MIRA INFORM REPORT

 

 

Report Date :

13.09.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

MITSUI & CO LTD

 

 

Registered Office :

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

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

July 1947

 

 

Com. Reg. No.:

(Tokyo-Chiyodaku) 008767

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Wholesale, Import, Export: Iron & Steel, Metals, Machinery, Chemicals, Foodstuffs, Textiles, Crude Oil, Fuels, Electronics, 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 209,438.2 Million

Status :

Good

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

 

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        

 

151 offices in 65 countries: Domestic (12); Overseas (139)

 

 

CHIEF EXEC

 

MASAMI IIJIMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 9,358,379 M

PAYMENTS      REGULAR         CAPITAL           Yen 341,482 M

TREND             SLOW              WORTH            Yen 2,334,451 M

STARTED                     1947                 EMPLOYES      41,454

 

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 209,438.2 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2011 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): A large amount of crude oil was leaked from the well in the mining block in the Gulf of Mexico, explored jointly with BP, it may affect the company’s management in view of issues of damage compensation, etc, though the capital participation is low at 10%.

 

The firm invested in a chilled/frozen food logistics company in Shanghai in China.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 9,358,379 million, a 28.7% down from Yen 13,125,144 million in the previous term.  This is mainly because of sluggish demand for natural resources.  Resources & Energy Divisions struggled.  As major international steelmakers cut production, demand for iron ore, coking coal and other materials plunged.  And the Yen’s rise against the Australian dollar and Brazil’s real chipped away at income from overseas affiliates.  The recurring profit was posted at Yen 126,040 million and the net profit at Yen 149,719 million, respectively, compared with Yen 242,178 million recurring profit and Yen 177,607 million net profit, respectively, a year ago. 

 

(Apr/Jun/2010 results): Sales Yen 2,429,690 million (up 8.9%), operating profit Yen 90,150 million (up 169.2%), recurring profit Yen 105,419 million (up 180.0%), net profit Yen 102,535 million (up 78.9%).  (% compared with the corresponding period a year ago.

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 290,000 million and the net profit at Yen 320,000 million, respectively, on a 22.9% rise in turnover, to Yen 11,500,000 million.  Sales of Australian iron ores, on which the company holds a lot of concessions, will be brisk thanks to rising prices.  Metal resources profit will swell more than 2 fold even with negative factors of foreign exchange rates.  Earnings of energy segment will top the projections.  The foods division will be free of a hefty impairment loss on Seven & I shares.  Net profit will expand sharply.

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 209,438.2 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Jul 1947

Regd No.:                        (Tokyo-Chiyodaku) 008767

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,500 million shares

Issued:                1,829,153,527 shares

Sum:                   Yen 341,482 million

           

Major shareholders (%): Master Trust Bank of Japan, T (8.6), Japan Trustee Services Bank T (7.4), SMBC (2.1), Nippon Life Ins (1.9), Chase (London) Omnibus Acct (1.6), MUFG (1.9), Nippon Life Ins (1.9), Chuo Mitsui Trust Bank (1.6), Japan Trustee Services T9 (1.6), State Street Bank & Trust (1.4), Mitsui Sumitomo Ins (1.3), State Street Bank & Trust (1.2); foreign owners (39.0)

           

No. of shareholders: 121,445

 

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

 

Managements: Shoei Utsuda, ch; Masami Iijima, pres; Ken Abe, v pres; Yoshiyuki Izawa, v pres; Jun’ichi Matsumoto, v pres; Norinao Iio, s/mgn dir; Seiichi Tanaka, s/mgn dir; Takao Omae, s/mgn dir; Akio Okada, dir; Nobuko Matsubara, dir; Ikujiro Nonaka, dir; Hiroshi Hirabashi, 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 (10%): iron ore, steel materials, ferroalloys, coal, coke, nonferrous metals, precious metals, electric wires, other;

 

Machinery & Information (13%): industrial machinery, automobiles, electronics & information equipment, office machines, other;

 

Chemicals (9%): organic & inorganic chemicals, petrochemicals, fine chemicals, fertilizers, other;

 

Energy (22%): crude oil, LNG, LPG, fuels, other petroleum products, other,

 

Lifestyle (12%): clothing, upholstery, fabrics, textile raw materials, other;

 

Steel Products (5%); steel slabs, billets, hot-rolled sheets, coated sheets, tin plates, electrical sheets, pipes, wire

rods, automotive steel, stainless steel, other;

 

Others (29%): lumber, flooring, other construction materials, sporting goods, cereals, alcoholic beverages, other foodstuffs).

 

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 Ind, 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

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

9,358,379

13,125,144

 

  Cost of Sales

8,656,418

12,125,780

 

      GROSS PROFIT

701,961

999,264

 

  Selling & Adm Costs

557,448

616,777

 

      OPERATING PROFIT

144,513

382,487

 

  Non-Operating P/L

-18,473

-140,309

 

      RECURRING PROFIT

126,040

242,178

　

      NET PROFIT

149,719

177,607

BALANCE SHEET

 

 

 

 

  Cash

　

1,401,399

1,147,809

 

  Receivables

 

1,382,259

1,412,022

 

  Inventory

 

504,847

592,530

 

  Securities, Marketable

　

　

 

  Other Current Assets

972,585

1,266,776

 

      TOTAL CURRENT ASSETS

4,261,090

4,419,137

 

  Property & Equipment

978,560

946,290

 

  Intangibles

 

84,741

96,505

 

  Investments, Other Fixed Assets

3,044,593

2,902,311

 

      TOTAL ASSETS

8,368,984

8,364,243

 

  Payables

 

1,307,980

1,292,520

 

  Short-Term Bank Loans

320,480

373,197

 

　

 

　

　

 

  Other Current Liabs

752,307

1,126,773

 

      TOTAL CURRENT LIABS

2,380,767

2,792,490

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,909,794

2,841,301

 

  Reserve for Retirement Allw

33,927

33,814

 

  Other Debts

　

614,790

585,792

 

      TOTAL LIABILITIES

5,939,278

6,253,397

 

      MINORITY INTERESTS

 

 

 

Common stock

341,482

339,627

 

Additional paid-in capital

428,848

434,188

 

Retained earnings

1,671,945

1,535,007

 

Evaluation p/l on investments/securities

123,891

44,263

 

Others

 

(130,039)

(235,977)

 

Treasury stock, at cost

(6,321)

(5,662)

 

      TOTAL S/HOLDERS` EQUITY

2,429,806

2,111,446

　

      TOTAL EQUITIES

8,368,984

8,364,243

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

632,360

582,666

 

Cash Flows from Investment Activities

-180,093

-290,892

 

Cash Flows from Financing Activities

-214,445

-9,774

　

Cash, Bank Deposits at the Term End

　

1,401,399

1,147,809

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

2,429,806

2,111,446

 

 

Current Ratio (%)

178.98

158.25

 

 

Net Worth Ratio (%)

29.03

25.24

 

 

Recurring Profit Ratio (%)

1.35

1.85

 

 

Net Profit Ratio (%)

1.60

1.35

 

 

Return On Equity (%)

6.16

8.41

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.97

UK Pound

1

Rs.74.22

Euro

1

Rs.63.66

 

 

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

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.