MIRA INFORM REPORT

 

 

Report Date :

27.12.2008

 

IDENTIFICATION DETAILS

 

Name :

MITSUI AND CO LTD

 

 

Registered Office :

Mitsui Bussan Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

July 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Wholesaler, Importer, Exporter: Iron and Steel, Metals, Machinery, Chemicals, Foodstuffs, Textiles, Crude Oil, Fuels, Electronics, etc

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

YEN 188,131.2 Million

 

 

Status :

Excellent

 

 

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

URL:                 http://www.mitsui.co.jp/

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

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

15,357,656

14,885,772

 

  Cost of Sales

3,977,063

3,297,161

 

      GROSS PROFIT

11,380,593

11,588,611

 

  Selling & Adm Costs

11,071,693

11,322,811

 

      OPERATING PROFIT

308,900

265,800

 

  Non-Operating P/L

21,240

-12,168

 

      RECURRING PROFIT

330,140

253,632

　

      NET PROFIT

301,502

202,409

BALANCE SHEET

 

 

 

 

  Cash

　

800,032

697,065

 

  Receivables

 

2,189,514

1,997,093

 

  Inventory

 

696,470

695,754

 

  Securities, Marketable

11,670

26,860

 

  Other Current Assets

1,376,090

1,330,059

 

      TOTAL CURRENT ASSETS

5,073,776

4,746,831

 

  Property & Equipment

988,300

746,149

 

  Intangibles

 

1,044,445

98,811

 

  Investments, Other Fixed Assets

2,706,791

2,981,787

 

      TOTAL ASSETS

9,813,312

8,573,578

 

  Payables

 

658,747

540,797

 

  Short-Term Bank Loans

371,865

353,185

 

　

 

　

　

 

  Other Current Liabs

2,779,590

2,616,959

 

      TOTAL CURRENT LIABS

3,810,202

3,510,941

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,887,528

2,658,735

 

  Reserve for Retirement Allw

33,209

36,769

 

  Other Debts

　

733,407

570,066

 

      TOTAL LIABILITIES

7,464,346

6,776,511

 

      MINORITY INTERESTS

238,687

118,160

 

Common stock

323,213

295,766

 

Additional paid-in capital

417,900

390,488

 

Retained earnings

1,072,234

825,306

 

Evaluation p/l on investments/securities

258,922

216,099

 

Others

 

41,478

(47,749)

 

Treasury stock, at cost

(3,468)

(2,003)

 

      TOTAL S/HOLDERS` EQUITY

2,110,279

1,677,907

　

      TOTAL EQUITIES

9,813,312

8,572,578

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

239,275

146,396

 

Cash Flows from Investment Activities

-418,028

-347,332

 

Cash Flows from Financing Activities

272,289

92,269

　

Cash, Bank Deposits at the Term End

　

800,032

697,065

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

2,110,279

1,677,907

 

 

Current Ratio (%)

133.16

135.20

 

 

Net Worth Ratio (%)

21.50

19.57

 

 

Recurring Profit Ratio (%)

2.15

1.70

 

 

Net Profit Ratio (%)

1.96

1.36

 

 

Return On Equity (%)

14.29

12.06

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.47.89

UK Pound

1

Rs.70.84

Euro

1

Rs.67.37

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions