MIRA
INFORM REPORT
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Report Date : |
14.03.2012 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU CORPORATION |
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Registered Office : |
2-5-1 Kitaaoyama Minatoku Tokyo 107-8807 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
December 1949 |
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Com. Reg. No.: |
(Osaka-Chuoku) 002849 |
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Legal Form : |
Limited Company |
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Line of Business : |
General trading house |
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No. of Employees : |
62,635 |
RATING & COMMENTS
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MIRAs 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 212,472.8 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
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
NATIONS 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. Japans 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/Dec/2011
results): Sales Yen 8,877,171 million (up 4.4%), operating profit Yen
205,094 million (up 14.6%), recurring profit Yen 247,634 million (up 67.8%),
net profit Yen 216,719 million (up 49.1%).
(% compared with the corresponding period a year ago). This is attributable to higher revenues in
several division companies. Energy,
Metals & Minerals Company achieved an increase because of a rise in prices
for iron ore, oil & gas and an increase in iron ore sales volume
counteracted a decrease due to lowe4 coal production volume. In Chemicals, Forest Products & General
Merchandise Company, revenue increased due to acquisition of Kwik-Fit Group and
to higher market prices for chemicals and natural rubber. In addition, Food Company also rose thanks to
higher market prices for food materials, such as feed grains and others, and an
increase in transaction volume in food distribution-related companies.
For the current term ending Mar 2012 the
recurring profit is projected at Yen 330,000 million and the net profit at Yen
280,000 million, respectively, on a 3.6% rise in turnover, to Yen 11,899,000
million. Profits on metal resources,
including iron-ore, are rising.
Lifestyle materials and chemical products are growing, backed by a
strong market in the first half.
Textiles are benefiting from peaked-out extraordinary costs, and
machinery and communications businesses are rising steadily. 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 (6.5), Master Trust Bank of Japan T
(4.7), State Street Bank & Trust (3.2), Mitsui Sumitomo Ins (2.5), Nippon
Life Ins (2.1), SSBT OD05 Omnibus Acct (2.1), Nipponkoa Ins (2.0), Tokio Marine
& Nichido Fire Ins (1.7), Asahi Life Ins (1.7), Japan Trustee Services T9
(1.6); foreign owners (37.7)
No. of shareholders: 107,113
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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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11,392,589 |
10,306,799 |
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Cost of Sales |
10,351,298 |
9,382,433 |
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GROSS PROFIT |
1,041,291 |
924,366 |
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Selling & Adm Costs |
785,209 |
776,952 |
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OPERATING PROFIT |
256,082 |
147,414 |
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Non-Operating P/L |
-73,985 |
7,572 |
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RECURRING PROFIT |
182,097 |
154,986 |
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NET PROFIT |
160,975 |
128,153 |
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BALANCE SHEET |
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Cash |
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630,722 |
475,674 |
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Receivables |
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1,434,363 |
1,426,682 |
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Inventory |
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504,342 |
476,066 |
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Securities, Marketable |
3,560 |
7,140 |
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Other Current Assets |
502,844 |
(492,081) |
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TOTAL CURRENT ASSETS |
3,075,831 |
1,893,481 |
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Property & Equipment |
643,629 |
666,351 |
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Intangibles |
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Investments, Other Fixed Assets |
1,954,223 |
2,917,015 |
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TOTAL ASSETS |
5,673,683 |
5,476,847 |
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Payables |
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1,239,609 |
1,217,599 |
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Short-Term Bank Loans |
241,915 |
229,236 |
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Other Current Liabs |
561,355 |
545,723 |
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TOTAL CURRENT LIABS |
2,042,879 |
1,992,558 |
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Debentures |
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Long-Term Bank Loans |
2,159,929 |
2,107,589 |
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Reserve for Retirement Allw |
52,564 |
43,314 |
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Other Debts |
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20,801 |
22,033 |
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TOTAL LIABILITIES |
4,276,173 |
4,165,494 |
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MINORITY INTERESTS |
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Common
stock |
202,241 |
202,241 |
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Additional
paid-in capital |
114,291 |
137,506 |
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Retained
earnings |
1,035,222 |
900,397 |
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Evaluation
p/l on investments/securities |
(139,038) |
(194,254) |
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Others |
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187,481 |
268,137 |
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Treasury
stock, at cost |
(2,687) |
(2,674) |
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TOTAL S/HOLDERS` EQUITY |
1,397,510 |
1,311,353 |
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TOTAL EQUITIES |
5,673,683 |
5,476,847 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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336,868 |
295,376 |
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Cash
Flows from Investment Activities |
-230,420 |
-196,318 |
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Cash
Flows from Financing Activities |
52,905 |
-258,987 |
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Cash,
Bank Deposits at the Term End |
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630,722 |
475,674 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
1,397,510 |
1,311,353 |
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Current
Ratio (%) |
150.56 |
95.03 |
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Net
Worth Ratio (%) |
24.63 |
23.94 |
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Recurring
Profit Ratio (%) |
1.60 |
1.50 |
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Net
Profit Ratio (%) |
1.41 |
1.24 |
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Return
On Equity (%) |
11.52 |
9.77 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.84 |
|
|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.61 |
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 |
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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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
This score serves as a reference to assess SCs 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.