MIRA INFORM
REPORT
|
Report Date : |
18.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
ITOCHU CORPORATION |
|
|
|
|
Registered Office : |
2-5-1 Kitaaoyama Minatoku Tokyo 107-8807 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
December 1949 |
|
|
|
|
Com. Reg. No.: |
(Osaka-Chuoku) 002849 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
General Trading House |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Yen 212,472.8 Million |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment
Behaviour : |
Regular |
|
|
|
|
Litigation : |
--- |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Japan |
a1 |
a1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
ITOCHU CORPORATION
REGD NAME
Itochu Shoji KK
MAIN OFFICE
(Tokyo) 2-5-1 Kitaaoyama Minatoku Tokyo 107-8807
JAPAN
Tel:
03-3497-2121 Fax: 03-3497-4141
(Osaka) 4-1-3 Kyutaromachi Chuoku Osaka 541-8577
Tel:
06-6241-2121 Fax: 06-6241-3220
E-Mail address: webmaster@itochu.co.jp
ACTIVITIES
General
trading house
BRANCHES
Osaka,
Nagoya, Fukuoka, Hiroshima, Sapporo, other (Tot 9)
OVERSEAS
USA,
Europe, China, other (Tot 117 over 80 countries)
CHIEF EXEC
MASAHIRO
OKAFUJI, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 11,392,589 M
PAYMENTS REGULAR CAPITAL Yen 202,241 M
TREND SLOW WORTH Yen 1,397,510 M
STARTED 1949 EMPLOYES 62,635
COMMENT
NATION’S
LEADING GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 212,472.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/03/2012 fiscal term
HIGHLIGHTS
This is major general trading house, currently top textile trader among
domestic trading companies, with comprehensive strength in all areas of the
textile industry from upstream to down-stream operations, while actively trying
to expand into textile retailing. Also
strong in food industry, machinery plants, chemicals, energy and
condominiums. Further aggressive in
satellite communications to lead other trading houses in telecom & China
businesses. Has stake in Perfect TV
satellite broadcaster. Implemented
independently managed “division company system” in Apr 1997. (See OPERATION). Acquired 3% stake in UNY, general
supermarket operator based in Tokai area for collaboration in merchandise
development and operation in China.
Constructing export terminals on West Coast jointly with major US grain
firm as strategic base for export to China & other Asian countries. Capital spending is at Yen 350 billion-plus
in the March 2012 and March 2013 terms for metals & energy resources. The company plans to participate in a new
large-scale coal mine development project.
It will invest in a Hong Kong finance firm under the aegis of CITIC, a
Chinese financial conglomerate.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 11,392,589
million, a 10.5% up from Yen 10,306,799 million in the previous term. Japan’s economy followed an overall course of
moderate recovery, however, on March 11, the Great East Japan Earthquake caused
tremendous human suffering and physical damage, and economic activity declined
drastically through the end of March.
The global economy basically continued to follow a course of moderate
recovery, led by growth in the economies of emerging countries. Under the circumstances, the sales increased. The gain was attributable to higher revenue
in several division companies. In the
Energy, Metals & Minerals Company, revenue increased due to higher prices
for mineral resources and for oil & gas.
In the Textile Company, the acquisition of JAVA HOLDINGS CO LTD and
LEILIAN CO LTD in the second half of the previous fiscal year led to higher
revenue in the year. In the Chemicals,
Forest Products & General Merchandise Company, revenue increased due to
strong transactions in chemicals and to higher prices for both natural rubber
& pulp. The recurring profit was
posted at Yen 182,097 million and the net profit at Yen 160,975 million,
respectively, compared with Yen 154,986 million recurring profit and Yen
128,153 million net profit, respectively, a year ago.
(Apr/Jun/2011
results): Sales Yen 2,861,444 million (up 4.8%), operating profit Yen 51,911
million (up 10.1%), recurring profit Yen 95,749 million (up 135.8%), net profit
Yen 90,345 million (up 124.6%). (%
compared with the corresponding period a year ago).
For the current term ending Mar 2012 the recurring profit is projected
at Yen 300,000 million and the net profit at Yen 240,000 million, respectively,
on a 5.3% rise in turnover, to Yen 12,000,000 million. Iron ore, at record high prices, and other
metal resources will drive earnings growth.
Energy business will benefit from high petroleum prices. Asset impairment losses on concessions in oil
& gas fields will be absent.
