              8            210               8            114              9             260

  Directors (Outside)                            93                     5            93             –              –               –              –              –               –

  Corporate Auditors
                                                124                     3          124              –              –               –              –              –               –
  (In-house)

  Corporate Auditors
                                                 39                     3            39             –              –               –              –              –               –
  (Outside)
Notes: 1. The above figures include 2 directors and 1 corporate auditor who resigned during the year ended March 2012. The number of people as of March 31, 2012 comprised 13 directors
          (including 5 outside directors) and 5 corporate auditors (including 3 outside corporate auditors).
       2. The above monthly remuneration includes allowances for directors outside Japan.
       3. Stock option-based remuneration above shows the amount recognized as an expense in the year ended March 2012 of expenditures related to stock options (stock options as
          remuneration issued in the years ended March 2011 and 2012) granted to 9 in-house directors. Outside directors are not eligible.

66
                                                                                                            Mitsubishi Corporation   Annual Report 2012




Message From an Outside Director

Mr. Ryozo Kato was involved at the frontline of international politics at the Ministry of Foreign Affairs of
Japan for many years. At present, he is the Commissioner of Nippon Professional Baseball. We asked
Mr. Kato about Mitsubishi Corporation’s corporate governance.

Strengthening Corporate Governance Must Not Become
an End Unto Itself
The ultimate mission of any company is to raise corporate value
and deliver that value to stakeholders. Corporate governance is a
vital element for doing that. Mitsubishi Corporation is extremely
proactive and conscientious in addressing corporate governance,
and has won recognition for the high level of its governance
framework. I have understood why through discussions at Board
of Directors’ meetings and communication with employees since
my appointment as an outside director in 2009.
    Corporate governance, though, is only a means to continu-
ously raising corporate value. It is by no means an objective.
However, I really feel that corporate governance is becoming an
end unto itself in society.
    In that sense, strengthening governance must not become
an end unto itself. I believe that one of my roles as an outside                         Ryozo Kato
                                                                                         Member of the Board
director is to bring a measure of balance to governance.
                                                                                         Mr. Kato joined the Ministry of Foreign Affairs of Japan
                                                                                         in 1965. He successively held the posts of Director-
Mitsubishi Corporation Must Display Its Own Identity                                     General, Asian Affairs Bureau; Director, General
                                                                                         Affairs; Director Foreign Policy; and Ambassador to
Fundamentally, corporate governance is something that should                             the U.S. He retired from the ministry in 2008.
not pander to trends or the current climate in society. If gover-                        He has been the Commissioner of Nippon Professional
                                                                                         Baseball since the same year. Mr. Kato has been a
nance is allowed to become just a process of following rules then                        director of Mitsubishi Corporation since 2009.
it will lack real substance, and will not function as originally
intended. Of course it is important to properly adhere to the
Companies Act of Japan and other laws and regulations. But               “pro” and “fession”—originally meant “toward” and “declaration.”
companies must go beyond that. They must work with stake-                Together they indicate a specialist path or occupation which one
holders sincerely.                                                       pursues (works toward) in an attempt to master. Accordingly, the
    In doing so, I believe it is important for each and every            word professional is accompanied by a strong will and determi-
Mitsubishi Corporation officer and employee to embody the                nation to master something. This strong willingness and determi-
corporate identity and exhibit conviction as they determine the          nation will realize governance with substance, and I believe will
Company’s way forward. Mitsubishi Corporation’s officers and             lead to Mitsubishi Corporation demonstrating its existence in a
employees have inherited a legacy that can be traced back                powerful way.
through history to the Three Corporate Principles. Therefore, I think        Naturally, pride also accompanies professionalism. However,
that it is in their corporate DNA to continue practicing these ideals.   care should be taken to ensure that this pride does not give
                                                                         way to hubris. Restrained professionalism for me is the sign of
A Strong Professional Will and Determination                             a true professional.
Are Required                                                                 Compared to other Japanese citizens, I have spent a fairly
At the end of the day, the foundation for the effective operation of     long span of my life involved with the international community,
governance is the willingness and ability within the organization        particularly the U.S. The world of international relations is one
itself to do what is right. It is in this sense that breathing real      where quick decisions are expected.
substance into corporate governance calls for a professional                 Mitsubishi Corporation has eight outside directors and
mindset from corporate officers and employees working at                 corporate auditors. When I think of what my role is, I believe it
Mitsubishi Corporation. I have long had interest in this notion of       is to offer advice based on my international experiences, and
what separates professionals from ordinary occupations. If you           hope that ultimately it helps raise Mitsubishi Corporation’s
look up the origins of the word profession, its two constituents—        corporate value.

                                                                                                                                                    67
Mitsubishi Corporation   Annual Report 2012



Internal Control System



The demands on companies seeking to fulfill their corporate                 corporate information disclosure (financial reporting) and adher-
social responsibilities are growing amid major changes in the               ence to laws and regulations and social norms (compliance).
business environment such as globalization and rising interest in           Mitsubishi Corporation monitors the status of operation of this
the natural environment. In light of this, Mitsubishi Corporation is        system every year and the Board of Directors verifies
continuously working to improve and strengthen its management               improvements.
system (internal control system) so as to ensure business activi-               The internal control system is increasing in importance for
ties are conducted properly to raise its corporate value and to             management of the Mitsubishi Corporation Group because of the
fulfill its social responsibilities.                                        larger number of business investees, diversifying business
      Specifically, Mitsubishi Corporation has built a system for           models and other factors. In this context, the Executive Vice
ensuring that business operations are conducted properly and                President in charge of Audits and Internal Control is working
efficiently (systematic management execution, formation of a                together with the corporate auditors, independent auditors and
rational organization, clarification of the organizational chain of         other parties to develop an internal control promotion system for
command, risk management, etc.) while ensuring the reliability of           ensuring proper business conduct.


  Internal Control Framework
                                                        Corporate Governance Framework


                                                                                                                  Cooperation among Corporate Auditors/
                                                                 Executive Structure                              Internal Audit Dept./Independent Auditors
                                                                  President and CEO
                                                                                              Internal Audit Dept.
                                                                 Executive Committee                                       Establish and inform about
                                                                                                                           internal control-related
                 Main Internal Control-Related Committees                                                                  systems and strategies
                                                                                        Corporate Staff Section
            Disclosure Committee
            Compliance Committee
            CSR & Environmental Affairs Committee
            Investment Advisory Committee
            National Security Trade Management Committee, etc.

                                                   Executive Organization (Business Groups, etc.)

                                                                                                                                            Refer to page 64


     MORE INFORMATION about corporate governance and internal control system                 Corporate Governance Report
     http://www.mitsubishicorp.com/jp/en/about/governance/pdf/governance_report_e.pdf




BCP (Business Continuity Plan)

MC engages in rigorous crisis management on a consolidated
basis, including individual MC Group companies, in light of the                 (Reference) Formulation of BCP for a Major Earthquake
increasing diversity and complexity of risk that accompanies                    in Japan
business expansion.                                                             ■   Designate personnel required to perform important oper-
      BCP refers to an action plan formulated in advance with the                   ations (operations that must be restored quickly or for
aim of preventing the stoppage of important company operations                      which stoppage is unacceptable), and formulate an
or restoring and restarting them in as little time as possible if they              implementation structure and implementation methods
are interrupted by the occurrence of an unexpected event such                   ■   Formulate target restoration timeframes in the event
as a natural disaster or incident. MC has formulated BCPs for                       important operations are stopped
different types of crisis such as natural disasters, new infectious             ■   Confirm contact points with important business suppliers
diseases, international or political problems, and incidents. MC                ■   Understand the response policies and response status of
will immediately initiate its BCP based on these categories and                     important suppliers and contractors
work to ensure the continuity of important operations at the very
least and to quickly restore operations.

68
                                                                                                                               Mitsubishi Corporation   Annual Report 2012




Message From the Chief Compliance Officer

We will continue to upgrade and reinforce compliance initiatives so as to instill awareness of compliance issues in each
and every officer and employee of MC and employees of MC's subsidiaries and affiliated companies.

MC has long engaged in creating a framework to ensure that it continues to conduct
proper and fair business activities, in addition to upholding legal and regulatory compli-
ance. This long-standing commitment is based on the Three Corporate Principles, which
encapsulate our corporate philosophy, and is stipulated in our Corporate Standards of
Conduct. In September 2000, we formulated a Code of Conduct, and all officers and
employees are required to carry a booklet containing this code. In addition, every year all
officers and employees are required to sign a written commitment to this Code after
taking an e-learning program in which they study examples related to the Code of
Conduct. Through these measures, we are ensuring legal and regulatory compliance by
each and every employee, as well as instilling an awareness of proper conduct that
reflects social norms. In another initiative, we introduced the Compliance Officer post
and compliance officers have been appointed in all business groups and all regions in
Japan and overseas. These people work to foster compliance in daily activities. In the
year ended March 2011, we prepared a booklet in Japanese, English and Chinese
summarizing our compliance activities to date, which was distributed worldwide. This
booklet is aiding in deepening understanding of our compliance activities among
suppliers and other stakeholders, as well as officers and employees of MC’s subsidiaries
and affiliated companies.
    The compliance activities of all officers and employees are the basis upon which we                                   Hideyuki Nabeshima
                                                                                                                          Member of the Board,
conduct all our corporate activities, as well as an important strategy for raising corporate
                                                                                                                          Senior Executive Vice President
value on a consolidated basis. From the base of the compliance activities conducted                                       Chief Compliance Officer
thus far, we will continue to upgrade and reinforce compliance initiatives that are effec-
tive at instilling awareness of compliance issues in each and every officer and employee
of MC and employees of MC’s subsidiaries and affiliated companies.


      Compliance Framework
                                                                                                                                    Mitsubishi Corporation
                    President and CEO
                                                                                 Appointment
                                                                                                                    Compliance Committee                     Report
                 Group CEO, Regional CEO                      Chief Compliance Officer                          Chairperson: Chief Compliance Officer
                                                                                                                  Administration Office: Legal Dept.
                                                                                                                  Compliance Administration Office
                                 Appointment                  Directive      Report


                                   Compliance Officer                                                      Internal Whistleblower System

                               Group Compliance Officer                                                   Compliance Mail Box and Hotline
                          Domestic Branch Compliance Officer                                    Internal Audit Dept. Compliance Mail Box and Hotline                  Report
                          Overseas Regional Compliance Officer                                 Outside Legal Counsel Compliance Mail Box and Hotline


                                                              Directive      Report and Consultation

              Organization Heads (BU, Division, Department, Branch, etc.)                                                    Report and Consultation

                                                              Directive      Report and Consultation

                                                                            Employees



                                               Report and     Subsidiaries and Affiliated Companies                                  MC Group
                                               Consultation                                                                    Outside Legal Counsel
                                                                                                                                    Compliance
                 Immediate Manager                                Compliance Officer                                            Mail Box and Hotline

       Report and Consultation                 Directive                    Report and Consultation
                                                                                                           Report and Consultation
                                                  Employees
                                                                                                           (Target: Registered MC’s Domestic Subsidiaries)


                                                                                                                                                                           69
Mitsubishi Corporation   Annual Report 2012



International Advisory Committee

International Advisory Committee: purpose, function and recent news

MC’s International Advisory Committee was             International Advisory Committee                             (As of November 7, 2011)
established in 2001 with the aim of strengthen-
ing the Board of Directors’ functions. It has met
once a year since it was established. Commit-
tee members offer advice and recommenda-
tions on management of MC’s global
businesses from the perspective of enhancing
governance, and on corporate strategy from an
international standpoint. The committee mem-
bers also report and exchange opinions on the
geopolitical and economic conditions in their
                                                      front row (from left)                                                                 back row (from left)
respective regions.
     The committee held its 11th meeting in           Mr. Jaime Augusto Zobel de Ayala II      Professor Joseph S Nye                       Ryozo Kato
                                                      Chairman and CEO, Ayala Corporation      University Distinguished Service Profes-     Member of the Board
November 2011. Committee members                      (the Philippines)                        sor and Sultan of Oman Professor
                                                      1987 MBA, Harvard                        (U.S.A.)                                     Minoru Makihara
stressed the importance of keeping an eye on          1994 President & CEO, Ayala Corporation 1993 Chairman of the National Intelligence    Senior Corporate Advisor
two major power shifts in the world—the power         2006 Chairman & CEO, Ayala Corporation        Council
                                                                                              1994 Assistant Secretary of Defense for       Mikio Sasaki
shift from West to East (from industrialized          Sir John Bond                                 International Security Affairs          Former Chairman
                                                      Chairman, Xstrata plc (U.K.)            1995 Dean of Harvard’s Kennedy School of      Senior Advisor to the Board
nations to emerging nations); and the diffusion       1993 Group Chief Executive of HSBC
                                                                                                    Government (~ 2004)
                                                                                                    University Distinguished Service        Yorihiko Kojima
of power from states to non-state groups                    Holdings                                Professor                               Chairman of the Board
                                                      1998 Group Chairman of HSBC Holdings
driven by the information revolution. The com-        2006 Chairman of Vodafone Group
                                                                                              Dr. Herminio Blanco Mendoza                   Ken Kobayashi
                                                      2011 Chairman of Xstrata plc
                                                                                               Former Secretary of Trade & Industry         Member of the Board,
mittee also actively discussed the business                                                                                                 President, Chief Executive
                                                      Mr. Ratan N Tata                         (Mexico)
environment in each region, the optimal energy                                                                                              Officer
                                                      Chairman, Tata Sons Limited (India)      1985 Deputy Secretary, Ministry of Com-
                                                                                                    merce and Industrial Promotion
portfolio in the wake of the earthquake-tsunami       1975 Harvard AMP                         1988 Chief of Negotiation of NAFTA Treaty    Hidehiro Konno
                                                      1981 Chairman of Tata Industries Ltd.    1994 Secretary of Commerce and Indus-        Member of the Board
in Japan and other topics.                            1991 Chairman of Tata Sons Limited            trial Promotion (~ 2000)


                                                                                                                               Note: Positions are as of July 1, 2012.




Letter From an International Advisory Committee Member
June 2012                                                                     potential areas of risk and emerging industry dynamics. The
                                                                              wealth of experience in the MC group makes this also a learn-
Dear Stakeholder,                                                             ing experience for the Advisors themselves. The atmosphere of
                                                                              the dialogue has always been open, frank, and direct.
I have had the pleasure of serving on the International Advisory                   Our last meeting in November 2011 started with an analysis
Committee (IAC) of Mitsubishi Corporation (MC) since 2001.                    of the great difficulties faced by Japan after the tragic events of
During this time, I have always been impressed by the breadth                 March 2011, when natural disasters weighed heavily on the
and economic reach of the MC group. The opportunity to serve                  country’s social and economic infrastructure. Chairman Kojima
on the Advisory Committee has only strengthened the already                   set the tone by highlighting that uncertainty remained high and
high respect I have for the group.                                            that recovery across the developed world still remained elusive
     The Mitsubishi Corporation leadership team has always                    but that he hoped that the economic resilience of the develop-
aimed to plan for the long term and put the weight of its atten-              ing economies would counter the overall global slowdown.
tion on the future. In keeping with this philosophy, the Interna-             Aside from presentations from the management team to update
tional Committee meetings are always a chance for the                         us on the Japanese economy and the challenges faced by the
leadership team to test their ideas about future directions with a            country in promoting economic recovery, the advisory group
select group of global advisors who have their own subjective                 took turns in covering a variety of themes from their perspective
insights about their specific global industries and geographies.              and their areas of expertise and experience. We discussed the
The resulting dialogues are a special opportunity to confirm                  shifts in power underway in the 21st Century as “power transi-
some commonality of visions, exchange new ideas and perspec-                  tions” moved from West to East. We expanded on the chal-
tives and allow the leadership team to hear independent views                 lenges faced by the U.S. economy and the political realities of
on business opportunities, global macro-economic policies,                    the presidential election cycle. We moved on to the financial
70
                                                                                                         Mitsubishi Corporation   Annual Report 2012




and pressures of the European Union and the increasing impor-           ensure that the region maintains and enhances its competitive-
tance of regional frameworks in other parts of the world to coun-       ness. Asian nations maintain strong ties and cooperation, both in
teract the risks in the developed world. We analyzed the                trade and finance. This will certainly give rise to opportunities for
prospects of the emerging markets, discussed China and the              multilateral and bilateral trade both within ASEAN countries and
India in some detail and including a broad discussion on Latin          with the major world economies.
American prospects. Finally, I had the opportunity to share my              In summary, both the positive and negative forces of the
own thoughts on the ASEAN region, including the positive trade,         global economy will continue to define our economic landscape.
fiscal, and monetary dynamics that were stimulating the econo-          Mitsubishi Corporation, with its extensive global reach, will need
mies of the South East Asian region.                                    to continue lowering its risk profile in areas with an uncertain
    Let me use this opportunity to expand a bit more on my              economic environment and overweight its operations and invest-
views on this region of Asia, which remains an important area           ments in the areas with potential. The IAC meeting certainly
of growth for the MC group and which I shared with the other            helped create a framework for a long term, forward looking plan
IAC members.                                                            to be defined and implemented.
    Greater Asia continues to be a strong region even amidst                However, beyond the economic and managerial dynamics,
the uneven economic growth performance of the global econ-              what differentiates Mitsubishi Corporation, as an institution, is
omy. While it may not be fully insulated from the financial and         the trust it places in building the right kind of relationships with
economic crises in Europe and the US, Asia can remain resilient         its many stakeholders. Our own corporation, Ayala, has had a
to global economic headwinds as it continues to have the fiscal         long and fruitful relationship with Mitsubishi Corporation that has
and policy space to cushion the risks of deeper economic con-           spanned more than 39 years. I have been a witness to the
tractions emanating from the Euro Zone.                                 emphasis your institution places on building and maintaining
    I believe that the domestic consumption of many Asian               trust, and this will be the main reason why the MC group will
economies remains strong and can counter weakness in global             continue to thrive and grow amidst the challenges brought about
exports. The Philippines and Indonesia, in particular, enjoy strong     by this climate of increased economic volatility. As you seek to
consumer spending and confidence. These economies have                  “Pursue Sustainable Corporate Value”, this high level of trust
grown robustly on the back of domestic consumption alone due            generated among the many constituents you interact with will be
to rising consumer affluence in the region. This presents               the key to your success.
increased opportunities for intra-regional trade, particularly if           It has been an honor to serve under the current leadership
traditional export destinations post severe contractions.               of Chairman Kojima and President Kobayashi, as well as the
    Regional tourism is another bright spot in Asia. The relax-         past leadership teams who preceded them. I look forward to
ation of visa restrictions and the proliferation of budget airline      remaining a partner in your success and contributing, in what-
traffic in the region may help boost this further. Tourism flows will   ever way I can, to the trust they have also put in me and the
revolve mainly around leisure, entertainment, resort, shopping,         institution I represent.
business, medical, and educational interests.
    The Asian region also remains a viable destination for invest-      Yours Sincerely,
ments as it continues to enjoy labor and cost advantages. Asia
has also risen in prominence as a preferred destination for ser-
vices. In the meantime, rising manufacturing costs in China have
put pressure on foreign capital to find alternative industrial sites
where costs of production might be lowered. The continued
growth of the business process outsourcing sector in the
Philippines and India and the rise of alternative low-cost
manufacturing destinations like Vietnam, the Philippines, and
Indonesia are evidence of this. This labor and cost advantage will
be further enhanced as Asia, particularly ASEAN countries, move
further towards intra-regional labor mobility and integration.
    However, Asia’s continued growth requires that it address its
significant physical infrastructure backlogs. This presents oppor-
tunities for investments in large infrastructure projects as Asia                          Jaime Augusto Zobel de Ayala II
accelerates infrastructure development.                                                    Chairman and CEO
    Finally, increased integration among ASEAN economies will                              Ayala Corporation
                                                                                                                                                 71
Mitsubishi Corporation   Annual Report 2012



Board of Corporate Auditors

Message From the Board of Corporate Auditors

MC’s Board of Corporate Auditors has three outside corporate                      so correctly assess the current state of affairs. The Board of
auditors and two full-time in-house corporate auditors who are                    Corporate Auditors works closely with MC’s independent
former MC employees. Each of the outside corporate auditors                       auditors and Internal Audit Department, holding regular meet-
has a field of expertise. Besides attending meetings of the Board                 ings and sharing opinions.
of Directors and Board of Corporate Auditors, the outside corpo-                       Furthermore, corporate auditors visit main subsidiaries and
rate auditors meet with MC’s independent auditors, directors and                  affiliates and hold discussions with directors and other manage-
executive officers in order to accurately grasp the current state                 ment personnel of these entities. At the same time, we regularly
of affairs. Based on this information, they actively express opin-                exchange information with full-time auditors of main subsidiaries
ions from a neutral and objective standpoint. The two full-time                   and affiliates, using these meetings as a forum to share MC’s
in-house corporate auditors draw on their experience working at                   management policy in our efforts to create an environment con-
MC to fulfill their responsibilities. One of them serves as the                   ducive to auditing the corporate group.
senior corporate auditor, who chairs the Board of Corporate                            In addition, we create opportunities to hold discussions with
Auditors and is also the specified corporate auditor stipulated by                respected individuals from outside the company who give us
law. MC also has a Corporate Auditors’ Office to assist the                       their expert opinions. These external perspectives are put to
activities of the corporate auditors, as an independent organiza-                 good use in MC’s audit activities.
tional body. The four member dedicated staff of the Corporate                          Through these activities, we audit directors’ decision-making
Auditors’ Office provide assistance as required.                                  process and their performance of duties based on the Companies
     Corporate auditors and staff of the Corporate Auditors’                      Act and other laws and regulations, MC’s Articles of Incorporation
Office attend important in-house meetings, and visit and hold                     and internal rules and regulations. By requesting improvements
discussions with internal departments, including important                        and providing advice as necessary, we seek to help ensure MC’s
offices in Japan and overseas, so as to keep channels of                          healthy, sustained growth and contribute to the establishment of
communication open with people in the company and in doing                        a corporate governance system that earns society’s trust.




Corporate Auditors                      (As of July 1, 2012)




Yukio Ueno                        Osamu Noma                   Eiko Tsujiyama*                       Hideyo Ishino*                         Tadashi Kunihiro*
2010 Senior Corporate             2011 Corporate Auditor       2008 Corporate Auditor                2012 Corporate Auditor                 2012 Corporate Auditor
     Auditor (full time)               (full time)             2003 Professor, Graduate              2011 Corporate Auditor,                1994 Attorney at Kunihiro
1968 Joined MC                    1978 Joined MC                    School of Com-                        MEIS CO., LTD.                         Law Office (Pres-
                                                                    merce, Waseda                    2007 Left Board of Audit of                 ently T. Kunihiro
                                                                    University                            Japan                                  & CO.,
                                                                                                          Auditor, National                      Attorneys-at-Law)
                                                                                                          Institute of Advanced             1986 Became a regis-
                                                                                                          Industrial Science and                 tered attorney
                                                                                                          Technology (Retired
                                                                                                          March 2011)
                                                                                                     2004 Deputy Secretary
                                                                                                          General, General
                                                                                                          Executive Bureau
                                                                                                     1972 Joined Board of Audit
                                                                                                          of Japan




                                                               * Indicates an outside corporate auditor as provided for in Article 2-16 of the Companies Act.
                                                               * All Outside Corporate Auditors fulfill the conditions of an independent corporate auditor, as specified by
                                                                 the Tokyo Stock Exchange and other exchanges in Japan.


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                                                                                                                                                                                                                               Mitsubishi Corporation   Annual Report 2012




Sustainability
A discussion of MC’s environmental and CSR activities


Sustainability at MC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   74
     Creating Sustainable Corporate Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    74
     Key Environmental and CSR Themes for MC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                   76
     Creating Environmental Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        77
     Creating Societal Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           81
     CSR & Environmental Affairs Advisory Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                            83
     MC Group’s Response to the Great East Japan Earthquake
           —Employee Volunteer Activities in Disaster-stricken Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                           84




                                                                                                                                                                                                                                                                       73
Mitsubishi Corporation   Annual Report 2012



Sustainability at MC

 Creating Sustainable Corporate Value

Aiming to Create Societal and Environmental Value Through                                    Creating Sustainable Corporate Value
Business Activities                                                                           Environmental             Economic                  Societal
Our Corporate Standards of Conduct build upon the foundation                                      Value                   Value                    Value
of the Three Corporate Principles and establish our expectations
with regard to how business should be conducted, encompass-
ing aspects such as commitment to enriching society, respecting
human rights and striving to protect and improve the global
                                                                                                   Shareholders                                Community
environment. We have also established an Environmental Char-
                                                                                     Customers                                                               NPO/NGO
ter, which sets out our policy with respect to consideration for the
natural environment. We conduct our business activities with                                            Employees                           Government

reference to all these policies and principles.
    Environmental and social issues have significantly evolved
over the years and continue to change today. The Midterm Cor-
porate Strategy 2012 defines the creation of “sustainable corpo-




                                                                                                               nt
                                                                                                                                                           Respect for Human and
rate value” as one of MC’s core goals. To achieve this goal              Addressing Climate Change




                                                                                                            me
                                                                                                                                                           Indigenous People’s Rights




                                                                                                                                            Soc
                                                                         Preservation of Biodiversity
                                                                                                                                                           Supply Chains Guidelines
through our business activities, which span numerous industrial        Sustainable Use of Resources




                                                                                                          on
                                                                                                                                                           Community Engagement
sectors, we must be quick to grasp changes within the environ-




                                                                                                        vir




                                                                                                                                                 ial
ment and society. Our aim is to generate societal and environ-



                                                                                                En
                                                                                                                Business Activities
mental value while also making a contribution to addressing
these issues through our business activities.
    As one action to achieve this, Mitsubishi Corporation began                                                   Governance
participating in the UN Global Compact in 2010. We have                                         Strengthening of Management Supervision
declared our commitment to the UN Global Compact’s univer-                                      Expediting and Bolstering Decision-Making and Business Execution


sal principles in four fields: human rights, labor, the environment
and anticorruption. Guided also by the spirit of the Three Cor-
porate Principles, we are promoting initiatives in each of these
four fields.
                                                                               Mitsubishi Corporation Environmental Charter
    We are also focusing our efforts on creating societal and
environmental value through social contribution activities                     At Mitsubishi Corporation we consider the Earth itself to
both in Japan and overseas. In promoting environmental                         be our most important stakeholder and are continually
and CSR-related initiatives, we see the incorporation of                       working towards the realization of a sustainable society
feedback from various stakeholders, based on an ongoing                        through our business activities.
dialogue, as invaluable.                                                         We will strive to reduce greenhouse gas emissions by
                                                                                 continually implementing new efficiency measures and
Actively Tackling Environmental Issues Based on the                              embracing new technologies.
Environmental Charter                                                            We will promote the sustainable use of natural resources
MC views efforts in regards to CSR and environmental affairs as                  including energy, minerals, food stocks and water
one of its most important management issues. We are therefore                    throughout our global business operations.
actively engaged in promoting a range of initiatives aimed at                    We recognize the critical importance of what ecosystems
realizing a sustainable society. These activities encompass every                can provide and are committed to protecting ecosystems
aspect of our business activities. The cornerstone of these activi-              and mitigating any potential impacts on biodiversity.
ties is our Environmental Charter, which we established in 1996.                 We will strive to create and enhance environmental ben-
This charter clearly shows our basic stance regarding environ-                   efits by undertaking conservation activities and reducing
mental affairs to all stakeholders. In 2010, we revised the                      our environmental footprint.
Environmental Charter, reflecting the fact that environmental                    We will continue to actively engage and work with our
awareness and issues evolve over time. This saw us add climate                   various stakeholders openly and transparently and dis-
change, biodiversity, and the sustainable use of resources as                    close information on the environmental impacts of our
new items reflecting their importance as environmental themes.                   business operations in an appropriate and timely manner.
    Furthermore, we set out to create and improve                                We will conduct all of our activities in compliance with
environmental value, signaling our commitment to boosting                        environmental laws while adhering to international rules
businesses that help preserve the environment and reduce                         and social standards.
environmental impacts.


74
                                                                                                               Mitsubishi Corporation         Annual Report 2012




Sustainability Framework
                                                                         CSR & Environmental Framework
At MC, we have the CSR & Environmental Affairs Committee,
which discusses basic policy pertaining to environmental affairs
and CSR. Furthermore, a Senior Executive Vice President is in                Executive Committee
charge of CSR & Environmental Affairs and has responsibility for
overseeing all associated activities.
   Meanwhile, the CSR & Environmental Affairs Advisory Com-                                                                 CSR & Environmental
mittee, which is composed of outside experts, provides advice                CSR & Environmental                              Affairs Advisory
                                                                              Affairs Committee                                 Committee
and recommendations regarding the MC Group’s CSR and envi-
ronmental activities.

ESG Management of Loans and Investments
As part of MC’s strategic decision-making process, all loan and
investment proposals are examined by MC’s Executive
Committee.
    The screening and review process is an extensive one,
taking into account not only financial and legal risks but also
environmental, social and governance (ESG) factors. Proposals
for some projects are examined by the Board of Directors as
well. Loan and investment decisions by the Executive Commit-
tee are based on advisory input from the Investment Advisory
Committee, which in turn bases its advice on comments sub-
mitted by specialized internal departments. When examining
these proposals, the Investment Advisory Committee is specifi-
cally guided by the following processes:
                                                                      The CSR & Environmental Affairs Advisory Committee met twice in the year ended
                                                                      March 2012; first in April, and again in October, which included an inspection tour of
    Analysis of environmental and social impacts as well as           our operations in Australia.
    governance systems by the Corporate Staff Section and
    business groups;
   ESG screening by the CSR & Environmental Affairs Dept.                 Screening Process for Loan and Investment Proposals
   and other organizational bodies, and submission of opinion                Board of Directors
   as necessary.
                                                                                                       Comment(s)           Comment(s)
                                                                           Executive Committee                       CFO
    Environmental and social screening takes into account Inter-
national Finance Corporation (IFC) guidelines, Guidelines for                                                        Investment Advisory Committee
Confirmation of Environmental and Social Considerations pub-                                                                             Comment(s)

lished by the Japan Bank for International Cooperation (JBIC),
and other guidelines.                                                                   Proposal                    CSR & Environmental Affairs
                                                                                        Application                        Dept., etc.
    MC has also formulated a CSR checklist for consideration                                                 • Environment (climate change, biodiversity, etc.)
before advancing loan and investment proposals. In addition to                                               • Community and Society (indigenous people,
                                                                                                               cultural heritage, etc.)
screening for environmental criteria, social criteria such as human                                          • Human Rights and Labor (child labor, forced
                                                                             Corporate Group                   labor, etc.)
rights and working conditions are also examined with careful              Corporate Development              • Governance (management system, internal
consideration for each country or region’s unique circumstances.                 Section                       control, etc.)




  Socially Responsible Investment (SRI) Indices
  MC has earned a solid reputation for its past CSR and envi-
  ronmental affairs initiatives, and transparency in the disclosure
  of information. Underscoring this is MC’s inclusion in various
  socially responsible investment (SRI) indices.
  (As of July 2012)




                                                                                                                                                                  75
Mitsubishi Corporation   Annual Report 2012




 Key Environmental and CSR Themes for MC

Materiality Assessment
MC has identified the following CSR and environmental issues as having high materiality in its business activities: climate change, biodi-
versity, sustainable use of resources, pollution and accident prevention, human and labor rights, and rights of indigenous people. By
helping to address these key issues through our business activities, we aim to create sustainable corporate value.




      Stakeholder Expectations and Concerns                                   Impacts on MC
         Advice from our CSR & Environmental Affairs Advisory Committee         Important internal measures/policies
         Insight received from various NGOs and SRI indexes through             Creation of new business opportunities
         direct engagement                                                      Ongoing risk management for business projects
         Domestic and international media monitoring                            Stricter laws and regulations
         Developments within international treaties and conventions




Addressing Climate Change                                                                                Preservation of Biodiversity
As a company with many business                                                                          MC benefits greatly from the services
investees, MC views the strengthen-                                                                      that ecosystems provide in the many
ing of carbon management on a                                                                            regions worldwide where it promotes
consolidated and global basis to be                                                                      a broad spectrum of businesses.
an important management theme.                                                                           Accordingly, MC views efforts to
We recognize that we have a respon-                                                                      maintain and preserve biodiversity as
sibility to reduce our carbon footprint,                                                                 a vitally important issue.
and we are taking the initiative in
renewable energy and other areas to
help communities and other indus-
tries to do the same.


                                                                                                         Respect for Human Rights
Sustainable Use of Resources                              MC’s Business                                  and Labor Rights
MC is developing businesses in                                                                           MC is developing a diverse array of
various resource fields around the                          Activities                                   businesses around the world and as
world, including metals, energy, food                                                                    part of this handles a multitude of
and water. We therefore see efforts to                                                                   products. We therefore see consider-
use resources in a sustainable                                                                           ation for human rights, and labor
manner as an important focus.                                                                            rights, particularly in our supply
                                                                                                         chains, as vitally important issues.




          Respect for Indigenous Rights                                                         Pollution and Accident Prevention
          MC conducts business in regions                                                       MC views efforts to prevent pollution and
          inhabited by indigenous peoples,                                                      accidents as important from both envi-
          particularly with regards to resource                                                 ronmental and occupational health and
          development projects. MC acknowl-                                                     safety perspectives. We work continu-
          edges the unique social and legal                                                     ously to create and manage systems
          status of indigenous people under                                                     toward this end.
          national and international laws, con-
          ventions and declarations, as well as
          their unique histories and cultural
          contributions throughout the world.




76
                                                                                                                          Mitsubishi Corporation   Annual Report 2012




  Creating Environmental Value

Environmental Management System (EMS)                                                 of environmental management at our suppliers and business
MC develops business across the globe in a wide range of busi-                        investees. In addition to these so-called environmental reviews,
ness domains. We believe it is important to assess how our                            we also have in place stringent emergency response measures
various businesses impact the environment. The president is                           for environment-related accidents.
responsible for building environmental management systems                                 In the year ended March 2012, we conducted 21 environ-
compliant with ISO 14001.                                                             mental reviews. The results of these reviews are fed back as
   Under these management systems, MC conducts impact                                 suggestions and requests to reviewed parties.
assessments, interviews and audits to assess the level



MC Environmental Performance (Non-consolidated, Japan)


    Electricity Consumption                                  Waste Production                                          CO2 Emissions
    (Unit: Thousand kWh)                                     (Unit: Tons)                                              (Unit: Tons of CO2)
    12,000                                                    1,200         95.7%   98.6%      98.7%                   5,000
    10,000      9,648                                         1,000                                                    4,000      4,211
                              8,581                                          862                                                             3,745
     8,000                                                      800                  783         787
                                         6,589                                                                         3,000                             2,876
     6,000                                                      600
                                                                                                                       2,000
     4,000                                                      400
     2,000                                                      200                                                    1,000
           0                                                      0                                                        0
                10.3           11.3       12.3                              10.3     11.3        12.3                              10.3       11.3        12.3


   Head offices    Domestic branches and offices                Waste produced      Waste recycling rate             Head offices      Domestic branches and offices
* Data for the years ended March 2010 and 2011                                                                    * Converted electricity consumption.
  have been revised following the data collection for                                                             * The conversion from electricity consumption to
  the year ended March 2012                                                                                         CO2 emissions was performed using coefficients
                                                                                                                    contained in The Greenhouse Gas Protocol (GHG
                                                                                                                    Protocol) “GHG Emissions from Purchased Elec-
                                                                                                                    tricity Version 4.3” (WRI/ WBCSD) (Country: Japan,
                                                                                                                    Year: 2008, Fuel mix: All)
    Paper Consumption                                        CO2 Emissions From Logistics
    (Unit: Thousand sheets)                                  (Unit: Tons of CO2)
    100,000                                                  80,000
                                                                         68,600     67,100     69,924
      80,000    76,699        80,563    81,606
                                                             60,000
      60,000
                                                             40,000
      40,000
      20,000                                                 20,000

           0                                                       0
                 10.3          11.3       12.3                              10.3     11.3        12.3

                                                         * Data collected in compliance with the Act on the
   Head offices  Domestic branches and offices
* Copy paper consumption                                   Rational Use of Energy in Japan and covers
                                                           domestic (Japan) transport where MC is the cargo
                                                           owner.


[Period] April 1, 2011 to March 31, 2012
[Policies and Standards] Information is provided in accordance with internal regulations such as the
Environmental Management Policy Regulations and the Environmental Impact Evaluation Standards, and in compliance with relevant environmental laws and regulations.
[Scope of Aggregation] The scope of all data provided is for MC’s branches and offices in Japan.
* Head Offices: Mitsubishi Shoji Building, Marunouchi Park Building and some other offices in Tokyo.
* Domestic branches and offices: 6 Japan-based branches and offices under the jurisdiction.
* Electricity consumption: Excludes electricity of common areas and some electricity used for air-conditioning, etc. in usable areas.
* Waste production: Aggregate for Head Offices only.
* Paper consumption: Excludes paper consumption of some offices.




                                                                                                                                                                     77
Mitsubishi Corporation   Annual Report 2012




Addressing Climate Change
MC recognizes that addressing climate change is a pressing
global issue. We believe that, while tackling this issue will depend
a great deal on the development of global climate regulatory
frameworks and action based on them, business leadership and
technological innovation will also be vital in the move toward a
lower carbon society.
   As a global business enterprise, we also recognize that we
have a responsibility to reduce our carbon footprint, and we are
committed to harnessing our potential to develop systems and
technologies to help communities and other industries do the
same. In June 2011, the Mitsubishi Shoji Building, our headquar-
ters, was certified as an “Office Taking Excellent Specific Global
Warming Countermeasures” (a top-level office) by the Tokyo
Metropolitan Government. This recognizes the use of automated
modulation of office lighting and a high-performance air-
conditioning system, along with other aspects such as
employee energy-saving initiatives.                                                   MC operates the Palma del Rio II photovoltaic solar plant in Spain with ACCIONA.


CO2 Emissions Assessment
MC is working to reduce CO2 emissions in all business situations,
including office work and logistics.
    MC has been disclosing environmental performance informa-
tion since 2003 under the Carbon Disclosure Project (CDP)*,
including our CO2 emissions data as well as details on how we
are addressing the issue of climate change. Furthermore, we
have requested third-party reviews of our CO2 emissions data on
a global, consolidated basis in order to ensure the integrity of
CO2 emissions reporting.
    As part of ongoing efforts to reduce our carbon footprint, in
April 2009 MC embarked upon its “CO2 Action Project,”
designed to promote the reduction of CO2 throughout our Japa-
nese offices and in our business activities.
    CO2 emissions (indirect CO2 emissions from electricity con-
sumption) in the year ended March 2012 on a non-consolidated
basis were 2,876 tons, approximately 23% lower year on year.
    Furthermore, direct CO2 emissions from fuel consumption and
indirect CO2 emissions from electricity consumption on a consoli-
dated, global basis in the year ended March 2011 totaled
approximately 3.65 million tons.

* Carbon Disclosure Project (CDP): A project conducted in conjunction with institu-
  tional investors that requires major companies around the world to disclose their   The Rockland Wind Farm in the U.S. generates 80 MW of electricity; MC’s share on a
  greenhouse gas emissions as well as climate change strategies.                      net equity basis is 40 MW.




78
                                                                                                                  Mitsubishi Corporation     Annual Report 2012




Contributing to a Low-Carbon Society Through Business
MC is contributing to the creation of a low-carbon society                  Renewable Energy Share in Mitsubishi Corporation’s
                                                                            Equity Share of Power Generation
through businesses such as transportation infrastructure and                (units: MW)                                                    Renewable energy

renewable energy projects.                                                                     Renewable energy                            1,000
                                                                                               300
    As a measure of our dedication to this goal, in April 2012 we
established the Global Environment & Infrastructure Business                                                            Equity share of
                                                                                  Equity share of                      power generation
Development Group.                                                               power generation
                                                                                      4,400                                6,000
    This group has integrated overseas power generation, energy
solutions, CO2 capture and storage technologies and other busi-
nesses with renewable energy, environment, water and smart                    Share of Renewable                     Share of Renewable
community integration businesses. Moreover, each business                           Energy                                 Energy
group is involved in developing technologies and business models                       7%                                   20   %
that will contribute to the creation of a low-carbon society. These               (approximate)                          (approximate)
                                                                                      2012.3                            2016.3 (Target)
include electric vehicles and eco-friendly condominiums.

Water
Drought, abnormally heavy rain, floods, a shortage of hygienic
water and other issues worldwide are forecast to become more                   Water Consumption
severe in the future due to economic growth and increasing                     (Non-consolidated, Head Offices only)
                                                                               (m3)
populations, notably in the developing world. Changes in rainfall               50,000                                48,005
patterns due to global warming are also expected to exacerbate                                      43,385                                 41,084
                                                                                40,000
this situation. The Midterm Corporate Strategy 2012 designates
                                                                                30,000
infrastructure and global environmental businesses as Strategic
Domains for the entire MC Group. MC is making a contribution to                 20,000
addressing water-related issues faced by countries around the                   10,000
world, as a comprehensive water services provider with various                          0
international operations in the water infrastructure sector. We are                                 10.3               11.3                 12.3
involved in every aspect, from the securing of water resources,
and the supply and recycling of water resources, to the inte-
                                                                      * Please refer to page 77 for period, policies and standards and scope of aggregation.
grated management of complete water systems. Furthermore, at
business investees that need large volumes of water such as
mining businesses, MC believes it is important to secure water in
a way that does not impact local communities or the environ-
ment. Moreover, MC has been disclosing water-related activities
through CDP Water Disclosure, an information disclosure initia-
tive under the CDP, since 2011.

Preservation of Biodiversity
Humanity benefits greatly from the services that ecosystems
replete with diverse forms of life offer. These services are varied
and multifaceted. For example, ecosystems supply us with food
and water, regulate climate and purify the water we drink. What
enables all of these natural benefits is biodiversity.
    Similarly, MC benefits from the services that ecosystems
provide in many regions worldwide. Accordingly, MC views the
preservation of biodiversity as a vitally important issue. To sup-
port our commitment, MC strives to mitigate the impact that its
businesses have on biodiversity, and seeks ways to contribute to
ecosystem conservation through its businesses and social con-
tributions designed to protect the environment.
                                                                      MC has a 70% stake in Alpac Forest Products Inc., a company headquartered in
                                                                      Alberta, Canada, that manages forests. This company manages forests with consid-
                                                                      eration for protecting biodiversity and forest ecosystems.




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Mitsubishi Corporation   Annual Report 2012




     Environmental Partnerships and Contributions
     MC conducts social contribution activities designed to protect the environment and conserve valuable global ecosystems through
     partnerships with NGOs and other groups. We also provide volunteering opportunities for our employees in order to enhance their
     awareness and understanding of environmental issues.


        Partnership With Earthwatch Institute                              Global Coral Reef Conservation Project
     In 1993, we formed a partnership with Earthwatch Institute,        Coral reefs are a precious marine ecosystem. Since 2005,
     an international NGO that delivers programs engaging volun-        MC’s Global Coral Reef Conservation Project has conducted
     teers and scientists in environmental conservation. MC             research at key locations in Okinawa, Australia and the Sey-
     employees also take part as volunteers, helping to conduct         chelles with the cooperation of industry and academia, includ-
     vital scientific research around the world.                        ing universities and NGOs, with the aim of maintaining the
                                                                        health of coral reefs and developing technologies to revive
                                                                        them. Volunteers, including MC Group employees, support
                                                                        survey and research activities. The project also includes holding
                                                                        academic conferences and seminars so the results of this work
                                                                        can be applied in coral reef conservation efforts globally.




        Tropical Forest Regeneration Experimental Project
     Tropical forests are home to some of the world’s greatest
     biodiversity and their destruction is a serious issue in the
     context of global warming. Since the 1990s, we have run the
     Tropical Forest Regeneration Experimental Project to build on
     knowledge for solving this problem. This project aims to
     regenerate tropical forest ecosystems, including the animals
     that live there, within 40-50 years, using intensive and mixed        Charitable Foundations
     planting of trees and plants indigenous to the local regions, to   Through Mitsubishi Corporation Foundation for the Americas
     speed up the process of natural regeneration. These efforts        (MCFA) and Mitsubishi Corporation Fund for Europe and
     continue today through our ongoing projects in Malaysia,           Africa (MCFEA), we support education and research initiatives
     Kenya, Brazil and Indonesia. Employee volunteers take part         focusing mainly on environmental protection and poverty
     in tree-planting in Malaysia, which gives them the opportu-        eradication. (Please see page 7 for information about the
     nity to gain a better insight into the meaning of tropical         Mitsubishi Corporation Disaster Relief Foundation.)
     forest conservation.




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                                                                                                         Mitsubishi Corporation   Annual Report 2012




 Creating Societal Value

Respect for Human and Indigenous Rights                                Supply Chains
MC believes that respect for human rights is a key component of        MC regards the management of supply chains from a CSR and
CSR in the development of business. Our Corporate Standards            environmental standpoint as being a vital part of its corporate
of Conduct incorporates respect for human rights, while our            social responsibility. We recently updated our “Mitsubishi Corpo-
Code of Conduct stipulates clearly that we “will respect human         ration Policy for Sustainable Supply Chain Management”, which
rights,” “will not engage in discrimination on the basis of race,      we share with all suppliers concerned. These guidelines are
ethnicity, creed, religion, or other grounds,” and “will respect the   explained to new recruits and managers at various internal train-
cultures, customs, and language of other countries and regions.”       ing sessions and to employees of overseas business sites and
MC also supports international norms and codes regarding human         affiliated companies at seminars and other events.
rights, including the Universal Declaration of Human Rights, the            Supplier surveys and site visits also play an important role in
core labor standards of the ILO (International Labour Organization),   our supply chain management. Moving forward, we plan to con-
and the Voluntary Principles on Security and Human Rights.             tinue efforts to ensure that our supply chain policy is embraced
    In the context of our overall commitment to respecting human       by overseas offices and MC Group companies, while eliciting
rights, we have formulated policies regarding the rights of indig-     the understanding and cooperation of suppliers on a global
enous people. MC pays special attention to businesses in               basis. MC makes public on its website the results of supplier
regions inhabited by indigenous peoples to acknowledge their           surveys and site visits in a timely manner.
unique social and legal status under national and international
laws, conventions and declarations, such as the International              Mitsubishi Corporation Policy for Sustainable Supply
Labor Organization Convention 169 and the United Nations                   Chain Management
Declaration on the Rights of Indigenous Peoples. When examin-              Mitsubishi Corporation strives to ensure that business is conducted
ing new business investment proposals, MC takes into consider-             responsibly throughout its supply chains. In order to convey this
ation if and how the business operations may impact indigenous             stance to suppliers, the company has established the “Mitsubishi
peoples and will consult with all relevant stakeholders to ensure          Corporation Policy for Sustainable Supply Chain Management,”
that such investment is made having regard to relevant interna-            which it expects all suppliers to understand, embrace and abide by.
tional standards, and with full respect for the dignity, human
rights, aspirations, cultures and natural resource-based liveli-           1.    Forced Labor
                                                                           2.    Child Labor
hoods of the indigenous peoples concerned.
                                                                           3.    Safe and Healthy Working Environments
    At MC, we have created a management framework to enforce
                                                                           4.    Freedom of Association
these policies and initiatives, as well as to ensure that we con-
                                                                           5.    Discrimination
tinue to conduct proper business activities, in addition to uphold-        6.    Abuse and Harassment
ing legal and regulatory compliance. The Corporate Standards of            7.    Working Hours
Conduct and Code of Conduct are distributed to all employees               8.    Suitable Remuneration
and explained at various internal training sessions for new                9.    Anti-corruption
recruits and managers.                                                     10.   Environment
                                                                           11.   Information Disclosure




    Supply Chain Site Visits
    In November 2011, MC representatives visited a leading
    Vietnamese garment manufacturer which supplies knitted
    products to major brands around the world. The audit was
    conducted with the support of the supplier’s onsite manage-
    ment and CSR representatives.
        The site visit confirmed that the supplier was taking pro-
    active steps in meeting our supply chain policy standards.
    Regarding labor conditions for example, the supplier has
    stringent mechanisms in place to monitor working hours,
    while special consideration is given towards expectant             submitted every six months, while hazardous substances
    mothers and people with disabilities. The supplier also dem-       are stored in an appropriate manner. Recycling of waste and
    onstrated that it takes various measures to ensure the             wastewater was also confirmed to be in accordance with
    proper treatment of its employees.                                 local regulations.
        Measures to reduce the site’s environmental burden were
    also confirmed. Data required by the local government are



                                                                                                                                                 81
Mitsubishi Corporation   Annual Report 2012




MC’s Employees                                                                    caring for children and other family members. MC believes that
MC’s greatest assets are its employees. MC has over 200 bases                     employee growth through friendly competition and diligence is
of operations in approximately 90 countries around the world,                     essential to creating sustainable corporate value. To this end, MC
including Japan, and has more than 500 subsidiaries and affiliates.               promotes varied measures designed to encourage further growth
    Around 60,000 people work for the MC Group worldwide.                         in its greatest asset, its human capital, and to create structures
Our basic human resources policy is to provide good jobs and                      and environments that allow employees to maximize their poten-
working environments that maximize the skills and realize the                     tial through meaningful work.
potential of individual employees so that they can enhance their                       For more details on Mitsubishi Corporation’s HR policies, please
value. MC’s HR policies on recruitment, training, assignment,                     visit the “Relationships with Employees” section of our website.
evaluation and remuneration are supplemented by programs
designed to strengthen the organization and corporate culture,
and to improve working environments. These programs form the                          Employee Data (Non-Consolidated)
core of efforts to develop and build MC’s human capital.
    As a company with global business operations, we actively                             Employee Gender Composition
develop our employees and promote equal employment oppor-
tunities for our diverse workforce. Our global HR development                                                  Male 74.9%                              Female 25.1%
functions comply with national laws and regulations while remain-
ing sensitive to differences in working environments, among                               * Data as of March 31, 2012
other cultural aspects. MC also pursues a policy of proactive
personnel development of employees at consolidated subsidiar-                            Proportion of Female Managers (Non-Consolidated)
                                                                                         (%)
ies and overseas offices.
                                                                                          6.0
    We provide individual employees with a variety of experiences                                                                                            5.4
                                                                                          5.0                                                   4.8
and career opportunities—a practice we believe invigorates                                4.0                                        3.7
employees and the organization. Measures include staff rotation                           3.0                         3.1
                                                                                                       2.4
between corporate departments and business groups, sending                                2.0
staff recruited overseas to Japan on assignment or as trainees,                           1.0
and transferring personnel between overseas bases. This system                              0
                                                                                                      2008         2009              2010       2011        2012
is applied to the consolidated MC Group all over the world. MC
is home to many types of employees, including men and women                              * Data as of April 1 in each year.

from various nationalities, and employees who are responsible for



     Social Contribution Activities
     MC’s corporate culture is based on a fundamental desire to grow                   Social Contribution Activities Data
     together with local and international communities in order to contrib-
                                                                                       Number of “Tokens” for Volunteer Work
     ute to building truly prosperous, sustainable societies around the
                                                                                       15,000                                          14,251
     world. With this in mind, we are engaged in a variety of ongoing social
     contribution projects. Our employees play an active role in these                                       11,000         10,707
                                                                                       10,000                                                   Contribution
     activities as MC continues to promote and support a wide variety of
                                                                                                                                                by “tokens”
     volunteer activities at our operations around the world.                                       6,221
                                                                                         5,000                                                  ¥7,125,500
         MC’s social contribution activities prioritize continual programs and
     voluntary efforts by employees worldwide, mainly in the fields of the
                                                                                                0
     global environment, public welfare, education, culture and the arts and                        09.3       10.3          11.3       12.3
     international exchange. MC believes it is important for each and every
     employee to have a heightened awareness of contributing to society.
     For this reason, MC runs various programs that encourage employees           MC makes donations to public welfare, educational and environmental NPOs or
     to participate in volunteer activities, including a volunteer leave system   foundations based on a system of virtual “tokens.” Employees earn virtual tokens for
     and a program where employees use their lunchtimes to conduct                volunteering their time, with each token worth a corporate donation of ¥500. Tokens
     volunteer activities. For more details on Mitsubishi Corporation’s social    are not only awarded for volunteer work designated by MC, but also for activities
     contribution activities, please visit the “Corporate Citizenship” section    undertaken independently by employees during their private time away from work.
     of our website.

              Year ended March 2011 (Non-Consolidated)

      No. of people
      taking volunteer   752              No. of days of
                                          volunteer leave   1,839.5
      leave              (cumulative      taken             days
                         no. of people)




82
                                                                                                           Mitsubishi Corporation   Annual Report 2012




 CSR & Environmental Affairs Advisory Committee

MC’s CSR & Environmental Affairs Advisory Committee is made up of nine external experts. In the year ended March 2012, the
committee held meetings in April and October 2011, and provided advice on the MC Group’s CSR and environmental activities. At
the May 2012 meeting, the committee members expressed their views on creating sustainable societal and environmental value,
carbon management and the Mitsubishi Corporation Disaster Relief Foundation among other themes.

Comments from the committee members                                       Disaster relief foundation activities
On creating sustainable societal and environmental value                    We think that MC’s support for disaster-stricken regions has
 We see conflicts among the three forms of value—economic,                  been wonderful. We hope that the company continues to
 societal and environmental—and believe it is important to                  support those regions while staying attuned to local needs.
 balance these priorities. Furthermore, we believe it is important          At the same time, we also think it is important to incorporate
 for management to embrace the concept that sustainable                     views from outside the affected regions in reconstruction
 activities lead to corporate profits and communicate that inside           support activities.
 and outside the company.
 We think the company should incorporate outside perspec-                       Overview of CSR & Environmental Affairs Advisory
 tives and thinking as it aims for higher societal and environ-                 Committee’s Australian Inspection Tour
 mental value. While gauging the creation of positive value in               For two days in October 2011, members of the CSR & Envi-
 businesses, we also think that it is important to assess the                ronmental Affairs Advisory Committee made an inspection
 negative impact of business activities and to generate benefits             tour in Australia. In addition to the CSR and environmental
                                                                             activities of Mitsubishi Australia Ltd., the members inspected
 that exceed them.
                                                                             the Mount Thorley Warkworth thermal coal mine in New
                                                                             South Wales and the Port Waratah Coal Services (PWCS)
Carbon management                                                            coal loading facility. By actually visiting the worksites of Mit-
  There is heightened concern worldwide, as well as increasing               subishi Corporation’s businesses, the members obtained a
  international debate, about the advance of global warming. In              renewed appreciation of part of the company’s diverse busi-
  the aftermath of the 2011 Great East Japan Earthquake, we                  ness domains and found the visit extremely meaningful.
  think there is a need to watch cases in Japan where initiatives
  geared toward reconstruction are divergent from world trends.
  We think there will probably be even more requests for MC to
  implement measures for environmental protection.
  We think that if the company does not measure cases that
  have an indirect impact on CO2 emissions it may be seen as
  using only positive data for its convenience.



   Members of the CSR & Environmental Affairs Advisory Committee

                 Eiichiro Adachi                               James E. Brumm                                     Takejiro Sueyoshi
                 Counselor, The Japan Research                 Executive Advisor,                                 Special Advisor to the UNEP
                 Institute, Limited                            Mitsubishi International                           Finance
                                                               Corporation                                        Initiatives in the Asia Pacific Region



                 Takeshi Okada                                 Mizue Unno                                         Peter D. Pedersen
                 Manager, Hangzhou Green town                  Managing Director,                                 Co-founder, E-Square Inc.
                 Football Club                                 So-Tech Consulting, Inc.
                 (Former Head Coach of the
                 Japanese National Football Team)


                 Hiroshi Kito                                  Keiko Katsu                                        Yasushi Hibi
                 Professor, Department of                      Freelance Newscaster                               Director of Japan Program,
                 Economics, Faculty of Econom-                                                                    Conservation International
                 ics, Sophia University



                                                                                                                  Hideyuki Nabeshima
                                                                                                                  (Chairperson)
                                                                                                                  Senior Executive Vice President,
                                                                                                                  CSR & Environmental Affairs




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Mitsubishi Corporation   Annual Report 2012




 MC Group’s Response to the Great East Japan Earthquake—Employee Volunteer Activities in Disaster-stricken Areas

When the Great East Japan Earthquake struck on March 11,                  true scale of the damage unraveling along the way. The team’s
2011, we immediately drew on the collective strengths of the MC           first stop was the Sendai City Council of Social Welfare. There
Group to provide support to the affected regions. A key part of           they were told that the region was in need of as many volunteers
this was the establishment of the Mitsubishi Corporation East             as possible who could work every day, but that equipment such
Japan Earthquake Recovery Fund (‘the Fund’) in April 2011. This           as high-pressure washers and boots were in short supply, while
Fund has enabled various support activities, including the provi-         the council was unable to provide accommodation or transportation.
sion of emergency relief supplies, scholarships to university stu-        Upon learning this, MC embarked on its own project. Starting
dents whose studies have been affected, and grants to NPOs                with donations of various types of equipment, we began making
and other groups active in the disaster-stricken areas.                   all necessary arrangements, from accommodation and
    One year later, in March 2012, we also established the                transportation through to the purchase of further equipment.
Mitsubishi Corporation Disaster Relief Foundation (‘the Foundation’)          Employees began their volunteer work in Sendai City, and later
with money from the Fund, in order to provide flexible support for        branched out to Ishinomaki City and Minamisanriku Town in
the regions’ ever-diversifying needs. The main objectives of the          Miyagi Prefecture. The program began with teams of 10 MC
Foundation are to help revive industry and create jobs, to ensure         employees who went for three nights and four days on a rota-
that the affected regions achieve a stronger recovery. (Please refer      tional basis. From July 2011, MC Group employees also joined in
to page 07 for details.) In May 2012, it obtained certification as a      the effort, boosting the teams to 20 members. The volunteer
public interest incorporated foundation.                                  activities also diversified. Initially, volunteers’ main work involved
    While we carry out activities at the company level, employees         removing debris and clearing residents’ homes. Later on, the
have also become directly involved. Many of our employees were            range of activities broadened to include the preparation of fish
quick to voice their determination to help with on-the-ground             farming and recovery of relevant equipment to help revive the
recovery work. On April 3, 2011, less than one month after the            fishing industry, as well as support for various recovery-related
earthquake struck, an internal inspection team headed for Sendai          events. By the year ended March 2012, more than 1,300 employ-
City, Miyagi Prefecture, to find out just how employees could do          ees had taken part in these volunteer initiatives. Employees are
this. Without any prospect of the Tohoku shinkansen resuming              continuing their hard work throughout the year ending March
operations, they ventured north up the Tohoku Expressway, the             2013, whilst staying attuned to local needs.




      Employee Volunteer Locations




                                                                         Rikuzentakata
                                                                         City


                                                                       Minamisanriku
                                                                       Town


                                                                      Ishinomaki
                                                                      City

                                                             Sendai
                                                             City




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                                                                                                                                                                                                                                 Mitsubishi Corporation   Annual Report 2012




Corporate
Information
Key corporate data for MC


Corporate Philosophy–Three Corporate Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                            86
Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               87
Global Network                        .........................................................................................................                                                                                  88
Principal Subsidiaries and Affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                90
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        94
Members of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             98
Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   99
Corporate Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100




                                                                                                                                                                                                                                                                         85
Mitsubishi Corporation   Annual Report 2012



Corporate Philosophy –Three Corporate Principles
(As of July 1, 2012)




                                                                                                                             Corporate Responsibility
                                                                                                                             to Society “Shoki Hoko”
                                                                                                                             Strive to enrich society, both
                                                                                                                             materially and spiritually, while
                                                                                                                             contributing towards the preser-
                                                                                                                             vation of the global environment.


                                                                                                                             Integrity and Fairness
                                                                                                                             “Shoji Komei”
                                                                                                                             Maintain principles of transpar-
                                                                                                                             ency and openness, conducting
                                                                                                                             business with integrity and
                                                                                                                             fairness.


                                                                                                                             Global Understanding
The Three Corporate Principles were formulated in 1934, as the action guidelines                                             Through Business
of Mitsubishi Trading Company (Mitsubishi Shoji Kaisha), based on the teachings                                              “Ritsugyo Boeki”
of Koyata Iwasaki, the fourth president of Mitsubishi. Although Mitsubishi Trading                                           Expand business, based on
                                                                                                                             an all-encompassing global
Company ceased to exist as of 1947, the principles were adopted as MC’s corpo-                                               perspective.
rate philosophy, and this spirit lives on in the actions of today’s management and
employees. The Three Corporate Principles also serve as the cornerstone of the                                                (The modern day interpretation of the
                                                                                                                               Three Corporate Principles, as agreed on
management ethos of the so-called Mitsubishi group of companies. Active in many                                                at the Mitsubishi Kinyokai meeting of the
business fields and united by a common history and philosophy, the Mitsubishi                                                   companies that constitute the so-called
                                                                                                                               Mitsubishi group in January 2001.)
companies continue to grow through a strong spirit of friendly competition with
one another.



Corporate History
                                                                        In 1992, MC announced a new management policy: namely to
                                                                        reinvent the company as a “Sound, Global Enterprise.” MC
                                                                        began placing greater focus on its consolidated operations and
                                                                        increasing the value of its assets. More efforts were made to
                                                                        globalize the company’s operations and its people. In 1998,
                                                                        MC established “MC2000” which introduced a “Select &
                                                                        Focus” approach to business, strengthened strategic fields,
                                                                        and emphasized customer-oriented policies. The new plan was
 In 1954 the new Mitsubishi Shoji was founded,                          instrumental in shoring up the company’s foundations and
 and that same year was listed on both the Tokyo                        paving the way to a prosperous future.
 and Osaka stock exchanges. In 1967, the
 company announced its first management plan.
 In 1968, the company committed to a large
 project in Brunei to develop LNG (liquefied
 natural gas). This was its first large-scale
 investment. Not content with mere trade-based                                                           Into the New Millennium
 activities, the company began expanding its
 development and investment-based businesses
 on a global scale, as evidenced by iron-ore and
 metallurgical coal projects in Australia and                                                            In 2001, MC introduced “MC2003,” an aggressive new blueprint for
 Canada, and salt field business in Mexico. In                                                            growth, involving an expansion of the company’s value chains, a
 1971, the company made “Mitsubishi Corporation”                       The 1990s                         strengthening of its profitability, and focused strategies to create new
 its official English name.                                                                               businesses. In 2004, “INNOVATION 2007” was unveiled, which
                                                                                                         sought to establish MC as a “New Industry Innovator,” with an aim to
                                                                                                         open up a new era and grow hand in hand with society. In 2007, MC
                                                                                                         newly established the Business Innovation Group and Industrial
                                                                                                         Finance, Logistics & Development Group. Then, in 2008, MC
                                      The 1980s                                                          announced its management plan, “INNOVATION 2009.” In 2009, MC
                                                                                                         systematically reorganized the Business Innovation Group and estab-
                                      MC needed to construct new systems to generate                     lished its Corporate Development Section. In April 2010, MC
                                      profits. The company began streamlining its estab-                  reorganized and enhanced this section through the establishment of
                                      lished businesses and developing more efficient                     two new Groups: the Global Environment Business Development
                                      operations. In 1986 the company firmly entrenched a                 Group and Business Service Group. In July 2010, MC announced a
                                      new policy, shifting its focus from operating transac-             new management plan, “Midterm Corporate Strategy 2012.”
 Foundation to 1970s                  tions to profits. That same year a new management
                                      plan was drawn up. In 1989, MC was listed on the
                                      London Stock Exchange.




86
                                                                                                          Mitsubishi Corporation   Annual Report 2012



Organizational Structure
(As of July 1, 2012)



  General Meeting of                                                                               Industrial Finance, Logistics &
   Shareholders                                                                                      Development Group CEO Office
                                                                                                   Industrial Finance, Logistics &
                                                                         Industrial Finance,         Development Group Administration Dept.
                                                                          Logistics &              Real Estate Investment & Management Unit
           Corporate Auditors           Corporate Auditors’ Office        Development Group
                                                                                                   Asset Finance & Business Development Div.
                                                                                                   Real Estate Development & Construction Div.
           Board of
                                                                                                   Logistics Div.
            Corporate Auditors

                                        Governance &
                                         Compensation Committee                                    Energy Business Group CEO Office
  Board of Directors                                                                               Energy Business Group Administration Dept.
                                        International Advisory                                     Africa, Europe and America E&P Business Unit
                                         Committee
                                                                                                   Asia E&P Business Unit
                                                                         Energy Business Group     E&P New Business Development Unit

                                        Internal Audit Dept.                                       Natural Gas Business Div. A
                                        Corporate Strategy &                                       Natural Gas Business Div. B
                                          Planning Dept.
  President                                                                                        Petroleum Business Div.
                                                                                                   Carbon & LPG Business Div.

  Executive
   Committee
                                        Corporate Staff Section
                                                                                                   Metals Group CEO Office

                                        Corporate Communications                                   Metals Group Administration Dept.
                                         Dept.                           Metals Group              Steel Business Div.
            Chief Compliance Officer
                                        Corporate Administration Dept.
            SEVP, CSR &                                                                            Ferrous Raw Materials Div.
            Environmental Affairs       CSR & Environmental
                                          Affairs Dept.                                            Non-Ferrous Metals Div.
            SEVP, MC Group
            Management Foundations      Legal Dept.
            Development                 Global Human
            Chief Information Officer     Resources Dept.                                          Machinery Group CEO Office
                                        Global Strategy &                                          Machinery Group Administration Dept.
                                         Business Development Dept.
                                        Logistics Management Dept.                                 Plant & Engineering Business Div.
            Business Development        Corporate Accounting Dept.       Machinery Group           Industrial Machinery Business Div.
            Committee
                                        Risk Management Dept.
            Disclosure Committee                                                                   Ship & Aerospace Div.
                                        Finance Dept.
            Compliance Committee                                                                   Motor Vehicle Business Div.
                                        Structured Finance,
            CSR & Environmental           M&A Advisory Dept.
            Affairs Committee                                                                      Isuzu Business Div.
                                        Investor Relations Dept.
            Human Resources
            Development Committee
                                                                                                   Chemicals Group CEO Office
                                        Business Service Group                                     Chemicals Group Administration Dept.
                                                                                                   Phoenix Unit
                                        Business Service Group
                                          CEO Office                                               Saudi Petrochemical Project Unit
                                        IT Service Business Div.         Chemicals Group
                                                                                                   Commodity Chemicals Div. A
                                        Information Systems
                                          Development Dept.                                        Commodity Chemicals Div. B
                                        Corporate Systems
                                          Development Dept.                                        Functional Chemicals Div.
                                                                                                   Life Sciences Div.

                                        Global Environment &
                                        Infrastructure Business
                                        Development Group                                          Living Essentials Group CEO Office
                                                                                                   Living Essentials Group Administration Dept.
                                        Global Environment &
                                         Infrastructure Business                                   Living Essentials Group Information System Office
                                         Development Group
                                         CEO Office                                                Global Consumer Business Development Unit
                                        Global Environment &             Living Essentials Group   Retail & Healthcare Div.
                                         Infrastructure Business
                                         Development Group                                         Foods (Commodity) Div.
                                         Administration Dept.
                                        New Energy &                                               Foods (Products) Div.
                                         Power Generation Div.                                     Textiles Div.
                                        Environment &
                                         Infrastructure Business Div.                              General Merchandise Div.


                                                                                                                                                       87
Mitsubishi Corporation   Annual Report 2012



Global Network
(As of July 1, 2012)




Including its offices in Japan, MC has more than 200 offices and subsidiaries,
as well as over 500 group companies in approximately 90 countries around the world.




   Mitsubishi Corporation (Head Office)
   Overseas Network




     Head Office                 Network (Location of MC Operations)
       Tokyo                 Japan                            Overseas
                             (Number of Offices and            (Number of Offices and Subsidiaries: 195)
                             Subsidiaries: 31)                Including 32 Project Offices
                             Including 19 Annexed Offices
                                                               North America                Latin America    Europe
                               Sapporo         Osaka
                                                                New York                    Guatemala City   London       Warsaw
                               Sendai          Takamatsu        San Francisco               Panama City      Las Palmas   Bucharest
                                               Hiroshima        Seattle                     Quito            (Spain)      Beograd
                               Nagoya
                                                                Silicon Valley              Lima             Madrid       Athens
                               Niigata         Fukuoka
                                                                Los Angeles                 La Paz           Paris        Sofia
                               Toyama          Nagasaki         Houston                     Bogotá           Brussels     Istanbul
                               Shizuoka        Naha             Chicago                     Santiago         Amsterdam    Ankara
                                                                Washington, D.C.            Caracas          Düsseldorf
                                                                Dallas                      Puerto Ordaz     Frankfurt
                                                                Pittsburgh                  Asunción         Berlin
                                                                Boston                      Buenos Aires     Munich
                                                                Tucson                      São Paulo        Milano
                                                                Vancouver                   Rio de Janeiro   Oslo
                                                                Toronto                     Belo Horizonte   Prague
                                                                Mexico City                 Santos           Stockholm



88
                                                                                           Mitsubishi Corporation      Annual Report 2012




                                                                        Number of Consolidated Subsidiaries and
                                                                        Equity-Method Affiliates by Operating Segment
                                                                        (As of March 31, 2012)
                                                                                                           No. of Consolidated Subsidiaries
                                                                                                             and Equity-Method Affiliates

                                                                         Industrial Finance, Logistics &
                                                                         Development Group
                                                                                                                                    86
                                                                         Energy Business Group                                      86
                                                                         Metals Group                                               27
                                                                         Machinery Group                                           140
                                                                         Chemicals Group                                            48
                                                                         Living Essentials Group                                   115
                                                                         Global Environment Business
                                                                         Development Group
                                                                                                                                    33
                                                                         Business Service Group                                      6
                                                                         Corporate Staff Section                                    13
                                                                                                                       Regional
                                                                                                                    Subsidiaries    40
                                                                         Total                                                     594
                                                                         Number of employees at parent company and all of its consoli-
                                                                         dated subsidiaries: 63,058
                                                                         Number of employees at parent company alone: 5,796
                                                                         Companies affiliated with subsidiaries are not included in the
                                                                         number of consolidated subsidiaries and equity-method affiliates.




CIS                 Africa          Middle East   Asia                                                                 Oceania
Moscow              Johannesburg    Dubai         Karachi        Phnom Penh                 Tianjin                    Noumea
Vladivostok         Dakar           Tripoli       Islamabad      Vientiane                  Xiamen                     Melbourne
Yuzhno-Sakhalinsk   Casablanca      Cairo         Lahore         Hanoi                      Nanjing                    Sydney
Kiev                Abidjan         Tel Aviv      New Delhi      Ho Chi Minh City           Qingdao                    Perth
Baku                Algiers         Ramallah      Mumbai         Jakarta                    Shanghai                   Brisbane
Ashgabat            Lagos           Amman         Kolkata        Surabaya                   Dalian                     Mount Waverley
Tashkent            Tunis           Riyadh        Chennai        Bandar Seri Begawan        Shenyang                   Auckland
Astana              Maputo          Jeddah        Bangalore      (Brunei)                   Hong Kong
Almaty              Nairobi         Al Khobar     Colombo        Manila                     Taipei
                    Addis Ababa     Doha          Dhaka          Ulaanbaatar                Seoul
                    Dar es Salaam   Abu Dhabi     Yangon         Beijing                    Kwangyang
                                    Muscat        Bangkok        Chengdu                    Pohang
                                    Kuwait        Haadyai        Chongqing                  Dangjin
                                    Tehran        Kuala Lumpur   Guangzhou
                                                  Bintulu        Shenzhen
                                                  Singapore      Wuhan


                                                                                                                                            89
Mitsubishi Corporation   Annual Report 2012



Principal Subsidiaries and Affiliates
(As of March 31, 2012)



     Business Service Group

                         COMPANY NAME                       VOTING RIGHTS (%)                                 MAIN BUSINESS

     <Subsidiaries>
       Bewith, Inc. (Japan)                                            100.00   Outsourcing service provider (Contact Center)
       IT Frontier Corporation (Japan)                                 100.00   IT-related business solutions, system integration services, IT management services and product
                                                                                marketing, etc.


     Global Environment & Infrastructure Business Development Group

                         COMPANY NAME                       VOTING RIGHTS (%)                                 MAIN BUSINESS

     <Subsidiaries>
       DGA Ho Ping B.V. (The Netherlands)                              100.00   Independent power producer
       DGA Ilijan B.V. (The Netherlands)                               100.00   Independent power producer
       DGA Thailand (The Netherlands)                                  100.00   Independent power producer
       Diamond Generating Americas Holdings (The Netherlands)          100.00   Independent power producer
       Diamond Generating Asia, Limited (Hong Kong)                    100.00   Independent power producer
       Diamond Generating Corporation (U.S.A.)                         100.00   Independent power producer
       Diamond Solar Europe Ltd. (U.K.)                                100.00   Independent power producer

     <Equity-method affiliates>
       Amper Central Solar, S.A. (Portugal)                             34.40   Independent power producer
       Electricidad Aguila de Tuxpan, S. de R.L. de C.V. (Mexico)       50.00   Independent power producer
       Electricidad Sol de Tuxpan, S. de R.L. de C.V. (Mexico)          50.00   Independent power producer
       Frontier Carbon Corporation (Japan)                              50.00   Production and sales of fullerenes
       Lithium Energy Japan (Japan)                                     41.94   Manufacturing and sales of lithium-ion batteries
       Swing Corporation (Japan)                                        33.33   Water business



     Industrial Finance, Logistics & Development Group

                         COMPANY NAME                       VOTING RIGHTS (%)                                 MAIN BUSINESS

     <Subsidiaries>
       Alternative Investment Capital Ltd. (Japan)                      51.00   Investment management business
       Diamond Realty Investments, Inc. (U.S.A.)                       100.00   Real estate investment
       Diamond Realty Management Inc. (Japan)                          100.00   Real estate asset management and investment advisory
       Healthcare Management Partners, Inc. (Japan)                     66.00   Investment management business
       Lifetime Partners, Inc. (Japan)                                 100.00   Management support for hospitals and nursing care providers
       MC ASSET MANAGEMENT (Japan)                                     100.00   Financial instruments dealing business
       MC Aviation Financial Services (Europe) B.V.                    100.00   Aircraft leasing and finance
         (The Netherlands)
       MC Aviation Partners Inc. (Japan)                               100.00   Aircraft leasing and management services
       MC Capital Europe Ltd. (U.K.)                                   100.00   Investment and related activities
       MC Capital Inc. (U.S.A.)                                        100.00   Investment and related activities
       MC Finance International B.V. (The Netherlands)                 100.00   Financial investment company
       MC Financial Services Ltd. (U.S.A.)                             100.00   M&A advisory and private equity investment
       Mcap Europe Limited (Ireland)                                   100.00   Aircraft leasing and management services
       Mitsubishi Corporation LT, Inc. (Japan)                         100.00   Warehousing and total logistics services
       Mitsubishi Corporation Urban Development, Inc. (Japan)           98.66   Development and operation of commercial properties
       Mitsubishi Corp.-UBS Realty Inc. (Japan)                         51.00   Investment management business
       New Century Insurance Co., Ltd.                                 100.00   Insurance business
         (Bermuda, British overseas territory)
       Port South Aircraft Leasing Co., Ltd. (Japan)                   100.00   Aircraft leasing and finance
       Seto Futo Co., Ltd. (Japan)                                      61.65   Dry bulk terminal business and warehousing business
       TRM Aircraft Leasing Co., Ltd. (Japan)                          100.00   Aircraft leasing and finance
       Yebise Limited (Cayman Islands, British overseas territory)     100.00   Aircraft leasing and finance
       Zonnet Aviation Financial Services Co., Ltd. (Japan)            100.00   Aircraft leasing and finance

     <Equity-method affiliates>
       Mitsubishi Auto Leasing Holdings Corporation (Japan)             50.00   Auto leases, installment sales and other financial services through subsidiaries
       Mitsubishi UFJ Lease & Finance Company Ltd. (Japan)              20.00   Leasing, installment sales and other financing
       Mitsubishi Ore Transport Co., Ltd. (Japan)                       40.28   Operation and chartering of bulkers for coking coal, iron ore, automobiles and other products



     Energy Business Group

                         COMPANY NAME                           VOTING RIGHTS (%)                             MAIN BUSINESS

        <Subsidiaries>
          Ajoco Exploration Co., Ltd. (Japan)                           55.00   Development and production of oil in Angola
          Ajoco’91 Exploration Co., Ltd. (Japan)                        55.00   Development and production of oil in Angola

90
                                                                                                                          Mitsubishi Corporation   Annual Report 2012




  Angola Japan Oil Co., Ltd. (Japan)                           51.00    Exploration, development and production of oil in Angola
  Cordova Gas Resources Ltd. (Canada)                          67.50    Development and production of shale gas in Canada
  Cutbank Dawson Gas Resources Ltd. (Canada)                  100.00    Investment company for shale gas business in Canada
  Diamond Gas Resources Pty. Ltd. (Australia)                 100.00    Sales agent of JALP crude oil and condensate
  Diamond Gas Sakhalin B.V. (The Netherlands)                 100.00    Stockholding company for Sakhalin II project in Russia
  Diamond Tanker Pte. Ltd. (Singapore)                        100.00    Marine transportation, etc.
  MC Energy, Inc. (Japan)                                     100.00    Marketing and sales of asphalt and petroleum products
  MCX Exploration (USA) Ltd. (U.S.A.)                         100.00    Exploration, development and production of oil and natural gas
  Mitsubishi Shoji Sekiyu Co., Ltd. (Japan)                   100.00    Marketing and sales of petroleum products
  MPDC Gabon Co., Ltd. (Japan)                                100.00    Exploration, development and production of oil in Gabon
  Onahama Petroleum Co., Ltd. (Japan)                          80.00    Oil import, storage and sales, and land and facility leasing
  Pacific Orchid Shipping S.A. (Panama)                        100.00    Ownership of tankers for transporting crude and heavy oil
  Petro-Diamond Inc. (U.S.A.)                                 100.00    Marketing and sales of petroleum products
  Petro-Diamond Singapore (Pte) Ltd. (Singapore)              100.00    Marketing and sales of petroleum products
  Tomori E&P Ltd. (U.K.)                                       51.00    Development, production and sales of crude oil and natural gas

<Equity-method affiliates>
  Astomos Energy Corporation (Japan)                            49.00   Import, trading, domestic distribution and sales of LPG
  Brunei LNG Sendirian Berhad (Brunei)                          25.00   Manufacturing and sales of LNG
  Brunei Shell Tankers Sendirian Berhad (Brunei)                25.00   Ownership of LNG tankers
  Encore Energy Pte. Ltd. (Singapore)                           39.40   Stockholding company for P.T. Medco Energi Internasional (Indonesia)
  Energi Mega Pratama Inc. (Indonesia)                          25.00   Exploration, development, and production of oil and natural gas in Indonesia
  Japan Australia LNG (MIMI) Pty. Ltd. (Australia)              50.00   Development and sales of resources (LNG, LPG, condensate and crude oil)


Metals Group

                   COMPANY NAME                         VOTING RIGHTS (%)                               MAIN BUSINESS

<Subsidiaries>
  Hernic Ferrochrome (Pty) Ltd. (Republic of South Africa)     50.98    Mining of chrome ore, production and sales of ferrochrome
  JECO Corporation (Japan)                                     70.00    Investment company for Minera Escondida Ltda. copper mines in Chile
  M.C. Inversiones Limitada (Chile)                           100.00    Investment company for Chilean iron ore mines
  MC Copper Holdings B.V. (The Netherlands)                   100.00    Investment company for Los Pelambres copper mine in Chile
  MC RESOURCE DEVELOPMENT LTD. (U.K.)                         100.00    Investment company for Anglo American Sur, S.A. (Chile)
  Metal One Corporation (Japan)                                60.00    Steel products operations
  Mitsubishi Development Pty Ltd (Australia)                  100.00    Investment, production and sales of coals and other metals resources
  Mitsubishi Corporation Unimetals Ltd. (Japan)               100.00    Metal trading company
  Ryowa Development II Pty., Ltd. (Australia)                 100.00    Investment company for BOYNE aluminum smelter and sales of aluminum
  Ryowa Development Pty., Ltd. (Australia)                    100.00    Investment company for BOYNE aluminum smelter and sales of aluminum
  Triland Metals Ltd. (U.K.)                                  100.00    Commodity broker on the London Metal Exchange (LME)

<Equity-method affiliates>
  Compania Minera del Pacifico S.A. (Chile)                      25.00   Iron ore production and sales
  Furuya Metal Co., Ltd. (Japan)                                20.07   Manufacturing and sales of industrial-use precious metal products
  Iron Ore Company of Canada (Canada)                           26.18   Iron ore production and sales
  Mozal S.A.R.L. (Mozambique)                                   25.00   Production and sales of aluminum ingots
  NIKKEI MC ALUMINIUM CO., LTD. (Japan)                         45.00   Manufacturing and sales of secondary aluminum alloy ingots

<Metal One Subsidiaries>
 Isuzu Corporation (Japan)                                     56.60    Steel processing and sales
 Kyushu Steel Corporation (Japan)                              55.00    Steel (building materials) manufacturing
 Kyushu Steel Center Co., Ltd. (Japan)                         55.29    Steel (thick plates) processing
 MC Metal Service Asia (Thailand) Co., Ltd. (Thailand)        100.00    Steel processing and sales
 Metal One Holdings America, Inc. (U.S.A.)                     80.00    Holding company of steel processing and sales business
 Metal One SSS West Japan, Ltd. (Japan)                       100.00    Steel (building materials) processing and sales
 Metal One Ryowa Corporation (Japan)                          100.00    Steel processing and sales
 Metal One Specialty Steel Corporation (Japan)                100.00    Special steel processing and sales
 Metal One Stainless (Asia) Pte. Ltd. (Singapore)              91.70    Steel (stainless) processing and sales
 Metal One Steel Service Corporation (Japan)                   67.33    Steel processing and sales
 Metal One Structural Steel & Resource Corporation (Japan)    100.00    Steel (building materials) processing and sales
 Sus-Tech Corporation (Japan)                                  64.48    Steel (stainless) processing and sales
 Tamatsukuri Corporation (Japan)                               97.31    Steel (thick plates) processing and sales

<Metal One Equity-method affiliates>
 Koho CD Bars Service Center Co., Ltd. (Japan)                  33.33   Steel (cold finished steel bars, special steel, etc.) sales
 M.O. TEC CORPORATION (Japan)                                   41.73   Construction materials rentals and sales
 Sanwa Tekko Co., Ltd. (Japan)                                  33.41   Steel processing and sales
 Siam Hi-Tech Steel Center Co., Ltd. (Thailand)                 50.00   Steel processing and sales




                                                                                                                                                                  91
Mitsubishi Corporation      Annual Report 2012




     Machinery Group
                             COMPANY NAME                              VOTING RIGHTS (%)                                      MAIN BUSINESS

     <Subsidiaries>
       Auto Technic (Thailand) Co., Ltd. (Thailand)                                 100.00      Automobile maintenance
       Constructora Geotermoelectrica Del Pacifico, S.A. de C.V.                     100.00      Construction and leasing of power plants
         (Mexico)
       Diamond Camellia S.A. (Panama)                                               100.00      Ship owning and chartering
       Diamond Power Corporation (Japan)                                            100.00      Electricity retailing
       MAC Funding Corporation (U.S.A.)                                             100.00      Industrial machinery sales finance
       MC Automobile (Europe) N.V. (The Netherlands)                                100.00      Automobile-related business
       MC Machinery Systems, Inc. (U.S.A.)                                          100.00      Sales and service of machine tools and industrial machinery
       Mitsubishi Corporation Power Systems, Inc. (Japan)                           100.00      Domestic and Import sales of power plant equipment and services
       MCE Bank GmbH (Germany)                                                      100.00      Automobile finance
       Mitsubishi Corporation Machinery, Inc. (Japan)                               100.00      Export, import and domestic trading of machine parts
       Mitsubishi Corporation Technos (Japan)                                       100.00      Sales of machine tools and industrial machinery
       Mitsubishi Motors Malaysia Sdn. Bhd. (Malaysia)                               52.00      Distribution of automobiles
       MMC Automoviles Espana S.A. (Spain)                                           75.00      Distribution of automobiles
       MMC Car Poland Sp. z o.o. (Poland)                                           100.00      Distribution of automobiles
       MSK FARM MACHINERY CORPORATION (Japan)                                       100.00      Sales and service of agricultural machinery and facilities
       Nikken Corporation (Japan)                                                    96.83      Rental and sales of construction machinery and other equipment
       Norelec Del Norte, S.A. de C.V. (Mexico)                                     100.00      Construction and leasing of power plants
       Orient Gas Transport Inc. (Liberia)                                          100.00      Ship finance
       PT. Dipo Star Finance (Indonesia)                                             95.00      Automobile finance
       Spitalgate Dealer Services Ltd. (U.K.)                                       100.00      Automobile finance
       The Colt Car Company Ltd. (U.K.)                                             100.00      Distribution of automobiles
       Tri Petch Isuzu Leasing Co., Ltd. (Thailand)                                  93.50      Automobile finance
       Tri Petch Isuzu Sales Co., Ltd. (Thailand)                                    88.73      Distribution of automobiles

     <Equity-method affiliates>
       Chiyoda Corporation (Japan)                                                    33.74     Plant engineering business
       FF Sheffe B.V. (The Netherlands)                                               40.00     Automobile-related holding company
       Isuzu Engine Manufacturing Co., (Thailand) Ltd. (Thailand)                     15.00     Manufacturing of automotive engines
       Isuzu Motors Co., (Thailand) Ltd. (Thailand)                                   27.50     Manufacturing of automobiles
       Isuzu Motors International Operations (Thailand) Co.,                          49.00     Automobile exports & sales
           Ltd. (Thailand)
       Isuzu Philippines Corporation (Philippines)                                    35.00     Import, manufacture, and sales of automobiles
       Mitsubishi Elevator Hong Kong Company Limited                                  25.00     Elevator import, sales, installation and maintenance
         (Hong Kong)
       Mitsubishi Motor Sales (China) Co., Ltd. (China)                               50.00     Distribution of automobiles
       MMC Chile S.A. (Chile)                                                         40.00     Distribution of automobiles
       Mitsubishi Motors de Portugal, S.A. (Portugal)                                 50.00     Distribution of automobiles
       PT. Krama Yudha Tiga Berlian Motors (Indonesia)                                40.00     Distribution of automobiles
       PT. Mitsubishi Krama Yudha Motors and Manufacturing                            32.28     Manufacturing and distribution of automobile engines and sheet metal parts
         (Indonesia)
       Vina Star Motors Corporation (Vietnam)                                         25.00     Automobile assembly and distribution
     **     transferred to Global Environment & Infrastructure Business Development Group in accordance with April 1, 2012 reorganizations.



     Chemicals Group
                             COMPANY NAME                              VOTING RIGHTS (%)                                      MAIN BUSINESS
     <Subsidiaries>
       Chuo Kagaku Co., Ltd. (Japan)                                                 60.59     Manufacturing & sales of food packaging / Containers
       Chuo Kasei Co., Ltd. (Japan)                                                 100.00     Manufacturing and marketing of chemical products
       KIBIKASEI CO., LTD. (Japan)                                                  100.00     Wholesale and trading of synthetic resin raw materials and products made from these materials as
                                                                                               well as industrial chemicals
          Kohjin Co., Ltd. (Japan)                                                  100.00     Manufacturing of plastic films, biochemicals and fine chemicals
          MC Ferticom Co., Ltd. (Japan)                                              72.83     Manufacturing and marketing of fertilizer
          MC Life Science Ventures, Inc. (U.S.A.)                                   100.00     Corporate venture capital and business incubation
          Mitsubishi Shoji Chemical Corp. (Japan)                                   100.00     Marketing of solvents, coating resins, silicones, fumed silica
          Mitsubishi Shoji Foodtech Co., Ltd. (Japan)                               100.00     Manufacturing and marketing of functional food ingredients
          Mitsubishi Shoji Plastics Corp. (Japan)                                   100.00     Marketing of synthetic raw materials and plastics

     <Equity-method affiliates>
       Petronas Chemicals Aromatics Sdn. Bhd. (Malaysia)                             30.00     Manufacturing and marketing of benzene and paraxylene
       Exportadora de Sal, S.A. de C.V. (Mexico)                                     49.00     Manufacturing of solar salt
       Meiwa Corporation (Japan)                                                     33.05     Trading company
       Metanol de Oriente, METOR, S.A. (Venezuela)                                   24.74     Manufacturing and marketing of methanol
       Nippon Resibon Corporation (Japan)                                            20.00     Grinding wheels, coated abrasive products, machinery and tools, materials and other businesses
       PT. Kaltim Parna Industri (Indonesia)                                         50.00     Manufacturing of ammonia
       SPDC Ltd. (Japan)                                                             30.39     Investment and petroleum and petrochemicals-related businesses


     Living Essentials Group
                             COMPANY NAME                             VOTING RIGHTS (%)                                      MAIN BUSINESS

     <Subsidiaries>
       AGREX, Inc. (U.S.A.)                                                         100.00     Storage and marketing of grain
92
                                                                                                                          Mitsubishi Corporation     Annual Report 2012




  Alpac Forest Products Inc. (Canada)                              70.00    Manufacturing and sales of wood pulp
  Alpac Pulp Sales Inc. (Canada)                                  100.00    Sales of wood pulp
  California Oils Corporation (U.S.A.)                            100.00    Manufacturing and sales of processed vegetable oils and fats
  Cape Flattery Silica Mines Pty., Ltd. (Australia)               100.00    Mining and sales of silica sand
  Dai-Nippon Meiji Sugar Co., Ltd. (Japan)                        100.00    Manufacturing and wholesale of sugar products
  d-rights Inc. (Japan)                                           100.00    Production of animation and other contents, sale of broadcasting rights and licensing business
  Foodlink Corporation (Japan)                                     99.42    Sales of meat and meat products
  Green Houser Co., Ltd. (Japan)                                  100.00    Sales of wood products, construction materials and housing equipment
  Indiana Packers Corporation (U.S.A.)                             80.00    Processing and sales of pork
  Kentucky Fried Chicken Japan Ltd. (Japan)                        66.04    Fast-food restaurant chain and home-delivery pizza stores
  Life Gear Corporation (Japan)                                   100.00    Sales and marketing of footwear
  MC Healthcare, Inc. (Japan)                                      80.00    Back-office support for hospital management, sales of medical equipment and pharmaceuticals
  Mitsubishi Corporation Fashion (Japan)                          100.00    Design, manufacturing and sales of apparel products
  Mitsubishi Shoji Construction Materials Corporation (Japan)     100.00    Marketing of construction materials and construction work
  Mitsubishi Shoji Packaging Corporation (Japan)                   92.15    Sales and marketing of packaging materials, paper, paperboard and corrugated containerboard, as
                                                                            well as export of paper and paperboard
  Mitsubishi Shokuhin Co., Ltd. (Japan)                            61.62    Wholesale of food products
  MRS Corporation (Japan)                                         100.00    Operation of ultra-low temperature transport vessels
  Nihon Shokuhin Kako Co., Ltd. (Japan)                            59.88    Manufacturing of corn starch and related processed products
  Nippon Care Supply Co., Ltd. (Japan)                             74.81    Rental and sales of nursing care equipment and items
  Nitto Fuji Flour Milling Co., Ltd. (Japan)                       64.97    Flour miller
  Nosan Corporation (Japan)                                       100.00    Manufacturing and marketing of livestock feed
  Princes Limited (U.K.)                                          100.00    Manufacturing of food products and soft drinks
  Riverina (Australia) Pty., Ltd. (Australia)                     100.00    Marketing of grains and manufacturing of animal feed and its marketing
  Sanyo Foods Co., Ltd. (Japan)                                   100.00    Manufacturing and sales of food products
  TH FOODS, Inc. (U.S.A.)                                          53.16    Manufacturing of rice crackers
  Toyo Reizo Co., Ltd. (Japan)                                     81.83    Processing and sales of marine products
  Tredia Fashion Co., Ltd. (Hong Kong)                            100.00    Sales and production control of apparel products

<Equity-method affiliates>
  create restaurants holdings inc. (Japan)                         41.07    Operation of restaurants based on various concepts under different brands in Japan
  Ensuiko Sugar Refining Co., Ltd. (Japan)                          31.60    Manufacturing and wholesale of sugar products
  HIMARAYA Co., Ltd. (Japan)                                       20.02    Retail sales of sports equipment
  Hokkaido Sugar Co., Ltd. (Japan)                                 27.16    Manufacturing of beet sugar
  Hokuetsu Kishu Paper, Co., Ltd. (Japan)                          25.35    Manufacturing, processing and sales of paper and pulp
  Itoham Foods, Inc (Japan)                                        21.38    Manufacturing and sales of meats and processed foods
  Kadoya Sesame Mills, Inc. (Japan)                                27.40    Manufacturing and sales of sesame oil and sesame
  Kirin MC Danone Waters Co., Ltd. (Japan)                         24.00    Manufacturing, importing and sales of mineral water
  LAWSON, INC. (Japan)                                             32.44    Franchise chain of LAWSON convenience stores
  Life Corporation (Japan)                                         21.30    Supermarket chain stores
  Maruichi Co., Ltd. (Japan)                                       20.08    Wholesale of food products
  Matsutani Chemical Industry Co., Ltd. (Japan)                    30.00    Processing of starch
  MCC Development Corporation (U.S.A.)                             30.00    Holding company of ready-mixed concrete companies
  Mitsubishi Cement Corporation (U.S.A.)                           28.70    Manufacturing and marketing of cement
  ROKKO BUTTER CO., LTD. (Japan)                                   20.63    Manufacturing and sales of cheese products
  T-Gaia Corporation (Japan)                                       27.70    Handling of subscriber contracts for various communication services, sales of handsets and
                                                                            equipment
  The Nisshin OilliO Group, Ltd. (Japan)                           17.43    Oils and meal, healthy foods and fine chemicals businesses
  TOYO TYRE & RUBBER AUSTRALIA LIMITED (Australia)                 25.60    Importing and sales of tyres
  YONEKYU CORPORATION (Japan)                                      25.58    Sales of meats, manufacturing and sales of processed foods



Corporate Staff Section
                    COMPANY NAME                        VOTING RIGHTS (%)                                MAIN BUSINESS

<Subsidiaries>
  Business Trip International Inc. (Japan)                        100.00    Travel agency
  Human Link Corporation (Japan)                                  100.00    Personnel operation outsourcing services and consulting
  MC Facilities Co., Ltd. (Japan)                                 100.00    Office building management and operation services
  MC Finance & Consulting Asia Pte. Ltd. (Singapore)              100.00    Treasury services
  MC Silicon Valley, Inc. (U.S.A.)                                100.00    Management of marketable securities
  Mitsubishi Corporation Finance PLC (U.K.)                       100.00    Treasury services
  Mitsubishi Corporation Financial & Management Services          100.00    Accounting, financial and foreign exchange services, credit control and management consulting
  (Japan) Ltd. (Japan)



Main Regional Subsidiaries
                    COMPANY NAME                        VOTING RIGHTS (%)                                MAIN BUSINESS

<Subsidiaries>
  MC Europe Holdings N.V. (U.K.)                                  100.00    Holding company for European subsidiaries
  MC International (Europe) (U.K.)                                100.00    Trading
  Mitsubishi Australia Ltd.                                       100.00    Trading
  Mitsubishi Corporation (Hong Kong) Ltd.                         100.00    Trading
  Mitsubishi Corporation (Shanghai) Ltd.                          100.00    Trading
  Mitsubishi Corporation (Korea) Ltd.                             100.00    Trading
  Mitsubishi International Corporation (U.S.A.)                   100.00    Trading
  Mitsubishi International GmbH. (Germany)                        100.00    Trading
  Mitsubishi Corporation Taiwan Ltd.                              100.00    Trading
  Thai-MC Company Ltd.                                             67.80    Trading

                                                                                                                                                                         93
Mitsubishi Corporation   Annual Report 2012



General Information
(As of July 1, 2012)




 Share Data

(1) Authorized share capital: 2,500,000,000 shares of common stock
(2) Number of shares issued and number of shareholders as of March 31, 2012
                                                                                                                             Number of                  Number of
                                                                                                                            shares issued              shareholders

As of March 31, 2011                                                                                                        1,697,268,271               253,316
Change                                                                                                                        – 43,762,520               44,985
As of March 31, 2012                                                                                                        1,653,505,751               298,301
Note: The number of issued shares decreased and common stock increased, as a result of the retirement of treasury stock (–45,000,000 shares) on May 31, 2011, and the
      exercise of stock acquisition rights (stock options and bonds with stock acquisition rights; 1,237,480 shares) in the first quarter of the year ended March 2012.




 Principal Shareholders
                                                                                                                                       Shareholding
                                                                                                                      (Rounded down to the nearest thousand shares)

                                                                                                                      Number of shares                   Shareholding
Name                                                                                                                    (thousands)                          (%)

Japan Trustee Services Bank, Ltd. (Trust Account)                                                                                   118,095                 7.17
Tokio Marine & Nichido Fire Insurance Co., Ltd.                                                                                      74,534                 4.52
The Master Trust Bank of Japan, Ltd. (Trust Account)                                                                                 69,393                 4.21
Meiji Yasuda Life Insurance Company                                                                                                  64,846                 3.93
The Master Trust Bank of Japan, Ltd.
 (Mitsubishi Heavy Industries, Ltd. Account, Retirement Benefit Trust Account)                                                        48,920                2.97
SSBT OD05 OMNIBUS ACCOUNT — TREATY CLIENTS                                                                                            36,970                2.24
The Bank of Tokyo-Mitsubishi UFJ, Ltd.                                                                                                25,620                1.55
Japan Trustee Services Bank, Ltd. (Trust Account 9)                                                                                   22,219                1.35
The Nomura Trust and Banking Co., Ltd.
 (Pension Benefit Trust Account, Mitsubishi UFJ Trust and Banking Corporation)                                                        22,088                1.34
State Street Bank and Trust Company 505225                                                                                            22,008                1.33
Notes: 1. In addition to the above, the Company has treasury stock of 7,065,246 shares.
       2. Shareholding was computed excluding total treasury stock.



 Number of Shareholders


                                               (number of shareholders)
                                                300,000                                                                            281,707                       298,301
                                                                                                                                                       253,316

                                                200,000                                                       188,925                        233,034
                                                                                                   158,521

                                                                                                                         161,590
                                                100,000


                                                 70,000

                                                                                              65,298
                                                 60,000
                                                                          57,334


                                                 50,000     54,943                 54,322

                                                            02.3          03.3     04.3     05.3       06.3    07.3       08.3      09.3      10.3      11.3      12.3




94
                                                                                                                                Mitsubishi Corporation   Annual Report 2012




  Shareholder Composition (Shareholding Ratio)
                                                        Public                                      Securities Other             Foreign                        Individuals
                                                        sector          Financial institutions     companies companies        companies, etc.                   and others


                                          Year ended
                                          March 2012                          40.5%                 3.7%       8.7%                 30.1%                        17.1%

                                                       0.0%

                                          Year ended
                                                                              40.0%                 4.8%        11.7%                      32.2%                     11.3%
                                          March 2007

                                                       0.0%

                                          Year ended
                                          March 2002                                       58.5%                      0.2%        13.1%              19.6%             8.7%

                                                       0.0%
                                                                                                                                                (One Unit Stock /100 shares)
                                 Public          Financial               Securities                Other           Foreign               Individuals
                                 sector         institutions            companies                companies      companies, etc.          and others              Total

Year ended March 2012                2         6,686,931                  618,395                1,437,020          4,967,640            2,819,477           16,529,465
Year ended March 2007                2         6,750,244                  802,078                1,981,313          5,443,376            1,915,876           16,892,889
Year ended March 2002                0           911,404                    3,272                  203,709            304,998              135,874            1,559,257
Note: The number of shares for 1 Unit Stock for the year ended March 2002 was 1,000 shares.



  Stock Price Range and Trading Volume


                                                                                                                                                                         (yen)
                                                                                                                                                                        4,000


                                                                                                                                                                        3,000


                                                                                                                                                                        2,000


                                                                                                                                                                        1,000
                                   (thousand shares)
                                          4,000,000                                                                                                                           0



                                           3,000,000



                                           2,000,000


í Stock Price
í Trading Volume                           1,000,000
                                                                 08.3                   09.3                 10.3                 11.3                   12.3

Year ended March                                               2008                     2009                 2010                 2011                   2012

Trading volume (thousand shares)                          3,173,028               3,661,608             2,437,151            2,079,763             1,745,098
High (yen)                                                    3,810                   3,950                 2,542                2,500                 2,370
Low (yen)                                                     2,245                     923                 1,317                1,756                 1,393
Note: The stock price range and trading volume are based on stock prices and volumes, respectively, on the Tokyo Stock Exchange (First Section).




                                                                                                                                                                              95
Mitsubishi Corporation      Annual Report 2012




  Stock Acquisition Rights

(1) Stock Options
Grant Date                                                               August 15, 2003            August 13, 2004            August 10, 2005            August 10, 2006
Number of stock acquisition rights                                       258                        292                        6,667                      13,324
Class and number of                                                      258,000 shares of          292,000 shares of          666,700 shares of          1,332,400 shares of
  shares to be issued for the                                            Mitsubishi                 Mitsubishi                 Mitsubishi                 Mitsubishi
  purpose of issuing stock                                               Corporation's              Corporation's              Corporation's              Corporation's
  acquisition rights                                                     common stock               common stock               common stock               common stock
Issue price of stock                                                     Issued in gratis           Issued in gratis           Issued in gratis           Issued in gratis
  acquisition rights
Price per share due upon                                                 ¥958                       ¥1,090                     ¥1,691                     ¥2,435
  exercise of stock acquisition
  rights (Exercise Price)
Exercise period                                                          From June 28, 2005         From June 25, 2006         From June 25, 2007         From July 22, 2008
                                                                         through June 27, 2013      through June 24, 2014      through June 24, 2015      through June 27, 2016
Notes: 1. The Exercise Price may be adjusted in accordance with terms specified at the time of issue.
       2. The “Number of stock acquisition rights” is the number remaining as of March 31, 2012.
       3. The number of shares to be issued per stock acquisition right with regard to stock options from 2005 is 100 shares.

(2) Stock Options for a Stock-Linked Compensation Plan

Grant Date                                    August 10, 2005            April 28, 2006             August 10, 2006            August 6, 2007             June 2, 2008
Date of resolution granting stock             June 24, 2005              June 24, 2005              June 27, 2006              June 26, 2007              June 26, 2007
acquisition rights
Number of stock acquisition rights            1,716                      54                         1,018                      1,645                      266
Class and number of shares to                 171,600 shares of          5,400 shares of            101,800 shares of          164,500 shares of          26,600 shares of
  be issued for the purpose of                Mitsubishi Corporation’s   Mitsubishi Corporation’s   Mitsubishi Corporation’s   Mitsubishi Corporation’s   Mitsubishi Corporation’s
  issuing stock acquisition rights            common stock               common stock               common stock               common stock               common stock
Issue price of stock acquisition rights       Issued in gratis           Issued in gratis           Issued in gratis           Issued in gratis           Issued in gratis
Price per share due upon exercise of          ¥1                         ¥1                         ¥1                         ¥1                         ¥1
  stock acquisition rights (Exercise Price)
Exercise period                               From August 11, 2005       From April 29, 2006        From August 11, 2006       From August 7, 2007        From June 3, 2008
                                              through June 24, 2035      through June 24, 2035      through June 27, 2036      through June 26, 2037      through June 26, 2037


Grant Date                                    August 4, 2008             June 1, 2009               August 3, 2009             June 7, 2010               August 2, 2010
Date of resolution granting stock             June 25, 2008              June 25, 2008              June 24, 2009              June 24, 2009              July 16, 2010
acquisition rights
Number of stock acquisition rights            2,637                      590                        8,923                      521                        6,012
Class and number of shares to                 263,700 shares of          59,000 shares of           892,300 shares of          52,100 shares of           601,200 shares of
  be issued for the purpose of                Mitsubishi Corporation’s   Mitsubishi Corporation’s   Mitsubishi Corporation’s   Mitsubishi Corporation’s   Mitsubishi Corporation’s
  issuing stock acquisition rights            common stock               common stock               common stock               common stock               common stock
Issue price of stock acquisition rights       Issued in gratis           Issued in gratis           Issued in gratis           Issued in gratis           Issued in gratis
Price per share due upon exercise of          ¥1                         ¥1                         ¥1                         ¥1                         ¥1
  stock acquisition rights (Exercise Price)
Exercise period                               From August 5, 2008        From June 2, 2009          From August 4, 2009        From June 8, 2010          From August 3, 2010
                                              through June 25, 2038      through June 25, 2038      through June 24, 2039      through June 24, 2039      through August 2, 2040


Grant Date                                    June 6, 2011               August 1, 2011
Date of resolution granting stock             May 20, 2011               July 15, 2011
acquisition rights
Number of stock acquisition rights            1,401                      5,817
Class and number of shares to                 140,100 shares of          581,700 shares of
  be issued for the purpose of                Mitsubishi Corporation’s   Mitsubishi Corporation’s
  issuing stock acquisition rights            common stock               common stock
Issue price of stock acquisition rights       Issued in gratis           Issued in gratis
Price per share due upon exercise of       ¥1                     ¥1
 stock acquisition rights (Exercise Price)
Exercise period                            From June 7, 2011      From August 2, 2011
                                           through August 2, 2040 through August 1, 2041
Notes: 1. Regarding grants in 2005 and 2006, eligible persons may exercise their stock acquisition rights, provided this is done within 10 years from the day after losing
          their position as either a director or executive officer of the Company.
       2. Regarding grants from August 2007 to June 2010, eligible persons may exercise their stock acquisition rights from the earlier of the day after losing their posi-
          tion as either a director, executive officer or senior vice president (“riji”) of the Company or two years after the date of resolution granting stock acquisition rights.
          However, if 10 years have passed from the day after losing their position as either a director, executive officer or senior vice president (“riji”) of the Company, they
          cannot exercise such rights.
       3. Regarding grants in August 2010 and June 2011, eligible persons may exercise their stock acquisition rights from the earlier of August 3, 2012 or the day after
          losing their position as either a director, executive officer or senior vice president (“riji”) of the Company. However, if 10 years have passed from the day after
          losing their position as either a director, executive officer or senior vice president (“riji”) of the Company, they cannot exercise such rights.
       4. Regarding grants in August 2011, eligible persons may exercise their stock acquisition rights from the earlier of August 2, 2013 or the day after losing their
          position as either a director, executive officer or senior vice president (“riji”) of the Company. However, if 10 years have passed from the day after losing their
          position as either a director, executive officer or senior vice president (“riji”) of the Company, they cannot exercise such rights.
       5. The “Number of stock acquisition rights” is the number remaining as of March 31, 2012.
96
                                                                                                                         Mitsubishi Corporation   Annual Report 2012




 Directors’ and Corporate Auditors’ Shareholdings
                                                                  Number of                                                                            Number of
                                                                 shares held                                                                          shares held
                 Title                          Name             (thousands)                           Title                       Name               (thousands)
Chairman of the Board                  Yorihiko Kojima                215               Director                         Kazuo Tsukuda                       3
President, Chief Executive Officer     Ken Kobayashi                   59               Director                         Ryozo Kato                          5
Director                               Ryoichi Ueda                    41               Director                         Hidehiro Konno                      6
Director                               Masahide Yano                   65               Senior Corporate Auditor         Yukio Ueno                        111
Director                               Hideyuki Nabeshima              42               Corporate Auditor                Osamu Noma                         10
Director                               Hideto Nakahara                 34               Corporate Auditor                Eiko Tsujiyama                      -
Director                               Yasuo Nagai                     28               Corporate Auditor                Hideyo Ishino                       -
Director                               Tamotsu Nomakuchi                3               Corporate Auditor                Tadashi Kunihiro                    -
Director                               Kunio Ito                        -
Note: The number of shares held is as of April 30, 2012. Shares have been rounded down to the nearest thousand shares.



 General Meeting of Shareholders

The ordinary general meeting of the Company’s shareholders is convened in June each year. An extraordinary general meeting of
shareholders is immediately convened whenever necessary.


 Dividends

(1) Record date for payment of final dividend: March 31
(2) Record date for payment of interim dividend: September 30
(3) The Company is not obliged to pay any final or interim dividends unclaimed for a period of three years after the date on which they
    are first made available by the Company.


 Handling of Shares

Regarding the procedures for handling shares, shareholders with a trading account at a securities company or other institution should
contact that securities company or other institution, while shareholders who have not opened an account with a securities company or
other institution should contact the following Account Management Institution regarding special accounts. Non-resident shareholders
are required to appoint and notify the Company of a standing proxy in Japan.

(Transfer Agent for Shares and Special Accounts, Account Management Institution)
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
10-11, Higashisuna 7-chome, Koto-ku, Tokyo 137-8081, Japan
Telephone: 0120-232-711 (within Japan)


 IR Site

Mitsubishi Corporation makes investor information available on its website. Please use the following URLs.
(English)
http://www.mitsubishicorp.com/jp/en/ir/
(Japanese)
http://www.mitsubishicorp.com/jp/ja/ir/




                                                                                                                                                                 97
Mitsubishi Corporation     Annual Report 2012



Members of the Board
(As of July 1, 2012)




Yorihiko Kojima                                    Ken Kobayashi*                                Ryoichi Ueda*                                     Masahide Yano
2010 to present                                    2010 to present                               2010 to present                                   2011 to present
     Chairman of the Board                              President and CEO                             Senior Executive Vice President,                  Regional CEO, East Asia (Concurrently)
1965 Joined Mitsubishi Corporation (MC)            1971 Joined MC                                     Chief Financial Officer, MC Group                 President, Mitsubishi Corporation
                                                                                                      Management Foundations                            China Co., Ltd.
                                                                                                      Development                                  2010 to present
                                                                                                 1973 Joined MC                                         Senior Executive Vice President
                                                                                                                                                   1971 Joined MC




Hideyuki Nabeshima*                                Hideto Nakahara*                              Yasuo Nagai*                                      Tamotsu Nomakuchi**
2012 Corporate Functional Officer (Corporate       2012 Corporate Functional Officer (Global     2011 to present                                   2009 to present
     Communications, Corporate                          Strategy & Business Development,              Regional Strategy (Japan)                         President, National Institute of
     Administration, Legal & Human Resources)           Logistics Management)                         (Concurrently) General Manager,                   Advanced Industrial Science and
     (Concurrently) Group CEO, Business            2011 to present                                    Kansai Branch                                     Technology
     Service Group, Chief Compliance Officer,           Senior Executive Vice President          2010 to present                                   2007 to present
     CSR & Environmental Affairs, Chief            1973 Joined MC                                     Executive Vice President                          Member of the Board, MC
     Information Officer, Motor Vehicle Business                                                 1977 Joined MC                                    2006 Chairman, Mitsubishi Electric
2010 to present                                                                                                                                         Corporation (April 2009 Director,
     Senior Executive Vice President                                                                                                                    Mitsubishi Electric Corporation; June
1972 Joined MC                                                                                                                                          2010: Retired as Director of Mitsubishi
                                                                                                                                                        Electric Corporation)
                                                                                                                                                   1965 Joined Mitsubishi Electric Corporation




Kunio Ito**                                        Kazuo Tsukuda**                               Ryozo Kato**                                      Hidehiro Konno**
2007 to present                                    2008 to present                               2009 to present                                   2010 to present
     Member of the Board, MC                            Member of the Board, MC                       Member of the Board, MC                           Member of the Board, MC
2006 to present                                         Chairman, Mitsubishi Heavy Industries,   2008 Retired from the Ministry of Foreign         2003 Chairman and CEO, Nippon Export
     Professor, Postgraduate School of                  Ltd.                                          Affairs of Japan                                  and Investment Insurance (Retired in
     Hitotsubashi University’s Department of       1968 Joined Mitsubishi Heavy Industries,           to present                                        July 2009)
     Commerce and Management                            Ltd.                                          Commissioner, Nippon Professional            2002 Retired from MITI
1992 Professor, Hitotsubashi University’s                                                             Baseball                                     1968 Joined Ministry of International Trade
     Department of Commerce and                                                                  1965 Joined the Ministry of Foreign Affairs of         and Industry (MITI)
     Management                                                                                       Japan




                                                                                                          ** Indicates a representative director.
                                                                                                          ** Indicates an outside director as provided for in Article 2-15 of the Companies Act.

98
                                                                                                        Mitsubishi Corporation     Annual Report 2012



Executive Officers
(As of July 1, 2012)




Ken Kobayashi*                 Nobuaki Kojima                      Shuma Uchino                             Yuichi Hiromoto
President &                    Group CEO,                          General Manager,                         Division COO,
Chief Executive Officer        Global Environment &                Corporate Accounting Dept.               Asset Finance &
                               Infrastructure Business             (Concurrently)                           Business Development Div.
                               Development Group                   Senior Assistant to Corporate
                                                                   Functional Officer                       Kanji Nishiura
Senior Executive Vice          Masayuki Mizuno                                                              Division COO,
Presidents                     Regional CEO,                       Toshimitsu Urabe                         Non-Ferrous Metals Div.
                               Asia & Oceania                      Senior Assistant to Corporate
Ryoichi Ueda*                  (Concurrently)                      Functional Officer                       Tatsuya Kiyoshi
Chief Financial Officer,       General Manager,                                                             Division COO,
MC Group Management            Jakarta Representative Office       Morikazu Chokki                          Commodity Chemicals Div. A
Foundations Development                                            Division COO,
                               Seiji Shiraki                       Isuzu Business Div.                      Kazuya Mizuno
Masahide Yano*                 Regional CEO,                                                                President & CEO,
Regional CEO, East Asia        Latin America                       Keiichi Asai                             KOHJIN Co., Ltd.
(Concurrently)                                                     General Manager,
President,                     Toru Moriyama                       Global Environment &                     Yasuhiko Kitagawa
Mitsubishi Corporation         Group CEO,                          Infrastructure Business                  General Manager,
China Co., Ltd.                Living Essentials Group             Development Group                        Global Strategy &
                                                                   CEO Office                               Business Development Dept.
Hideyuki Nabeshima*            Yasuo Nagai*
Corporate Communications,      Regional Strategy (Japan)           Ichiro Miyahara                          Kenji Yasuno
Corporate Administration,      (Concurrently)                      Division COO,                            General Manager,
Legal & Human Resources        General Manager,                    Real Estate Development &                Singapore Branch
(Concurrently)                 Kansai Branch                       Construction Div.
Group CEO,                                                                                                  Hidemoto Mizuhara
Business Service Group,        Ichiro Ando                         Kozo Shiraji                             Corporate Strategy & Planning
Chief Compliance Officer,      General Manager,                    Division COO,
CSR & Environmental Affairs,   Nagoya Branch                       Motor Vehicle Business Div.
Chief Information Officer,
                                                                                                            Junichi Iseda
                                                                                                            Division COO,
Motor Vehicle Business         Eiichi Tanabe                       Shunichi Matsui                          Natural Gas Business Div. B
                               Group CEO,                          President,
Hideto Nakahara*               Industrial Finance,                 Mitsubishi International                 Hiroshi Sakuma
Global Strategy                Logistics & Development Group       G.m.b.H.                                 Division COO,
& Business Development,                                            (Concurrently)                           New Energy & Power
Logistics Management                                               Senior Assistant to Regional CEO,        Generation Div.
                                                                   Europe-CIS,
                               Senior Vice Presidents              Middle East & Africa                     Iwao Toide
Executive Vice Presidents                                                                                   Division COO,
                               Tomohiko Fujiyama                   Morinobu Obata                           Steel Business Div.
                               Senior Assistant to                 Division COO, Textiles Div.
Jun Yanai                      Corporate Functional Officer
Group CEO,                                                                                                  Kazuyasu Misu
                                                                   Kenji Tani                               Head of Living Essentials
Energy Business Group
                               Shigeaki Yoshikawa                  President,                               Group for China
                               Chief Regional Officer,             Mitsubishi Corporation
Jun Kinukawa                   Middle East                         Unimetals Ltd.
Group CEO,                                                                                                  Shinichi Nakayama
Metals Group                                                                                                Division COO,
                               Koichi Narita                       Takehiko Kakiuchi                        Commodity Chemicals Div. B
                               President, SIGMAXYZ Inc.            General Manager,
Osamu Komiya                                                       Living Essentials Group CEO Office
Group CEO,                                                                                                  Masaji Santo
                               Keiichi Nakagaki                    (Concurrently)                           Division COO,
Machinery Group                                                    Division COO,
                               Chairman & Managing                                                          Environment & Infrastructure
                               Director,                           Foods (Commodity) Div.                   Business Div.
Seiei Ono                      Mitsubishi Corporation
Regional CEO,                  India Pvt. Ltd.                     Kazushi Okawa
North America                                                                                               Mitsuyuki Takada
                                                                   Division COO,                            Managing Director & CEO,
(Concurrently)
                               Takahiro Mazaki                     Plant & Engineering Business Div.        Mitsubishi Australia Ltd.
President,
                               Senior Assistant to Group CEO,                                               (Concurrently)
Mitsubishi Corporation
                               Energy Business Group               Yoshihiko Kawamura                       Managing Director,
(Americas)
                                                                   Senior Assistant to Group CEO,           Mitsubishi New Zealand Ltd.
                               Yasuyuki Sakata                     Business Service Group
Takahisa Miyauchi              Senior Assistant to Regional CEO,
Group CEO,                                                                                                  Kenichi Koyanagi
                               East Asia                           Yasuhito Hirota                          Officer for E&P,
Chemicals Group
                               (Concurrently)                      Senior Assistant to                      Energy Business Group
                               President,                          Corporate Functional Officer
Tetsuro Terada                 Mitsubishi Corporation              (Concurrently)
Regional CEO,                                                                                               Yoichi Shimoyama
                               (Hong Kong) Ltd.                    General Manager,                         General Manager,
Europe-CIS,                                                        Corporate Administration Dept.
Middle East & Africa                                                                                        Finance Dept.
                               Yasuyuki Sugiura                    (Concurrently)
(Concurrently)                                                     General Manager,
                               President,                                                                   Akira Murakoshi
Managing Director,                                                 CSR & Environmental Affairs Dept.
                               Mitsubishi International                                                     Division COO,
Mitsubishi Corporation
                               Corporation                                                                  General Merchandise Div.
International (Europe) Plc.
                                                                   Hajime Hirano
                                                                   Division COO,
                                                                   Petroleum Business Div.                          *
                                                                                                                        Represents members of the Board

                                                                                                                                                   99
Mitsubishi Corporation   Annual Report 2012



Corporate Data
(As of March 31, 2012)




Mitsubishi Corporation                                                American Depositary Receipts:
Date Established: July 1, 1954                                         Ratio (ADR:ORD): 1:2
(Date Registered: April 1, 1950)                                       Exchange: OTC (Over-the-Counter)
                                                                       Symbol: MSBHY
Capital: ¥204,446,667,326
                                                                       CUSIP: 606769305
Shares of Common Stock Issued:
                                                                      Depositary:
  1,653,505,751
                                                                        The Bank of New York Mellon
Head Office:                                                            101 Barclay Street,
  Mitsubishi Shoji Building                                             New York, NY 10286, U.S.A.
    3-1, Marunouchi 2-chome,                                            Telephone: (201) 680-6825
    Chiyoda-ku, Tokyo, 100-8086, Japan                                  U.S. toll free: 888-269-2377
    (Registered address of our company)                                                (888-BNY-ADRS)
    Telephone: +81-3-3210-2121                                          URL: http://www.adrbnymellon.com
   Marunouchi Park Building
    6-1, Marunouchi 2-chome,
                                                                      Contact:
    Chiyoda-ku, Tokyo, 100-8086, Japan
                                                                      Investor Relations Department,
Number of Employees:                                                  Mitsubishi Corporation
 Parent company:    5,796                                             3-1, Marunouchi 2-chome,
 Consolidated:    63,058                                              Chiyoda-ku, Tokyo, 100-8086, Japan
Independent Auditors:                                                 Telephone: +81-3-3210-2121
  Deloitte Touche Tohmatsu LLC/
  Tohmatsu Tax Co.                                                    Internet
Number of Shareholders: 298,301                                       Mitsubishi Corporation’s latest annual reports, financial
                                                                      reports and news releases are available on the Investor
Stock Listings:                                                       Relations homepage.
  Tokyo, Osaka, Nagoya, London                                        URL: http://www.mitsubishicorp.com/jp/en/ir/
Transfer Agent for Shares and Special Accounts,
Account Management Institution:
  Mitsubishi UFJ Trust and Banking Corporation
  Corporate Agency Division
  10-11, Higashisuna 7-chome, Koto-ku,
  Tokyo 137-8081, Japan
  Telephone: 0120-232-711
   (within Japan)




Forward-Looking Statements
This annual report contains forward-looking statements about Mitsubishi Corporation’s future plans, strategies, beliefs and
performance that are not historical facts. They are based on current expectations, estimates, forecasts and projections about the
industries in which Mitsubishi Corporation operates and beliefs and assumptions made by management. As the expectations, estimates,
forecasts and projections are subject to a number of risks, uncertainties and assumptions, they may cause actual results to differ
materially from those projected. Mitsubishi Corporation, therefore, wishes to caution readers not to place undue reliance on forward-
looking statements. Furthermore, the company undertakes no obligation to update any forward-looking statements as a result of new
information, future events or other developments. Risks, uncertainties and assumptions mentioned above include, but are not limited to,
commodity prices; exchange rates and economic conditions; the outcome of pending and future litigation; and the continued availability
of financing, financial instruments and financial resources.


100
www.mitsubishicorp.com




                         Printed in Japan
Financial Section of Annual Report 2012
for the year ended March 31, 2012




                                      Pursuing Sustainable
                                      Corporate Value
                                                                                                                                                                 Mitsubishi Corporation   Annual Report 2012




 financial section of annual report
 <for the year ended march 2012 >
 contents
  Management’s Discussion and Analysis of Financial Condition
    and Results of Operations  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .      02
  Six-Year Financial Summary  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       38
  Independent Auditors’ Report  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .           40
  Supplementary Explanation  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .        41
  Management Internal Control Report (Translation)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                    42
  Independent Auditor’s Report filed under the Financial Instruments
    and Exchange Act in Japan (Translation)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                          44
  Consolidated Balance Sheets  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .          48
  Consolidated Statements of Income  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                   50
  Consolidated Statements of Comprehensive Income  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                            51
  Consolidated Statements of Equity  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                52
  Consolidated Statements of Cash Flows  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                           55
  Notes to Consolidated Financial Statements  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                               57
  Responsibility Statement  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   147




Forward-Looking Statements
This financial section of Mitsubishi Corporation’s Annual Report for the year ended March 2012 contains forward-looking statements about Mitsubishi
Corporation’s future plans, strategies, beliefs and performance that are not historical facts . They are based on current expectations, estimates,
forecasts and projections about the industries in which Mitsubishi Corporation operates and beliefs and assumptions made by management . As the
expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, they may cause actual results to
differ materially from those projected . Mitsubishi Corporation, therefore, wishes to caution readers not to place undue reliance on forward-looking
statements . Furthermore, the company undertakes no obligation to update any forward-looking statements as a result of new information, future
events or other developments .
   Risks, uncertainties and assumptions mentioned above include, but are not limited to, commodity prices; exchange rates and economic conditions;
the outcome of pending and future litigation; and the continued availability of financing, financial instruments and financial resources .




