MIRA
INFORM REPORT
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Report Date : |
10.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUI AND CO LTD |
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Registered Office : |
Mitsui Bussan Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
July 1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesaler, Importer, Exporter: Iron and Steel, Metals,
Machinery, Chemicals, Foodstuffs, Textiles, Crude Oil, Fuels, Electronics,
etc |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
YEN 188,131.2 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name & address
MITSUI & CO LTD
REGD NAME: Mitsui Bussan KK
MAIN OFFICE: Mitsui Bussan Bldg,
1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004 JAPAN
Tel:
03-3285-1111 Fax: 03-3285-9800
E-Mail address: (through
the URL to each division)
ACTIVITIES
Wholesale, import, export: iron & steel, metals, machinery, chemicals, foodstuffs, textiles, crude oil, fuels, electronics, etc
BRANCHES
158 offices in 68 countries: Domestic (16); Overseas (142)
CHIEF EXEC
SHOEI UTSUDA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 15,357,656 M
PAYMENTS REGULAR CAPITAL Yen 323,213 M
TREND STEADY WORTH Yen 2,110,279 M
STARTED 1947 EMPLOYES 41,761
COMMENT
JAPAN’S
LEADING GENERAL TRADING HOUSE, NUCLEUS OF THE MITSUI GROUP.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 188,131.2 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company is an offshoot
of Japan’s wealthiest merchant house of Edo era founded in 1600. Now ranked one of the largest general
trading houses of Japan vying with Mitsubishi Corp for top position. Ranked 2nd in foodstuffs trade
next to Mitsubishi Corp but 1st in chemicals. Nucleus firm of the Mitsui group. Handling items vary from metals &
minerals, machinery, electronics & information, to chemicals,
petrochemicals, plastics, foods, etc.
Traditionally strong in field of heavy industries. Active in overseas business expansion such
as oil/gas development in Russia and construction of large thermal power plant
in Thailand. Strengthening partnership
strategy with US Douglas, Unisys and other big firms. Stressing on natural resources, including LNG, and
telecommunications sectors.
(Recent news from Nikkei Business Daily):
31/Jan/2008:
Mitsui will invest about Yen 28.9 trillion in coal block development in
northeastern Australia. The development
will start by end this year with commercial operations scheduled in 2012. The new block will produce 6.5 million
metric tons a year of coal.
08/Feb/2008:
Mitsui will acquire 20% stake in oil & natural gas exploration block off
northern coast of Mozambique in partnership with Japan Oil Gas & Metals
National Corp, or JOGMEC. Geographical
surveys and drilling of test wells is planned over next four years.
06/Mar/2008:
Mitsui Group will take 30% stake in wholly owned Indian motorcycle subsidiary
(Yamaha Motor India) by end Apr.
Located on outskirts of Delhi, India Yamaha Motor was established last
Oct, capitalized 1.5 billion rupees. It
is targeting sales of 650,000 units in 2010, five times the 2007 figures.
FINANCIAL INFORMATION
The
sales volume for Mar/2007 fiscal term amounted to Yen 15,357,656 million, a
3.1% up from Yen 14,885,772 million in the previous term. Oil, natural gas & other natural
resources surged. Steel, coal, metals
and machinery also advanced, driven by robust China demand. These led to sales growth &
profits. The recurring profit was
posted at Yen 330,140 million and the net profit at Yen 301,502 million,
respectively, compared with Yen 253,632 million recurring profit and Yen
202,409 million net profit, respectively, a year ago.
(Apr/Dec/2007
results): Sales Yen 4,205,524 million (up 20.9%), ordinary profit Yen 316,385
million (up 46.5%), net profit Yen 334,515 million (up 37.0%). (% compared with the corresponding period a
year ago). Mineral &Metal Resources
& Energy made outstanding performance reflecting substantial one-off gains
on divestitures such as Sesa Goc Ltd in India and Sakhalin II in Russia.