Chemical products and foods incomes will rise. Textiles and finance businesses benefit from
peaked-out extraordinary costs seen in the preceding term, and net profit will
hit a new high.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 212,472.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1949
Regd No.: (Osaka-Chuoku) 002849
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
3,000 million shares
Issued: 1,584,889,504 shares
Sum: Yen 202,241
million
Major shareholders
(%): Japan Trustee Services Bank T (6.3), Master Trust Bank of Japan T
(4.3), Mitsui Sumitomo Ins (2.5), Nippon Life Ins (2.4), Nippon Koa Ins (2.3),
Japan Trustee Services t9 (1.9), Tokio Marine & Nichido Fire Ins (1.9),
SSBT OD05 Omnibus Acct (1.8), Chase London SL Omnibus Acct (1.7); foreign
owners (39.8)
No. of
shareholders: 98,184
Listed on the
S/Exchange (s) of: Tokyo, Osaka, Sapporo, Nagoya, Fukuoka
Managements: Eizo Kobayashi, ch;
Masahiro Okafuji, pres; Yoichi Kobayashi, v pres; Yoshio Akamatsu, s/mgn dir;
Nobuo Kuwayama, s/mgn dir; Yoshihisa Aoki, s/mgn dir; Tadayuki Seki, s/mgn dir;
Tatsuo Fujino, mgn dir; Kenji Okada, mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Itochu Techno
Solutions, Itochu Shokuhin, other
OPERATION
Activities: Activities: A
general trading house; Sales breakdown by divisions:
Textile Company
(5%): Raw cotton, Cotton yarns, Wool, yarns, Rayon staple, Spun rayon yarns,
Rayon yarns, Synthetic staple, Synthetic filament, Cotton fabrics, Wool
fabrics, Silk fabrics, Rayon fabrics, Spun rayon fabrics, Synthetic filament
fabrics, Knit fabrics, Knit outer garments, Knit under garments, Woven outer garments,
Woven under garments, Other garments, Secondary textile products, Imported
sundries, Bedding fabrics, Interior fabrics, Industrial fibres, Inorganic
fibres and related products, etc.
Machinery Company (7%): Civil engineering, Construction,
Mining and related materials handling machinery, Agricultural machinery,
Metalworking and processing machinery and plant, Forging machinery, Textile
machinery, Semiconductor manufacturing equipment, Automobile parts
manufacturing plant, Plant related to the iron and steel industry, Cement
plant, Food machinery, Grain silos, Hospital equipment, Oil, gas, and chemical
plants, Passenger vehicles, Commercial vehicles, Automobile parts and
equipment, Special-purpose vehicles, Rolling stock, Ships, Power generating
equipment, etc.
Aerospace,
Electronics & Multimedia Company (5%):
Satellite communications, International telecommunications, Terminals
and peripheral equipment for broadcasting and communications systems, Entertainment
and content business, Systems and related machinery for mobile telephones,
Systems and related equipment for computer and information processing,
Semiconductor equipment, Aircraft, In-flight equipment, Space-related
equipment, Security equipment etc.
Energy, Metals
& Minerals Company (34%):
Iron ore, Direct reduced iron, Coking coal, Coke, Thermal coal, Ferro alloy and
its materials, Ferrous scrap, Pig iron, Metal powder, Electrodes, Activated
carbon, Steel plates, Hot & cold rolled sheets and coils, Galvanized steel,
Steel for machinery, Stainless steel, High tensile steel, Construction
materials, Welded steel pipes, Seamless steel pipes, Steel wires, Marine steel
structures, Bridges, Prefabricated steel for buildings, Rails, Non-ferrous metals,
Precious metals, Rare metals, Aluminium, Crude oil, Natural gas liquid (NGL),
Gasoline, Naphtha, Kerosene, Jet fuel, Gas oil, Fuel oil, Bunker oil,
Lubricant, Asphalt, Liquefied petroleum gas (LPG), Liquefied natural gas (LNG),
Nuclear fuel (uranium concentrates, uranium hexafluoride), Nuclear power
related equipment
Chemicals, Forest
Products & General Merchandise Company (18%): Logs, Lumber,
Wooden building materials, Wood chips, Wood pulp, Recycled paper, Cotton
linter, Paper, Paperboard, Paper products, Natural rubber, Tyres, Footwear,
Furniture, Glass, Cement crysotile, Landscape materials, Refractory materials
and products, Natural gypsum, etc.
Chemical feedstock, Olefin, Aromatics, Raw materials for synthetic
resins, Tar chemicals, Raw materials for synthetic fibres, Organic chemicals,
Methanol, Ethanol, Solvents, Specialty chemicals, Inorganic chemicals, Chemical
fertilizers, Vinyl chloride, Polyolefin, Synthetic rubbers, Carbon black,
Thermoplastic and thermosetting resins, Resin additives, Glass fibres, etc.
Food Company (27%): Wheat, Barley, Wheat flour,
Rice, Starches, Soybeans, Sunflower oil, Olive oil, Palm oil, Coconut oil,
Corn, Soybean meal, Rapeseed meal, Fish meal, Alfalfa pellets, Raw sugar,
Sweeteners, High-fructose corn syrup, Dairy products, Nuts, Coffee, Cocoa,
Fruit juice, Liquor, Soft drinks, Beef, Pork, Chicken, Fruits and vegetables,
Processed foods, Frozen foods, Canned foods, Pet foods, Consulting services for
food business.
Finance, Realty,
Insurance & Logistics Services Company (3%): Finance: Foreign exchange and securities trading,
securities and fund investment, asset management (including structuring and
sales of financial products), lending, online securities broking, other
financial services; Realty: Planning,
developing, constructing, contracting, managing, operating, selling related
facilities and materials for residential housing, office buildings, resort
facilities, golf courses, industrial parks, hotels; Insurance: Insurance and reinsurance agency, broking of
insurance and reinsurance, consulting of insurance and reinsurance; Logistics
services: Warehousing, trucking,
operation of logistics centres, chartering, international intermodal transport,
air cargo, travel services, distribution processing, freight forwarding,
customs clearance, etc.
Overseas trading
ratio: (42%)
Clients:
[Wholesalers, mfrs] Itochu Shokuhin, Yukijirushi Access Inc, Nisseki Itochu,
Nishino Trading, Prima Meat Packers, Sumitomo Access, Nippon Access Inc, Japan
Gas
Energy, other.
No. of accounts:
3,000
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers, carmakers] Mazda Motor, Nippon Steel, Isuzu Motors, Nissin
Food Products, JGC Corp, Dole, Nissin Foods, other.
Payment record:
Regular
Location: Business
area in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References:
Mizuho
Corporate Bank (Uchisaiwaicho)
SMBC
(H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2011 |
31/03/2010 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
11,392,589 |
10,306,799 |
||
|
|
Cost of Sales |
10,351,298 |
9,382,433 |
|||
|
|
GROSS PROFIT |
1,041,291 |
924,366 |
|||
|
|
Selling & Adm Costs |
785,209 |
776,952 |
|||
|
|
OPERATING PROFIT |
256,082 |
147,414 |
|||
|
|
Non-Operating P/L |
-73,985 |
7,572 |
|||
|
|
RECURRING PROFIT |
182,097 |
154,986 |
|||
|
|
NET PROFIT |
160,975 |
128,153 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
630,722 |
475,674 |
||
|
|
Receivables |
|
1,434,363 |
1,426,682 |
||
|
|
Inventory |
|
504,342 |
476,066 |
||
|
|
Securities, Marketable |
3,560 |
7,140 |
|||
|
|
Other Current Assets |
502,844 |
(492,081) |
|||
|
|
TOTAL CURRENT ASSETS |
3,075,831 |
1,893,481 |
|||
|
|
Property & Equipment |
643,629 |
666,351 |
|||
|
|
Intangibles |
|
|
|
||
|
|
Investments, Other Fixed Assets |
1,954,223 |
2,917,015 |
|||
|
|
TOTAL ASSETS |
5,673,683 |
5,476,847 |
|||
|
|
Payables |
|
1,239,609 |
1,217,599 |
||
|
|
Short-Term Bank Loans |
241,915 |
229,236 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
561,355 |
545,723 |
|||
|
|
TOTAL CURRENT LIABS |
2,042,879 |
1,992,558 |
|||
|
|
Debentures |
|
|
|
||
|
|
Long-Term Bank Loans |
2,159,929 |
2,107,589 |
|||
|
|
Reserve for Retirement Allw |
52,564 |
43,314 |
|||
|
|
Other Debts |
|
20,801 |
22,033 |
||
|
|
TOTAL LIABILITIES |
4,276,173 |
4,165,494 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
202,241 |
202,241 |
|||
|
|
Additional
paid-in capital |
114,291 |
137,506 |
|||
|
|
Retained
earnings |
1,035,222 |
900,397 |
|||
|
|
Evaluation
p/l on investments/securities |
(139,038) |
(194,254) |
|||
|
|
Others |
|
187,481 |
268,137 |
||
|
|
Treasury
stock, at cost |
(2,687) |
(2,674) |
|||
|
|
TOTAL S/HOLDERS` EQUITY |
1,397,510 |
1,311,353 |
|||
|
|
TOTAL EQUITIES |
5,673,683 |
5,476,847 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2011 |
31/03/2010 |
||
|
|
Cash
Flows from Operating Activities |
|
336,868 |
295,376 |
||
|
|
Cash
Flows from Investment Activities |
-230,420 |
-196,318 |
|||
|
|
Cash
Flows from Financing Activities |
52,905 |
-258,987 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
630,722 |
475,674 |
||
|
ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
1,397,510 |
1,311,353 |
||
|
|
|
Current
Ratio (%) |
150.56 |
95.03 |
||
|
|
|
Net
Worth Ratio (%) |
24.63 |
23.94 |
||
|
|
|
Recurring
Profit Ratio (%) |
1.60 |
1.50 |
||
|
|
|
Net
Profit Ratio (%) |
1.41 |
1.24 |
||
|
|
|
Return
On Equity (%) |
11.52 |
9.77 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
|
UK Pound |
1 |
Rs.74.56 |
|
Euro |
1 |
Rs.65.34 |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.