                                                                                                                                                                                                         01
Mitsubishi Corporation   Annual Report 2012


Management’s Discussion and Analysis of Financial Condition
and Results of Operations

1. Results of Operations

In the year ended March 2012, economies in industrialized nations were lackluster for a number of reasons. These
included financial market turmoil caused by the deepening European sovereign debt crisis, and implementation of
austerity measures by various governments. Emerging economies, while seeing export growth languish, generally
expanded on the back of robust internal demand in leading countries such as China and India.

In Japan, economic activity headed for recovery in the latter half of the fiscal year, after production and exports slumped
in the aftermath of the Great East Japan Earthquake. However, the pace of recovery was moderate at best, held back by
the rapid yen appreciation, impact of flooding in Thailand and other factors.

Under such circumstances, we saw our total revenue for the year ended March 2012 increased by ¥359.0 billion, or 6.9%,
year over year to ¥5,565.8 billion.

This increase in total revenue was mainly attributable to higher crude oil prices and higher transaction volumes in the
Energy Business Group and higher prices in chemical product markets and increased transaction volumes in the
Chemicals Group.

Gross profit declined by ¥22.0 billion, or 1.9%, to ¥1,127.9 billion due in part to lower sales volumes at an Australian
resource-related subsidiary.

Selling, general and administrative expenses rose by ¥25.6 billion, or 3.1%, to ¥850.2 billion due in part to higher
expenses in line with increased transactions at consolidated subsidiaries.

In other P/L items, other income - net increased due to improvements in exchange rate-related earnings. However, there
was a decrease in gain on marketable securities and investments-net due to the absence of non-recurring items, one of
which was gains on a share transfer at a Chilean iron ore-related subsidiary recorded in the year ended March 2011.

As a result, income before income taxes and equity in earnings of Affiliated companies and other declined by ¥71.1
billion, or 13.4%, to ¥459.0 billion.

Net equity in earnings of Affiliated companies and other increased by ¥23.5 billion, or 14.1%, to ¥190.5 billion. This was
the result of strong performance at business investees, particularly overseas resource-related business investees.

Accordingly, net income attributable to Mitsubishi Corporation for the year ended March 2012 declined by ¥10.7 billion,
or 2.3%, to ¥453.8 billion.

Total assets at March 31, 2012 were ¥12,588.5 billion, up ¥1,315.7 billion, or 11.7%, from March 31, 2011. In addition
to an increase in accounts receivables due to a recovery in market prices, this rise reflected increases in investments in
Affiliated companies, property and equipment, and other investments due to the execution of new investments.

Total liabilities were ¥8,760.2 billion, up ¥1,037.4 billion, or 13.4%, from March 31, 2011. The increase was partially
due to an increase in accounts payable which was commensurate with accounts receivables due to recovering market
prices. The overall rise also reflected increases in short-term debt and long-term debt due to the procurement of funds for
making new investments.

Interest-bearing liabilities (net), which are interest-bearing liabilities (gross) minus cash and cash equivalents and time
deposits, increased by ¥700.1 billion, or 23.8%, from March 31, 2011 to ¥3,647.4 billion. The net debt-to-equity ratio,
which is net interest-bearing liabilities divided by total equity, was 1.0.


02
                                                           -1-
                                                                                                    Mitsubishi Corporation   Annual Report 2012




Total shareholders’ equity increased by ¥276.0 billion, or 8.5%, from March 31, 2011 to ¥3,509.3 billion. This is largely
the result of consolidated net income attributable to Mitsubishi Corporation in the year ended March 2012 which
outweighed the effect of decreases in foreign currency translation adjustments and net unrealized gains on securities
available-for-sale due to the strong yen and lower share prices, respectively.

Cash and cash equivalents at March 31, 2012 were ¥1,253.0 billion, up ¥44.2 billion, or 3.7%, from March 31, 2011.

Net cash provided by operating activities was ¥550.7 billion, despite an increase in working capital requirements. Cash
was mainly provided by strong cash flows from operating transactions and firm growth in dividend income from business
investments primarily at resource-related companies.

Net cash used in investing activities was ¥1,100.9 billion. Cash was mainly used for investments in Chilean and Peruvian
companies with copper assets, acquisitions of interests in Canadian natural gas assets, and for capital expenditures and
acquisition of working interests at Australian resource-related subsidiaries.

As a result of the above, free cash flow, which is the sum of operating and investing cash flows, was negative ¥550.2
billion.

Net cash provided by financing activities was ¥599.1 billion. While cash was used for the payment of dividends at the
Parent, this was outweighed mainly by the procurement of funds by borrowing for new investments.

In terms of our forecast for the year ending March 2013, we are forecasting gross profit of ¥1,250.0 billion, ¥122.1
billion, or 10.8%, higher year over year due primarily to higher transaction volumes in coking coal and steel products.
Combined with the fact that selling, general and administrative expenses are projected to slightly increase from the year
ended March 2012, operating income is forecasted to increase by ¥68.9 billion, or 25.4%, to ¥340.0 billion. In other
items, Mitsubishi Corporation is forecasting a deterioration in foreign exchange related accounts. As a result,
consolidated net income attributable to Mitsubishi Corporation is projected at ¥500.0 billion, an increase of ¥46.2 billion,
or 10.2%, year over year.

Note:
Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and
certain assumptions that management believes are reasonable. Actual results may therefore differ materially from these statements for
various reasons.




Year Ended March 2012 vs. Year Ended March 2011

1) Total Revenues
Total revenues were ¥5,565.8 billion, up ¥359.0 billion, or 6.9%, from the year ended March 2011.

There was a ¥353.9 billion, or 7.7%, year over year increase in revenues from trading, manufacturing and other activities
to ¥4,944.8 billion. Trading margins and commissions on trading transactions increased by ¥5.0 billion, or 0.8%, to
¥621.0 billion.

The main reasons for changes (by segment) were as follows:

The Energy Business Group saw revenues increase by ¥157.5 billion, or 12.6%, to ¥1,406.4 billion, due to rising crude
oil and other commodity prices and increased sales volumes.




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                                                                -2-
Mitsubishi Corporation   Annual Report 2012




The Chemicals Group saw revenues rise by ¥205.7 billion, or 25.6%, to ¥1,009.4 billion. The increase is due to the new
consolidation of a plastics business subsidiary (Chuo Kagaku Co., Ltd.), and higher commodity prices and sales volumes
in transactions at the Parent.

The Machinery Group saw revenues decline by ¥93.5 billion, or 13.8%, to ¥584.2 billion, despite higher revenues in the
construction machinery and other businesses. The overall result reflected lower sales in Asian automobile operations due
to the impact of the floods in Thailand, a decrease due to yen appreciation, and the impact of a consolidated subsidiary
becoming an equity-method affiliate.

2) Gross Profit
Gross profit declined by ¥22.0 billion, or 1.9%, to ¥1,127.9 billion.
The decline was the result of lower earnings at an Australian resource-related subsidiary (coking coal) caused by
decreased sales volumes, outweighing positive factors such as an increase in earnings at the Parent in energy-related
businesses due to rising crude oil prices and increased sales volumes.

3) Selling, General and Administrative Expenses
Selling, general and administrative expenses rose by ¥25.6 billion, or 3.1%, to ¥850.2 billion.
The increase was due to business outsourcing expenses at the Parent, and higher expenses in line with transaction growth
at consolidated subsidiaries.

4) Provision for Doubtful Receivables
The expense for provision for doubtful receivables was ¥6.5 billion, which was down ¥2.6 billion, or 28.6% year over
year, despite the accumulation of small doubtful receivables. The decline reflected the fact that in the previous fiscal year
we made provisions at metal products-related and other consolidated subsidiaries, and at the Parent.

5) Interest Expense (net of interest income)
Net interest expense was ¥3.2 billion, down ¥3.5 billion, or 52.2% year over year. Interest expense increased as a result
of procuring funds for new investments. However, this was outweighed by an increase in interest income due to hedge
operations at the Parent.

6) Dividend Income
Dividend income was ¥115.5 billion, a decrease of ¥5.1 billion, or 4.2%. While dividend income from overseas energy
resource-related subsidiaries increased in line with higher crude oil prices, this was outweighed by a decline in dividend
income from non-ferrous metals-related businesses. Of the dividend income, resource-related dividend income was ¥93.4
billion, and dividend income related to manufacturing, sales and other activities was ¥22.1 billion.

7) Gain on Marketable Securities and Investments—Net
In the year ended March 2012, we recorded a net gain on marketable securities and investments of ¥22.0 billion, which
represented a year over year decline of ¥31.5 billion, or 58.9%. Despite an improvement in write-downs of listed
company shares from the previous fiscal year, this was offset by the absence of gains on a share transfer at a Chilean iron
ore-related subsidiary and gains on the sale of shares at the Parent that were recorded in the year ended March 2011.

8) Loss on Property and Equipment—Net
We recorded a net loss on property and equipment of ¥7.1 billion. This was an increase of ¥4.5 billion, or 177.1% from
the previous fiscal year, and was due mainly to a decline in gains on sale at ship-related subsidiaries.

9) Other Income—Net
We recorded net other income of ¥60.7 billion, up ¥11.5 billion, or 23.4%, year over year. This was mainly due to an


04

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                                                                                            Mitsubishi Corporation   Annual Report 2012




improvement in foreign exchange gains and losses at overseas subsidiaries, and bargain purchase gains from the
acquisition of a plastics business subsidiary (Chuo Kagaku).

10) Income Before Income Taxes and Equity in Earnings of Affiliated Companies and Other
Income before income taxes and equity in earnings of Affiliated companies and other was ¥459.0 billion, down ¥71.1
billion, or 13.4%, year over year for the abovementioned reasons.

11) Income Taxes
Income taxes decreased by ¥29.5 billion, or 14.8%, to ¥169.2 billion. This was because of the decrease in income before
income taxes and equity in earnings of Affiliated companies and other. As a result, our effective tax rate for the year
ended March 2012 was 36.9%.

12) Equity in Earnings of Affiliated Companies and Other
Equity in earnings of Affiliated companies and other increased by ¥23.5 billion, or 14.1%, to ¥190.5 billion, supported
mainly by strong results at overseas energy-related companies and higher equity in earnings of a petrochemical-related
company and food-related companies.

13) Net Income Attributable to the Noncontrolling Interest
Net income attributable to the noncontrolling interest was ¥26.5 billion, down ¥7.4 billion, or 21.9%, year over year.

14) Net Income Attributable to Mitsubishi Corporation
Net income attributable to Mitsubishi Corporation declined by ¥10.7 billion, or 2.3%, to ¥453.8 billion.



Year Ended March 2011 vs. Year Ended March 2010

1) Total Revenues
Total revenues were ¥5,206.9 billion, up ¥666.1 billion, or 14.7%, from the year ended March 2010.
There was a ¥623.2 billion, or 15.7%, year over year increase in revenues from trading, manufacturing and other
activities to ¥4,590.9 billion. Trading margins and commissions on trading transactions increased by ¥42.9 billion, or
7.5%, to ¥616.0 billion.

The main reasons for changes were as follows:
• The Energy Business Group saw revenues increase by ¥279.7 billion, or 28.9%, to ¥1,248.9 billion, in line with
    rising crude oil prices and other commodity prices and increased sales volumes.
• The Metals Group saw revenues rise by ¥162.4 billion, or 24.2%, to ¥834.8 billion. This was chiefly due to rising
    sales prices at an Australian resource-related subsidiary (coking coal).
• The Machinery Group saw revenues rise by ¥112.5 billion, or 19.9%, to ¥677.7 billion. This result was mainly
    attributable to higher sales in overseas automobile-related operations, particularly in Asia.
• The Chemicals Group saw revenues rise by ¥88.2 billion, or 12.3%, to ¥803.7 billion. This reflected strong
    transactions at the Parent, overseas regional subsidiaries and specialty paper business-related subsidiaries.

2) Gross Profit
Gross profit increased by ¥133.3 billion, or 13.1%, to ¥1,149.9 billion due to rising prices for coking coal and other
resources, and to strong sales in steel products and automobile-related operations.




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Mitsubishi Corporation   Annual Report 2012




3) Selling, General and Administrative Expenses
Selling, general and administrative expenses declined by ¥4.8 billion, or 0.6%, to ¥824.6 billion due to the absence of
head office building relocation expenses recorded in the year ended March 2010, and lower pension expenses.

4) Provision for Doubtful Receivables
The expense for provision for doubtful receivables was ¥9.1 billion, which was ¥4.2 billion, or 86.8%, higher year over
year. This increase was mainly due to the accumulation of doubtful receivables at metal products-related and other
consolidated subsidiaries, and at the Parent.

5) Interest Expense (net of interest income)
Net interest expense was ¥6.7 billion, down ¥5.9 billion, or 47.0%, from the year ended March 2010. This resulted from
lower funding costs due mainly to lower yen interest rates.

6) Dividend Income
Dividend income increased by ¥32.6 billion, or 37.1%, to ¥120.6 billion. The main reason was an increase in dividend
income particularly from non-ferrous metals-related businesses in line with improving commodity prices. Of the dividend
income, resource-related dividend income was ¥101.7 billion.

7) Gain on Marketable Securities and Investments—Net
In the year ended March 2011, we recorded a net gain on marketable securities and investments of ¥53.4 billion, which
represented a year over year increase of ¥53.2 billion.

In addition to the absence of write-downs on Japan Airlines Corporation shares and Mitsubishi Motors Corporation
preferred shares recorded in the year ended March 2010, this increase reflected gains on a share transfer at a Chilean iron
ore-related subsidiary, and gains on the sale of shares at the Parent.

8) Loss on Property and Equipment—Net
We recorded a net loss on property and equipment of ¥2.6 billion, which was ¥13.3 billion, or 83.6% less year over year.
This reflected impairment losses on property and equipment recorded in the previous fiscal year at real estate-related
subsidiaries.

9) Other Income—Net
We recorded net other income of ¥49.2 billion, down ¥3.2 billion, or 6.1%, year over year, despite improved funding
costs and gains on fund management at the Parent. The overall decrease reflected deterioration in foreign exchange gains
and losses of overseas subsidiaries.

10) Income Before Income Taxes and Equity in Earnings of Affiliated Companies and Other
Income before income taxes and equity in earnings of Affiliated companies and other was ¥530.1 billion, up ¥235.8
billion, or 80.1%, year over year. This reflected a ¥133.3 billion, or 13.1%, year over year increase in gross profit
resulting from higher coking coal and other resource prices, as well as strong sales growth in the steel products business
and automobile-related operations.
Another factor was the ¥4.8 billion, or 0.6%, decrease in selling, general and administrative expenses due to lower
pension expenses and the absence of head office building relocation expenses recorded in the year ended March 2010.

Furthermore, there were large improvements in dividend income, net gain on marketable securities and investments, and
net loss on property and equipment.




06
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                                                                                           Mitsubishi Corporation   Annual Report 2012




11) Income Taxes
Income taxes increased by ¥80.4 billion, or 68.0%, from the year ended March 2010 to ¥198.7 billion. In addition to the
increase in income from continuing operations before income taxes and equity in earnings of Affiliated companies and
other, this increase reflected one-time charges such as taxes on revaluations associated with the adoption of the
consolidated tax system from the year ending March 2012 onward at the Parent. Our effective tax rate was 37.2%.

12) Equity in Earnings of Affiliated Companies and Other
Equity in earnings of Affiliated companies and other increased by ¥49.1 billion, or 41.7%, to ¥167.0 billion, despite the
absence of gains on the reversal of deferred tax liabilities recorded in the year ended March 2010 at a
petrochemical-related company. The increase reflected strong performances at business investees, particularly overseas
resource-related business investees

13) Net Income Attributable to the Noncontrolling Interest
Net income attributable to the noncontrolling interest increased by ¥15.8 billion, or 87.3%, year over year to ¥33.9
billion.

14) Net Income Attributable to Mitsubishi Corporation
Net income attributable to Mitsubishi Corporation increased by ¥188.8 billion, or 68.4%, to ¥464.5 billion. ROE was
15.1%, a 4.7 percentage point improvement from the year ended March 2010.



2. Year Ended March 2012 Segment Information

Operating Segments
1) Industrial Finance, Logistics & Development Group
The Industrial Finance, Logistics & Development Group is developing shosha-type industrial finance businesses. These
include asset management businesses, buyout investment businesses, leasing businesses, real estate development and
finance businesses, logistics services, and insurance businesses.

In the year ended March 2012, segment revenues increased by ¥4.8 billion, or 5.2%, to ¥97.4 billion, mainly due to
improved revenues in logistics- and insurance-related businesses.

Gross profit increased by ¥1.1 billion, or 2.3%, to ¥48.2 billion. The segment posted operating income of ¥10.1 billion,
up ¥0.9 billion, or 9.8%.

Equity in earnings of Affiliated companies and other increased by ¥0.3 billion, or 3.4%, to ¥9.2 billion, despite the
absence of gains on the sale of overseas real estate recorded in the year ended March 2011. The overall increase was
mainly attributable to an improvement in lease-related business earnings.

The segment recorded net income attributable to Mitsubishi Corporation of ¥14.9 billion, an increase of ¥3.3 billion, or
28.4%, year over year.

2) Energy Business Group
The Energy Business Group conducts oil and gas exploration, development and production (E&P) business; investment
in liquefied natural gas (LNG) liquefaction projects; and trading of crude oil, petroleum products, carbon materials and
products, LNG and liquefied petroleum gas (LPG) and so forth.




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Mitsubishi Corporation   Annual Report 2012




In the year ended March 2012, segment revenues increased by ¥157.5 billion, or 12.6%, to ¥1,406.4 billion in line with
rising crude oil and other commodity prices and increased sales volumes.

As a result of this growth, gross profit increased by ¥18.0 billion, or 41.1%, to ¥61.8 billion. Segment operating income
rose substantially by ¥20.6 billion, or 556.8%, to ¥24.3 billion.

Equity in earnings of Affiliated companies and other increased by ¥16.2 billion, or 29.1%, to ¥71.9 billion. This increase
was the result of higher equity in earnings of overseas resource-related companies due to higher oil prices.

The segment recorded net income attributable to Mitsubishi Corporation of ¥120.6 billion, an increase of ¥26.6 billion, or
28.3%, year over year. In addition to the reasons above, this result reflected factors such as an increase in dividend
income from overseas resource-related business investees, which outweighed a drop in earnings due to the absence of
gains on sale of shares recorded in the year ended March 2011.

3) Metals Group
The Metals Group trades, develops businesses and invests in a range of fields. These include steel products such as steel
sheets and thick plates, steel raw materials such as coking coal and iron ore, and non-ferrous raw materials and products
such as copper and aluminum.

In the year ended March 2012, the segment recorded a ¥21.6 billion, or 2.6%, year over year increase in revenues to
¥856.4 billion. This was chiefly due to higher transactions in non-ferrous metals-related businesses at the Parent.

However, gross profit decreased by ¥58.7 billion, or 18%, to ¥267.6 billion. The overall decline mainly reflected lower
sales volume at an Australian resource-related subsidiary (coking coal) due to the impact of bad weather and labor
disputes; lower transaction volumes at a steel products-related subsidiary; and falling sales prices at a ferrochrome
production and sales subsidiary. Segment operating income was also down, declining by ¥60.5 billion, or 32.7%, to
¥124.5 billion.

Equity in earnings of Affiliated companies and other declined by ¥5.5 billion, or 13.1%, to ¥36.4 billion, due mainly to
lower equity-method earnings from overseas resource-related business investees.

The segment recorded net income attributable to Mitsubishi Corporation of ¥172.1 billion, a decrease of ¥59.4 billion, or
25.7%. In addition to the reasons above, this result reflected a decrease due to the absence of gains on a share transfer at a
Chilean iron ore-related subsidiary that were recorded in the year ended March 2011, as well as lower dividend income
from copper mines.

4) Machinery Group
The Machinery Group engages in sales, finance and logistics for machinery across many different sectors, in which it
also develops businesses and invests. These fields range from large-scale plants for production of natural gas, petroleum,
chemicals or steel, to marine, automotive, and other transport equipment, as well as aerospace-related equipment, mining
equipment, construction machinery, industrial equipment and elevators and escalators.

In the year ended March 2012, this segment saw revenues decrease by ¥93.5 billion, or 13.8%, to ¥584.2 billion, despite
an increase in revenues from construction machinery operations and other businesses. The overall result reflected lower
sales in Asian automobile operations due to the impact of the floods in Thailand, a decrease due to the yen’s appreciation,
and the impact of a consolidated subsidiary becoming an equity-method affiliate.

As a result, gross profit decreased by ¥3.1 billion, or 1.7%, to ¥178.9 billion. Furthermore, operating income declined by
¥6.0 billion, or 9.0%, to ¥60.4 billion.


08
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                                                                                               Mitsubishi Corporation   Annual Report 2012




Equity in earnings of Affiliated companies and other rose by ¥4.2 billion, or 22.8%, to ¥22.6 billion due primarily to
increased equity in earnings of overseas automobile business-related companies and special factors associated with
withdrawal from a business. This segment recorded net income attributable to Mitsubishi Corporation of ¥54.5 billion, a
decrease of ¥6.9 billion, or 11.2%, year over year. This decrease was mainly due to factors such as a loss at the Parent
due to withdrawal from a business and the absence of gains on share sales recorded in the year ended March 2011.

5) Chemicals Group
The Chemicals Group trades chemical products in a broad range of fields, in which it also develops businesses and
invests. These fields extend from raw materials used in industrial products such as ethylene, methanol, and salt produced
from crude oil, natural gas, minerals, plants, marine resources and so forth, to plastics, electronic materials, food
ingredients, fertilizer and fine chemicals.

In the year ended March 2012, segment revenues increased by ¥205.7 billion, or 25.6%, to ¥1,009.4 billion. This
reflected the new consolidation of a plastics business subsidiary (Chuo Kagaku Co., Ltd.), and higher commodity prices
and sales volumes in transactions at the Parent.

Gross profit increased by ¥2.4 billion, or 2.9%, to ¥86.6 billion. Furthermore, operating income rose by ¥0.1 billion, or
0.3%, to ¥29.3 billion.

Equity in earnings of Affiliated companies and other increased by ¥3.3 billion, or 22.4%, to ¥18.0 billion. This was due
to increased equity-method earnings of petrochemical business-related companies and others on strong transactions.

The segment recorded net income attributable to Mitsubishi Corporation of ¥37.1 billion, up ¥8.0 billion, or 27.5%, year
over year. In addition to the above reasons, this increase was due to bargain purchase gains from the acquisition of a
plastics business subsidiary (Chuo Kagaku).

6) Living Essentials Group
The Living Essentials Group provides products and services, develops businesses and invests in various fields closely
linked with people’s lives, including food products and food, textiles, essential supplies, healthcare, distribution and retail.
These fields extend from the procurement of raw materials to the consumer market.

In year ended March 2012, the segment recorded a ¥45.9 billion, or 3.0%, increase in revenues to ¥1,571.7 billion. This
increase was mainly due to strong transactions at food-related subsidiaries and new consolidations.

Gross profit increased by ¥6.2 billion, or 1.4%, to ¥463.0 billion. Furthermore, operating income rose by ¥0.3 billion, or
0.4%, to ¥69.7 billion.

Equity in earnings of Affiliated companies and other increased by ¥2.5 billion, or 10.7%, to ¥25.8 billion. This increase
primarily reflected higher equity-method earnings mainly at food-related companies, which outweighed losses related to
the Great East Japan Earthquake that were recorded at certain domestic Affiliated companies.

The segment recorded net income attributable to Mitsubishi Corporation of ¥56.6 billion, an increase of ¥10.3 billion, or
22.2%, year over year. Despite a write-down on shares of The Nisshin OilliO Group, Ltd., this increase mainly reflected
gains on sales of shares and the absence of recording tax expenses related to the adoption of the consolidated tax filing
system in the previous fiscal year.

Geographic Information
1) Japan
Revenues in the year ended March 2012 were ¥4,229.9 billion, up ¥417.8 billion, or 11.0%. This increase mainly


                                                                                                                                       09
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Mitsubishi Corporation   Annual Report 2012




reflected higher revenues in energy-related businesses due to higher crude oil prices.

Gross profit increased by ¥32.3 billion, or 4.4%, to ¥767.4 billion due mainly to higher earnings at the Parent in
energy-related businesses.

2) Australia
In the year ended March 2012, revenues were ¥494.4 billion, a year over year increase of only ¥1.0 billion, or 0.2%.

Gross profit fell by ¥48.4 billion, or 27.5%, to ¥127.4 billion because of the impact of exchange rate fluctuations and
lower sales volumes. The latter reflected heavy rains and an industrial dispute at a resource-related subsidiary (coking
coal).

3) Thailand
In the year ended March 2012, revenues were ¥295.8 billion, down ¥85.1 billion, or 22.3%, year over year. This decrease
mainly reflected lower sales units in automobile operations in Thailand because of the flooding, as well as the negative
impact of the yen’s appreciation on revenues.

Gross profit declined by ¥8.2 billion, or 15.5%, to ¥45.0 billion for the above reasons.

4) United Kingdom
In the year ended March 2012, revenues were ¥192.5 billion, ¥26.6 billion, or 16.0%, higher year over year. This increase
mainly reflected the acquisition of canning operations by a food-related subsidiary.

Gross profit increased by ¥4.9 billion, or 11.4%, to ¥47.6 billion for the same reason.

5) U.S.A.
In the year ended March 2012, revenues were ¥160.5 billion, up ¥9.9 billion, or 6.6%, year over year. This was mainly
the result of increased revenues at food-related subsidiaries in line with higher commodity prices.

Gross profit declined by ¥3.2 billion, or 6.4%, to ¥46.7 billion due mainly to lower revenues at food-related subsidiaries
and overseas regional subsidiaries.

6) Other
In the year ended March 2012, revenues declined by ¥11.2 billion, or 5.5%, to ¥192.8 billion.

Gross profit increased by ¥0.6 billion, or 0.7%, to ¥93.6 billion.



3. Year Ended March 2011 Segment Information

Operating Segments
1) Industrial Finance, Logistics & Development Group
In the year ended March 2011, segment revenues decreased by ¥5.2 billion, or 5.3%, to ¥92.6 billion, mainly due to the
absence of real estate sales recorded in the year ended March 2010.

Gross profit rose by ¥2.4 billion, or 5.4%, to ¥47.1 billion due mainly to higher transaction volumes in
distribution-related businesses. The segment posted a ¥4.8 billion, or 109.1%, increase in operating income to ¥9.2
billion.

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Equity in earnings of Affiliated companies and other decreased by ¥1.8 billion, or 16.8%, to ¥8.9 billion, despite gains on
the sale of overseas real estate and an improvement in lease-related business earnings. The overall decrease was the result
mainly of fund investment-related earnings recorded in the year ended March 2010.

The segment recorded net income attributable to Mitsubishi Corporation of ¥11.6 billion, an improvement of ¥19.2
billion year over year. In addition to the above reasons, this result reflected factors such as the absence of share
write-downs on Japan Airlines Corporation (JAL) and other shares recorded in the year ended March 2010.

2) Energy Business Group
In the year ended March 2011, segment revenues increased by ¥279.7 billion, or 28.9%, to ¥1,248.9 billion in line with
rising crude oil and other commodity prices and increased sales volumes.

Gross profit increased by ¥4.0 billion, or 10.1%, to ¥43.8 billion. The segment recorded operating income of ¥3.7 billion,
a ¥5.1 billion improvement from the year ended March 2010.

Equity in earnings of Affiliated companies and other increased by ¥16.0 billion, or 40.3%, to ¥55.7 billion. This increase
was the result of higher equity in earnings of overseas resource-related business investees due to higher oil prices.

The segment recorded net income attributable to Mitsubishi Corporation of ¥94.0 billion, an increase of ¥22.1 billion, or
30.7%, year over year. In addition to the above reasons, this result reflected factors such as the absence of losses related
to fuel derivative transactions for a JAL subsidiary recorded in the year ended March 2010.

3) Metals Group
In the year ended March 2011, the segment recorded a ¥162.4 billion, or 24.2%, year over year increase in revenues to
¥834.8 billion. This was chiefly due to rising sales prices at an Australian resource-related subsidiary (coking coal).

Gross profit increased by ¥94.5 billion, or 40.8%, to ¥326.3 billion, the result mainly of higher transactions at a steel
products-related subsidiary, and the absence of losses related to fuel derivative transactions for a JAL subsidiary recorded
in the year ended March 2010. Operating income rose by ¥81.6 billion, or 78.9%, to ¥185.0 billion.

Equity in earnings of Affiliated companies and other climbed by ¥31.2 billion, or 291.6%, to ¥41.9 billion due to higher
equity-method earnings from iron ore- and copper-related business investees.

The segment recorded net income attributable to Mitsubishi Corporation of ¥231.5 billion, an increase of ¥92.6 billion, or
66.7%, year over year. In addition to the above reasons, this earnings increase resulted mainly from gains on a share
transfer at a Chilean iron ore-related subsidiary.

4) Machinery Group
In the year ended March 2011, this segment saw revenues increase by ¥112.5 billion, or 19.9%, to ¥677.7 billion. This
result was mainly attributable to higher sales in overseas automobile-related operations, particularly in Asia.

Gross profit increased by ¥26.9 billion, or 17.3%, to ¥182.0 billion. Furthermore, operating income climbed by ¥25.0
billion, or 60.4%, to ¥66.4 billion.

Equity in earnings of Affiliated companies and other increased by ¥7.4 billion, or 67.3%, to ¥18.4 billion due primarily to
increased equity in earnings of Asian automobile-related operations.

The segment recorded net income attributable to Mitsubishi Corporation of ¥61.4 billion, an increase of ¥43.3 billion, or
239.2%, year over year. In addition to the above reasons, this increase was due to factors such as the absence of a


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writedown of preferred shares of Mitsubishi Motors Corporation recorded in the year ended March 2010.

5) Chemicals Group
In the year ended March 2011, segment revenues increased by ¥88.2 billion, or 12.3%, to ¥803.7 billion. This reflected
strong transactions at the Parent, overseas regional subsidiaries and specialty paper business-related subsidiaries.

Gross profit increased by ¥6.4 billion, or 8.2%, to ¥84.2 billion. Furthermore, operating income rose by ¥6.0 billion, or
25.9%, to ¥29.2 billion.

Equity in earnings of Affiliated companies and other decreased by ¥2.5 billion, or 14.5%, to ¥14.7 billion. Although
equity-method earnings of petrochemical business-related companies increased on strong transactions, the overall
decrease resulted from the absence of a gain on reversal of deferred tax liabilities recorded in the year ended March 2010.

The segment recorded net income attributable to Mitsubishi Corporation of ¥29.1 billion, down ¥3.3 billion, or 10.2%,
year over year.

6) Living Essentials Group
In the year ended March 2011, the segment recorded a ¥31.6 billion, or 2.1%, increase in revenues to ¥1,525.8 billion.
This mainly reflected higher grain prices.

Gross profit declined by ¥0.3 billion year over year to ¥456.8 billion, despite higher earnings on transactions at general
merchandise-related subsidiaries. The overall decrease reflected the deconsolidation of and lower earnings on
transactions at healthcare and marketing service-related subsidiaries, as well as lower earnings on transactions at food-
and feed-related subsidiaries. Operating income rose by ¥7.0 billion, or 11.2%, to ¥69.4 billion.

Equity in earnings of Affiliated companies and other increased by ¥3.8 billion, or 19.5%, to ¥23.3 billion due to higher
equity-method earnings of general merchandise- and food-related companies.

The segment recorded net income attributable to Mitsubishi Corporation of ¥46.3 billion, a slight decrease of ¥0.5 billion,
or 1.1%, year over year. In addition to the above reasons, the decrease was due to factors such as the recording of tax
expenses related to the consolidated tax system to be adopted from the year ending March 2012 onward.

Geographic Information
1) Japan
Revenues in the year ended March 2011 were ¥3,812.1 billion, up ¥423.3 billion, or 12.5%, year over year. This increase
mainly reflected higher revenues in energy-related businesses due to higher crude oil prices.

Gross profit increased by ¥24.8 billion, or 3.5%, to ¥735.1 billion due to higher transactions at steel products related
subsidiaries.

2) Australia
In the year ended March 2011, revenues were ¥493.4 billion, ¥105.1 billion, or 27.1%, higher year over year. This
increase was primarily attributable to higher sales prices at an Australian resource-related subsidiary (coking coal).

Gross profit was ¥175.8 billion, up ¥50.5 billion, or 40.3%, because of the increased revenues.

3) Thailand
In the year ended March 2011, revenues were ¥381.0 billion, up ¥83.7 billion, or 28.2%, year over year. This mainly


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reflected higher sales in automobile-related operations.

Because of this increase, gross profit rose by ¥14.1 billion, or 36.0%, to ¥53.3 billion.

4) United Kingdom
In the year ended March 2011, revenues were ¥165.9 billion, ¥18.0 billion, or 12.2%, higher year over year. This increase
mainly reflected the absence of losses related to fuel derivative transactions for a JAL subsidiary recorded in the year
ended March 2010.

Because of this increase, gross profit rose by ¥23.6 billion, or 122.9%, to ¥42.8 billion.

5) U.S.A.
In the year ended March 2011, revenues were ¥150.6 billion, up ¥16.0 billion, or 11.9%, year over year. This increase
mainly reflected higher revenues at overseas regional subsidiaries due to rising commodity prices, and at food-related
subsidiaries.

Because of this increase, gross profit rose by ¥1.6 billion, or 3.3%, to ¥49.9 billion.

6) Other
In the year ended March 2011, revenues rose by ¥20.0 billion, or 10.9%, to ¥203.9 billion. Gross profit increased by
¥18.7 billion, or 25.2%, to ¥93.0 billion.



4. Year Ended March 2012 Operating Environment and Year Ending March
2013 Outlook

1) Industrial Finance, Logistics & Development Group
In the year ended March 2012, the global economy initially trended toward recovery, seemingly putting the global
financial crisis behind it. However, the recovery stalled as the European debt problems arose. With industrialized nations,
except the U.S., proceeding to exercise fiscal restraint, and emerging markets prioritizing policies to curb inflation over
economic growth, the global economy stagnated. In financial markets, it was a year of increased volatility for various
financial assets against a backdrop of rising uncertainty about the global economy. In Japan, the government maintained
a policy of monetary easing to support the recovery from the Great East Japan Earthquake and effects of the yen’s
appreciation.

For the year ending March 2013, an uncertain operating environment will continue to prevail for this business group due
to factors such as the European debt problem and yen’s appreciation. However, while keeping a close eye on
developments in financial markets in Japan and overseas, we will develop innovative industrial finance businesses
globally, providing finance to industry and offering investment opportunities to investors.

The business environment in our main business domains is as follows.

In the real estate business domain, we saw signs of recovery during the year ended March 2012 in both transaction
volumes and size in Japan, as the market appeared to bottom out after slumping due to the global financial crisis and
suffering the effects of the Great East Japan Earthquake. Furthermore, there was also a recovery in investment unit prices,
in part because of the ongoing purchase of Japanese real estate investment trusts by the Bank of Japan as part of its
comprehensive qualitative easing strategy.



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For the year ending March 2013, we expect to see a steady recovery in demand from Japanese and overseas investors for
real estate, listed REITs and private real estate funds.

In China, where unabated economic growth continues, there was a correction in prices during the year ended March 2012,
reflecting a decline in speculative transactions as the government implemented measures to curb inflation such as placing
restrictions on house purchases. However, housing demand in regional cities remains brisk.

For the year ending March 2013, real estate prices are expected to bottom out and transaction volumes increase due in
part to expectations for deregulation designed to stimulate the economy along with robust demand.

In the business domain of aircraft operating leases, the year ended March 2012 saw robust demand for operating leases as
a means of procuring aircraft in the airline industry, which continues to recover from the downturn after the global
financial crisis. We expect demand for operating leases to continue rising for the year ending March 2013 on higher
demand from emerging markets, and demand to replace aircraft with more economical models due to spiraling fuel costs.

Although freight volumes fell temporarily due to the impact of the Great East Japan Earthquake and planned power
outages, the Japanese logistics industry in the year ended March 2012 staged a quick recovery.

For the year ending March 2013, a slight increase is projected due to solid internal demand expansion and a rebound
from the decrease in freight volumes in the previous fiscal year.

In bulk carriers and containerships, sluggish market conditions are expected to continue for around the next one or two
years. These sluggish conditions have been caused by a large number of new vessels coming onto the market, the
European debt problem, and slowing economic growth in emerging markets, which has resulted in lower freight volumes.

2) Energy Business Group
The Dubai spot price in the year ended March 2012 showed much volatility, trading at the US$105/BBL level in the first
half and strengthening toward US$125/BBL during the fourth quarter.

Although the price of crude oil softened in the wake of the Great East Japan Earthquake that occurred in the year ended
March 2011, it made a strong comeback on expectations that demand for crude oil would increase as a substitute for
nuclear power generation and because of ongoing turmoil in the Middle East. The Greek debt problem came into the
spotlight again at the end of April 2011, as it did a year earlier. The Greek fiscal crisis will be difficult to resolve in the
short term because structural problems are a major factor, raising the possibility of the country defaulting. Fears of
contagion to other European countries and turmoil in European economies caused the price of crude oil to reverse course,
collapsing along with prices of other commodities. The price subsequently slowly rebounded, but after the International
Energy Agency decided in June 2011 to release reserves of 60 million barrels of oil, the Dubai spot price fell close to
US$100/BBL, and then temporarily dropped as low as US$96/BBL when the problem of the U.S. raising its debt ceiling
in August 2011 surfaced, compounding the situation. December 2011 saw the price turn upward and strengthen further
from the end of the year through March 2012. With internal strife continuing in Libya and supplies from non-OPEC
countries dwindling, the decline in OECD country oil stocks came into sharp relief. Rising tensions in the Middle East
spurred by countries imposing sanctions on Iran after the International Atomic Energy Agency (IAEA) accused Iran of
developing its nuclear program boosted the oil price.

The crude oil market for the year ending March 2013 is expected to see unstable movement in prices due to a
complicated mix of both positive and negative variables. Emerging markets, which drive demand, are expected to
experience slower economic growth rates, although they will remain comparatively high. Concerns surrounding
government finances in Greece and other Southern European countries appear to remain a factor for the year ending
March 2013. Furthermore, the Iranian nuclear development problem will cause volatility in the crude oil market. In



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addition, the trend to expand production of shale gas, which has increased rapidly in the U.S., could widen to other
resource countries including China.

Our consolidated net income projection for the year ending March 2013 for this business group assumes a crude oil price
of US$120/BBL (Dubai spot price). The Energy Business Group holds upstream rights to LNG and crude oil, and/or
liquefaction facilities in Australia, Malaysia, Brunei, Sakhalin, Indonesia, the U.S., including the Gulf of Mexico, Gabon,
Angola and other parts of the world. Therefore, our operating results are subject to the effect of fluctuations in the price
of crude oil. A US$1/BBL change in the price of crude oil has an approximate ¥1.0 billion effect on net income
attributable to Mitsubishi Corporation in this business group, mainly through a change in equity-method earnings.
However, because of timing differences, this price fluctuation might not be immediately reflected in our operating results
in the fiscal year in which it occurs.

3) Metals Group
In the metal resources business, global steel production in the year ended March 2012 was a record, reaching 1.5 billion
tons for the first time. However, demand and prices for coal and iron ore entered a correction phase in the second half of
the fiscal year, due to lackluster steel product prices caused by the European debt problem, fiscal tightening in China and
other factors. In non-ferrous metals, including copper and aluminum, prices remained firm in the first half of the fiscal
year, supported by solid demand in China and other emerging markets, and economic recovery in European countries, the
U.S. and other industrialized nations. In the second half of the fiscal year, however, market prices dropped and have
remained weak since, reflecting mainly the European debt problem and the apparent Chinese economic slowdown. The
average annual price of copper cathode rose marginally from US$3.69 per pound to US$3.84 per pound for the year
ended March 2012. The average annual price of aluminum ingots was also slightly higher, rising from US$2,257 per MT
to US$2,318 per MT for the year ended March 2012.

Due to the aforementioned factors, net income attributable to Mitsubishi Corporation in the metal resources business in
the year ended March 2012 declined year over year due mainly to lower sales volumes at key Australian resource-related
subsidiary Mitsubishi Development Pty Ltd and to the absence of the gains on a share exchange at a Chilean iron
ore-related company that were recorded in the year ended March 2011.

In the steel products business, Metal One Corporation, which was established in January 2003 by joint investment of
Mitsubishi Corporation (60%) and Sojitz Corporation (40%), recorded lower net income year over year. While sales unit
prices rose due to an increase in steel prices, transaction volumes dropped, mainly at subsidiaries. Such decrease was the
result of the heavy direct and indirect impacts on domestic businesses and automobile-related operations of the Great
East Japan Earthquake and flooding in Thailand.

In terms of the business environment for the year ending March 2013, there are some uncertainties overshadowing the
outlook, most notably indications of an economic slowdown in China and other emerging markets. Nevertheless, over the
medium and long terms, demand for metals resources and related products as well as prices are expected to increase
strongly, with economic growth in emerging markets driving the global economy. For the year ending March 2013, we
project an increase in consolidated net income in the Metals Group year over year, premised mainly on higher earnings
from copper-related businesses and higher earnings from steel product-related subsidiaries.


