MIRA INFORM REPORT

 

 

Report Date :

24.08.2007

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA TSUSHO CORPORATION

 

 

Registered Office :

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Jul 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of metals, machinery, vehicles, industrial materials, etc

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

Yen 124775.7 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name

 

TOYOTA TSUSHO CORPORATION

 

 

REGD NAME

 

Toyota Tsusho KK

 

 

MAIN OFFICE

 

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575 JAPAN

Tel        : 052-584-5000 

Fax       : 052-584-5663

URL      : http://www.toyota-tsusho.co.jp/

E-Mail address: info@toyota-tsusho.co.jp

                       

*.. The given address is its Tokyo Head Office

 

 

ACTIVITIES

 

Import, export, wholesale of metals, machinery, vehicles, industrial materials, etc

 

 

BRANCHES

 

Tokyo, Osaka, Toyoda, Kariya, Sendai, Niigata, Fukuoka, other (Tot 64)

 

 

OVERSEAS

 

Asia (32), Oceania (3), Europe (15), Mid East (2), Africa (3), N America (24), Central/South America (7)

 

 

CHIEF EXEC

 

JUNZO SHIMIZU, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 6,212,726 M

PAYMENTS      REGULAR                     CAPITAL           Yen 64,936 M

TREND             STEADY                       WORTH            Yen 626,538 M

STARTED         1948                             EMPLOYES      22,945

 

 

COMMENT

 

GENERAL TRADING HOUSE AFFILIATED WITH TOYOTA MOTOR CORP.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: US$2,000,000 / D/A 30 DAYS.

                       

MAX CREDIT LIMIT: YEN 124,775.7 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

This is the sole general trading house in Toyota Motor group.  Established originally in 1936 as an auto loan firm for Toyota automobiles.  Incorporated in 1948 on the basis of a spin-off from Toyoda Sangyo Kaisha in order to engage in foreign trading, as Nisshin Tsusho Kaisha Ltd.  Renamed as captioned in 1987.  A general trading house specializing in automobile-related products, steel, machinery & chemical products.  Steel & nonferrous metals account for about 40% of total sales.  Active in overseas operations with offices in China, USA, Europe, Thailand, Australia, etc.  In April 2000, merged Kasho Co Ltd, then a mid-size trading firm.  In Mar 2000, went into capital investment and business tie-up with Tomen Corp, followed by the merger of the firm in Apr 2006.  The merger benefited the firm by expanded operations into other sectors which the subject was less competitive: Toyota excels in auto-related products, while Tomen in chemicals and non-automotive sectors.  The firm’s goal is to boost group net profits to Yen 100,000 million in the year ending Mar 2011, according to the firm. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 6,212,726 million, a 57.5% up from Yen 3,945,319 million in the previous term.  The said merger with Tomen Corp boosted sales.  Metals, machinery/electronics & automobile fields continued growth thanks to higher materials and brisk demand automobiles from overseas continued.  By divisions, metals up 17.8% to Yen 1,844,500 million,; machinery/electronics up 42% to Yen 1,535,100 million; automobiles up 16.8% to Yen 751,700 million; energy/chemicals up 323.3% to Yen 1,269,200 million; foods up 233.3% to Yen 349,600 million.  The recurring profit was posted at Yen 112,713 million and the net profit at Yen 77,211 million, respectively, compared with Yen 86,179 million recurring profit and Yen 45,732 million net profit, respectively, a year ago.

 

For the current term ending Mar 2008 the recurring profit is projected at Yen 128,000 million and the net profit at Yen 65,000 million, on a 9.5% rise in turnover, to Yen 6,800 million.  On-going benefits from the merger effect, including increased number of importers and reduced overheads, offsetting negative effects of goodwill and increased interest payments.  Tied up with women’s wear retailer Biscaye to cultivate new apparel brands. 

 

(Apr/June/2007 results): sales Yen 1,724,103 million (up 18.9%), recurring profit Yen 40,391 million (up 45.1%), net profit Yen 23,220 million (up 11.2%)  (% compared with the same period the previous year).

 

The financial situation is considered FAIR to EXCELLENT and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 124,775.7 million, on normal 30 days terms.  The proposed amount is considered well within the firm’s financials capabilities.

 

 

REGISTRATION

 

Date Registered:            Jul 1948

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    1,000 million shares

Issued:                          354,056,576 shares

Sum:                            Yen 64,936 million

Major shareholders (%): Toyota Motor Corp*(21.5), Toyota Industries (11.1), Japan Trustee Services Bank (5.5),

                                     Master Trust Bank of Japan (3.9), MUFG (3.4), Mitsui Sumitomo Ins (3.0), Tokio Marine

                                     Nichido Fire Ins (1.9), Aioi Ins (1.9), Trust & Custody Services Trust (1.5), Nippon Life

                                     Ins (1.5); foreign owners (13.5)

 

*.. One of world’s big 3 automakers, Toyota City, Aichi-Pref, founded 1937, listed Tokyo, Osaka, Nagoya, New York, London, capital Yen 397,050 million, turnover Yen 23,948,091 million, recurring profit Yen 2,382,516 million, net profit Yen 1,644,032 million, total assets Yen 32,574,779 million, net worth Yen 11,836,092 million, employees 299,394, pres Katsuaki Watanabe