For
the current term ending Mar 2008 the recurring profit is projected at Yen
450,000 million and the net profit at Yen 370,000 million, respectively, on a
0.4% fall in turnover, to Yen 15,300,000 million. Energy may assume lower market prices, but metal resources
growing further with iron-ore prices showing strength. Gains on sale of some holding interests may
boost profits. Machinery maintains
strength. Foods improving.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 188,131.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jul 1947
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 2,500
million shares
Issued: 1,787,538,428
shares
Sum: Yen
323,213 million
Major shareholders (%)
Master
Trust Bank of Japan, T (11.2), Japan Trustee Services Bank T (9.1), Mitsui Life Ins (2.5), SMBC (2.1), State Street
Bank & Trust (2.0), Nippon Life
Ins (1.9), Japan Trustee Services T4 (1.7), Mizuho Corporate Bank (1.7), Chuo
Mitsui Trust & Banking (1.7), MUFG (1.6); foreign owners (32.4)
No. of shareholders: 69,471
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya, NASDAQ
Managements
Nobuo
Ohashi, ch; Shoei Utsuda, pres & CEO; Ken Abe, v pres; Yoshiyuki Izawa, v pres; Shnichi Miyazaki,
s/mgn dir; Toshimasa Furukawa, s/mgn dir; Koji Nakamura, s/mgn dir; Toshio
Awata, s/mgn dir; Masaaki Fujita, s/mgn dir; Takao Omae, s/mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Mitsui
& Co (USA), Mitsui Foods, Telepark Corp, other
OPERATION
Activities: A general trading house for import, export and wholesale of:
(Sales breakdown by
divisions):
Metals (20%): iron ore, steel materials, ferroalloys, coal, coke, nonferrous metals, precious metals, electric wires, other;
Machinery & Information (14%): industrial machinery, automobiles, electronics & information equipment, office machines, other;
Chemicals (16%): organic & inorganic chemicals, petrochemicals, fine chemicals, fertilizers, other;
Energy (12%): crude oil, LNG, LPG, fuels, other petroleum products, other,
Lifestyle (22%): clothing, upholstery, fabrics, textile raw materials, other;
Others (16%): lumber, flooring, other construction materials, sporting goods, cereals, alcoholic beverages, other foodstuffs (21%).
Overseas sales ratio
(44.1%): N America 9.9%; Europe 6.3%; Asia 19.4%; Oceania 0.6%, other
region 7.9%.
Clients
[Steel
mills, mfrs, wholesalers] Nippon Steel, Toray Ind, Tokyo Electric Power, Mitsui
Foods, Mitsui Oil & Gas, Mitsui Chemical, Toyota Canada Inc, other.
No. of accounts
3,000 – 5,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs,
wholesalers] Nippon Steel, Toshiba Corp, Toyota Motor, Fuji Heavy Inc, Mitsui Chemical, Abu Dhabi Gas
Liquefaction, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References
SMBC (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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15,357,656 |
14,885,772 |
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Cost of Sales |
3,977,063 |
3,297,161 |
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GROSS PROFIT |
11,380,593 |
11,588,611 |
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Selling & Adm Costs |
11,071,693 |
11,322,811 |
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OPERATING PROFIT |
308,900 |
265,800 |
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Non-Operating P/L |
21,240 |
-12,168 |
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RECURRING PROFIT |
330,140 |
253,632 |
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NET PROFIT |
301,502 |
202,409 |
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BALANCE SHEET |
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Cash |
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800,032 |
697,065 |
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Receivables |
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2,189,514 |
1,997,093 |
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Inventory |
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696,470 |
695,754 |
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Securities, Marketable |
11,670 |
26,860 |
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Other Current Assets |
1,376,090 |
1,330,059 |
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TOTAL CURRENT ASSETS |
5,073,776 |
4,746,831 |
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Property & Equipment |
988,300 |
746,149 |
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Intangibles |
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1,044,445 |
98,811 |
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Investments, Other Fixed Assets |
2,706,791 |
2,981,787 |
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TOTAL ASSETS |
9,813,312 |
8,573,578 |
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Payables |
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658,747 |
540,797 |
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Short-Term Bank Loans |
371,865 |
353,185 |
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Other Current Liabs |
2,779,590 |
2,616,959 |
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TOTAL CURRENT LIABS |
3,810,202 |
3,510,941 |
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Debentures |
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Long-Term Bank Loans |
2,887,528 |
2,658,735 |
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Reserve for Retirement Allw |
33,209 |
36,769 |
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Other Debts |
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733,407 |
570,066 |
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TOTAL LIABILITIES |
7,464,346 |
6,776,511 |
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MINORITY INTERESTS |
238,687 |
118,160 |
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Common
stock |
323,213 |
295,766 |
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Additional
paid-in capital |
417,900 |
390,488 |
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Retained
earnings |
1,072,234 |
825,306 |
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Evaluation
p/l on investments/securities |
258,922 |
216,099 |
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Others |
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41,478 |
(47,749) |
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Treasury
stock, at cost |
(3,468) |
(2,003) |
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TOTAL S/HOLDERS` EQUITY |
2,110,279 |
1,677,907 |
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TOTAL EQUITIES |
9,813,312 |
8,572,578 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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239,275 |
146,396 |
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Cash
Flows from Investment Activities |
-418,028 |
-347,332 |
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Cash
Flows from Financing Activities |
272,289 |
92,269 |
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Cash,
Bank Deposits at the Term End |
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800,032 |
697,065 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
2,110,279 |
1,677,907 |
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Current
Ratio (%) |
133.16 |
135.20 |
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Net
Worth Ratio (%) |
21.50 |
19.57 |
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Recurring
Profit Ratio (%) |
2.15 |
1.70 |
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Net
Profit Ratio (%) |
1.96 |
1.36 |
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Return
On Equity (%) |
14.29 |
12.06 |
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RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)