4) Machinery Group
In the year ended March 2012, the business environment of the Machinery Group as a whole was difficult due to the
impact of the historically strong yen, major floods in Thailand and other factors. However, demand was robust in
emerging markets, particularly in Asia, and resource-rich nations. For the year ending March 2013, although similar
trends are expected, excluding the impact of the Thailand floods, performances are expected to improve in business
related to Mitsubishi Motors Corporation (MMC) and Isuzu Motors Limited brand automobiles.



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In plant-related business, we expect to see a pickup in demand for the year ending March 2013 particularly for resource,
energy and heavy machinery-related projects in emerging markets and elsewhere. Although the strong yen could fuel
more intense competition with overseas companies, we will focus on winning orders for new projects and improving
efficiency at existing businesses as we work to raise earnings.


In the industrial machinery business where we sell machinery and equipment in large volumes, Japan will still not see
substantial capital investment, while capital expenditure is expected to be robust in Asia and other emerging markets. In
China, the largest overseas market for construction machinery, the government’s monetary policy tightening had an
impact in the year ended March 2012. The business environment, however, is expected to stage a turnaround in the
second half of the year ending March 2013. Regarding the construction machinery rental business in Japan, another year
of strong demand is forecasted for the year ending March 2013.


In the ship-related business, market conditions were sluggish in the year ended March 2012, mainly due to the delivery of
a large number of new vessels in the market, which were ordered when market conditions were buoyant before the onset
of the global financial crisis. Although the operating environment is projected to remain challenging for the year ending
March 2013, we will focus on securing prime assets to strengthen our competitiveness.


In business related to Mitsubishi Motors Corporation, demand was robust in emerging markets, particularly in Asia, as
highlighted by record automobile demand of 918,000 units in Indonesia, one of our main markets. That said, we
encountered a difficult operating environment in the year ended March 2012 because of the yen’s appreciation and the
flooding in Thailand. For the year ending March 2013, although there are concerns that the strong yen will prolong the
difficult operating environment, we expect to generate higher profits through a focus on expanding sales in the
prospective growth markets of China and Russia, and in Indonesia.


In business related to Isuzu Motors Limited brand automobiles, the operating market was extremely tough due to the
strong yen as well as flooding in the mainstay Thailand market. Automobile demand in Thailand in the year ended March
2012 was only 794,000 units, which was less than the previous fiscal year, due to the flooding. However, demand in
emerging markets and resource-rich nations remains strong, and we expect demand in Thailand to exceed 1 million units
for the year ending March 2013. Despite concerns about the strong yen prolonging the difficult operating environment,
we forecast a recovery in performance on a bounce back from the lower sales caused by the flooding in Thailand, and the
expected benefits for sales of new model launches in the second half of the fiscal year.


5) Chemicals Group
The chemical products market in the year ended March 2012 remained lackluster in the first half, reflecting mainly the
slow global economic recovery. From the second half, however, crude oil and naphtha prices rose due mainly to
instability in the Middle East, boosting prices in general for petrochemical products. Demand though lacked strength as a
whole on account on softening demand growth in China and the European economic downturn. With expected demand
slow to recover in China after the Chinese New Year period, there was no major change in the chemical products market
in Asia, which continued to weigh on prices.

Regarding the outlook for the business environment, the impact of the European economic malaise is expected to persist
for some time. On the other hand, China is relaxing its fiscal policy, as evidenced by the lowering of the reserve deposit
rate in stages since December 2011. We intend to watch how this situation unfolds as well as trends in demand. We also
expect to see structural changes in the petrochemical industry in the form of industry restructuring and facility closings
and integrations resulting from increasing supplies and competitiveness of ethylene-based petrochemicals using shale gas
in North America. We also anticipate changes in distribution and product supply flows worldwide. We see this as an
opportunity to showcase our capabilities.


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Many of our main suppliers affected by the Great East Japan Earthquake have the restoration of production under control,
so the impact on the procurement of raw materials and product manufacturing and supply systems has been limited.
Looking ahead, we expect to see a further increase in demand stemming from recovery efforts after the disaster.

Steadily increasing interest in health, safety, comfort and the environment caused by environmental problems and trends
such as aging societies and falling birthrates are expected to continue underpinning growing demand in the life science
and environmental and new energy fields.

We will respond to the needs of the times by developing our trading business globally and making related business
investments, as we seek to tap into growth markets in Japan and other countries.

At the same time as strengthening core businesses, namely Saudi Arabian petrochemical operations, Venezuelan
methanol business and aromatics in Malaysia, we will continue to develop the business chain in midstream and
downstream sectors and strengthen consolidated businesses.

6) Living Essentials Group
In the year ended March 2012, there were concerns that the economy would experience a downturn due to direct damage,
deteriorating consumer sentiment and power supply problems following the Great East Japan Earthquake. However,
while consumption was sluggish and consumers showed a preference for lower-priced products in Japan, some bright
signs emerged in some sectors of the consumer market. On the other hand, amid prolonged malaise in the economies of
industrialized nations, the global economy’s center of gravity has begun to shift to Asia and Oceania, especially to
emerging markets. In this context, we believe that capturing expanding domestic demand in these emerging markets
holds the key to our business expansion going forward.

In the food field, amid expectations for continued tight supplies of grain and other commodities, we will push ahead with
efforts to strengthen our framework for procuring raw materials globally in order to respond to market needs, such as for
the stable supply of food and for quality food products, while keeping an eye on changes in the global supply-demand
balance. Specifically, we plan to build and reinforce integrated value chains extending from raw materials to
transportation and processing, and product distribution and sales. These value chains will revolve around entities such as
AGREX, Inc., a U.S. subsidiary engaged in the storage and marketing of grain, and Los Grobo Ceagro do Brasil S.A.
(Ceagro), which we invested in during the year ended March 2012. In Japan, four Mitsubishi Corporation food
distribution wholesale subsidiaries completed a merger, making a new start as Mitsubishi Shokuhin Co., Ltd. in April
2012. Overseas, we will continue to make progress expanding business in overseas growth markets, with subsidiaries
such as Princes Limited, a U.K. subsidiary manufacturing food products and soft drinks, playing a pivotal role.

In the textiles field, the business environment remains difficult due to a host of factors, including slowing personal
consumption and price-based competition with foreign companies and others. In order to respond to this business
environment, we are working to raise our competitiveness further through means such as expansion of overseas
procurement networks. Playing a key role here is MC Fashion Co., Ltd., a core subsidiary that runs an apparel OEM
(Original Equipment Manufacturing) business. Furthermore, we will continue looking to actively sell
environment-related products and materials for optical communications, among other highly functional materials.

In general merchandise, our U.S. cement operations had faced a tough business environment due to the economic
downturn in the wake of the global financial crisis. In the year ended March 2012, however, demand in Southern
California turned upward year over year. We expect a gradual recovery going forward. Moreover, we will bolster paper-
and packaging-related businesses, led by Hokuetsu Kishu Paper Co., Ltd., Mitsubishi Shoji Packaging Corporation and
Canadian pulp manufacturing subsidiary Alpac Forest Products Inc. We will also continue to steadily expand sales of
tires in overseas growth markets, including emerging nations.




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In the healthcare field, the operating environment for medical institutions remains challenging in the face of government
policies designed to decelerate the escalating medical expenses for the citizens of Japan as the population ages. In light of
this, demand is growing for outsourcing services to cut costs. MC Healthcare, Inc., which was established in April 2010
from the integration of three subsidiaries, is at the heart of our efforts here. This company is providing comprehensive
services mainly through the supply of medical equipment and supplies to meet various hospital needs. Looking ahead, we
intend to aggressively expand our business as one of the largest companies in Japan providing outsourcing services for
hospitals.

In April 2012, we established the Global Consumer Business Development Unit, which reports directly to the CEO of the
Living Essentials Group. This unit is charged with adapting business models to emerging markets, particularly the
high-growth Asian region, which have been developed in the Japanese market by the Living Essentials Group. The aim is
to create new streams of earnings.



5. R&D Activities

There were no material R&D activities in the year ended March 2012.



6. Liquidity and Capital Resources

1) Fund Procurement and Liquidity Management
Our basic policy concerning the procurement of funds to support business activities is to procure funds in a stable and
cost-effective manner. For funding purposes, we select and utilize, as needed, both direct financing, such as commercial
paper and corporate bonds, and indirect financing, including bank loans. We seek to use the most advantageous means,
according to market conditions at the time. We have a strong reputation in capital markets. Regarding indirect financing,
we maintain good relationships with a broad range of financial institutions in addition to our main banks, including
foreign-owned banks, life insurance companies and regional banks. This diversity allows us to procure funds on terms
that are cost competitive.

In the year ended March 2012, instability persisted due to ongoing market turmoil caused by the European debt problems,
the impact of the Great East Japan Earthquake and other factors. We continued to diversify our fund procurement
channels while ensuring our financial soundness. This included continuing to issue foreign currency-denominated straight
bonds.

As a result of these funding activities, as of March 31, 2012, gross interest-bearing liabilities stood at ¥5,016.4 billion,
¥758.8 billion higher than March 31, 2011. Of these gross interest-bearing liabilities, 82.3% represented long-term
financing. Gross interest-bearing liabilities at the Parent were ¥3,604.5 billion, of which 97.5% represented long-term
financing, and the average remaining period was approximately 5 years.

For the year ending March 2013, we plan to continue procuring funds mainly through long-term financing. Furthermore,
in order to prepare for future demand for funds, we will seek to diversify funding sources and at the same time look to
continue raising funding efficiency on a consolidated basis. Moreover, because financial markets remain unpredictable,
we will remain vigilant and secure sufficient cash and deposits, and bank commitment lines, to enhance our liquidity
further.

Regarding management of funds on a consolidated basis, we have a group financing policy in which funds are raised
principally by the Parent, as well as domestic and overseas finance companies and overseas regional subsidiaries, and



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                                                                                            Mitsubishi Corporation   Annual Report 2012




distributed to other subsidiaries. As of March 31, 2012, 80.0% of consolidated gross interest-bearing liabilities were
procured by the Parent, domestic and overseas finance companies, and overseas regional subsidiaries. Looking ahead, we
plan to enhance our fund management system on a consolidated basis, especially in light of our stated management
policy of continuously improving consolidated management.

The current ratio as of March 31, 2012 was 138.3% on a consolidated basis. In terms of liquidity, we believe that the
Parent has a high level of financial soundness. The Parent, Mitsubishi International Corporation (U.S.A.) and Mitsubishi
Corporation Finance PLC (U.K.) had ¥295.0 billion in short-term debt as of March 31, 2012, namely commercial paper
and bonds scheduled for repayment within a year. But, since the sum of cash and deposits, bond investments due to
mature within a year, and securities for trading purpose together with commitment lines secured on a fee basis amounted
to ¥1,623.2 billion, we believe we have a sufficient level of liquidity to meet current obligations. The excess coverage
amount was ¥1,328.2 billion. The Parent has a yen-denominated commitment line of ¥410.0 billion with major Japanese
banks, a commitment line of US$1.0 billion and a soft currency facility equivalent to US$0.3 billion with major
international banks, mainly in the U.S. and Europe.

To procure funds in global financial markets and ensure smooth business operations, we obtain ratings from three
agencies: Rating and Investment Information, Inc. (R&I), Moody's Investors Service, and Standard and Poor's (S&P).
Our current ratings (long-term/short-term) are AA-/a-1+ (outlook stable) by R&I, A1/P-1 (outlook stable) by Moody's,
and A+/A-1 (outlook stable) by S&P.

Rating Information (As of June 1, 2012)

                Credit Agency                           Long-Term/Short-Term
 Rating and Investment Information, Inc. (R&I)   AA–/a-1+ (outlook stable)
 Moody’s Investors Service                       A1/P-1 (outlook stable)
 Standard and Poor’s (S&P)                       A+/A-1 (outlook stable)


2) Total Assets, Liabilities and Total Equity
Total assets at March 31, 2012 were ¥12,588.5 billion, up ¥1,315.7 billion, or 11.7%, from March 31, 2011. The year
over year increase was mainly attributable to an increase in property and equipment.

Current assets increased by ¥181.9 billion, or 3.0%, to ¥6,175.3 billion. The main reasons were increases in cash and
cash equivalents and accounts receivables, which outweighed a year over year decrease in other current assets.

Cash and cash equivalents increased by ¥44.2 billion, or 3.7%, to ¥1,253.0 billion at March 31, 2012 due to raising the
level of cash on hand to secure funds for making new investments. Accounts receivables rose by ¥246.5 billion, or 11.6%,
to ¥2,379.9 billion on account of higher crude oil prices and sales volumes in Energy Business-related transactions, and a
recovery in market conditions in steel products-related transactions after the Great East Japan Earthquake. On the other
hand, other current assets decreased by ¥67.6 billion, or 20.7%, to ¥259.0 billion due mainly to the redemption of
currency interest swaps at the Parent and a decrease in derivative assets, reflecting changes in market prices.

Non-current assets increased by ¥1,133.9 billion, or 21.5%, to ¥6,413.2 billion from March 31, 2011.

There was an increase in investments in and advances to Affiliated companies and other investments, as a result of
making large investments, namely the acquisition of natural gas interests in Canada, investments in companies owning
copper asset rights in Chile and Peru, and the acquisition of working interests by an Australian resource-related
subsidiary (coking coal). The overall increase in investments and non-current receivables was also due to an increase in
property and equipment-net because of capital expenditures at an Australian resource-related subsidiary (coking coal), as




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well as the acquisition of leasing assets such as real estate and aircraft.

Investments in and advances to Affiliated companies at March 31, 2012 stood at ¥1,660.4 billion, up ¥324.1 billion, or
24.3%, year over year. Other investments were ¥1,854.6 billion, up ¥423.3 billion, or 29.6%. Property and equipment-net
was ¥1,970.9 billion, up ¥235.1 billion, or 13.5%.

Total liabilities at March 31, 2012 were ¥8,760.2 billion, up ¥1,037.4 billion, or 13.4%, due to increases in both current
liabilities and long-term liabilities.

Current liabilities increased by ¥484.7 billion, or 12.2%, to ¥4,466.0 billion.

This mainly reflected an increase in short-term debt, with the aim of meeting increased demand for working capital at
energy business-, metals resource- and steel products-related subsidiaries; and an increase in accounts payable-trade, the
result of higher accounts payable commensurate with the increase in accounts receivables due to higher crude oil prices
and sales volumes in Energy Business-related transactions, and a recovery in market conditions in steel products-related
transactions after the Great East Japan Earthquake.

Short-term debt at March 31, 2012 stood at ¥886.4 billion, up ¥229.6 billion, or 34.9%. Accounts payable-trade was
¥2,108.2 billion, up ¥228.2 billion, or 12.1%.

Total non-current liabilities were ¥4,294.3 billion, up ¥552.7 billion, or 14.8%, due mainly to an increase in long-term
debt.

Long-term debt increased by ¥571.4 billion, or 17.9%, to ¥3,760.1 billion, the result of raising long-term funds through
direct financing and indirect financing mainly at the Parent in order to make new large investments. On the other hand,
other non-current liabilities decreased by ¥27.2 billion, or 8.7%, to ¥285.1 billion, reflecting a decrease in advances from
customers on long-term transactions and other factors.

Total equity increased by ¥278.3 billion, or 7.8%, from March 31, 2011 to ¥3,828.3 billion at March 31, 2012, due
mainly to an increase in total Mitsubishi Corporation shareholders’ equity.

Total Mitsubishi Corporation shareholders’ equity increased by ¥276.0 billion, or 8.5%, to ¥3,509.3 billion at March 31,
2012, as positive factors outweighed negative factors. The main contributor was an increase in retained earnings due to
the net income attributable to Mitsubishi Corporation. Factors that lowered the overall figure were the payment of
dividends, the retirement of treasury stock, deterioration in foreign currency translation adjustments as a result of a
decline in net assets denominated in the euro, Australian dollar and other currencies due to the yen’s appreciation, and a
decrease in net unrealized gains on securities available-for-sale, which reflected lower stock prices.

Noncontrolling interest increased by ¥2.4 billion, or 0.7%, to ¥319.0 billion.

Net interest-bearing liabilities, gross interest-bearing liabilities minus cash and cash equivalents, at March 31, 2012 were
¥3,647.4 billion, up ¥700.1 billion, or 23.8% year over year. As a result, the net debt-to-equity ratio, which is net
interest-bearing liabilities divided by total Mitsubishi Corporation shareholders’ equity, was 1.0, which was 0.1 of a point
higher than at March 31, 2011.

3) Cash Flows
Cash and cash equivalents at March 31, 2012 were ¥1,253.0 billion, up ¥44.2 billion, or 3.7% from March 31, 2011.




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(Operating activities)
Net cash provided by operating activities was ¥550.7 billion.

Operating activities provided net cash due to strong cash flows from operating transactions primarily at resource-related
subsidiaries and firm growth in dividend income from investees, mainly resource-related business investees. This was
despite an increase in working capital requirements due to increases in accounts receivables-trade and inventories mainly
at the Parent.

Net cash provided by operating activities increased by ¥219.5 billion year over year, as a result mainly of an
improvement in working capital requirements.

(Investing activities)
Net cash used in investing activities was ¥1,100.9 billion.

The main outflows were investments in Chilean and Peruvian copper asset rights holding companies, the acquisition of
natural gas interests in Canada, and the acquisition of interests and capital expenditures at an Australian resource-related
subsidiary.

There was an increase of ¥838.3 billion in net cash used by investing activities. This was mainly due to the large
investments mentioned above.

As a result of the above, free cash flow, which is the sum of operating and investing cash flows, was negative ¥550.2
billion.

(Financing activities)
Net cash provided by financing activities was ¥599.1 billion.

Although the payment of dividends at the Parent and repayment of long-term debt used cash, this was outweighed by the
procurement of short-term debt to fund an increase in working capital needs, as well as fundraising through bonds and
long-term debt to provide funds for new investments.

There was a ¥522.3 billion year over year increase in net cash provided by financing activities, the result of the
abovementioned increases in short- and long-term debt, despite an increase in dividend payments to shareholders of
Mitsubishi Corporation.



7. Strategic Issues

1) Management Issues and Plans - Midterm Corporate Strategy 2012
In July 2010, we released our new three-year management plan, the Midterm Corporate Strategy 2012, which covers the
year ended March 2011 through the year ending March 2013.

     Management Objectives
Under Midterm Corporate Strategy 2012, we will aim to create “sustainable corporate value.” “Sustainable corporate
value” is a new concept that integrates “sustainable economic value”, “sustainable societal value” and “sustainable
environmental value.” We will aim to create “sustainable corporate value” by helping to solve global problems through
business activities in light of the needs and expectations of all stakeholders.




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                                              Sustainable Economic Value: We will aim for sound earnings growth and
                                              increased corporate value through the proactive reshaping of its business
                                              models and portfolio.
       Sustainable
     Corporate Value                          Sustainable Societal Value: We will contribute to economic development as a
                                              responsible corporate citizen.

                                              Sustainable Environmental Value: We will aim to conserve and contribute to
                                              the global environment, recognizing our planet as its greatest stakeholder.

We will strengthen existing earnings drivers and develop new business for future growth in light of changes in the
external business environment, including fast-growing emerging economies and stagnating OECD countries, the birth of
new growth markets triggered by changing values, technological innovation and the rise of emerging economies, and our
expanding stakeholder base. Midterm Corporate Strategy 2012 has also been drawn up in light of our internal business
environment, which is undergoing changes in terms of the company’s business portfolio, diversification of its business
models and a shift of businesses to subsidiaries and affiliates.

     Quantitative Objectives and Indicators
We are seeking profit growth while giving due consideration to capital efficiency and financial soundness as it
strengthens its earnings base. Under Midterm Corporate Strategy 2012, we are targeting ¥500 billion in consolidated net
income in its last year, the year ending March 2013, with a return on equity (ROE) throughout the three-year period at
12-15%. Also, as we aim to achieve its income target, we will maintain a sound balance sheet by targeting a net
debt-equity ratio (net DER) of 1.0-1.5 times. The company will maintain a dividend payout ratio in the range of 20-25%.

     Investment Plans
We will maintain investment at a constant ¥700-800 billion per year, with a total of ¥2.0-2.5 trillion invested over
Midterm Corporate Strategy 2012’s three–year period. Specifically, we will invest ¥400-500 billion in strategic domains
and regions, ¥1.0-1.2 trillion in mineral resources, and oil and gas resources, and ¥600-800 billion in other areas.

     Strategic Domains and Regions
We will respond to fast-growing emerging economies and new growth markets by designating infrastructure and global
environmental businesses as strategic domains and China, India and Brazil as strategic regions, aiming to build its future
earnings base by promoting investment through prioritized resource allocation.

     Initiatives to Leverage and Solidify Our Diversified Business Portfolio
Regarding the leveraging of our diversified business portfolio, we will cultivate several earnings drivers by building and
implementing a tool capable of visualizing its diversified business portfolio and setting targets according to business
models and business risk profiles, while leveraging its diversified business portfolio and business models.

Regarding the solidifying of our diversified business portfolio, we have established the Business Development
Committee in order to promote investment in company-wide projects and strategic domains/regions designated under
Midterm Corporate Strategy 2012. Furthermore, we will review its management platform, including regional offices,
human resources and IT governance, in light of the diversification of its business models.

In terms of the operating environment, looking ahead, economic growth is expected to slow in China, India, Brazil and
other emerging markets in line with the economic slowdown in industrialized nations. The global economy is expected to
continue experiencing heightened uncertainty, such as financial market turmoil caused by fiscal deficits mainly in
industrialized nations.



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Conscious of these conditions, we will forge ahead with Midterm Corporate Strategy 2012 as we work to create an even
stronger earnings base and financial position. In tandem, through our diverse businesses, we aim to create sustainable
corporate value while helping solve global problems. Moreover, guided by the spirit of the Three Corporate Principles,
which form our corporate philosophy, we are determined to support economic activities and contribute to society through
our businesses.

2) Basic Policy Regarding the Appropriation of Profits
(1) Investment Plans
We plan to invest in the mineral resources and oil and gas resources fields, which we expect to remain key earnings
drivers, as well as global environmental businesses, and the industrial finance, machinery, chemicals, living essentials
and other fields, including Strategic Regions and Strategic Fields, which we see as future sources of earnings. All
investments will be made with the aim of sustaining our growth.

Under Midterm Corporate Strategy 2012, which was announced in July 2010, we plan to invest between ¥2,000 to 2,500
billion over the 3-year period ending March 31, 2013. We are targeting annual investments of ¥700 to 800 billion during
this period.

(2) Capital Structure Policy and Dividend Policy
Our basic policy is to sustain growth and maximize corporate value by balancing earnings growth, capital efficiency and
financial soundness. For this, we will continue to utilize retained earnings for investments to drive growth, while
maintaining our financial soundness.

In terms of shareholder returns, our basic policy is to increase the annual dividend per share through earnings growth
with a targeted consolidated dividend payout ratio in the range of 20% to 25% throughout the period of Midterm
Corporate Strategy 2012. We will also purchase treasury stock flexibly depending on earnings growth, progress with our
investment plans and other factors.

The Board of Directors passed a resolution setting a dividend per common share applicable to the fiscal year ended
March 31, 2012 of ¥65, which is consistent with the forecast in May 2011, because consolidated net income attributable
to Mitsubishi Corporation at ¥453.8 billion met the forecast of ¥450.0 billion. (The interim dividend applicable to the
fiscal year ended March 31, 2012 was ¥32 per common share, making the year-end dividend ¥33 per common share.)

In accordance with the aforementioned policy, we plan to pay a dividend of ¥70 per common share for the year ending
March 2013, providing we achieve our forecast for consolidated net income attributable to Mitsubishi Corporation of
¥500.0 billion.

[For Reference: Annual Ordinary Dividends]
          Year ended March 2005 = 18 yen per common share
          Year ended March 2006 = 35 yen per common share
          Year ended March 2007 = 46 yen per common share
          Year ended March 2008 = 56 yen per common share
          Year ended March 2009 = 52 yen per common share
          Year ended March 2010 = 38 yen per common share
          Year ended March 2011 = 65 yen per common share
          Year ended March 2012 = 65 yen per common share

3) Main Investment Activities
We plan to invest in the mineral resources and oil and gas resources fields, which we expect to remain key earnings
drivers, as well as the global environmental business, industrial finance, machinery, chemicals, living essentials and other


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fields, including Strategic Regions and Strategic Domains, which we see as future sources of earnings. All investments
will be made with the aim of sustaining our growth.

Under Midterm Corporate Strategy 2012, which we formulated in July 2010, we plan to maintain investment at a
constant ¥700-800 billion per year, with a total of ¥2.0-2.5 trillion invested over the plan’s three-year period to the end of
March 2013. In the year ended March 2012, we invested a total of ¥1,340.0 billion. The main investments were as
follows:

■     Acquisition of Shale Gas Interests in Canada (Cutbank Dawson Gas Resources Ltd.’s Acquisition of Cutbank
      Ridge Partnership Equity Interest)

In February 2012, we acquired a 40% partnership interest in the Cutbank Ridge Partnership (CRP) through a newly
established subsidiary, Cutbank Dawson Gas Resources Ltd., from leading Canadian natural gas producer Encana
Corporation. CRP is developing natural gas resources in the Montney region of British Columbia.

We paid CAD$1.45 billion (approx. ¥116.0 billion) to Encana as an upfront payment upon closing, and will also pay
another CAD$1.45 billion (approx. ¥116.0 billion) over the coming 5 years that will be used to fund an incremental 30%,
in addition to our 40% of the partnership capital investments, to develop CRP’s asset in accordance with an agreed-upon
development plan.

CRP was originally formed by Encana, and an Encana affiliate. CRP holds 409,000 net acres of high-quality
undeveloped Montney land, plus additional undeveloped similar size land targeting other opportunities including
Cadomin and Doig geological formations.

Encana, Managing Partner of CRP, has an excellent track record and innovative production technologies for developing
natural gas resources. CRP’s land position is one of the largest and highest quality undeveloped natural gas assets in the
Western Canadian Sedimentary Basin. When coupled with Encana’s extensive knowledge of natural gas development in
the Montney region with more than 290 highly efficient producing wells, we believe that CRP’s land stands as the best
development opportunity currently available in the region.

The total estimated ultimate recoverable resources from CRP’s land are more than 35 trillion cubic feet (equivalent to
approximately 720 million tons of liquefied natural gas (LNG)). These huge reserves equate to approximately nine years
of Japan’s annual natural gas demand. The partnership plans to invest more than CAD$6 billion (approx. ¥480.0 billion)
over the next 5 years to drill approximately 600 horizontal production wells to develop the asset. The asset is expected to
have more than 50 years of production life and reach production of more than 3 billion cubic feet per day (equivalent to
approximately 22.5 million tons of LNG per year) during the coming decade.

We are currently undertaking natural gas development in the Cordova Embayment in British Columbia with Penn West
Exploration, Chubu Electric Power Co., Inc., Tokyo Gas Co., Ltd., Osaka Gas Co., Ltd., Japan Oil, Gas and Metals
National Corporation (“JOGMEC”) and Korea Gas Corporation. In addition, we are currently pursuing the export of
natural gas in the form of LNG with the anticipation of sourcing natural gas produced from our asset portfolio as feedgas.
With this additional acquisition of natural gas resources, we will accelerate the LNG feasibility studies. Going forward,
we will contribute to economic development and job creation in Canada, while ensuring stable supplies of energy to
Japan and the rest of Eastern Asia.

Natural gas can now be produced in large volumes at competitive cost due to technological innovations developed in
recent years. Given the large potential reserves and resources, natural gas has attracted attention worldwide. We intend to
continue to build our knowledge and expertise in natural gas development. As part of our resource and energy strategy
going forward, we also aim to secure a stable supply of energy resources by diversifying our asset holdings.



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■    Acquisition of Western Australian Iron Ore-Related Assets and Interests (Mitsubishi Development Pty Ltd’s
     Acquisition of Equity Interests in Crosslands Resources Ltd and Oakajee Port and Rail)

On February 20, 2012, our wholly owned subsidiary Mitsubishi Development Pty Ltd (MDP) completed the acquisition
of Murchison Metals Ltd’s (Murchison) interests in Crosslands Resources Ltd (“Crosslands”), which is the owner of the
Jack Hills iron ore deposit, and in the associated rail and port infrastructure project in the Mid West region of Western
Australia (“Oakajee Port and Rail” or “OPR”) (together with Crosslands, the “Project”).

The acquired shares and assets are Murchison’s 50% share in Crosslands—the other 50% is owned by MDP, and 50%
economic interests in OPR. As a result of this acquisition, MDP’s interest, including existing interests, in Crosslands and
OPR came to 100%, making Crosslands and OPR wholly consolidated entities of MDP.

MDP has been conducting feasibility studies toward project development since 2007. Going forward, MDP will support
Crosslands and OPR in key activities, including the finalization of feasibility studies and obtaining necessary approvals
for the Project. When appropriate and in due course, MDP intends to introduce suitably capitalized partner(s) or
investor(s) to take up the acquired interests.

The introduction of such partner(s) will assist in securing funding for developing the Project and promoting negotiations
with potential customers who will use the Oakajee Port and Rail infrastructure.

■    Acquisition of Interests in Australian Thermal Coal Business Assets (Mitsubishi Development Pty Ltd’s
     Purchase of Shares of Coal & Allied Industries Limited)

On December 15, 2011, our subsidiary Mitsubishi Development Pty Ltd (MDP) and Rio Tinto Limited acquired all the
shares of Coal & Allied Industries Limited (C&A) that were not previously held for A$125 per share via Hunter Valley
Resources Pty Ltd, a jointly owned bid vehicle. As a result of MDP raising its equity interest from 10.20% to 20.00%,
C&A became an equity-method affiliate of MDP. (Rio Tinto’s equity interest increased from 75.71% to 80.00%).

C&A is one of the major thermal coal producers in Australia. C&A has three producing operations in the Hunter Valley
region of New South Wales, namely Mount Thorley Warkworth, Hunter Valley Operations and Bengalla. C&A is also
progressing with studies of various other potential thermal coal mining projects including the Mount Pleasant project,
Hunter Valley Operations South and extending mining within the Mount Thorley Warkworth lease.

We believe that making C&A an equity-method affiliate will lead to further expansion of our coal business since C&A
owns long-life, cost-competitive mines and businesses with strong growth potential.

■    Acquisition of Copper Asset Rights in Chile and Peru

During the year ended March 2012, we acquired shares in two companies in Chile and Peru with copper asset rights. We
have designated the expansion of investments in high-quality resource businesses and the expansion of our resource
portfolio with sustainable growth as important areas. Through these share acquisitions, we will continue to grow our
business.

     Acquisition of Copper Asset Rights in Chile—MC RESOURCE DEVELOPMENT LTD.’s Purchase of Anglo
     American Sur, S.A. Shares

We acquired 24.5% of Anglo American Sur, S.A. (AAS) for US$5.39 billion (approx. ¥420.0 billion) on November 10,
2011. AAS is a Chilean copper mining and smelting company, wholly owned by Anglo American plc (AAC). The
acquisition is the result of a sales process initiated by AAC.



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AAS holds a significant portfolio of copper assets in Chile, including the Los Bronces mine, the El Soldado mine, the
Chagres smelter and large-scale prospective exploration properties. AAS completed an expansion project at the Los
Bronces mine in November 2011. When full production is achieved in 2012, AAS is expected to produce approximately
440,000 tonnes of copper per annum.

In Chile, we own 8.25% of the Escondida copper mine, and 5% of the Los Pelambres copper mine. Meanwhile, in Peru,
we own 10% of the Antamina copper mine. Our equity share of copper production from these three projects is
approximately 140,000 tonnes per annum.

As a result of the purchase of AAS shares, we will own 24.5% of AAS’s copper assets. This means that when full
production is achieved in 2012, our attributable copper production will rise to approximately 250,000 tonnes per annum.

      Acquisition of Copper Asset Rights in Peru—MCQ COPPER LTD.’s Purchase of Anglo American
      Quellaveco S.A. Shares

On February 17, 2012, we acquired International Finance Corporation’s (“IFC”) 18.1% stake in Anglo American
Quellaveco S.A. (AAQSA), which is developing the Quellaveco copper project (“Quellaveco”) located in Peru.

We decided to consider acquiring rights in this project according to a competitive divestment process initiated by IFC in
late 2010 to early 2011 after IFC had confirmed that there was no pre-emptive right in relation to the divested stake.

Quellaveco’s current copper reserve is approximately 10 million tonnes (content metal basis), with an initial mine life of
28 years at approximately 225,000 tonnes per annum. Subject to community support and related required approvals,
AAQSA aims to make its decision on the timing of development for commencing production in 2016. Our attributable
copper production is expected to increase by approximately 40,000 tonnes per annum in 2016 after production
commences as a result of this acquisition.

■     Acquisition of Chuo Kagaku Co., Ltd. Shares

During the year ended March 2012, we purchased 9,318,900 shares of Chuo Kagaku Co., Ltd. via a tender offer at a price
of ¥386 per share, raising our shareholding on a consolidated basis (including direct and indirect holdings) from 13.73%
(2,888,800 shares) to 58.02% (12,207,700 shares; voting rights of 60.59%). As a result of this tender offer, Chuo Kagaku
Co., Ltd. became a consolidated subsidiary on October 26, 2011.

The food and beverage market in Japan has hit a growth ceiling amid an aging and declining population. In fast-growing
Asian countries, particularly China, meanwhile, there are expectations for volume expansion and improved quality for
food packaging containers, spurred by an increase in affluence and growing interest in food safety and quality, in addition
to market expansion resulting from population growth. Chuo Kagaku is a leading manufacturer of plastic food packaging
and containers; it is ranked as second largest in Japan in terms of sales. Since its foundation in 1961, Chuo Kagaku has
developed proprietary technologies, ranging from materials to molding technologies, in line with the changing
environment. Up until now, the company has acquired many patents, as well as utility models in Japan and overseas. It
also leads the industry in terms of addressing environmental problems. Chuo Kagaku has developed a broad range of
products and services, including materials with a low environmental load and various recycling systems. It has also
brought to market nonconventional recycled products.

We will pursue synergies by making this company a consolidated subsidiary, and at the same time strengthen earnings
drivers in Japan, and ramp up production at Chuo Kagaku manufacturing bases in China, among other actions. Our goals
here are to drive growth of this company and raise its corporate value.




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4) Outlook for Year ending March 2013
We are forecasting gross profit of ¥1,250.0 billion, ¥122.1 billion, or 10.8%, higher year over year due primarily to
higher transaction volumes in coking coal and steel products.

Combined with the fact that selling, general and administrative expenses are projected to slightly increase from the year
ended March 2012, operating income is forecasted to increase by ¥68.9 billion, or 25.4%, to ¥340.0 billion. In other
items, Mitsubishi Corporation is forecasting a deterioration in foreign exchange related accounts.

As a result, consolidated net income attributable to Mitsubishi Corporation is projected at ¥500.0 billion, an increase of
¥46.2 billion, or 10.2%, year over year. Projections are based on the following assumptions.

Reference: Change of basic assumptions
                                 Year Ended March                 Year Ending March
                                                                                                      Change
                                    2012 (Actual)                  2013 (Forecasts)
      Exchange rate                79.1 JPY/US$1                   80.0 JPY/US$1                  0.9 JPY/US$1
      Crude oil price             110.1 US$/BBL                    120.0 US$/BBL                  9.9 US$/BBL
      Interest rate (TIBOR)            0.34%                            0.40%                         0.06%

Note:
Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and
certain assumptions that management believes are reasonable. Actual results may therefore differ materially from these statements for
various reasons.



8. Business Risks

1) Risks of Changes in Global Macroeconomic Conditions
As we conduct businesses on a global scale, our operating results are impacted by economic trends in overseas countries
as well as those in Japan.

For instance, a decline in prices of energy and metal resources could have a large impact on our resource-related import
transactions and earnings from business investments. Furthermore, the worldwide economic slowdown could affect our
entire export-related business, including plants, construction machinery parts, automobiles, steel products, ferrous raw
materials, chemical products, and other products.

In Thailand and Indonesia, we have various automobile businesses, including automobile assembly plants, distribution
and sales companies and financial services companies jointly established with automakers in Japan. Because automobile
sales volume reflects internal demand in each of these countries, economic trends in both Thailand and Indonesia may
have a significant bearing on earnings from our automobile operations.

In the year ended March 2012, the economies of industrialized nations have slowed due to the impact of the
implementation of austerity measures and turbulent financial markets as a result of the deepening of the European
government debt problems. Meanwhile, in emerging economies, although there was sluggish growth in exports, in the
major countries such as China and India the economies expanded as a whole due to strong domestic demand.

2) Market Risks
(Unless otherwise stated, calculations of effects on future consolidated net income are based on consolidated net income
for the year ended March 2012. Consolidated net income, as used hereinafter, refers to “Consolidated net income
attributable to Mitsubishi Corporation.”)


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(1) Commodity Market Risk
In the course of our business activities, we are exposed to various risks relating to movements in prices of commodities
as a trader, an owner of rights to natural and energy resources, and a producer and seller of industrial products of our
investees. Product categories that may have a large impact on our operating results are as follows:

(Energy Resources)
We hold upstream rights to LNG and crude oil, and/or liquefaction facilities in Australia, Malaysia, Brunei, Sakhalin,
Indonesia, Gulf of Mexico (United States), Gabon, Angola and other regions. Movements in LNG and crude oil prices
may have a significant impact on operating results in these businesses.

Fundamentally, LNG prices are linked to crude oil prices. As an estimate, a US$1/BBL fluctuation in the price of crude
oil would have an approximate ¥1.0 billion effect on consolidated net income for LNG and crude oil combined, mainly
through a change in equity-method earnings. However, fluctuations in the price of LNG and crude oil might not be
immediately reflected in our operating results because of timing differences.

(Metal Resources)
Through wholly owned Australian subsidiary Mitsubishi Development Pty Ltd (MDP), we sell coking coal, which is used
for steel manufacturing, and thermal coal, which is used for electricity generation. Fluctuations in the price of coking coal
may affect our consolidated operating results through MDP’s earnings. MDP’s operating results cannot be determined by
the coal price alone since MDP’s results are also significantly affected by fluctuations in exchange rates for the Australian
dollar, U.S. dollar and yen, as well as adverse weather and labor disputes.

In addition, as a producer, we are exposed to the risk of price fluctuations in copper and aluminum. Regarding copper, a
US$100 fluctuation in the price per MT of copper would have a ¥1.3 billion effect on our net income. However, variables
besides price fluctuations can also have an impact These include the grade of mined ore, the status of production
operations, and reinvestment plans (capital expenditures). Therefore, the impact on earnings cannot be determined by the
copper price alone. Regarding aluminum, a US$100 fluctuation in the price per MT of aluminum would have a ¥1.0
billion effect on our consolidated net income.

(Petrochemical Products)
We are engaged in a broad range of trading activities for petrochemical products manufactured from raw materials such
as naphtha and natural gas. The prices of petrochemical products are largely determined for each product on an individual
basis based on the prices of the above raw materials, supply-demand dynamics and other factors. Fluctuations in the
prices of these raw materials may affect earnings from these trading transactions.

We have made investments in manufacturing and sales companies for petrochemicals such as ethylene glycol, paraxylene
and methanol in Saudi Arabia, Malaysia and Venezuela. Our equity-method earnings would be affected by changes in the
operating results of these companies due to price movements.

(2) Foreign Currency Risk
We bear risk of fluctuations in foreign currency rates relative to the yen in the course of our trading activities, such as
export, import and offshore trading. While we use forward contracts and other hedging strategies, there is no assurance
that we can completely avoid foreign currency risk.

In addition, dividends received from overseas businesses and equity in earnings of overseas consolidated subsidiaries and
equity-method affiliates are relatively high in proportion to our consolidated net income. Because most of these earnings
are denominated in foreign currencies, which are converted to yen solely for reporting purposes, an appreciation in the
yen relative to foreign currencies has a negative impact on consolidated net income. In terms of sensitivity, a ¥1 change
relative to the U.S. dollar would have an approximate ¥2.7 billion effect on consolidated net income.


28

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Regarding our investments in overseas businesses, an appreciation in the yen poses the risk of lowering shareholders’
equity through a negative effect on the foreign currency translation adjustments account. Consequently, we implement
various measures to prevent increased exposure to foreign currency risk on investments, such as by hedging foreign
currency risks with respect to new large investments. However, there is no assurance that we can completely avoid these
risks.

(3) Stock Price Risk
As of March 31, 2012, we owned approximately ¥1,400.0 billion (market value basis) of marketable securities, mostly
equity issues of customers, suppliers and Affiliated companies. These investments expose us to the risk of fluctuations in
stock prices. As of the same date, we had net unrealized gains of approximately ¥500.0 billion based on market prices, a
figure that could change depending on future trends in stock prices.

In our corporate pension fund, some of the pension assets managed are marketable stocks. Accordingly, a fall in stock
prices could cause an increase in pension expenses by reducing pension assets.

(4) Interest Rate Risk
As of March 31, 2012, we had gross interest-bearing liabilities of approximately ¥5,016.4 billion. Because almost all of
these liabilities bear floating interest rates, there is a risk of an increase in interest expenses caused by a rise in interest
rates.