 

No. of shareholders:       44,721

Listed on the S/Exchange (s) of: Tokyo, Nagoya

Managements:               Masaaki Furukawa, ch; Yoji Toyohara, v ch; Junzo Shimizu, pres; Nobuhiko Sahara, v

                                    pres; Mahito Kageyama, v pres; Katsunori Takahashi, v pres; Kiyoshi Furubayashi,

                                    s//mgn dir; Shun’ya Fukutomi, s/mgn dir; Yoshimasa Kondo, s/mgn dir; Ryoji Shimizu,

                                    s/mgn dir; Koji Oshige, s/mgn dir; Yoichi Kihara, s/mgn dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

Related companies

 

Toyota Tsusho America Inc, other

           

 

OPERATION

 

Activities: A general trading house for import, export, wholesale operations:

 

(Sales breakdown by divisions):

 

Metals Division (30%): special steel products, unwrought nonferrous & precious metals, rolled light metal products, copper, copper alloy products, scrap iron & scrap nonferrous         metals, Ferro-alloy products, recycling & disposable catalysts, other;

Machinery & Electronics Division (25%): machine tools, industrial & textile machinery, testing & measuring instruments, environmental equipment, information & telecommunications equipment, electronic devices & parts, PC’s & peripherals, software, automotive parts,           forklifts, intelligence transport equipment, other;

Automotive Division (12%): passenger cars, commercial cars, light vehicles, trucks & buses, automotive parts, other;

Energy & Chemicals Division (20%): petroleum products & LPG, coal, petroleum chemicals, synthetic resin, fat & oil products, chemical additives, natural & synthetic rubbers, other;

Consumer Products, Services & Materials Division (6%): agricultural & livestock products, foods, condominium & commercial buildings, construction & housing materials, furniture, textile products & materials, jewelry, automotive interior parts & materials, packaging         materials, paper & pulp, life & health insurance & property & casualty insurance, other.

Others (7%)

 

(Overseas sales 49.9%: Asia/Oceania 29.6%, N America 7.8%, Europe 6.3%, other regions 6.2%).

 

Clients: [Car makers, wholesalers, other mfrs] Toyota Motor, Toyota Tsusho America, Toyota Steel Center, Crown Motors, Denso Corp, Toyota Motor China, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyota Motor, JFE Steel, Nippon Steel, Toyota Steel Center, Toyota Industries, Denso Corp, other.

 

Payment record: Regular

 

Location: Business area in Nagoya.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

MUFG (Tokyo)

SMBC (Nagoya)

 

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

6,212,726

3,945,319

 

  Cost of Sales

5,884,267

3,751,052

 

      GROSS PROFIT

328,458

221,592

 

  Selling & Adm Costs

218,456

141,536

 

      OPERATING PROFIT

110,002

80,056

 

  Non-Operating P/L

2,711

6,123

 

      RECURRING PROFIT

112,713

86,179

　

      NET PROFIT

77,211

45,732

BALANCE SHEET

 

 

 

 

  Cash

　

126,871

77,051

 

  Receivables

 

1,031,639

683,995

 

  Inventory

 

381,135

276,345

 

  Securities, Marketable

　

　

 

  Other Current Assets

119,792

69,592

 

      TOTAL CURRENT ASSETS

1,659,437

1,106,983

 

  Property & Equipment

204,576

126,756

 

  Intangibles

 

145,657

14,655

 

  Investments, Other Fixed Assets

452,559

354,308

 

      TOTAL ASSETS

2,462,229

1,602,702

 

  Payables

 

791,770

536,029

 

  Short-Term Bank Loans

232,940

207,612

 

　

 

　

　

 

  Other Current Liabs

274,205

275,576

 

      TOTAL CURRENT LIABS

1,298,915

1,019,217

 

  Debentures

 

80,400

55,000

 

  Long-Term Bank Loans

416,111

145,283

 

  Reserve for Retirement Allw

15,226

3,342

 

  Other Debts

　

25,038

48,564

 

      TOTAL LIABILITIES

1,835,690

1,271,406

 

      MINORITY INTERESTS

 

16,976

 

Common stock

64,936

26,748

 

Additional paid-in capital

154,367

24,705

 

Retained earnings

275,465

206,679

 

Evaluation p/l on investments/securities

70,714

60,530

 

Others

 

65,687

(162)

 

Treasury stock, at cost

(4,631)

(4,181)

 

      TOTAL S/HOLDERS` EQUITY

626,538

314,319

　

      TOTAL EQUITIES

2,462,229

1,602,702

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

44,598

33,089

 

Cash Flows from Investment Activities

-31,159

-119,378

 

Cash Flows from Financing Activities

-46,555

90,452

　

Cash, Bank Deposits at the Term End

　

125,603

75,032

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

626,538

314,319

 

 

Current Ratio (%)

127.76

108.61

 

 

Net Worth Ratio (%)

25.45

19.61

 

 

Recurring Profit Ratio (%)

1.81

2.18

 

 

Net Profit Ratio (%)

1.24

1.16

 

 

Return On Equity (%)

12.32

14.55

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

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