The vast majority of these interest-bearing liabilities are corresponding to trade receivables, loans receivable and other
operating assets that are positively 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, interest rate risk is offset. For the remaining
interest-bearing liabilities exposed to interest rate risk without such offsets, commensurate asset holdings such as
investment securities, property and equipment generate trading income as well as other income streams such as dividends
that are strongly correlated with economic cycles. Accordingly, even if interest rates increase as the economy improves,
leading to higher interest expenses, we believe that these expenses would be offset by an increase in income from the
corresponding asset holdings.

However, our operating results may be negatively affected temporarily if there is a rapid rise in interest rates because
increased income from commensurate asset holdings would fail to offset the effects of a preceding increase in interest
expenses.

To monitor market movements in interest rates and respond flexibly to market risks, we established the ALM (Asset
Liability Management) Committee. This committee establishes fund procurement strategy and manages the risk of
interest rate fluctuations.

3) Credit Risk
We extend credit to customers in the form of trade credit, including accounts receivables and advance payments, finance,
guarantees and investments due to our various operating transactions. We are therefore exposed to credit risk in the form
of losses arising from deterioration in the credit of or bankruptcy of customers. Furthermore, we utilize derivative
instruments, primarily swaps, options and futures, for the purpose of hedging risks. In this case, we are exposed to the
credit risk of the counterparties to these derivative instruments.

To manage this risk, we have established credit and transaction limits for each customer as well as introduced an internal
rating system. Based on internal rules determined by internal ratings and the amount of credit, we also require collateral
or a guarantee depending on the credit profile of the counterparty.
There is no guarantee that we will be able to completely avoid credit risk with these risk hedging strategies. We reduce
transactions and take measures to protect our receivables when there is deterioration in the credit condition of customers.



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                                                            - 28 -
Mitsubishi Corporation   Annual Report 2012




We also have a policy for dealing with bankrupt customers and work to collect receivables. However, failure to collect
receivables and other credit could affect our operating results.

4) Country Risk
We bear country risk in relation to transactions and investments with overseas companies in the form of delays or
inability to collect cash or conduct business activities due to political and socioeconomic conditions in the countries
where they are domiciled.

We take appropriate risk hedging measures that involve, in principle, hedges via third parties through such means as
taking out insurance, depending on the nature of the project. Furthermore, we have established a Country Risk
Committee, under which country risk is managed through a country risk countermeasure system. The country risk
countermeasure system classifies countries with which we trade into six categories based on risk money in terms of the
sum total of the amount of investments, advances, and guarantees, and the amount of trade receivables, net of hedges, as
well as creditworthiness by country (country rating). Country risk is controlled through the establishment of risk limits
for each category.

However, even with these risk hedging measures, it is difficult to completely avoid risks caused by deterioration in the
political, economic, or social conditions in the countries or regions where our customers, portfolio companies or we have
ongoing projects. Such eventualities may have a significant impact on our operating results.

5) Business Investment Risk
We participate in the management of various companies by acquiring equity and other types of interests. These business
investment activities are carried out with the aim of increasing our commercial rights and deriving capital gains. However,
we bear various risks related to business investments, such as the possible inability to recover our investments and exit
losses and being unable to earn the planned profits. Regarding the management of business investment risk, in the case of
new business investments, we clarify the investment meaning and purpose, quantitatively grasp the downside risk of
investments and evaluate whether the investment return exceeds the minimum expected rate of return, which is
determined internally according to the extent of the risk. After investing, we manage risk on an individual basis with
respect to business investments to achieve the investment goals set forth in the business plan formulated every year.
Furthermore, we apply exit rules for the early sale of our equity interest or the liquidation of the investee in order to
efficiently replace assets in our portfolio.

While we follow strict standards for the selection and management of investments, it is difficult to completely avoid the
risk of investments not delivering the expected profits. Therefore, we may incur losses resulting from such actions as the
withdrawal from an investment.

6) Risks Related to Specific Investments
(Investment in and Operations with Mitsubishi Motors Corporation)
Following requests from Mitsubishi Motors Corporation (MMC), we injected equity totaling ¥140.0 billion in MMC
from June 2004 through January 2006 by subscribing to ordinary and preferred MMC shares. We cooperate with MMC
developing business at sales companies mainly outside of Japan and across the related value chain. Our risk exposure to
MMC proper was approximately ¥120.0 billion as of March 31, 2012. Our risk exposure in connection with
investments in businesses, finance, trade receivables and other related business was approximately ¥250.0 billion as of
March 31, 2012. Our total MMC-related risk exposure, including both the aforementioned risk exposure to MMC proper
and our risk exposure to related business, was thus around ¥370.0 billion as of March 31, 2012.

For the year ended March 2012, MMC posted consolidated sales of ¥1,807.3 billion, operating profit of ¥63.7 billion and
a net profit of ¥23.9 billion.



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                                                                                                     Mitsubishi Corporation   Annual Report 2012




(Acquisition of Interest in Chilean Copper Asset)
On November 10, 2011, we completed the acquisition of 24.5% of Anglo American Sur, S.A. (AAS) for US$5.39 billion
(approximately ¥420.0 billion). AAS is a Chilean copper mining and smelting company, wholly owned by Anglo
American plc (AAC). The acquisition is the result of a sales process initiated by AAC. As of March 31, 2012, the risk
exposure equals the acquisition amount of approximately ¥420.0 billion.

AAS holds a significant portfolio of copper assets in Chile, including the Los Bronces mine, the El Soldado mine, the
Chagres smelter and large-scale prospective exploration properties. AAS completed the Los Bronces expansion project in
November 2011, which is expected to increase AAS’s annual production of copper to approximately 440,000 tonnes
when the Los Bronces mine is at full production in 2012.

We also hold 8.25% of the Escondida copper mine and 5% of the Los Pelambres copper mine in Chile and 10% of the
Antamina copper mine in Peru. Our attributable copper production from these three projects is approximately 140,000
tonnes per annum. As a result of the newly acquired 24.5% equity interest in AAS, our attributable copper production is
expected to rise to approximately 250,000 tonnes per annum in 2012, assuming operation at full capacity.

We have designated the expansion of high-quality resource investments and the expansion of its resource portfolio with
sustainable growth as an important area. Through this share acquisition, we will continue to grow its business.

7) Risks Related to Compliance
We are engaged in businesses in all industries through our many offices around the world. These activities subject us to a
wide variety of laws and regulations. Specifically, we must comply with the Companies Act, tax laws, Financial
Instruments and Exchange Act, anti-monopoly laws, international trade-related laws, environmental laws and various
business laws in Japan. In addition, in the course of conducting business overseas, we must abide by the laws and
regulations in the countries and regions where we operate.

We have established a Compliance Committee, which is headed by a Chief Compliance Officer, who is at the forefront of
our efforts to raise awareness of compliance. This officer also directs and supervises compliance with laws and
regulations on a consolidated basis.

Notwithstanding these initiatives, compliance risks cannot be completely avoided. Failure to fulfill our obligations under
related laws and regulations could affect our businesses and operating results.

8) Risks From Natural Disasters
A natural disaster, such as an earthquake, heavy rain or flood, that damages our offices, facilities or systems and affects
employees could hinder sales and production activities.

We have established adequate countermeasures, having implemented an employee safety check system; formulated a
disaster contingency manual and a business contingency plan (BCP); implemented earthquake-proof measures for
buildings, facilities or systems (including backup of data); and introduced a program of disaster prevention drills.
However, no amount of preparation of this sort can completely avoid the risk of damage caused by a natural disaster.
Accordingly, damage from a natural disaster could affect the company’s operating results.

Note:
Earnings forecasts and other forward-looking statements in this release are based on data currently available to management and
certain assumptions that management believes are reasonable. Therefore, they do not constitute a guarantee that they will be realized.
Actual results may differ materially from these statements for various reasons.




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Mitsubishi Corporation   Annual Report 2012




9. Critical Accounting Policies and Estimates

The preparation of these consolidated financial statements requires management to make estimates that may affect the
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the fiscal
year-end and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis,
management reviews its estimates and judgments, including the valuation of receivables, investments, long-lived assets,
inventories, revenue recognition, income taxes, financing activities, restructuring costs, pension benefits, contingencies,
litigation and others. Management bases its estimates and judgments on historical experience and on various other factors
that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments
about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates under different assumptions or conditions.

Management believes the following are our critical accounting policies and estimates. These policies and estimates were
considered “critical” because:
・ the estimate requires us to make assumptions about matters that are highly uncertain at the time the estimate is made,
    and
・ different assumptions that we reasonably could have used in the current period could have a material impact on the
    presentation of our financial condition, changes in financial condition, or results of operations.

1) Valuation of Receivables
The valuation of receivables is a critical accounting estimate, as the balance of our trade receivables, notes and loans is
significant. We perform ongoing credit valuations of our customers and adjust credit limits based upon the customer’s
payment history and current credit worthiness, as determined by our review of the customer’s current credit information.
We continuously monitor collections and payments from our customers. We establish credit limits and an allowance for
doubtful accounts based upon factors surrounding specific customer collection issues that we have identified, past credit
loss experience, historical trends, evaluation of potential losses in the receivables outstanding, credit ratings from
applicable agencies and other information.

For each of our customers, we monitor financial condition, credit level and collections on receivables as part of an effort
to reach an appropriate accounting estimate for the allowance for doubtful accounts. Also, for the valuation of long-term
loans receivable, we use the discounted cash flow method, which is based on assumptions such as an estimate of the
future repayment plan and discount rates.

For the year ended March 31, 2011, we decreased our total allowance for doubtful accounts by ¥8.9 billion, or 14.0%, to
¥54.3 billion.

For the year ended March 31, 2012, our total allowance for doubtful accounts was an equal level to the previous year
which was ¥54.3 billion. The allowance for doubtful accounts represented approximately 1.5% and 1.3% of our total
receivables (current and noncurrent) as of March 31, 2011 and 2012, respectively.

Management believes that the evaluation of receivables is reasonable, the balance of the allowance for doubtful accounts
is adequate and the receivables are presented at net realizable value; however, these valuations include uncertainties that
may result in the need for the Company to increase the allowance for doubtful accounts in the future.

2) Valuation of Investments
The valuation of investments is a critical accounting estimate because fair value is susceptible to change from period to
period, and also because the outstanding balance of our investments is significant.

We assess impairment of investments by considering whether a decline in value is other-than-temporary based on, among


32
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                                                                                            Mitsubishi Corporation   Annual Report 2012




others, the length of time and the extent to which the fair value has been less than the carrying value and our intent and
ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair value. We
assess impairment of available-for-sale securities based on their market values, while equity-method investments and
other investments are assessed by considering their market values, financial condition, performance, business
circumstance, near-term prospects and future cash flows of the issuer.

If the decline in value is judged to be other-than-temporary, the carrying value of the investment is written down to fair
value.

In each of the last three years, we have assessed investments for impairment using similar methods and determined that,
based on our assumptions, certain investments have been other-than-temporarily impaired. For the years ended March 31,
2010, 2011 and 2012, impairment losses of ¥68.1 billion, ¥20.3 billion, and ¥25.5 billion respectively, were recognized in
“Gain on marketable securities and investments―net” in the consolidated statements of income to reflect the declines in
fair value of certain available-for-sale securities, investments in Affiliated companies and other investments that were
considered to be other-than-temporary.

Management believes that the carrying value of its investments and evaluation of its investments determined not to be
other-than-temporarily impaired is reasonable. However, these valuations are subject to a number of uncertainties which
may require further write-downs in the future.

3) Impairment of Long-Lived Assets
We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of
the carrying amount of an asset to the estimated undiscounted future net cash flows expected to be generated by the asset.
If the carrying amount of an asset exceeds its estimated discounted future cash flows, an impairment loss is recognized in
the amount by which the carrying amount of the assets exceeds the fair value of the assets. A long-lived asset to be
disposed of by sale is reported at the lower of the carrying amount or fair value less costs to sell and is no longer
depreciated. A long-lived asset to be disposed of other than by sale is considered as held and used until disposed of.

Estimated fair values of assets are primarily determined based on independent appraisals and discounted cash flow
analysis. These evaluations use many estimates and assumptions such as future market growth, forecast revenue and costs,
useful lives of utilization of the assets, discount rates and other factors.

In each of the last three years, we have determined that, based on our estimates and assumptions, certain long-lived assets
were impaired. These amounts were included in “Loss on property and equipment―net” in the consolidated statements
of income. For the years ended March 31, 2010, 2011 and 2012, such impairment losses amounted to ¥18.3 billion, ¥7.2
billion and ¥5.8 billion respectively.

The impairment loss on long-lived assets for the year ended March 31, 2012 was principally attributable to a decline of
land price and profitability related to real estate properties in Japan, which are included in the Industrial Finance,
Logistics & Development segment, and abandonment of exploration and developing right for a certain oil and gas
property owned by a subsidiary in the Energy Business segment.

Management believes that the estimates of discounted cash flows and fair values are reasonable; however, these
valuations are subject to a number of uncertainties that may change the valuation of the long-lived assets due to
unforeseen changes in business assumptions. As a result, we may be required to recognize further impairment in the
future.




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Mitsubishi Corporation   Annual Report 2012




4) Pension Benefit Costs and Obligations
Employee pension benefit costs and obligations are dependent on assumptions used by actuaries in calculating such
amounts. The discount rate and the expected long-term rate of return on plan assets are two critical assumptions in
determining periodic pension benefit costs and pension liabilities. We evaluate these assumptions annually or when
events occur that may have an impact on these critical assumptions.

The discount rate assumptions are determined on the rate available on high-quality fixed-income investments with a
duration that approximately matches our employees’ estimated period of service and benefit payments at the respective
measurement dates of each plan. For the year ended March 31, 2011, we set the weighted average discount rate at 2.7%,
an equal to the previous year. We decreased weighted average discount rate to 2.6%, a decrease of 0.1 of a percentage
point for the year ended March 31, 2012.

The assumption for the expected long-term return on plan assets is determined after considering the investment policy,
long-term historical returns, asset allocation, and future estimates of long-term investment returns. We used the expected
long-term rate of return of 2.6% for the year ended March 31, 2011. For the year ended March 31, 2012, we calculated
pension benefit costs using a rate of return of 2.5%, a decrease of 0.1 of a percentage point from the previous year.

In accordance with U.S.GAAP, the difference between actual results and assumptions is accumulated and amortized over
future periods. Therefore, actual results generally affect the expenses recognized in future periods. Management believes
that the actuarial assumptions and methods used are appropriate in the circumstances. However, differences in actual
experience or changes in assumptions may affect the pension obligations and future expenses.

5) Revenue Recognition
We recognize revenues when there is persuasive evidence of an arrangement, the goods have been delivered or the
services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably
assured.

We manufacture a wide variety of products, such as metals, machinery, chemicals and general consumer merchandise,
and develop natural resources. We also trade a wide variety of commodities and may take ownership risk of such
inventory or merely facilitate our customer’s purchase and sale of commodities and other products, where we earn a
commission for this service.

We act as a principal or agent in our activities for earning revenues. We present revenue transactions with corresponding
cost of revenues on a gross basis as “Revenues from trading, manufacturing and other activities” in the consolidated
statements of income for transactions traded as a primary obligor in manufacturing, processing and service rendering for
sales with general inventory risk before customer orders. For transactions traded as agent, the revenues are presented as
“Trading margins and commissions on trading transactions” in the consolidated statements of income on a net basis.

We act as a principal seller in manufacturing and other activities. We also act as a principal in various trading transactions
where we carry commodity inventory and generate a profit or loss on the spread between bid and asked prices for
commodities. Delivery in these transactions is considered to have occurred at the point in time when the delivery
conditions as agreed to by customers have been met. This is generally when the goods have been delivered to and
accepted by the customer, title to the goods has been transferred, or the implementation testing has been duly completed.

We also enter into long-term construction contracts as part of our manufacturing business. Revenues from long-term
construction projects are accounted for using the percentage-of-completion method in cases where the estimated costs to
complete and extent of progress toward completion of long-term contracts are reasonably dependable and there is an
enforceable agreement between the parties who can fulfill the obligations, otherwise, the completed contract method is
used.


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We also perform other activities, which consist of services and rental or leasing activities. Service-related activities
include performance of various services such as financial and logistics services, information and communications,
technical support and other service-related activities. We are engaged in certain rental activities or leasing of properties,
including office buildings, aircraft and other industrial assets. Revenues from service-related activities are recognized
when the contracted services have been rendered to third-party customers pursuant to the agreement. For direct financing
leases, unearned income is amortized to income over the lease term at a constant periodic rate of return on the net
investment. Operating lease income is recognized over the term of underlying leases on a straight-line basis.

We act as an agent and record revenues earned from margins and commissions related to various trading transactions in
which we act as an agent. Through these trading activities, we facilitate our customers’ purchases and sales of
commodities and other products and earn a commission for this service. The trading margins and commissions are
recognized when all other revenue recognition criteria have been met.

6) Derivatives
We utilize derivative instruments primarily to manage interest rate risks, to reduce exposure to movements in foreign
exchange rates, and to hedge various inventory and trading commitments. All derivative instruments are reported on the
balance sheet at fair value as assets or liabilities.

Generally, on the date on which the derivative contract is executed, we designate such derivative as either a fair value
hedge or a cash flow hedge to the extent that hedging criteria are met.

  Fair Value Hedge—
  Derivative instruments designated as fair value hedges primarily consist of interest rate swaps used to convert
  fixed-rate assets or debt obligations to floating-rate assets or debt. Changes in fair values of hedging derivative
  instruments are recognized in earnings, offset against the changes in the fair value of the related assets, liabilities and
  firm commitment, and are included in “Other income—net.”

  Cash Flow Hedge—
  Derivative instruments designated as cash flow hedges include interest rate swaps to convert floating-rate liabilities to
  fixed-rate liabilities, and forward exchange contracts to eliminate variability in functional-currency-equivalent cash
  flows on forecasted sales transactions. Additionally, commodity swaps and futures contracts which qualify as cash
  flow hedges are utilized. Changes in the fair values of derivatives that are designated as cash flow hedges are deferred
  and recorded as a component of AOCI. Derivative unrealized gains and losses included in AOCI are reclassified into
  earnings at the time that the associated hedged transactions affect the income statement.

  Hedge of the Net Investment in Foreign Operations—
  We use foreign exchange contracts and nonderivative financial instruments such as foreign-currency-denominated debt
  in order to reduce the foreign currency exposure in the net investment in a foreign operation. Changes in fair values of
  hedging instruments are included in foreign currency translation adjustments within AOCI.

  Derivative Instruments Used for Other than Hedging Activities—
  We enter into derivative instruments as part of our brokerage services in commodity futures markets and our trading
  activities. We clearly distinguish derivatives used for brokerage services and trading activities from derivatives used
  for risk management purposes. As part of our internal control policies, we have set strict limits on the positions which
  can be taken in order to manage potential losses for these derivative transactions, and periodically monitors the open
  positions for compliance.
  Changes in fair value of derivatives not designated as hedging instruments and held or issued for trading purposes are
  recorded in earnings. We offset the fair value amounts recognized for cash collateral against the fair value of amounts
  recognized for derivative instruments that are executed with the same counterparty under the same master netting



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Mitsubishi Corporation   Annual Report 2012




     arrangement.

7) Recent Accounting Pronouncements
Recently adopted accounting pronouncements
Effective April 1, 2011, the Company adopted ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements, a
consensus of the FASB Emerging Issues Task Force.” This guidance modifies the criteria for separating consideration
under multiple-deliverable arrangements and requires allocation of the overall consideration to each deliverable using the
estimated selling price in the absence of vendor-specific objective evidence or third-party evidence of the selling price for
deliverables. As a result, the residual method of allocating arrangement consideration will no longer be permitted. The
guidance also requires additional disclosures about how a vendor allocates revenue in its arrangements and about the
significant judgments made and their impact on revenue recognition. The adoption of ASU No. 2009-13 did not have a
material impact on the Company’s consolidated financial position and results of operations in the fiscal year ended March
31, 2012.

Effective April 1, 2011, the Company adopted ASU No. 2010-17, “Milestone Method of Revenue Recognition, a
consensus of the FASB Emerging Issues Task Force.” ASU No. 2010-17 establishes a revenue recognition model for
contingent consideration that is payable upon the achievement of an uncertain future event, referred to as a milestone.
The scope of ASU No. 2010-17 is limited to research or development arrangements. The adoption of ASU No. 2010-17
did not have impact on the Company’s consolidated financial position and results of operations in the fiscal year ended
March 31, 2012.

Effective July 1, 2011, the Company adopted ASU No. 2011-02, “A Creditor's Determination of Whether a Restructuring
Is a Troubled Debt Restructuring.” ASU No. 2011-02 provides guidance for determining whether a restructuring
constitutes a troubled debt restructuring for the purpose of measuring an impairment loss and disclosure of troubled debt
restructurings. In determining whether a restructuring constitutes a troubled debt restructuring, creditors must separately
conclude whether the restructuring constitutes a concession and whether a debtor is experiencing financial difficulties.
The adoption of ASU No. 2011-02 did not have impact on the Company’s consolidated financial position and results of
operations in the fiscal year ended March 31, 2012.

Effective January 1, 2012, the Company adopted ASU No. 2011-04, “Fair Value Measurement: Amendments to Achieve
Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU No. 2011-04 is the
result of joint efforts by the FASB and International Accounting Standards Board (“IASB”) to develop a single,
converged fair value framework, that is, converged guidance on how to measure fair value and on what disclosures to
provide about fair value measurements. The adoption of ASU No. 2011-04 did not have impact on the Company’s
consolidated financial position and results of operations in the fiscal year ended March 31, 2012.

Recent accounting pronouncements not yet adopted
In September 2011, the FASB issued ASU No.2011-08,“Testing Goodwill for impairment.” ASU No.2011-08 provides
entities with the option of performing a qualitative assessment before performing the quantitative goodwill impairment
test. Only if an entity determines in the qualitative assessment that it is more likely than not that the fair value of the
reporting unit is less than carrying amount including goodwill, an entity is required to perform the two-step quantitative
goodwill impairment test. ASU No.2011-08 does not change how goodwill is calculated or assigned to reporting units,
nor does it revise the requirement to test goodwill at least annually for impairment.ASU No.2011-08 is effective for fiscal
years beginning on or after December 15, 2011 and is required to be adopted by the Company no later than the first
quarter beginning April 1, 2012. The Company is currently evaluating ASU No.2011-08 to determine whether or not to
exercise the option of performing a qualitative assessment.

In December 2011, the FASB issued ASU No.2011-10, “Property, Plant, and Equipment-Derecognition of in-substance
Real Estate a Scope Clarification.” Under the ASU No.2011-10, the reporting entity should apply the guidance in ASC


36

                                                           - 35 -
                                                                                             Mitsubishi Corporation   Annual Report 2012




Subtopic 360-20 “Property, Plant, and Equipment - Real Estate Sales” to determine whether it should derecognize the
in-substance real estate when the reporting entity ceases to have a controlling financial interest in the subsidiary that is
in-substance real estate as a result of default on the subsidiary’s nonrecourse debt. ASU No.2011-10 doesn’t revise ASC
Subtopic 360-20 itself but clarifies the scope it covers. ASU No.2011-10 is effective for fiscal years beginning on or after
June 15, 2012 and is required to be adopted prospectively by the Company no later than the first quarter beginning April
1, 2013. The adoption of ASU No.2011-10 is not expected to materially impact the Company’s consolidated financial
position and results in current business.




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Mitsubishi Corporation   Annual Report 2012

Six-Year Financial Summary
Mitsubishi Corporation and Subsidiaries
Years Ended March 31
Six-Year Financial Summary
Mitsubishi Corporation and Subsidiaries
Years Ended March 31



                                                                                                                     2007                     2008
                                                                                                                As Adjusted     *4
                                                                                                                                        As Adjusted*4
 Performance Measure:
                       *1
 Operating transactions                                                                                          ¥20,526,402           ¥23,105,053

 Results of Operations:
 Revenues                                                                                                          ¥5,068,199            ¥6,050,654
 Gross profit                                                                                                       1,144,982             1,172,665
 Net income from continuing operations attributable to Mitsubishi
                                                                                                                       424,192               474,866
 Corporation
 Net income attributable to Mitsubishi Corporation                                                                     418,965               471,262

 Financial Position at Year-End:
 Total assets                                                                                                    ¥11,350,293           ¥11,638,265
 Working capital*2                                                                                                 1,335,452             1,429,764
 Long-term debt, less current maturities                                                                           2,863,558             3,096,818
 Total Mitsubishi Corporation shareholders’ equity                                                                 2,882,924             2,832,293

 Amounts per Share:
 Net income from continuing operations attributable to Mitsubishi
 Corporation per share:
  Basic EPS                                                                                                            ¥251.44               ¥286.23
  Diluted EPS                                                                                                           250.07                284.96
 Net income attributable to Mitsubishi Corporation per share:
  Basic EPS                                                                                                              248.34                284.06
  Diluted EPS                                                                                                            246.99                282.79
 Cash dividends declared for the year                                                                                     46.00                 56.00

 Common Stock:
                                          *3
 Number of shares outstanding at year-end                                                                            1,688,303             1,641,203

 Exchange Rates into U.S. Currency:
  (Per the Federal Reserve Bank of New York)
 At year-end                                                                                                           ¥117.56                 ¥99.85
 Average for the year                                                                                                   116.55                 113.61
 Range:
   Low                                                                                                                   121.81                124.09
   High                                                                                                                  110.07                 96.88
Notes: The U.S. dollar amounts represent translations, for convenience only, of yen amounts at the rate of ¥82=$1.
  *1 Operating transactions is a voluntary disclosure commonly made by Japanese trading companies, and is not meant to represent sales or revenues in
      accordance with U.S. GAAP. See Note 1.
  *2 Working capital consists of all current assets and liabilities, including cash and short-term debt.
  *3 Treasury stock is not included.
  *4 For the year ended March 31, 2012, the Parent acquired additional investments in cost method investees, and accounted for the Parent's ownership interest
      in investees under the equity method. Accordingly, the Parent has retrospectively adjusted the prior periods’ consolidated financial statements. See Note 2
      "Acquisition of additional interests in Affiliated companies" section.




38
                                                                                      Mitsubishi Corporation    Annual Report 2012


Six-Year Financial Summary
Mitsubishi Corporation and Subsidiaries
Years Ended March 31




                                                                                                Millions of
              Millions of Yen                                                                   U.S. Dollars
             2009             2010                     2011                 2012                   2012
      As Adjusted*4             As Adjusted*4      As Adjusted*4


      ¥22,393,595              ¥17,102,782         ¥19,233,443       ¥20,126,321                       $245,443

        ¥6,156,365               ¥4,540,793         ¥5,206,873           ¥5,565,832                      $67,876
         1,465,027                1,016,597          1,149,902            1,127,860                       13,754
           366,417                  275,787            464,543              453,849                        5,535
           370,987                  275,787            464,543              453,849                        5,535

      ¥10,837,537              ¥10,803,702         ¥11,272,775       ¥12,588,513                       $153,518
        1,613,776                1,780,008           2,012,098         1,709,310                         20,845
        3,467,766                3,246,029           3,188,749         3,760,101                         45,855
        2,359,397                2,926,094           3,233,342         3,509,328                         42,796

                      Yen                                                                        U.S. Dollars


            ¥223.10                  ¥167.85           ¥282.62             ¥275.83                             $3.36
             222.61                   167.46            281.87              275.22                              3.36

              225.88                      167.85        282.62              275.83                              3.36
              225.38                      167.46        281.87              275.22                              3.36
               52.00                       38.00         65.00               65.00                              0.79

          Thousands of Shares

          1,642,904                1,643,532         1,644,074            1,646,173

           Yen per U.S. Dollar

              ¥99.15                      ¥93.40        ¥82.76              ¥82.41
              100.85                       92.49         85.00               78.86

              110.48                      100.71         94.68               85.26
               87.80                       86.12         78.74               75.72




                                                                                                                               39

                                                                   ―2―
Mitsubishi Corporation   Annual Report 2012

Independent Auditors’ Report



                   INDEPENDENT AUDITORS' REPORT



                                                                                                               Deloitte Touche Tohmatsu LLC
                                                                                                               MS Shibaura Building
                                                                                                               4-13-23, Shibaura
                                                                                                               Minato-ku, Tokyo 108-8530
                                                                                                               Japan
                                                                                                               Tel: +81 (3) 3457 7321
                                                                                                               Fax: +81 (3) 3457 1694
                                                                                                               www.deloitte.com/jp




                   To the Board of Directors and Shareholders of
                     Mitsubishi Corporation
                     (Mitsubishi Shoji Kabushiki Kaisha):

                   We have audited the accompanying consolidated balance sheets of Mitsubishi Corporation (Mitsubishi Shoji Kabushiki
                   Kaisha) and subsidiaries (collectively, the "Company") as of March 31, 2011 and 2012, and the related consolidated
                   statements of income, comprehensive income, equity, and cash flows for each of the three years in the period ended March
                   31, 2012 (all expressed in Japanese yen). These consolidated financial statements are the responsibility of the Company's
                   management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

                   We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
                   standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
                   are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for
                   designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion in
                   accordance with attestation standards established by the American Institute of Certified Public Accountants on the
                   effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit
                   also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
                   assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
                   financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

                   In our opinion, such consolidated financial statements present fairly, in all material respects, the consolidated financial
                   position of Mitsubishi Corporation and subsidiaries as of March 31, 2011 and 2012, and the consolidated results of their
                   operations and their cash flows for each of the three years in the period ended March 31, 2012, in conformity with
                   accounting principles generally accepted in the United States of America.

                   As discussed in Note 2 to the consolidated financial statements, the Company adopted the reporting and disclosure
                   requirements of a new accounting standard regarding oil and gas reserves for the year ended March 31, 2010.

                   Our audits also comprehended the translation of Japanese yen amounts into United States dollar amounts included in the
                   consolidated financial statements with respect to the year ended March 31, 2012 and, in our opinion, such translation has
                   been made in conformity with the basis stated in Note 1. Such United States dollar amounts are presented solely for the
                   convenience of readers outside Japan.




                   /s/ Deloitte Touche Tohmatsu LLC

                   June 26, 2012

                                                                                                               Member of
                                                                                                               Deloitte Touche Tohmatsu Limited


                   NOTE TO READERS:
                   Notwithstanding the second paragraph of the Independent Auditors' Report, Deloitte Touche Tohmatsu LLC ("DTT") has
                   performed an audit of management's report on internal control over financial reporting ("ICFR") under the Financial
                   Instruments and Exchange Act of Japan. A translated copy of management's report on ICFR along with a translated copy of
                   DTT's report is included within this annual report as information for readers.




40
                                                                                           Mitsubishi Corporation   Annual Report 2012

Supplementary Explanation

Supplementary Explanation




     Internal Controls Over Financial Reporting in Japan




     The Financial Instruments and Exchange Act in Japan ("the Act") requires the management of Japanese
     public companies to annually evaluate whether internal controls over financial reporting ("ICFR") are
     effective as of each fiscal year-end and to disclose the assessment to investors in a "Management Internal
     Control Report." The Act also requires that the independent auditor of the financial statements of these
     companies report on management's assessment of the effectiveness of ICFR in an Independent Auditor’s
     Report ("indirect reporting"). Under the Act, these reports are required for fiscal years beginning on or
     after April 1, 2008.

     We have thus evaluated our internal controls over financial reporting as of March 31, 2012 in accordance
     with "On the Revision of the Standards and Practice Standards for Management Assessment and Audit
     concerning Internal Control Over Financial Reporting (Council Opinions)" published by Business
     Accounting Council on March 30, 2011.

     As a result of conducting an evaluation of internal controls over financial reporting in the fiscal year ended
     March 31, 2012, we concluded that our internal control system over financial reporting as of March 31,
     2012 was effective and reported as such in the Management Internal Control Report.

     Our Independent Auditor, Deloitte Touche Tohmatsu LLC, performed an audit of the Management
     Internal Control Report under the Act.

     An English translation of the Management Internal Control Report and the Independent Auditor’s Report
     filed under the Act is attached on the following pages.




                                                                                          Mitsubishi Corporation




                                                                                                                                   41
                                                         -3-
Mitsubishi Corporation   Annual Report 2012

Management Internal Control Report (Translation)

Management Internal Control Report (Translation)



     NOTE TO READERS:
     Following is an English translation of management's report on internal control over financial reporting ("ICFR")
     filed under the Financial Instruments and Exchange Act in Japan. This report is presented merely as supplemental
     information.


     There are differences between the management assessment of ICFR under the Financial Instruments and Exchange
     Act ("ICFR under FIEA") and one conducted under the attestation standards established by the American Institute
     of Certified Public Accountants ("AICPA").


     In the management assessment of ICFR under FIEA, there is detailed guidance on the scope of management
     assessment of ICFR such as quantitative guidance on business location selection and/or account selection. In the
     management assessment of ICFR under the attestation standards established by the AICPA, there is no such
     detailed guidance. Accordingly, based on the quantitative guidance which provides an approximate measure for the
     scope of assessment of internal control over business processes, we used a measure of approximately 70% of total
     assets and income before income taxes for the selection of significant locations and business units.




(TRANSLATION)


1 [Matters relating to the basic framework for internal control over financial reporting]
Ken Kobayashi, President and CEO, and Ryoichi Ueda, Director and Senior Executive Vice President, are responsible
for designing and operating effective internal control over financial reporting of Misubishi Corporation (the
"Company") and have designed and operated internal control over financial reporting in accordance with the basic
framework for internal control set forth in "On the Revision of the Standards and Practice Standards for Management
Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)" published by
Business Accounting Council on March 30, 2011.


The internal control is designed to achieve its objectives to the extent reasonable through the effective function and
combination of its basic elements. Therefore, there is a possibility that misstatements may not be completely prevented
or detected by internal control over financial reporting.



2 [Matters relating to the scope of assessment, the basic date of assessment and the assessment procedures]
The assessment of internal control over financial reporting was performed as of March 31, 2012, which is the end of this
fiscal year. The assessment was performed in accordance with assessment standards for internal control over financial
reporting generally accepted in Japan.


In conducting this assessment, we evaluated internal controls which may have a material effect on our entire financial
reporting in a consolidation ("company-level controls"). We appropriately selected business processes to be evaluated,
analyzed these selected business processes, identified key controls that may have a material impact on the reliability of
the Company's financial reporting, and assessed the design and operation of these key controls. These procedures have
allowed us to evaluate the effectiveness of the internal controls of the Company.




                                                          -4-
42
                                                                                               Mitsubishi Corporation   Annual Report 2012




We determined the required scope of assessment of internal control over financial reporting for the Company, as well as
its consolidated subsidiaries and equity-method affiliated companies, from the perspective of the materiality that may
affect the reliability of the Company’s financial reporting. The materiality that may affect the reliability of the financial
reporting is determined taking into account the materiality of quantitative and qualitative impacts. We confirmed that we
had reasonably determined the scope of assessment of internal controls over business processes in light of the results of
assessment of company-level controls conducted for the Company, its consolidated subsidiaries and equity-method
affiliated companies. We did not include those consolidated subsidiaries and equity-method affiliated companies which
do not have any material impact on the consolidated financial statements in the scope of assessment of company-level
controls.


Regarding the scope of assessment of internal control over business processes, we accumulated locations and business
units in descending order of total assets (before elimination of intercompany accounts) and income before income taxes
(before elimination of intercompany transactions) for the prior fiscal year, and those locations and business units whose
combined amount of total assets reaches approximately 70% of total assets on a consolidated basis and those locations
and business units whose combined amount of income before income taxes reaches approximately 70% of consolidated
income before income taxes on a consolidated basis were selected as "significant locations and business units." At the
selected significant locations and business units, we included, in the scope of assessment, (i) those business processes
leading to sales or revenue, accounts receivable and inventories, and those leading to investments and loans, as
significant accounts that may have a material impact on the business objectives of the Company, and (ii) those business
processes leading to other quantitatively-material accounts. Further, not only at selected significant locations and
business units, but also at other locations and business units, we added to the scope of assessment, as business processes
having greater materiality considering their impact on the financial reporting, (i) those business processes relating to
greater likelihood of material misstatements and significant accounts involving estimates and the management's
judgment, and (ii) those business processes relating to businesses or operations dealing with high-risk transactions.



3 [Matters relating to the results of the assessment]
As a result of the assessment described above, we concluded that the Company's internal control over financial reporting
was effective as of the end of this fiscal year.



4 [Supplementary information]
Not applicable



5 [Special information]
Not applicable




                                                                                                                                       43

                                                            -5-
Mitsubishi Corporation   Annual Report 2012

Independent Auditor’s Report filed under the Financial Instruments
and Exchange Act filed under the Financial Instruments
Independent Auditor’s Reportin Japan (Translation)
and Exchange Act in Japan (Translation)



     NOTE TO READERS:


     Following is an English translation of the Independent Auditor’s Report filed under the Financial Instruments and
     Exchange Act in Japan. This report is presented merely as supplemental information.


     There are differences between an audit of internal control over financial reporting (“ICFR”) under the Financial
     Instruments and Exchange Act (“ICFR under FIEA”) and one conducted under the attestation standards established
     by the American Institute of Certified Public Accountants (“AICPA”).


     In an audit of ICFR under FIEA, the auditor expresses an opinion on management’s report on ICFR, and does not
     express an opinion on the company’s ICFR directly. In an audit of ICFR under the attestation standards established
     by the AICPA, the auditor expresses an opinion on the company’s ICFR directly. Also in an audit of ICFR under
     FIEA, there is detailed guidance on the scope of an audit of ICFR, such as quantitative guidance on business
     location selection and/or account selection. In an audit of ICFR under the attestation standards established by the
     AICPA, there is no such detailed guidance. Accordingly, based on the quantitative guidance which provides an
     approximate measure for the scope of assessment of internal control over business processes, we used a measure of
     approximately 70% of total assets and income before income taxes for the selection of significant locations and
     business units.




(TRANSLATION)


                                                    Independent Auditor’s Report
                                   (filed under the Financial Instruments and Exchange Act in Japan)
                                                                                                               June 26, 2012
To the Board of Directors of Mitsubishi Corporation


                                                                Deloitte Touche Tohmatsu LLC

                                                                Designated Unlimited Liability Partner,
                                                                Engagement Partner,
                                                                Certified Public Accountant:              Shigeo Ogi

                                                                Designated Unlimited Liability Partner,
                                                                Engagement Partner,
                                                                Certified Public Accountant:              Michio Fujii

                                                                Designated Unlimited Liability Partner,
                                                                Engagement Partner,
                                                                Certified Public Accountant:              Ineko Iwashita

                                                                Designated Unlimited Liability Partner,
                                                                Engagement Partner,
                                                                Certified Public Accountant:              Masayuki Yamada




                                                                 -6-

44
                                                                                           Mitsubishi Corporation   Annual Report 2012




< Audit of Financial Statements >
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have audited the
consolidated financial statements included in the Financial Section, namely, the consolidated balance sheet as of
Mitsubishi Corporation (the “Company”) and its consolidated subsidiaries as of March 31, 2012, and the related
consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for the fiscal year from
April 1, 2011 to March 31, 2012, and the related notes.


Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
conformity with accounting principles generally accepted in the United States of America, pursuant to the provisions of
Article 95 of the Regulations Concerning Terminology, Forms, and Preparation Methods of Consolidated Financial
Statements, and for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.


Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.


An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.


Audit Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company and its consolidated subsidiaries as of March 31, 2012, and the results of their
operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in
the United States of America.




                                                                                                                                   45

                                                          -7-
Mitsubishi Corporation   Annual Report 2012




< Audit of Internal Control >
Pursuant to the second paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have audited
management’s report on internal control over financial reporting of the Company as of March 31, 2012.


Management’s Responsibility for the Report on Internal Control
The Company’s management is responsible for designing and operating effective internal control over financial
reporting and for the preparation and fair presentation of its report on internal control in conformity with assessment
standards for internal control over financial reporting generally accepted in Japan. There is a possibility that
misstatements may not be completely prevented or detected by internal control over financial reporting.


Auditor’s Responsibility
Our responsibility is to express an opinion on management’s report on internal control based on our internal control
audit. We conducted our internal control audit in accordance with auditing standards for internal control over financial
reporting generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether management’s report on internal control is free from material misstatement.


An internal control audit involves performing procedures to obtain audit evidence about the results of the assessment of
internal control over financial reporting in management’s report on internal control. The procedures selected depend on
the auditor’s judgment, including the significance of effects on reliability of financial reporting. An internal control audit
includes examining representations on the scope, procedures and results of the assessment of internal control over
financial reporting made by management, as well as evaluating the overall presentation of management’s report on
internal control.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.


Audit Opinion
In our opinion, management’s report on internal control referred to above, which represents that the internal control over
financial reporting of the Company as of March 31, 2012 is effectively maintained, presents fairly, in all material
respects, the results of the assessment of internal control over financial reporting in conformity with assessment
standards for internal control over financial reporting generally accepted in Japan.


Interest
Our firm and the engagement partners do not have any interest in the Company for which disclosure is required under
the provisions of the Certified Public Accountants Act.


(The above represents a translation, for convenience only, of the original report issued in the Japanese language.)




46
Mitsubishi Corporation   Annual Report 2012




                                        47
Mitsubishi Corporation   Annual Report 2012

Consolidated Balance Sheets
Consolidated Balance Sheets
Mitsubishi Corporation and Subsidiaries
March 31, 2011 and 2012
Mitsubishi Corporation and Subsidiaries
March 31, 2011 and 2012

                                                                                                            Millions of
                                                                                                            U.S. Dollars
                                                                                  Millions of Yen            (Note 1)
 ASSETS                                                                         2011           2012            2012
 Current assets:
   Cash and cash equivalents (Notes 4 and 11)                                  ¥1,208,742     ¥1,252,951        $15,280
     Time deposits                                                               101,513        116,024            1,415
     Short-term investments (Notes 4 and 11)                                      42,641         19,327              236
     Notes receivable—trade                                                       329,216        363,130           4,428
     Accounts receivable—trade                                                  2,133,395      2,379,899          29,023
     Loans and other receivables                                                 450,040        389,678            4,752
     Receivables from Affiliated companies                                       230,809        250,469           3,054
     Inventories                                                                 970,675        965,057          11,769
     Advance payments to suppliers                                               164,937        157,817            1,925
     Deferred income taxes (Note 14)                                              58,759         45,780              558
     Other current assets (Notes 10, 11 and 15)                                  326,503        258,953            3,158
     Allowance for doubtful receivables (Note 6)                                  (23,835)       (23,809)           (290)
          Total current assets                                                  5,993,395      6,175,276          75,308

 Investments and noncurrent receivables:
   Investments in and advances to Affiliated companies (Notes 5 and 11)         1,336,288      1,660,383          20,249
   Joint investments in real estates                                                              62,290             759
     Other investments (Notes 4, 8 and 11)                                      1,431,362      1,854,619          22,617
     Noncurrent notes, loans and accounts receivable—trade (Notes 8 and 22)       511,107        549,712           6,704
     Allowance for doubtful receivables (Note 6)                                  (30,474)       (30,508)           (372)
          Total investments and noncurrent receivables                          3,248,283      4,096,496          49,957

 Property and equipment (Notes 7, 8 and 22):
   Real estate held for development and resale                                    69,396         90,004            1,098
     Land                                                                        321,929        335,731            4,094
     Buildings, including leasehold improvements                                 780,305        794,497            9,689
     Machinery and equipment                                                     918,695        964,503           11,762
     Aircraft and vessels                                                        433,446        475,285            5,796
     Mineral rights                                                              343,721        394,206            4,808
     Projects in progress                                                        111,124        211,154            2,575
         Total                                                                  2,978,616      3,265,380          39,822
     Less accumulated depreciation                                             (1,242,808)    (1,294,466)        (15,786)
          Property and equipment—net                                            1,735,808      1,970,914         24,036

 Goodwill (Note 9)                                                                49,206         60,498             738

 Other intangible assets—net (Note 9)                                             77,068        107,086            1,306

 Other assets (Notes 10, 11, 14 and 15)                                          169,015        178,243            2,173

 Total assets                                                                 ¥11,272,775    ¥12,588,513       $153,518

See notes to consolidated financial statements.




                                                                                                                 (Cotinued)
                                                               -9-

48
                                                                                        Mitsubishi Corporation    Annual Report 2012




                                                                                                       Millions of
                                                                                                       U.S. Dollars
                                                                         Millions of Yen                (Note 1)
LIABILITIES AND EQUITY                                                 2011           2012                2012
Current liabilities:
  Short-term debt (Notes 8 and 13)                                     ¥656,873       ¥886,431              $10,810
  Current maturities of long-term debt (Notes 8 and 13)                 468,675        435,221                    5,307
  Notes and acceptances payable—trade                                   165,481        206,049                    2,513
  Accounts payable—trade                                               1,879,958      2,108,171                  25,709
  Payables to Affiliates companies                                       139,141        186,094                   2,270
  Advances from customers                                               162,733        160,795                    1,961
  Accrued income taxes                                                  64,290          32,360                      395
  Other accrued expenses (Note 15)                                      110,591        118,877                    1,450
  Other current liabilities (Notes 10, 11, 14 ,16 and 22)               333,555        331,968                    4,048
       Total current liabilities                                       3,981,297      4,465,966                  54,463


Noncurrent liabilities:
 Long-term debt, less current maturities (Notes 8 and 13)              3,188,749      3,760,101                  45,855
 Accrued pension and severance liabilities (Note 15)                      48,657         51,345                     626
  Deferred income taxes (Note 14)                                       191,894        197,734                    2,411
  Other noncurrent liabilities (Notes 10, 11,16 and 22)                 312,233        285,080                    3,477
       Total noncurrent liabilities                                    3,741,533      4,294,260                  52,369
       Total liabilities                                               7,722,830      8,760,226             106,832


Commitments and contingencies (Note 25)

Mitsubishi Corporation shareholders’ equity (Notes 17, 18 and 27):
  Common stock—authorized, 2,500,000,000 shares;
    issued, 2011— 1,697,268,271 shares and
    2012— 1,653,505,751 shares;
    outstanding, 2011— 1,644,073,790 shares and
    2012— 1,646,172,919 shares                                          203,598        204,447                    2,493
  Additional paid-in capital                                            256,501        262,039                    3,196
  Retained earnings:
    Appropriated for legal reserve                                        43,670         44,133                     538
    Unappropriated                                                     3,095,348      3,302,093                  40,269
  Accumulated other comprehensive income (loss):
    Net unrealized gains on securities available-for-sale                236,792        230,362                   2,809
    Net unrealized gains (losses) on derivatives                          24,354         (8,421)                   (103)
    Defined benefit pension plans                                        (79,554)       (78,318)                   (955)
    Foreign currency translation adjustments                            (395,717)      (426,442)                 (5,200)
      Subtotal                                                          (214,125)      (282,819)                 (3,449)
  Less treasury stock—at cost, 53,194,481 shares in 2011
   and 7,332,832 shares in 2012                                         (151,650)       (20,565)                   (251)
      Total Mitsubishi Corporation shareholders’ equity                3,233,342      3,509,328                  42,796
Noncontrolling interest                                                 316,603        318,959                    3,890
       Total equity                                                    3,549,945      3,828,287                  46,686
Total liabilities and equity                                         ¥11,272,775    ¥12,588,513            $153,518




                                                                                                                                 49

                                                                                                             (Cotinued)
Mitsubishi Corporation   Annual Report 2012

Consolidated Statements of Income
Mitsubishi Corporation and Subsidiaries
                      Statements of
Consolidated 2010, 2011 and 2012 Income
Years Ended March 31,

Mitsubishi Corporation and Subsidiaries
Years Ended March 31, 2010, 2011 and 2012
                                                                                                                  Millions of
                                                                                                                  U.S. Dollars
                                                                                  Millions of Yen                  (Note 1)
                                                                    2010               2011          2012            2012
 Revenues (Notes 10, 11 and 20):
     Revenues from trading, manufacturing and other activities     ¥3,967,714        ¥4,590,888     ¥4,944,801        $60,302
     Trading margins and commissions on trading transactions         573,079            615,985       621,031            7,574
       Total revenues                                               4,540,793         5,206,873      5,565,832          67,876
          Operating transactions (Notes 1 and 20):
            2010—¥17,102,782 million;
            2011—¥19,233,443 million;
           2012—¥20,126,321 million—$245,443 million
 Cost of revenues from trading, manufacturing and other
  activities (Notes 10 and 11)                                      3,524,196         4,056,971      4,437,972          54,122
 Gross profit (Note 20)                                             1,016,597         1,149,902      1,127,860          13,754
 Other expenses (income):
   Selling, general and administrative (Note 15)                     829,451            824,622       850,214          10,368
   Provision for doubtful receivables (Note 6)                         4,893              9,139         6,524              80
   Interest expense (net of interest income of:
       2010—¥37,719 million;
       2011—¥33,077 million;
       2012—¥38,633 million—$471 million) (Note 10)                    12,647             6,699         3,202               39
     Dividend income                                                  (87,969)         (120,601)     (115,498)          (1,409)
     Gain on marketable securities and investments—net
      (Notes 3, 4, 10, 11 and 20)                                        (212)          (53,439)       (21,968)           (268)
     Loss on property and equipment—net (Notes 7 and 9)                15,829             2,557          7,085              86
     Other income—net (Notes 3, 9, 10 and 21)                         (52,361)          (49,180)       (60,669)           (739)
     Total                                                           722,278            619,797       668,890            8,157
 Income before income taxes and equity in earnings of
  Affiliated companies and other                                     294,319            530,105       458,970            5,597
 Income taxes (Note 14):
   Current                                                           112,474            168,581       130,551            1,592
     Deferred                                                             5,797          30,099        38,627             471
      Total                                                          118,271            198,680       169,178            2,063
 Income before equity in earnings of Affiliated companies
  and other                                                          176,048            331,425       289,792            3,534
 Equity in earnings of Affiliated companies and other
  (Notes 5 and 20)                                                   117,857            167,002       190,509            2,323
 Net income                                                          293,905            498,427       480,301            5,857
 Less net income attributable to the noncontrolling interest          (18,118)          (33,884)       (26,452)           (322)
 Net income attributable to Mitsubishi Corporation                  ¥ 275,787         ¥ 464,543      ¥453,849          $5,535


                                                                                                                  U.S. Dollars
                                                                                       Yen                         (Note 1)
 Net income attributable to Mitsubishi Corporation per share
  (Note 19):
   Basic                                                             ¥167.85            ¥282.62       ¥275.83            $3.36
   Diluted                                                            167.46             281.87        275.22             3.36

See notes to consolidated financial statements.


                                                                                                                       (Cotinued)
                                                                 - 11 -
50
                                                                                                           Mitsubishi Corporation   Annual Report 2012

Consolidated Statements of Comprehensive
Consolidated and Subsidiaries of Comprehensive Income Income
Mitsubishi Corporation
                       Statements
Mitsubishi Corporation and Subsidiaries 2012
Years Ended March 31, 2010, 2011 and
Years Ended March 31, 2010, 2011 and 2012


                                                                                                                             Millions of
                                                                                                                             U.S. Dollars
                                                                                         Millions of Yen                      (Note 1)
                                                                             2010             2011          2012                2012
 Net income                                                                  ¥293,905         ¥498,427      ¥480,301                 $5,857

 Other comprehensive income (loss), net of tax:
   Net unrealized gains (losses) on securities available for sale
    (Notes 4 and 18)                                                          145,276          (25,558)        (8,176)                 (100)

    Net unrealized gains (losses) on derivatives (Notes 10 and
     18)                                                                       35,714           12,493        (33,337)                 (406)
    Defined benefit pension plans (Notes 15 and 18)                            21,934              910          1,210                    15
    Foreign currency translation adjustments (Note 18)                        162,759          (77,648)       (32,714)                 (399)
          Total other comprehensive income (loss), net of tax                 365,683          (89,803)       (73,017)                 (890)


 Comprehensive income                                                         659,588          408,624       407,284                  4,967
   Comprehensive income attributable to the noncontrolling
    interest                                                                  (31,362)         (26,770)      (22,129)                  (270)
 Comprehensive income attributable to Mitsubishi Corporation                 ¥628,226         ¥381,854      ¥385,155                 $4,697

See notes to consolidated financial statements.




                                                                    - 12 -


                                                                                                                                                   51
Mitsubishi Corporation   Annual Report 2012

Consolidated Statements of Equity
Consolidated Statements of Equity
Mitsubishi Corporation and Subsidiaries
Mitsubishi Corporation 2011 and 2012
Years Ended March 31, 2010, and Subsidiaries
Years Ended March 31, 2010, 2011 and 2012

                                                                                                                Millions of
                                                                                                                U.S. Dollars
                                                                                Millions of Yen                  (Note 1)
                                                                  2010               2011         2012             2012
 Common stock:
   Balance, beginning of year—shares issued:
    2010—1,696,046,684 shares
    2011—1,696,686,871 shares
    2012—1,697,268,271 shares                                     ¥202,817           ¥203,228     ¥203,598           $2,483
   Issuance of common stock and reclassification
    adjustment from additional paid-in capital upon exercise
    of stock options:
    2010—598,100 shares
    2011—581,400 shares
    2012—475,700 shares (Note 23)                                        387              370            396               5
   Issuance of common stock upon conversion of
    convertible bond:
    2010—42,087 shares
    2011—0 shares
    2012—761,780 shares (Notes 13 and 26)                                 24                             453               5
   Balance, end of year—shares issued:
    2010—1,696,686,871 shares
    2011—1,697,268,271 shares
    2012—1,653,505,751 shares (Note 17)                           ¥203,228           ¥203,598     ¥204,447           $2,493
 Additional paid-in capital:
  Balance, beginning of year                                      ¥261,828           ¥254,138     ¥256,501           $3,128
  Compensation costs related to stock options (Note 23)              1,617              1,240        1,256               15
  Issuance of common stock and reclassification
   adjustment to common stock upon exercise of stock
   options (Note 23)                                                     233              122         (116)               (1)
  Sales of treasury stock upon exercise of stock options
                                                                                                      (636)               (8)
   (Note 23)
  Issuance of common stock upon conversion of
   convertible bond (Notes 13 and 26)                                     25                             452               6
  Losses on sales of treasury stock (Note 17)                             (1)              (1)
  Retirement of treasury stock                                                                            (9)
  Equity transactions with the noncontrolling interest and
   others                                                           (9,564)             1,002        4,591                56
  Balance, end of year                                            ¥254,138           ¥256,501     ¥262,039            $3,196
 Retained earnings appropriated for legal reserve:
   Balance, beginning of year                                      ¥42,142            ¥43,189      ¥43,670             $532
   Transfer from unappropriated retained earnings                    1,047                481          463                6
   Balance, end of year                                            ¥43,189            ¥43,670      ¥44,133             $538




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52
                                                                                                Mitsubishi Corporation    Annual Report 2012




                                                                                                                Millions of
                                                                                                                U.S. Dollars
                                                                             Millions of Yen                     (Note 1)
                                                               2010               2011          2012               2012
Unappropriated retained earnings:
 Balance, beginning of year                                   ¥2,488,033        ¥2,708,547     ¥3,095,348                $37,747
 Net income attributable to Mitsubishi Corporation               275,787           464,543        453,849                  5,535
        Total                                                  2,763,820         3,173,090      3,549,197                 43,282
 Deduct:
   Cash dividends paid to Mitsubishi Corporation’s
    shareholders (annual rate per share of:
      2010—¥33.0
      2011—¥47.0
      2012—¥71.0—$ 0.87)                                         (54,226)          (77,261)      (116,802)                (1,424)
   Transfer to retained earnings appropriated for legal
    reserve                                                       (1,047)             (481)          (463)                    (6)
   Sales of treasury stock upon exercise of stock options
                                                                                                   (1,237)                   (15)
    (Note 23)
   Losses on sales of treasury stock                                                                   (1)
   Retirement of treasury stock (Note 17)                                                        (128,601)                (1,568)
        Total                                                    (55,273)          (77,742)      (247,104)                (3,013)
 Balance, end of year                                         ¥2,708,547        ¥3,095,348     ¥3,302,093                $40,269
Accumulated other comprehensive income (loss), net of
 tax:
  Balance, beginning of year                                  ¥(483,875)         ¥(131,436)    ¥(214,125)                $(2,611)
  Net unrealized gains (losses) on securities available for
                                                                138,700            (24,505)        (6,430)                   (79)
  sale (Notes 4 and 18)
  Net unrealized gains (losses) on derivatives (Notes 10
                                                                  35,691            12,445        (32,775)                  (399)
  and 18)
  Defined benefit pension plans (Notes 15 and 18)                21,121                833          1,236                     15
  Foreign currency translation adjustments (Note 18)            156,927            (71,462)       (30,725)                  (375)
  Balance, end of year                                        ¥(131,436)         ¥(214,125)    ¥(282,819)                $(3,449)
Treasury stock:
  Balance, beginning of year                                  ¥(151,548)         ¥(151,572)    ¥(151,650)                $(1,849)
  Sales of treasury stock upon exercise of stock options
                                                                                                    2,491                     30
  (Note 23)
  Purchases and sales—net (Note 17)                                   (24)             (78)          (16)
  Retirement (Note 17)                                                                           128,610                   1,568
  Balance, end of year                                        ¥(151,572)         ¥(151,650)      ¥(20,565)                $(251)
Total Mitsubishi Corporation shareholders’ equity             ¥2,926,094        ¥3,233,342     ¥3,509,328                $42,796
Noncontrolling interest:
  Balance, beginning of year                                   ¥304,565           ¥306,174      ¥316,603                  $3,862
  Cash dividends paid to the noncontrolling interest            (13,815)           (21,050)      (20,870)                   (255)
  Equity transactions with the noncontrolling interest and
   others                                                        (15,938)            4,709         1,097                      13
  Net income attributable to the noncontrolling interest          18,118            33,884        26,452                     322
  Net unrealized gains (losses) on securities available for
                                                                   6,576            (1,053)        (1,746)                   (21)
  sale, net of tax
  Net unrealized gains (losses) on derivatives, net of tax            23                48           (562)                    (7)
  Defined benefit pension plans, net of tax                          813                77            (26)
  Foreign currency translation adjustments, net of tax             5,832            (6,186)        (1,989)                   (24)
  Balance, end of year                                         ¥306,174           ¥316,603      ¥318,959                  $3,890




                                                                                                                                         53

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Mitsubishi Corporation   Annual Report 2012




                                                                                                             Millions of
                                                                                                             U.S. Dollars
                                                                             Millions of Yen                  (Note 1)
                                                                2010              2011          2012            2012
 Total equity:
   Balance, beginning of year                                  ¥2,663,962       ¥3,232,268     ¥3,549,945        $43,292
   Issuance of common stock upon exercise of stock options            620              492            280              4
   Sales of treasury stock upon exercise of stock options                                             618              7
   Compensation costs related to stock options                      1,617            1,240          1,256             15
   Issuance of common stock upon conversion of
    convertible bond                                                  49                             905               11
   Losses on sales of treasury stock                                  (1)               (1)           (1)
   Net income                                                    293,905           498,427       480,301            5,857
   Cash dividends paid to Mitsubishi Corporations’
    shareholders                                                  (54,226)         (77,261)     (116,802)          (1,424)
   Cash dividends paid to the noncontrolling interest             (13,815)         (21,050)      (20,870)            (255)
   Net unrealized gains (losses) on securities available for
                                                                 145,276           (25,558)        (8,176)           (100)
   sale, net of tax
   Net unrealized gains (losses) on derivatives, net of tax       35,714            12,493        (33,337)           (406)
   Defined benefit pension plans, net of tax                      21,934               910          1,210              15
   Foreign currency translation adjustments, net of tax          162,759           (77,648)       (32,714)           (399)
   Purchases and sales—net of treasury stock                         (24)              (78)           (16)
   Equity transactions with the noncontrolling interest and
    others                                                        (25,502)           5,711          5,688             69
   Balance, end of year                                        ¥3,232,268       ¥3,549,945     ¥3,828,287       $46,686

See notes to consolidated financial statements.




54

                                                                                                                (Concluded)
                                                                                                     Mitsubishi Corporation    Annual Report 2012


Consolidated Statements of Cash Cash
Consolidated Statements of Flows Flows
Mitsubishi Corporation and Subsidiaries
 Mitsubishi Corporation 2010, 2011 and
Years Ended March 31, and Subsidiaries 2012
 Years Ended March 31, 2010, 2011 and 2012


                                                                                                                    Millions of
                                                                                                                    U.S. Dollars
                                                                                  Millions of Yen                    (Note 1)
                                                                  2010                 2011         2012               2012
  Operating activities:
    Net income                                                    ¥293,905             ¥498,427     ¥480,301                  $5,857
    Adjustments to reconcile net income to net cash provided
     by operating activities:
      Depreciation and amortization                                138,777              143,819      145,428                   1,774
       Provision for doubtful receivables                                4,893            9,139        6,524                     80
       Accrued pension and severance costs, less payments               (2,751)          (3,746)       5,955                     73
       Gain on marketable securities and investments—net                  (212)         (53,439)     (21,968)                  (268)
       Loss on property and equipment—net                           15,829                2,557        7,085                     86
       Equity in earnings of Affiliated companies and other,
        less dividends received                                     (18,584)            (19,979)     (54,290)                  (662)
       Deferred income taxes                                          5,797              30,099       38,627                    471
       Changes in operating assets and liabilities:
         Short-term investments—trading securities                  15,032                 (127)        (360)                     (4)
         Notes and accounts receivable—trade                        (15,795)           (164,364)    (285,469)                 (3,481)
         Inventories                                               155,713             (163,488)     (95,387)                 (1,163)
         Notes, acceptances and accounts payable—trade             137,267               74,431      255,880                   3,120
         Advance payments to suppliers                                 504               27,012       40,420                     493
         Advances from customers                                   (15,249)             (40,272)     (38,644)                   (471)
         Other receivables                                         (51,707)              10,865       (6,188)                    (75)
         Other payables                                            (21,270)             (15,765)      57,593                     702
         Other accrued expenses                                         2,731            11,046        8,722                    106
         Other current assets                                      112,523               24,628       23,151                    282
         Other current liabilities                                 (15,300)              22,803       31,389                    383
         Other noncurrent liabilities                               20,479                  600       12,271                    149
       Other—net                                                        (1,009)         (63,042)     (60,346)                  (736)
            Net cash provided by operating activities              761,573              331,204      550,694                   6,716




                                                                                                                        (Concluded)
                                                               - 16 -


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Mitsubishi Corporation   Annual Report 2012




 Investing activities:
     Expenditures for property and equipment                          (182,448)    (228,654)     (412,991)      (5,036)
     Proceeds from sales of property and equipment                      20,317       44,366        49,038          598
     Investments in and advanced to Affiliated companies              (110,908)    (106,214)     (415,788)      (5,071)
     Proceeds from sales of investments in and collection of
                                                                       45,826        38,686        87,122        1,062
      advanced to Affiliated companies
     Acquisitions of businesses, net of cash acquired                   (1,557)     (35,548)       (57,076)      (696)
     Proceeds from sales of businesses, net of cash divested              3,841       3,844         21,546        263
     Purchases of available-for-sale securities                       (183,806)    (242,201)       (34,273)      (418)
     Proceeds from sales of available-for-sale securities              96,804        50,068        20,831          254
     Proceeds from maturities of available-for-sale securities        169,095       263,738        55,263          674
     Purchases of other investments                                   (59,829)      (48,510)     (536,892)      (6,547)
     Proceeds from sales of other investments                          102,636       65,481        95,494        1,165
     Increase in loans receivable                                     (243,357)    (277,529)     (118,644)      (1,447)
     Collection of loans receivable                                    197,955      206,397       162,888        1,986
     Net decrease (increase) in time deposits                            6,929        3,475       (17,431)        (213)
            Net cash used in investing activities                     (138,502)    (262,601)    (1,100,913)    (13,426)
 Financing activities:
     Net (decrease) increase in short-term debt                       (728,733)     127,216       257,898       3,145
     Proceeds from long-term debt—net of issuance cost                 517,647      574,254       995,932      12,146
     Repayment of long-term debt                                      (457,372)    (526,435)     (532,937)      (6,499)
     Payment of dividends                                              (54,226)     (77,261)     (116,802)      (1,424)
     Payment of dividends to the noncontrolling interest               (13,815)     (21,050)      (20,870)        (255)
     Payment for acquisition of subsidiary’s interests from the
      noncontrolling interest                                          (19,445)       (6,620)       (2,440)        (30)
     Proceeds from sales of subsidiary's interests to the
                                                                                       6,172       17,385         212
      noncontrolling interest
     Proceeds from issuing common stock upon exercise of
      stock options                                                        620          492           280            4
     Net (increase) decrease in treasury stock                             (23)         (19)          613            7
            Net cash (used in) provided by financing activities      (755,347)       76,749       599,059       7,306
 Effect of exchange rate changes on cash and cash equivalents          14,085        (17,154)       (4,631)        (57)
 Net (decrease) increase in cash and cash equivalents                 (118,191)     128,198        44,209         539
 Cash and cash equivalents, beginning of year                        1,198,735     1,080,544     1,208,742     14,741
 Cash and cash equivalents, end of year                             ¥1,080,544    ¥1,208,742    ¥1,252,951    $15,280

See notes to consolidated financial statements.




56
                                                                                                              (Concluded)
                                                                  - 17 -
                                                                                                        Mitsubishi Corporation   Annual Report 2012

Notes to Consolidated Financial Statements
Mitsubishi Corporation and Subsidiaries
 Notes to Consolidated Financial Statements
 Mitsubishi Corporation and Subsidiaries



 1. NATURE OF OPERATIONS AND BASIS OF CONSOLIDATED FINANCIAL STATEMENTS
 Nature of Operations—
 Mitsubishi Corporation (the “Parent”), together with its consolidated domestic and foreign subsidiaries (collectively, the “Company”),
 is a diversified organization engaged in a wide variety of business activities, providing various types of products and services on a
 global basis. Through the Company’s domestic and overseas network, the Company is engaged in general trading, including the
 purchasing, supplying and manufacturing of a wide range of products related to energy, metals, machinery, chemicals and living
 essentials, in addition to natural resources development, infrastructure-related businesses and financial businesses. The Company is
 also engaged in the development of new business models in the new energy, environmental and new technology fields.


 Basis of Consolidated Financial Statements—
 The accompanying consolidated financial statements are stated in Japanese yen, the currency of the country in which the Parent is
 incorporated and principally operates. The translation of Japanese yen amounts into United States (“U.S.”) dollar amounts with
 respect to the year ended March 31, 2012 is included solely for the convenience of readers outside Japan and has been made at the
 rate of ¥82=$1, the rate of exchange as of March 31, 2012. Such translation should not be construed as a representation that the
 Japanese yen amounts could be converted into U.S. dollars at this or any other rate.
 The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted
 in the United States of America (“U.S. GAAP”). Because the Parent and its subsidiaries maintain their records and prepare their
 financial statements in accordance with accounting principles generally accepted in the countries of their respective domiciles, certain
 adjustments and reclassifications have been incorporated in the accompanying consolidated financial statements in order to conform
 with U.S. GAAP. These adjustments have not been recorded in the statutory books of account.
 “Operating transactions,” as presented in the consolidated statements of income, is a voluntary disclosure commonly made by
 Japanese trading companies. It represents the gross transaction value of sales contracts in which the Company acts as a principal and
 as an agent. Transactions in which the Company’s role is limited to that of broker are recorded net and included in operating
 transactions. Operating transactions are not meant to represent revenues in accordance with U.S. GAAP and should not be construed
 as equivalent to, or a substitute or proxy for, revenues. However, as management believes operating transaction information is useful
 to users of the consolidated financial statements, a voluntary disclosure is made in the consolidated statements of income.




                                                                  - 18 -



                                                                                                                                                57
Mitsubishi Corporation   Annual Report 2012




2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies applied in the preparation of the accompanying consolidated financial statements are summarized
below:
Consolidation and Investments in Subsidiaries and Affiliated Companies—
The consolidated financial statements include the accounts of the Parent and its majority-owned domestic and foreign subsidiaries
that the Parent controls. In addition, the Company consolidates variable interest entities (“VIEs”) for which the Company is the
primary beneficiary. Unincorporated joint ventures, in which the Company holds an undivided interest in the assets and is
proportionately liable for the liabilities, are proportionately consolidated by the Company. All significant intercompany accounts and
transactions have been eliminated.
Investments in companies and corporate joint ventures over which the Company is able to exert significant influence over the
operating and financial decisions (“Affiliated companies”) are accounted for using the equity method of accounting. If a decline in
fair value of investments in Affiliated companies accounted for using the equity method is determined to be other-than-temporary, an
impairment loss is recognized equal to the difference between the investments’ carrying amount and their fair value. Certain
majority-owned entities are also accounted for using the equity method where the minority shareholder or shareholders have
substantive participating rights. All significant intercompany profits have been eliminated in proportion to interests in Affiliated
companies.
The accounts of certain subsidiaries with a fiscal year-end on or after December 31, but prior to the Parent’s fiscal year-end of March
31, are consolidated on the basis of the subsidiaries’ respective fiscal year-end. There were no significant events that occurred during
the intervening period that would require adjustment to or disclosure in the accompanying consolidated financial statements in the
years ended March 31, 2011 and 2012.


Foreign Currency Translation—
The assets and liabilities of foreign subsidiaries and Affiliated companies are translated into Japanese yen at the respective year-end
exchange rates. All income and expense accounts are translated at average rates of exchange. The resulting translation adjustments
are included in accumulated other comprehensive income (loss) (“AOCI”). Monetary assets and liabilities denominated in a foreign
currency are translated into Japanese yen at year-end exchange rates with the resulting exchange gains or losses recognized in “Other
income—net” in the consolidated statements of income.


Cash Equivalents—
Cash equivalents are defined as short term with original maturities of three months or less, highly liquid investments, including
short-term time deposits, commercial paper, debt securities and certificates of deposit which are readily convertible into cash and
have no significant risk of changes in value.


Investment in Marketable and Nonmarketable Securities—
Investments in debt and marketable equity securities are classified as either trading securities or available-for-sale securities. Trading
securities are accounted for at fair value with unrealized gains and losses included in earnings. Available-for-sale securities are
accounted for at fair value with unrealized gains and losses excluded from earnings and reported, net of tax, in AOCI until realized.
Investments in nonmarketable securities include investments in unaffiliated customers, suppliers and certain financial institutions, as
well as investments in preferred stock, and are carried at cost (“cost method investments”) as their fair value is not readily
determinable. Investments in nonmarketable securities are included in “Other Investments” in the consolidated balance sheets.
The appropriateness of the classification is reassessed at each balance sheet date. The cost of marketable securities sold is determined
based on the moving-average cost method.
The Company reviews investments in marketable and nonmarketable securities for impairment on a regular basis to determine if the
fair value of any individual investment has declined below its cost and if such decline is other-than-temporary.
For investments in marketable equity securities classified as available-for-sale securities, other-than-temporary declines in fair value
are evaluated based on various factors, such as the length of the time and the extent to which the market value is less than cost, the
financial condition and near-term prospects of the issuer, and the Company’s intent and ability to retain the investment for a period of
time sufficient to allow for any anticipated recovery in market value. If the decline in fair value is determined to be
other-than-temporary, the cost basis of the investment is written down to fair value. The resulting impairment loss is included in




                                                                  - 19 -
58
                                                                                                           Mitsubishi Corporation   Annual Report 2012




earnings in the period in which the decline was deemed to be other-than-temporary.
For investments in debt securities classified as available-for-sale securities, other-than-temporary impairment is recognized in its
entirety in earnings when the fair value has declined below cost and (1) the Company has the intent to sell the security, (2) it is
more-likely-than-not that the Company will be required to sell the security before recovery, or (3) the Company does not expect to
recover its entire amortized cost basis of the security. However, if the Company does not intend to sell the security and it is not
more-likely-than-not that it will be required to sell the security before recovery, but the security is considered to have suffered a credit
loss, the impairment charge will be separated into the credit loss component, which is recorded in earnings, and the remainder of the
impairment charge, which is recorded in other comprehensive income.
For investments in nonmarketable equity securities, if there are identified events or circumstances that have a significant adverse
effect on the fair value of an investment, the fair value is presumed to have declined. If such decline is considered to be
other-than-temporary, the investment is written down to its estimated fair value. The resulting impairment loss is included in earnings
in the period in which the decline was deemed to be other-than-temporary.


Allowance for Doubtful Receivables—
An allowance for doubtful receivables is established based primarily upon the Company’s past credit loss experience and an
evaluation of potential losses. For loans receivable, an allowance for doubtful receivables is recognized when it is probable that the
Company will be unable to collect amounts due according to the contractual terms of the agreement. The impairment is measured
based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, alternatively, at the
observable market price of the receivable or the fair value of the underlying collateral.


Inventories—
Inventories, which mainly consist of commodities and materials, are stated at the lower of cost (based, principally, on a
moving-average basis or a specific-identification basis) or market (based on current replacement cost).


Investments in real estates subject to joint control―
Investments in real estates that are subject to joint control by the owners are accounted for using equity method. Such investments are
presented as "Joint investments in real estates" on the consolidated balance sheet.


Property and Equipment—
Property and equipment are stated at cost. Depreciation of property and equipment other than mineral rights are calculated principally
using the straight-line method for buildings, the straight-line or declining-balance method for machinery and equipment, and the
straight-line method for aircraft and vessels mainly over the following estimated useful lives.
Buildings                              5 to 40 years
Machinery and equipment                5 to 40 years
Aircraft and vessels                  13 to 25 years
Mineral rights are amortized using the unit-of-production method based on the proven or probable reserves. Leasehold improvements
are amortized over the lesser of the useful life of the improvement or the term of the underlying lease. Significant renewals and
additions are capitalized at cost. Maintenance repairs, minor renewals and betterments are charged to earnings as incurred.


Leases—
The Company leases as a lessor properties under arrangements which are classified as direct financing leases and operating leases.
For direct financing leases, unearned income is amortized to income over the lease term at a constant periodic rate of return on the net
investment. Operating lease income is recognized over the term of underlying leases on a straight-line basis.
The Company is also a lessee of various assets. For capital leases, leased assets and capital lease obligations are recognized by the
present value of net minimum lease payments. Rental expenses under operating leases are recognized over the respective lease terms
using a straight-line method.


Impairment of Long-lived Assets—
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying



                                                                                                                                                   59
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Mitsubishi Corporation   Annual Report 2012




amount of an asset to the estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount
of an asset exceeds its estimated discounted future cash flows, an impairment loss is recognized in the amount by which the carrying
amount of the assets exceeds the fair value of the assets. These impairment losses are included in “Loss on property and
equipment—net” in the accompanying consolidated statements of income. A long-lived asset to be disposed of by sale is reported at
the lower of the carrying amount or fair value less costs to sell and is no longer depreciated. A long-lived asset to be disposed of other
than by sale is considered as held and used until disposed of.


Business Combinations—
Business combinations are accounted for by the acquisition method. The Company separately recognizes and reports acquired
intangible assets as goodwill or intangible assets.


Goodwill and Other Intangible Assets—
Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually and when
an event occurs or circumstances change such that it is more likely than not that an impairment may exist.
The Company tests goodwill for impairment by first comparing the carrying value of net assets to the fair value of the related
operations. If the fair value is determined to be less than carrying value, a second step is performed to compute the amount of the
impairment. In this process, a fair value for goodwill is estimated based, in part, on the fair value of the operations, and is compared
to its carrying value. The shortfall of the fair value below carrying value represents the amount of the impairment.
Intangible assets with indefinite useful lives consist of trade names, rights to use land and customer relationships. The Company tests
these intangible assets for impairment by comparing their carrying value to current projections of discounted cash flows attributable
to the trade names, rights to use land and customer relationships. Any excess carrying value over the amount of discounted cash flows
represents the amount of the impairment.
Intangible assets with definite useful lives consist of software and manufacturing, sales and service licenses. These assets are
amortized over their respective estimated useful lives using the straight-line method.


Oil and Gas Exploration and Development—
Oil and gas exploration and development costs are accounted for using the successful efforts method of accounting. The costs of
acquiring properties, drilling and equipping exploratory wells, and development wells and related plant and equipment are capitalized
and amortized using the unit-of-production method. Should the efforts to produce commercial reserves be determined unsuccessful,
the exploratory well costs are charged to expense. Other exploration costs such as geological and geophysical costs are expensed as
incurred. Proved properties are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value
may not be recoverable. If the proved properties are determined to be impaired, an impairment loss is recognized based on the fair
value. Unproved properties are assessed at least annually for impairment with any impairment charged to expense. Effective March
31, 2010, the Company adopted Accounting Standards Update (“ASU”) No. 2010-03, “Oil and Gas Estimation and Disclosures.”
This update aligns the current oil and natural gas reserve estimation and disclosure requirements of the extractive industries oil and
gas topic ASC topic 932.


Mining Operations—
Mining exploration costs are expensed as incurred until the mining project has been established as commercially viable by a final
feasibility study. Once established as commercially viable, costs are capitalized as mineral rights and are amortized using the
unit-of-production method based on the proven and probable reserves.
The stripping costs incurred during the production phase of a mine are accounted for as variable production costs and are included in
the costs of the inventory produced during the period that the stripping costs are incurred.


Employee Benefit Plans—
The Company has defined benefit pension plans, defined contribution pension plans and unfunded severance indemnity plans. The
costs of defined benefit pension plans and unfunded severance indemnity plans are accrued based on amounts determined using
actuarial methods.
The Company amortizes the prior service cost principally over the average remaining service period of employees expected to receive
related benefits.



60
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                                                                                                          Mitsubishi Corporation   Annual Report 2012




The Company amortizes the net actuarial loss principally over the average remaining service period of active employees expected to
receive benefits.


Asset Retirement Obligations—
The Company records the fair value of a liability for an asset retirement obligation in the period in which it is incurred in case the fair
value is reasonably estimable. When a liability is initially recorded, the Company capitalizes the related costs by increasing the
carrying amount of the long-lived asset. Over time, the liability is accreted to its present value each period and the capitalized cost is
depreciated over the useful life of the related assets.


Stock-based Compensation—
Stock-based compensation cost is measured at the grant date, based on the estimated fair value of stock-based awards made to
employees, net of an estimated forfeiture rate and is recognized on a straight-line basis over the employee’s requisite service period.
The fair values of stock options are estimated using the Black-Scholes option pricing model.


Revenue Recognition—
The Company recognizes revenues when there is persuasive evidence of an arrangement, the goods have been delivered or the
services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured.
The Company manufactures a wide variety of products, such as metals, machinery, chemicals and general consumer merchandise and
develops natural resources. The Company also trades a wide variety of commodities and may take ownership risk of such inventory
or merely facilitate the Company’s customer’s purchase and sale of commodities and other products, where it earns a commission for
this service.
The Company acts as a principal or agent in its activities for earning revenues. The Company presents revenue transactions with
corresponding cost of revenues on a gross basis as “Revenues from trading, manufacturing and other activities” in the consolidated
statements of income for transactions traded as a primary obligor in manufacturing, processing and service rendering for sales with
general inventory risk before customer orders. For transactions traded as agent, the revenues are presented as “Trading margins and
commissions on trading transactions” in the consolidated statements of income on a net basis.
The Company acts as a principal seller in manufacturing and other activities. It also acts as a principal in various trading transactions
where the Company carries commodity inventory and generates a profit or loss on the spread between bid and asked prices for
commodities. Delivery in these transactions is considered to have occurred at the point in time when the delivery conditions as agreed
to by customers have been met. This is generally when the goods have been delivered to and accepted by the customer, title to the
goods has been transferred, or the implementation testing has been duly completed.
The Company also enters into long-term construction contracts as part of its manufacturing business. Revenues from long-term
construction projects are accounted for using the percentage-of-completion method in cases where the estimated costs to complete
and extent of progress toward completion of long-term contracts are reasonably dependable and there is an enforceable agreement
between the parties who can fulfill the obligations, otherwise, the completed contract method is used.
The Company also performs other activities, which consist of services and rental or leasing activities. Service-related activities
include performance of various services such as financial and logistics services, information and communications, technical support
and other service-related activities. The Company is engaged in certain rental activities or leasing of properties, including office
buildings, aircraft and other industrial assets. Revenues from service-related activities are recognized when the contracted services
have been rendered to third-party customers pursuant to the agreement. For revenues from rental or leasing activities, please refer to
the accounting policy of leases described before.
The Company acts as an agent and records revenues earned from margins and commissions related to various trading transactions in
which it acts as an agent. Through these trading activities, the Company facilitates its customers’ purchases and sales of commodities
and other products and earns a commission for this service. The trading margins and commissions are recognized when all other
revenue recognition criteria have been met.


Advertising Costs—
Advertising costs are expensed when incurred. Advertising costs for the years ended March 31, 2010, 2011 and 2012 were ¥14,136
million, ¥14,153 million and ¥13,762 million ($168 million), respectively.




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Mitsubishi Corporation   Annual Report 2012




Research and Development Costs—
Research and development costs are charged to expense when incurred. Research and development costs for the years ended March
31, 2010, 2011 and 2012 were ¥3,659 million, ¥4,542 million and ¥4,980 million ($61 million), respectively.


Income Taxes—
The provision for income taxes is computed based on “Income before income taxes and equity in earnings of Affiliated companies” in
the accompanying consolidated statements of income. The tax effects of temporary differences between the financial statement and
income tax bases of assets and liabilities, as well as operating loss carryforwards, are recognized using enacted tax rates applicable to
the periods in which the differences are expected to affect taxable income. A valuation allowance is provided for any portion of the
deferred tax assets where it is considered more-likely-than-not that they will not be realized.
The Company recognizes the financial statement effects of tax positions when they are more-likely-than-not, based on the technical
merits, that the tax positions will be sustained upon examination by the tax authorities. Benefits from tax positions that meet the
more-likely-than-not recognition threshold are measured at the largest amount of benefit that is greater than 50% likely of being
realized upon settlement. Interest and penalties accrued related to unrecognized tax benefits are included in income taxes in the
consolidated statements of income.
The Parent and its wholly owned domestic subsidiaries started to file a consolidated corporate income tax return as a consolidation
group from the year ended March 31, 2012.


Derivatives—
The Company utilizes derivative instruments primarily to manage interest rate risks, to reduce exposure to movements in foreign
exchange rates, and to hedge various inventory and trading commitments. All derivative instruments are reported on the balance sheet
at fair value as assets or liabilities.
Generally, on the date on which the derivative contract is executed, the Company designates such derivative as either a fair value
hedge or a cash flow hedge to the extent that hedging criteria are met.
     Fair Value Hedge—
     Derivative instruments designated as fair value hedges primarily consist of interest rate swaps used to convert fixed-rate assets or
     debt obligations to floating-rate assets or debt. Changes in fair values of hedging derivative instruments are recognized in earnings,
     offset against the changes in the fair value of the related assets, liabilities and firm commitment, and are included in “Other
     income—net.”
     Cash Flow Hedge—
     Derivative instruments designated as cash flow hedges include interest rate swaps to convert floating-rate liabilities to fixed-rate
     liabilities, and forward exchange contracts to eliminate variability in functional-currency-equivalent cash flows on forecasted sales
     transactions. Additionally, commodity swaps and futures contracts which qualify as cash flow hedges are utilized. Changes in the
     fair values of derivatives that are designated as cash flow hedges are deferred and recorded as a component of AOCI. Derivative
     unrealized gains and losses included in AOCI are reclassified into earnings at the time that the associated hedged transactions affect
     the income statement.
     Hedge of the Net Investment in Foreign Operations—
     The Company uses foreign exchange contracts and nonderivative financial instruments such as foreign-currency-denominated debt
     in order to reduce the foreign currency exposure in the net investment in a foreign operation. Changes in fair values of hedging
     instruments are included in foreign currency translation adjustments within AOCI.
     Derivative Instruments Used for Other than Hedging Activities—
     The Company enters into derivative instruments as part of its brokerage services in commodity futures markets and its trading
     activities. The Company clearly distinguishes derivatives used for brokerage services and trading activities from derivatives used
     for risk management purposes. As part of its internal control policies, the Company has set strict limits on the positions which can
     be taken in order to manage potential losses for these derivative transactions, and periodically monitors the open positions for
     compliance.
Changes in fair value of derivatives not designated as hedging instruments and held or issued for trading purposes are recorded in
earnings. The Company offsets the fair value amounts recognized for cash collateral against the fair value of amounts recognized for
derivative instruments that are executed with the same counterparty under the same master netting arrangement.




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                                                                                                          Mitsubishi Corporation   Annual Report 2012




Use of Estimates in the Preparation of the Financial Statements—
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and
assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results could
differ from those estimates. Significant estimates underlying the accompanying consolidated financial statements include the
allowance for doubtful accounts, valuation of investments, valuation of long-lived assets, pension, asset retirement obligations and
uncertain tax positions.


Earnings per Share (“EPS”)—
Basic EPS is computed by dividing net income attributable to the Company by the weighted-average number of common shares
outstanding during each year. Diluted EPS is computed by using the weighted-average number of common shares outstanding
adjusted to include the potentially dilutive effect of stock options and convertible bonds that were outstanding during the year.


Guarantees—
The Company recognizes, at the inception of a guarantee, a liability for the fair value of the obligation undertaken for the guarantee.


Fair Value Measurements—
Certain assets and liabilities are required to be recorded at fair value. The estimated fair values of those assets and liabilities have
been determined using market information and valuation methodologies. There are three levels of inputs that may be used to measure
fair value:
Level 1—Quoted prices for identical assets and liabilities in active markets;
Level 2—Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in
markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable
in active markets; and
Level 3—Valuation derived from valuation techniques in which one or more significant inputs or significant value drivers are
unobservable.


Fair Value Option—
The Company has not adopted the option to measure certain financial assets and financial liabilities at fair value which were not
required to be measured at fair value.




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Acquisition of additional interests in Affiliated companies—
For the year ended March 31, 2012, the Company acquired additional interests in Coal & Allied Industries Limited, former
available-for-sale securities, which increased its shareholding ratio up to 20.00%. As the Company has had the ability to exert
significant influence over the operations of Coal & Allied Industries Limited since acquiring the additional interests, the Company
applies the equity method to the investments for the year ended March 31, 2012. The equity method is applied in a manner consistent
with the accounting for a step-by-step acquisition. Accordingly, the investment in Coal & Allied Industries Limited and retained
earnings of the Company in prior years have been adjusted retrospectively. The effect of the retrospective application is as follows:
                                                                                           Millions of Yen
                                                                               2010                              2011
                                                                  As Originally                     As Originally
                                                                   Reported           As Adjusted    Reported        As Adjusted
 Consolidated Balance Sheets:
  Investments in and advances to Affiliated companies                ¥1,238,569        ¥1,253,157     ¥1,320,102        ¥1,336,288
  Other investments                                                   1,631,381         1,563,645      1,522,215         1,431,362
  Noncurrent liabilities-Deferred income taxes                          202,412           185,691        215,516           191,894
  Retained earning-Unappropriated                                     2,706,086         2,708,547      3,091,532         3,095,348
  Net unrealized gains on securities available-for-sale                 300,313           261,297        291,911           236,792

 Consolidated Statements of Income:
  Dividend income                                                          91,522          87,969        124,793           120,601
  Equity in earnings of Affiliated companies                              113,363         117,857        161,455           167,002
  Net income                                                              292,964         293,905        497,072           498,427
  Net income attributable to Mitsubishi Corporation                       274,846         275,787        463,188           464,543

                                                                                                Yen

 Earnings per share:
  Net income attributable to Mitsubishi Corporation
   Basic                                                                  ¥167.28         ¥167.85        ¥281.80           ¥282.62
   Diluted                                                                 166.89          167.46         281.05            281.87


Reclassification of Prior Year's Consolidated Financial Statements—
For the purpose of clarity, the Company has made reclassifications of amounts in the consolidated balance sheets and consolidated
statements of equity and cash flows for the year ended March 31, 2012. In order to conform with the presentation for the year ended
March 31, 2012, the Company has reclassified the related amounts in the consolidated balance sheets and the consolidated statements
of equity for the year ended March 31, 2011, and the related amounts in the consolidated statements of cash flows for the years ended
March 31, 2010 and 2011, respectively, as stated below.
The Company has separately reclassified the “Property and equipment—net” in the consolidated balance sheets for the year ended
March 31, 2011 to “Real estate held for development and resale”, “Land”, “Buildings, including leasehold improvements”,
“Machinery and equipment”, “Aircraft and vessels”, “Mineral rights”, “Projects in progress”, and “Less accumulated depreciation”.
The Company has separately reclassified the “Other comprehensive (loss) income attributable to Mitsubishi Corporation”, “Other
comprehensive (loss) income attributable to the noncontrolling interest (net of tax)” and “Other comprehensive (loss) income (net of
tax)” lines in the consolidated statements of equity for the year ended March 31, 2011 to “Net unrealized gains (losses) on securities
available for sale”, “Net unrealized gains (losses) on derivatives”, “Defined benefit pension plans” and “Foreign currency translation
adjustments”, respectively.
The Company has reclassified payments to acquire businesses which were included in “Investments in and advances to Affiliated
companies” in the investing activities section of the consolidated statements of cash flows for the year ended March 31, 2010 and
2011 to “Acquisitions of businesses, net of cash acquired”, and has reclassified proceed from sales of businesses which were included
in “Collection of advances to Affiliated companies” in the investing activities section of the consolidated statements of cash flows for
the year ended March 31, 2010 and 2011 to “Proceeds from sales of businesses, net of cash divested”, respectively . In addition, the
Company has reclassified the “Proceeds from sales and maturities of available-for-sale securities” in the investing activities section of
the consolidated statements of cash flows for the year ended March 31, 2010 and 2011 to “Proceeds from sales of available-for-sale
securities” and “Proceeds from maturities of available-for-sale securities”.




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Subsequent Events—
The Company assesses the necessity of accounting for and disclosures of events that occur after the consolidated balance sheet date
but before consolidated financial statements are issued.


New Accounting Standards—
Recently adopted accounting pronouncements:
Effective April 1, 2011, the Company adopted ASU No. 2009-13, “Multiple-Deliverable Revenue Arrangements, a consensus of the
FASB Emerging Issues Task Force.” This guidance modifies the criteria for separating consideration under multiple-deliverable
arrangements and requires allocation of the overall consideration to each deliverable using the estimated selling price in the absence
of vendor-specific objective evidence or third-party evidence of the selling price for deliverables. As a result, the residual method of
allocating arrangement consideration will no longer be permitted. The guidance also requires additional disclosures about how a
vendor allocates revenue in its arrangements and about the significant judgments made and their impact on revenue recognition. The
adoption of ASU No. 2009-13 did not have a material impact on the Company’s consolidated financial position and results of
operations in the fiscal year ended March 31, 2012.
Effective April 1, 2011, the Company adopted ASU No. 2010-17, “Milestone Method of Revenue Recognition, a consensus of the
FASB Emerging Issues Task Force.” ASU No. 2010-17 establishes a revenue recognition model for contingent consideration that is
payable upon the achievement of an uncertain future event, referred to as a milestone. The scope of ASU No. 2010-17 is limited to
research or development arrangements. The adoption of ASU No. 2010-17 did not have impact on the Company’s consolidated
financial position and results of operations in the fiscal year ended March 31, 2012.
Effective July 1, 2011, the Company adopted ASU No. 2011-02, “A Creditor's Determination of Whether a Restructuring Is a
Troubled Debt Restructuring.” ASU No. 2011-02 provides guidance for determining whether a restructuring constitutes a troubled
debt restructuring for the purpose of measuring an impairment loss and disclosure of troubled debt restructurings. In determining
whether a restructuring constitutes a troubled debt restructuring, creditors must separately conclude whether the restructuring
constitutes a concession and whether a debtor is experiencing financial difficulties. The adoption of ASU No. 2011-02 did not have
impact on the Company’s consolidated financial position and results of operations in the fiscal year ended March 31, 2012.
Effective January 1, 2012, the Company adopted ASU No. 2011-04, “Fair Value Measurement: Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU No. 2011-04 is the result of joint efforts by
the FASB and International Accounting Standards Board (“IASB”) to develop a single, converged fair value framework, that is,
converged guidance on how to measure fair value and on what disclosures to provide about fair value measurements. The adoption of
ASU No. 2011-04 did not have impact on the Company’s consolidated financial position and results of operations in the fiscal year
ended March 31, 2012.
Recent accounting pronouncements not yet adopted:
In September 2011, the FASB issued ASU No.2011-08,“Testing Goodwill for impairment.” ASU No.2011-08 provides entities with
the option of performing a qualitative assessment before performing the quantitative goodwill impairment test. Only if an entity
determines in the qualitative assessment that it is more likely than not that the fair value of the reporting unit is less than carrying
amount including goodwill, an entity is required to perform the two-step quantitative goodwill impairment test. ASU No.2011-08
does not change how goodwill is calculated or assigned to reporting units, nor does it revise the requirement to test goodwill at least
annually for impairment.ASU No.2011-08 is effective for fiscal years beginning on or after December 15, 2011 and is required to be
adopted by the Company no later than the first quarter beginning April 1, 2012. The Company is currently evaluating ASU
No.2011-08 to determine whether or not to exercise the option of performing a qualitative assessment.
In December 2011, the FASB issued ASU No.2011-10, “Property, Plant, and Equipment-Derecognition of in-substance Real Estate a
Scope Clarification.” Under the ASU No.2011-10, the reporting entity should apply the guidance in ASC Subtopic 360-20 “Property,
Plant, and Equipment - Real Estate Sales” to determine whether it should derecognize the in-substance real estate when the reporting
entity ceases to have a controlling financial interest in the subsidiary that is in-substance real estate as a result of default on the
subsidiary’s nonrecourse debt. ASU No.2011-10 doesn’t revise ASC Subtopic 360-20 itself but clarifies the scope it covers.ASU
No.2011-10 is effective for fiscal years beginning on or after June 15, 2012 and is required to be adopted prospectively by the
Company no later than the first quarter beginning April 1, 2013. The adoption of ASU No.2011-10 is not expected to materially
impact the Company’s consolidated financial position and results in current business.




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Mitsubishi Corporation   Annual Report 2012




3. BUSINESS COMBINATIONS
There were no significant business combinations for the year ended March 31, 2011.
Significant business combinations for the year ended March 31, 2012 were as follows:
Acquisition of Chuo Kagaku Co., Ltd.
On October 26, 2011 (the acquisition date), the Company acquired through a tender offer an additional 46.25% of voting rights in
Chuo Kagaku Co., Ltd. (“Chuo Kagaku”) whose business involves the manufacture and sale of plastic food packaging products.
These rights, added to its previously held equity interest, raised the Company’s ownership of Chuo Kagaku to 60.59% of voting rights.
As a result, Chuo Kagaku became a subsidiary of the Company as the Company obtained control of Chuo Kagaku. The acquisition of
Chuo Kagaku is to expand the earnings power in the plastics business and the scope of business in China.
The following table summarizes the estimated fair values of consideration paid, previously held equity interest and noncontrolling
interest, as well as the assets acquired and liabilities assumed at the date of the acquisition.
                                                                                                                  Millions of
                                                                                               Millions of Yen    U.S. Dollars
                                                                                                    2012             2012
 Fair value of consideration paid                                                                      ¥3,597              $44
 Fair value of previously held equity interest                                                          1,115               14
 Fair value of noncontrolling interest                                                                  3,064               37
 Total                                                                                                 ¥7,776              $95


 Fair value of assets acquired and liabilities assumed
 Current assets                                                                                       ¥27,721             $338
 Investments and noncurrent receivables                                                                 1,712               21
 Property and equipment                                                                                17,759              217
 Other assets                                                                                           2,072               25
 Current liabilities                                                                                  (32,079)            (391)
 Noncurrent liabilities                                                                                (3,500)             (43)
 Net assets                                                                                           ¥13,685             $167


Upon remeasuring the fair value of its previously held equity interest, the Company recorded a gain of    ¥75 million ($1 million) in
“Gain on marketable securities and investments-net” for the year ended March 31, 2012.
This business combination resulted in a bargain purchase transaction because the fair value of assets acquired and liabilities assumed
exceeded the total of the fair value of consideration paid, the fair value of previously held equity interest, and the fair value of
noncontrolling interest by ¥5,909 million ($72 million). The Company has recognized the amount as a gain for the year ended March
31, 2012 and recorded the amount in “Other income-net”.
The fair value of the previously held equity interest and noncontrolling interest in Chuo Kagaku, a listed entity, are determined by
quoted market price.
Pro forma results of operations for the above business combination have not been presented because the effects are not material to the
consolidated financial statements.
The results of operations of Chuo Kagaku since the acquisition date included in the consolidated statements of income for the year
ended March 31, 2012 were as follows:
                                                                                                                  Millions of
                                                                                               Millions of Yen    U.S. Dollars
                                                                                                    2012             2012
 Revenues                                                                                             ¥16,026             $195
 Net income attributable to Mitsubishi Corporation                                                       ¥681               $8




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                                                                                                       Mitsubishi Corporation   Annual Report 2012




Acquisition of Crosslands Resources Ltd and Oakajee Port and Rail
On February 20, 2012 (the acquisition date), from Murchison Metals Ltd, the Company acquired an additional 50% of interests in
Crosslands Resources Ltd (“CRL” ), which is the owner of the Jack Hills iron ore deposit, and Oakajee Port and Rail (“OPR”) which
is engaged in the associated rail and port infrastructure project in the Mid West region of Western Australia.
These interests, added to its previously held equity interest, raised the Company’s ownership of CRL and OPR to 100% of interests.
As a result, CRL and OPR were wholly owned by the Company as the Company obtained control of them.
Following completion of the transaction, the Company will support CRL and OPR in recommencing key activities, including
finalization of feasibility studies and obtaining necessary approvals for various projects. When appropriate and in due course, the
Company intends to introduce a suitably capitalized partner(s) or investor(s) to take up the interests acquired through the transaction.
The introduction of such partner(s) will assist funding of the projects and re-engagement with OPR Foundation Customers.
The following table summarizes the estimated fair values of consideration paid, previously held equity interest, as well as the assets
acquired and liabilities assumed at the date of the acquisition. As the initial measurement for the business combination is still not
completed, the Company reported provisional amounts for the items in the consolidated financial statements.


                                                                                                                     Millions of
                                                                                                Millions of Yen      U.S. Dollars
                                                                                                     2012               2012
 Fair value of consideration paid                                                                      ¥27,830                  $340
 Fair value of previously held equity interest                                                          23,224                   283
 Total                                                                                                 ¥51,054                  $623


 Fair value of assets acquired and liabilities assumed
 Current assets                                                                                         ¥3,268                   $40
 Property and equipment                                                                                 40,521                   494
 Other intangible assets-net                                                                            14,895                   182
 Current liabilities                                                                                    (3,176)                  (39)
 Noncurrent liabilities                                                                                 (9,068)                 (110)
 Net assets                                                                                            ¥46,440                  $567
 Goodwill                                                                                                 4,614                   56
 Total                                                                                                 ¥51,054                  $623


Upon remeasuring the fair value of its previously held equity interest, the Company provisionally recorded a gain of ¥12,542
million ($153 million) in “Gain on marketable securities and investments-net” for the year ended March 31, 2012, based on the best
information available to the Company.
The fair value of the previously held equity interest are determined on a comprehensive basis, taking into account the acquisition
value and the valuation, by a third party, of assets and liabilities which are held by CRL and OPR.
The goodwill is included in the Metals segment.
Pro forma results of operations for the above business combination have not been presented because the effects are not material to the
consolidated financial statements.




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Mitsubishi Corporation   Annual Report 2012




4. INVESTMENTS IN MARKETABLE AND NONMARKETABLE SECURITIES
Investments in marketable and nonmarketable securities at March 31, 2011 and 2012 were as follows:
                                                                                                                   Millions of
                                                                                    Millions of Yen                U.S. Dollars
 (Short-term investments)                                                         2011            2012                2012
 Trading                                                                            ¥9,183           ¥9,021                $110
 Available-for-sale (excluding cash and cash equivalents)                           33,458           10,306                 126
         Total                                                                     ¥42,641        ¥19,327                  $236


                                                                                                                   Millions of
                                                                                    Millions of Yen                U.S. Dollars
 (Other investments)                                                              2011            2012                2012
 Available-for-sale                                                              ¥1,007,090      ¥973,879               $11,877
 Investments in Other than Debt and Marketable Equity Securities                    424,272       880,740                10,740
         Total                                                                   ¥1,431,362     ¥1,854,619              $22,617


Debt and Marketable Equity Securities—Investments in debt and marketable equity securities are classified as either trading
securities or available-for-sale securities. Fair values of debt and marketable equity securities are estimated using the valuation
methodology set forth in Note 11. Information regarding each category of securities classified as trading and available-for-sale at
March 31, 2011 and 2012 was as follows:
                                                                                       Millions of Yen
                                                                                    Gross           Gross
                                                                                  Unrealized     Unrealized             Fair
 March 31, 2011                                                      Cost           Gains          Losses              Value
 Securities classified as:
   Trading                                                                                                                ¥9,183
     Available-for-sale:
      Marketable equity securities                                  ¥484,792         ¥462,500          ¥(9,902)          937,390
      Debt securities                                                121,894            1,251           (3,390)          119,755
           Total                                                    ¥606,686         ¥463,751         ¥(13,292)       ¥1,057,145


                                                                                       Millions of Yen
                                                                                    Gross           Gross
                                                                                  Unrealized     Unrealized             Fair
 March 31, 2012                                                      Cost           Gains          Losses              Value
 Securities classified as:
   Trading                                                                                                                ¥9,021
     Available-for-sale:
      Marketable equity securities
         Domestic                                                   ¥369,584         ¥282,195         ¥(16,374)          635,405
         Foreign                                                     118,099          165,333           (1,032)          282,400
            Total marketable equity securities                         487,683        447,528          (17,406)          917,805
       Debt securities
        Domestic                                                        19,317             12               (10)          19,319
        Foreign                                                         55,325            288            (5,403)          50,210
            Total debt securities                                       74,642            300            (5,413)          69,529
               Total available-for-sale                             ¥562,325         ¥447,828         ¥(22,819)        ¥987,334




                                                              - 29 -
68
                                                                                                       Mitsubishi Corporation    Annual Report 2012




                                                                                        Millions of U.S. Dollars
                                                                                         Gross           Gross
                                                                                       Unrealized     Unrealized           Fair
 March 31, 2012                                                         Cost             Gains          Losses            Value
 Securities classified as:
   Trading                                                                                                                        $110
   Available-for-sale:
    Marketable equity securities
       Domestic                                                           $4,507            $3,442          $(200)                7,749
        Foreign                                                            1,440             2,016            (12)                3,444
           Total marketable equity securities                              5,947             5,458           (212)               11,193
      Debt securities
        Domestic                                                               236                                                 236
        Foreign                                                                675               3            (66)                 612
           Total debt securities                                               911               3            (66)                 848
             Total available-for-sale                                     $6,858            $5,461          $(278)              $12,041


Marketable equity securities classified as available-for-sale primarily consist of domestic stocks and debt securities primarily consist
of commercial paper and corporate bonds, as of March 31, 2011 and 2012.
The carrying amounts of debt securities classified as available-for-sale securities with original maturities of three months or less
included in cash and cash equivalents in the consolidated balance sheets were ¥16,597 million and ¥3,149 million ($38 million) at
March 31, 2011 and 2012, respectively.
The carrying values of debt securities classified as available-for-sale at March 31, 2011 and 2012, by contractual maturity, were as
follows:
                                                                                     Millions of Yen
                                                                                          2011
 Due in one year or less                                                                   ¥50,056
 Due after one year through five years                                                      53,325
 Due after five years through ten years                                                     16,374
        Total                                                                             ¥119,755


                                                                                                       Millions of
                                                                                     Millions of Yen   U.S. Dollars
                                                                                          2012            2012
 Due in one year or less
  Domestic                                                                                  ¥7,097              $86
   Foreign                                                                                   6,358                 78
      Total due in one year or less                                                         13,455              164
 Due after one year through five years
  Domestic                                                                                  12,182              149
  Foreign                                                                                   36,759              448
      Total due after one year through five years                                           48,941              597
 Due after five years through ten years
   Domestic                                                                                     40
   Foreign                                                                                   7,093                 87
      Total due after five years through ten years                                           7,133                 87
        Total                                                                              ¥69,529             $848




                                                                                                                          (Concluded)           69
                                                                  -3-
Mitsubishi Corporation   Annual Report 2012




Certain debt securities, such as mortgage-backed securities, are not due at a single maturity date since issuers of the securities may
have the right to redeem the securities prior to their contractual final maturity date. Such securities are grouped in the table above
based on their anticipated maturity date as of March 31, 2012.
Proceeds and gross realized gains and losses from sales of investments in debt and marketable equity securities classified as
available-for-sale securities for the years ended March 31, 2010, 2011 and 2012 were as follows:
                                                                                                                         Millions of
                                                                                   Millions of Yen                       U.S. Dollars
                                                                     2010               2011              2012              2012
 Proceeds from sales                                                    ¥96,804          ¥50,068           ¥20,831               $254
 Gross realized gains                                                   ¥46,539          ¥31,774           ¥11,399               $139
 Gross realized losses                                                     (629)            (485)             (989)               (12)
 Net realized gains                                                     ¥45,910          ¥31,289           ¥10,410               $127


The amounts of trading gains and losses for the period that relate to trading securities still held at the reporting date were gains of
¥828 million, losses of ¥316 million and losses of ¥967 million ($12 million), for the years ended March 31, 2010, 2011 and 2012,
respectively.
For the years ended March 31, 2010, 2011 and 2012, impairment losses of ¥6,415 million, ¥12,073 million and ¥3,314 million ($40
million), respectively, were recognized on the investments in debt and marketable equity securities classified as available-for-sale
securities as the decline in the fair value was considered to be other-than-temporary.
With respect to the foreign debt securities, the Company recognized impairment losses in earnings as the impairments were deemed
to be attributable to credit losses. No impairment loss has been recognized on domestic bond. The following table sets forth a
12-month roll forward of such credit losses for debt securities held as of March 31, 2011 and 2012:
                                                                                                                         Millions of
                                                                                          Millions of Yen                U.S. Dollars
                                                                                        2011           2012                 2012
 Balance at beginning of year                                                             ¥8,296               ¥8,310            $101
 Additions for debt securities that have been previously impaired                              14
 Additions for debt securities that have not been previously impaired
 Reductions due to sales or redemptions
 Balance at end of year                                                                   ¥8,310               ¥8,310            $101


The Company considers the investment rating, the contractual nature of the investments, the underlying collateral, the rights to and
priority of the investment's cash flows and the condition of the issuers, when recognizing and measuring the amount related to credit
losses.
The following table sets forth gross unrealized losses and the fair value of the Company’s investments in debt and marketable
securities classified as available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated
by investment category and by the length of time that individual securities have been in a continuous unrealized loss position, at
March 31, 2011 and 2012:
                                                                                      Millions of Yen
                                                            Less than                   12 Months
                                                           12 Months                     or Longer                       Total
                                                         Fair     Unrealized          Fair    Unrealized           Fair    Unrealized
 March 31, 2011                                         Value       Losses           Value      Losses            Value       Losses
 Marketable equity securities                          ¥146,987     ¥(7,458)         ¥13,726    ¥(2,444)         ¥160,713      ¥(9,902)
 Debt securities                                           7,663        (12)          39,431      (3,378)          47,094       (3,390)
          Total                                        ¥154,650      ¥(7,470)        ¥53,157        ¥(5,822)     ¥207,807    ¥(13,292)




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                                                                                                         Mitsubishi Corporation    Annual Report 2012




                                                                                  Millions of Yen
                                                          Less than                12 Months
                                                         12 Months                  or Longer                       Total
                                                       Fair    Unrealized        Fair    Unrealized         Fair      Unrealized
 March 31, 2012                                       Value      Losses         Value      Losses          Value         Losses
 Marketable equity securities
  Domestic                                            ¥95,070    ¥(14,155)      ¥13,441     ¥(2,219)     ¥108,511         ¥(16,374)
   Foreign                                             10,422        (835)          389        (197)        10,811           (1,032)
      Total marketable equity securities              105,492     (14,990)       13,830      (2,416)       119,322         (17,406)
 Debt securities
   Domestic                                                                       2,990          (10)         2,990                (10)
   Foreign                                             21,890      (1,190)       20,231      (4,213)        42,121           (5,403)
      Total debt securities                            21,890      (1,190)       23,221      (4,223)        45,111           (5,413)
        Total                                        ¥127,382    ¥(16,180)      ¥37,051     ¥(6,639)     ¥164,433         ¥(22,819)


                                                                              Millions of U.S. Dollars
                                                          Less than                 12 Months
                                                         12 Months                  or Longer                       Total
                                                       Fair    Unrealized       Fair      Unrealized        Fair      Unrealized
 March 31, 2012                                       Value      Losses        Value       Losses          Value         Losses
 Marketable equity securities
  Domestic                                             $1,159       $(173)         $164        $(27)        $1,323            $(200)
  Foreign                                                 127         (10)            5          (2)           132              (12)
      Total marketable equity securities                1,286        (183)          169          (29)         1,455               (212)
 Debt securities
   Domestic                                                                          36                          36
   Foreign                                                267          (14)         247          (52)           514                (66)
      Total debt securities                               267          (14)         283          (52)           550                (66)
        Total                                          $1,553       $(197)         $452        $(81)        $2,005            $(278)


Marketable equity securities—The Company’s unrealized losses on investments in marketable equity securities mainly relate to
investments in the common stock of approximately 170 customers and suppliers of the Company. The unrealized losses were due to
decline in market prices. The fair value of individual investments is approximately 1% to 40% less than cost. The Company
determines whether the decrease in fair value of the investments in marketable domestic and foreign stocks categorized as
"Available-for-sale" is other than temporary by taking into consideration the period and the extend of the fair value is less than the
book value, and the Company's ability and intent to hold the investments for a reasonable period of time sufficient for a recovery of
fair value. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2012.
Debt securities—The Company’s unrealized losses on investments in debt securities, mainly relate to approximately 30 corporate
bonds and so on, with individual fair value of approximately 1% to 49% less than cost. The Company asserts that it has no intent to
sell, and it is not more-likely-than-not the Company will be required to sell these investments before recovery of fair value. The
Company has its ongoing review process which includes consideration of the investment rating, the contractual nature of the
investments, the underlying collateral, the rights to and priority of the investment’s cash flows, and the condition of the issuers. The
Company currently believes that all amounts will be redeemed when due according to the contractual terms of these investments.
Therefore, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2012.
Investments in Other than Debt and Marketable Equity Securities—Other investments include investments in nonmarketable equity
securities of unaffiliated customers, suppliers and certain financial institutions, which include certain preferred stocks, amounting to
¥340,254 million and ¥804,610 million ($9,812 million) at March 31, 2011 and 2012, respectively. Other investments also include
guarantee deposits, investments in noncurrent time deposits, and others, amounting to ¥84,018 million and ¥76,130 million ($928
million) at March 31, 2011 and 2012, respectively.




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Mitsubishi Corporation   Annual Report 2012




The Company acquired a 24.5% ownership interest of Anglo American Sur S.A. (”Anglo Sur”, Headquarters : Santiago, Chile) which
owns copper interests in Chile for U.S. $5.39 billion (approximately 420 billion yen) in November 2011.
As the result, the Company owns a 24.5% voting rights of Anglo Sur and the remaining 75.5% voting rights are held by Anglo
American plc (”Anglo”, Headquarters : London, United Kingdom) at March 31, 2012.
Anglo exclusively holds decision-making rights in the decision-making body of Anglo Sur and it is considered to be difficult for the
Company to exercise significant influence on the management of Anglo Sur. Therefore, the Company applies cost method for the
investment in Anglo Sur and the amount of the investment is included in “Other investments” on the consolidated balance sheets at
March 31, 2012.
Investments in nonmarketable equity securities of unaffiliated companies are carried at cost (“cost method investments”), as fair
value is not determinable. However, if there are identified events or circumstances that have a significant adverse effect on the fair
value of an investment, the Company determines the fair value of the investment. The fair values of nonmarketable equity securities
are estimated using the valuation methodology set forth in Note 11. If the carrying value of the investment exceeds the estimated
fair value and the decline in the fair value is considered to be other-than-temporary, the investment is written down to its estimated
fair value.
Cost method investments of ¥337,238 million and ¥802,863 million ($9,791 million) at March 31, 2011 and 2012, respectively, were
not evaluated for impairment since there were no identified events or circumstances that could have had a significant adverse effect
on the fair values of the investments, and the Company determined that it was not practicable to estimate the fair values of the
investments.
Impairment losses recognized for cost method investments totaled ¥54,867 million, ¥5,261 million and ¥3,188 million ($39 million)
for the years ended March 31, 2010, 2011 and 2012, respectively.




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                                                                                                      Mitsubishi Corporation   Annual Report 2012




5. INVESTMENTS IN AND ADVANCES TO AFFILIATED COMPANIES
Investments in and advances to Affiliated companies at March 31, 2011 and 2012 consisted of the following:


                                                                                                                     Millions of
                                                                                       Millions of Yen               U.S. Dollars
                                                                                     2011           2012                2012
 Investments in Affiliated companies                                               ¥1,281,438       ¥1,550,643             $18,910
 Advances                                                                               54,850         109,740                 1,338
        Total                                                                      ¥1,336,288       ¥1,660,383             $20,248


Affiliated companies include, among others, LAWSON, INC. (“LAWSON,” 32.44%), Japan Australia LNG (MIMI) Pty, Ltd.
(50.00%), MI Berau B.V. (“MI Berau,” 56.00%), Hokuetsu Kishu Paper Co., Ltd. (25.35%), SPDC Ltd. (30.39%), Mozal S.A.R.L.
(25.00%), ENCORE ENERGY PTE. LTD. (39.40%), Chiyoda Corporation (33.74%), Mitsubishi UFJ Lease & Finance Company Ltd.
(20.00%), Coal & Allied Industries Limited (20.00%), Cutbank Ridge Partnership (40.00%), Compania Minera del Pacifico S.A.
(25.00%) and Iron Ore Company of Canada (26.18%).
The Company holds a 56% ownership interest in MI Berau, a Netherlands corporation. MI Berau is a joint venture, participating in
the Tangguh LNG Project in Indonesia, established with INPEX CORPORATION (“INPEX”), a minority shareholder holding a 44%
ownership interest. Under the joint venture agreement with INPEX, significant decisions regarding MI Berau’s operations require
unanimous consent by the Company and INPEX. The rights given to INPEX in the joint venture agreement are considered
substantive participating rights, and control over the operations or assets of MI Berau does not rest with the Company. Accordingly,
the Company accounts for its investment in MI Berau using the equity method.
The Affiliated companies operate mainly in the manufacturing, resource development and service industries, and significantly
participate in the Company’s operating transactions as either purchasers or suppliers. They principally operate in Japan, Asia, Oceania,
Europe and North America.
The difference between the carrying value of the investments in Affiliated companies and the Company's equity in the underlying net
assets of such Affiliated companies was ¥202,378 million and ¥196,046 million ($2,391 million) at March 31, 2011 and 2012,
respectively. The amounts represent the difference between the cost of the investments and the carrying amount of the underlying net
assets of the Affiliated companies at the time of initial and subsequent investments and were allocated to the identifiable assets and
liabilities. The unallocated residual amounts were recognized as equity method goodwill. The amounts allocated to the identifiable
assets and liabilities of the Affiliated companies are generally attributed to property and equipment which consist primarily of mining
rights and are subject to depreciation.




                                                                - 34 -
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Mitsubishi Corporation   Annual Report 2012




Investments in Affiliated companies included investments in marketable equity securities with carrying amounts of ¥406,184 million
and ¥399,647 million ($4,874 million) at March 31, 2011 and 2012, respectively. Corresponding aggregate quoted market values
(Level 1 at the fair value measurement) were ¥470,250 million and ¥458,331 million ($5,589 million), respectively. Included in such
amounts was the investment in LAWSON of ¥138,211 million and ¥142,394 million ($1,737 million) with quoted market values of
¥129,921 million and ¥168,800 million ($2,059 million) at March 31, 2011 and 2012, respectively.
Summarized financial information with respect to the Affiliated companies accounted for using the equity method as of and for the
years ended March 31, 2010, 2011 and 2012 were as follows:


                                                                                                                Millions of
                                                                                     Millions of Yen            U.S. Dollars
                                                                                   2011           2012             2012
 Current assets                                                                  ¥6,972,115      ¥6,587,017          $80,330
 Property and equipment—net                                                       3,439,889       3,905,287           47,625
 Other assets                                                                     1,926,334       2,219,003           27,061
         Total assets                                                           ¥12,338,338     ¥12,711,307         $155,016


 Current liabilities                                                             ¥4,745,332      ¥5,019,404          $61,212
 Noncurrent liabilities                                                           4,026,524       3,233,994           39,439
 Affiliated companies’ shareholders’ equity                                       3,809,670       4,313,370           52,602
 Noncontrolling interest                                                           (243,188)        144,539            1,763
         Total liabilities and equity                                           ¥12,338,338     ¥12,711,307         $155,016


                                                                                                                 Millions of
                                                                              Millions of Yen                    U.S. Dollars
                                                                  2010             2011           2012              2012
 Revenues                                                        ¥6,300,446      ¥6,930,557      ¥6,973,338          $85,041
 Gross profit                                                    ¥1,739,170      ¥2,101,288      ¥2,131,483          $25,994
 Net income attributable to Affiliated companies                  ¥406,395         ¥588,380       ¥636,201             $7,759


The Companies’ revenues and purchases from the Affiliated companies for the years ended March 31, 2010, 2011 and 2012 were as
follows:


                                                                                                                 Millions of
                                                                              Millions of Yen                    U.S. Dollars
                                                                  2010             2011           2012              2012
 Revenues                                                         ¥310,792         ¥392,117       ¥280,770             $3,424
 Purchases                                                         444,207          560,171        532,399              6,493


Dividends received from the Affiliated companies for the years ended March 31, 2010, 2011 and 2012 were ¥99,273 million,
¥147,023 million and ¥136,219 million ($1,661 million), respectively.
In connection with certain business combinations and reorganizations undertaken by the Company’s Affiliated companies, the
Company recognized exchange gains of ¥8,799 million and ¥35,444 million for the years ended March 31, 2010 and 2011
respectively. The gains were the result of the difference between the carrying amount and fair value of the shares exchanged. The
gains are recorded in “Gain on marketable securities and investments—net” in the consolidated statements of income.




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                                                                                                        Mitsubishi Corporation   Annual Report 2012




6. ALLOWANCE FOR DOUBTFUL RECEIVABLES
The Company conducts various transactions where it extends credit to its customers in the form of trade credit, including accounts
receivable, advance payments and financings. The Company is exposed to credit risk from losses arising from the deterioration in the
credit or bankruptcy of its customers.
The Company engages in transactions with customers in various businesses and industries. However, the Company, regardless of the
type of business and industry, evaluates the nature and characteristics of the credit risk using a consistent method. Regardless of the
business or industry, the customers’ financial position is factored into the calculation. The Company does not manage its credit risk
using various categories of credit risk, based on the business or industry of the customer, because the Company views credit risk as a
lower risk than market and foreign currency risks.
Therefore, the Company manages credit risk and evaluates the necessity of its allowance for credit losses based on a single in-house
policy.
However, the Company manages credit risk for consumers separately from corporate customers because the Company is not able to
obtain information of consumers and there are limitations in evaluating the consumer’s financial condition. Receivables from
consumers are primarily loans in the automobile sales finance business.
Short-term or long-term receivables are contractual rights to receive money. When it is probable that, based on current conditions, the
Company will not be able to collect all amounts, including amounts with interest added according to the contractual terms of the
receivables agreement, the receivables are considered to be impaired receivables.
The Company does not consider receivables that are past due as an impaired receivable if the Company expects to collect all amounts
due, including interest accrued, during the period the receivable is past due. In principle the Company recognizes interest income on
impaired receivables on a cash basis. The Company also does not accrue interest on past due receivables. Interest income on impaired
receivables recognized in the period ended March 31,2012 was not material.
The Company determines an appropriate amount of allowance for financing receivables that are past the due date based on terms of
the contract, and the receivables are charged-off when the Company’s rights to collect are lost as a result of a legal liquidation of its
customer. In principle the Company recognizes interest income on past due receivables on a cash basis. Interest income on past due
receivables recognized in the period ended March 31,2012 was not material.
The credit risk management policy and the accounting policy for the allowance for credit losses for Corporate customers and
Consumers are described in the following paragraphs.


Corporate customers—
The Company establishes credit and transaction limits for each Corporate customer and applies an internal rating system. The internal
rating system is determined based on the Corporate customers’ financial information, credit ratings from applicable agencies and
other credit indicators. These internal ratings are updated once a year.
The Company evaluates receivables from Corporate customers for impairment based on changes in the internal ratings and the
financial condition of Corporate customers.
The Company determines an allowance for credit losses to be recorded for impaired receivables based upon factors surrounding the
collection history, past credit loss experience, credit ratings from applicable agencies and other information. For the valuation of
long-term receivables, the Company uses the discounted cash flow method based on assumptions such as an estimate of the future
repayment plan and the discount rates, or evaluates based on the observable market price of the receivable or the fair value of the
underlying collateral. The Company also collectively evaluates receivables which are not considered to be impaired receivables and
determines an amount of allowance for credit losses.


Consumers—
The Company performs ongoing credit valuations of Consumers and establishes credit limits based upon the length of the current
credit-worthiness using the Consumer’s payment history.
The Company evaluates receivables with Consumers for impairment based on any delay in collection.
The Company evaluates an allowance for credit losses to be recorded for impaired receivables with Consumers based upon the length
of the period past due, the collection status and other information.
The Company also collectively evaluates Consumer receivables which are not considered impaired receivables and determines an
amount of allowance for credit losses.




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Mitsubishi Corporation   Annual Report 2012




Impaired receivables—
Impaired receivables and the related allowance for credit losses at March 31, 2011 and 2012 consisted of the following:
                                                                                                                  Millions of
                                                                                 Millions of Yen                  U.S. Dollars
                                                                               2011           2012                   2012
 Recorded investment
         Corporate customers                                                    ¥52,573            ¥50,725                  $619
         Consumers                                                                  7,392             7,910                    96
         Total                                                                  ¥59,965            ¥58,635                  $715
 Related allowance
         Corporate customers                                                    ¥33,966            ¥31,106                  $380
         Consumers                                                                  3,908             3,705                    45
         Total                                                                  ¥37,874            ¥34,811                  $425
The average recorded investments in the impaired receivables from Corporate customers and Consumers for the year ended March 31,
2012 were ¥53,155 million ($648 million) and ¥7,287 million ($89 million), respectively.
The average recorded investments in the impaired receivables from Corporate customers and Consumers for the quarter ended March
31, 2011 were ¥54,973 million and ¥12,266 million , respectively.
The average recorded investment in the impaired receivables for the year ended March 31, 2010 was ¥45,757 million.


The allowance for credit losses related to financing receivables—
Financing receivables include loans and noncurrent accounts receivable—trade that have the characteristics of financings, and do not
include the receivables without the characteristics of financings such as current accounts receivable—trade.
Financing receivables are mainly included in “Loans and other” and “Noncurrent notes, loans and accounts receivable—trade” line
items in the consolidated balance sheets.
The following table presents the balance of financing receivables and the allowance for credit losses related to financing receivables.
And the activity of the allowance for credit losses related to financing receivables for the quater ended March 31, 2011 is as follows:
                                                                                   Millions of Yen
                                                                                        2011
                                                                            Corporate
                                                                            customers          Consumers
 Balance at January 1, 2011                                                     ¥27,266            ¥6,395
 Provision for credit losses                                                        1,429               387
 Charge-of