MIRA
INFORM REPORT
|
Report Date : |
29.04.2013 |
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) : |
31.03.2012 |
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Date of Incorporation : |
December
1949 |
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Com. Reg. No.: |
1200-01-077358 (Osaka-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
General trading house |
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No. of Employees : |
77,222 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
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Insignificant |
A1 |
|
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 |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation,
a strong work ethic, mastery of high technology, and a comparatively small
defense allocation (1% of GDP) helped Japan develop a technologically advanced
economy. Two notable characteristics of the post-war economy were the close
interlocking structures of manufacturers, suppliers, and distributors, known as
keiretsu, and the guarantee of lifetime employment for a substantial portion of
the urban labor force. Both features are now eroding under the dual pressures
of global competition and domestic demographic change. Japan's industrial
sector is heavily dependent on imported raw materials and fuels. A small
agricultural sector is highly subsidized and protected, with crop yields among
the highest in the world. While self-sufficient in rice production, Japan
imports about 60% of its food on a caloric basis. For three decades, overall
real economic growth had been spectacular - a 10% average in the 1960s, a 5%
average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in
the 1990s, averaging just 1.7%, largely because of the after effects of
inefficient investment and an asset price bubble in the late 1980s that
required a protracted period of time for firms to reduce excess debt, capital,
and labor. Modest economic growth continued after 2000, but the economy has
fallen into recession three times since 2008. A sharp downturn in business
investment and global demand for Japan's exports in late 2008 pushed Japan into
recession. Government stimulus spending helped the economy recover in late 2009
and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude
earthquake and the ensuing tsunami in March disrupted manufacturing. The
economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Newly-elected Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has pledged to reconsider his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus and regulatory reform and has said he will press the Bank of Japan to
loosen monetary policy. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2012 stood as the fourth-largest
economy in the world after second-place China, which surpassed Japan in 2001,
and third-place India, which edged out Japan in 2012. The new government will
continue a longstanding debate on restructuring the economy and reining in
Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation,
reliance on exports to drive growth, and an aging and shrinking population are
other major long-term challenges for the economy.
Source
: CIA
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 114 over 80 countries)
CHIEF EXEC
MASAHIRO OKAFUJI,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 11,978,276 M
PAYMENTSREGULAR CAPITAL Yen
202,241 M
TREND UP WORTH Yen 1,096,141 M
STARTED 1949 EMPLOYES 77,222
COMMENT
NATION’S LEADING
GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
Unit:
In Million Yen
Forecast (or estimated) figures for 31/03/2013
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. The firm
is considering feasibility research on a ten million ton LNG plant in Russia,
jointly with Gazprom & others. It
will start mass production of an annual 1,000 tons vegetable oil-derived
lithium-ion battery anode materials jointly with Kureha Corp and Kuraray.
FINANCIAL INFORMATION
The sales volume for
Mar/2012 fiscal term amounted to Yen 11,978,276 million, a 5.1% up from Yen
11,353,584 million in the previous term.
It was attributable to higher revenues in several division companies. The Energy, Metals & Miner Company
achieved an increase due to the acquisition of energy-related companies, a rise
in prices for iron ore, oil & gas and an increase in iron sales volume
counteracted a decrease due to lower coal production and sales volume. In the Chemicals, Forest Products &
General Merchandise Company, revenue increased mainly due to the acquisition of
Kwik-Fit Group. In addition, the Food
company rose due to higher market prices of food materials, such as feed grains
and others, and an increase in transaction volume in food-distribution-related
companies. By Divisions, Textiles up
2.17% to Yen 601,056 million, Machinery down 1.78% to Yen 1,460,061 million,
Metals & Energy up 5.74% to Yen 4,109,412 million, Materials &
Chemicals up 11.3% to Yen 2,321,977 million, Food up 5.55% to Yen3,272,045
million. The recurring profit was posted
at Yen 341,174 million and the net profit at Yen 300,505 million, respectively,
compared with Yen 182,332 million recurring profit and Yen 161,114 million net
profit, respectively, a year ago.
(Apr/Dec/2012 results):
Sales Yen 9,273,860 million (up 5.1%), operating profit Yen 164,207 million
(down 21.4%), recurring profit Yen 190,610 million (down 24.2%), net profit Yen
208,134 million (down 4.0%). (% compared
with the corresponding period a year ago).
For the term that ended
Mar 2013 the recurring profit was projected at Yen 300,000 million and the net
profit at Yen 280,000 million, respectively, on a 9,4% rise in turnover, to Yen
13,100,000 million. Final results are
yet to be released
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec 1949
Regd No.: 1200-01-077358 (Osaka-Chuoku)
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 (7.1), Master Trust Bank of Japan T
(5.3), Mitsui Sumitomo Ins (2.3), SSBT OD05 Omnibus Acct Treaty (2.3), Nippon Life
Ins (2.1), Nippon Koa Ins (1.7), Asahi Life Ins (1.7), State Street Bank &
Trust (1.6), Chase London AL Omnibus Acct (1.5), Tokio Marine & Nichido
Fire Ins (1.5); foreign owners (35.0)
No. of shareholders: 124,847
Listed on the S/Exchange (s) of: Tokyo, Osaka,
Sapporo, Nagoya, Fukuoka
Managements: Eizo Kobayashi,
ch; Masahiro Okafuji, pres; Yoichi Kobayashi, v pres; Yoshihisa Aoki, s/mgn
dir; Tadayuki Seki, s/mgn dir; Koji Takayanagi, s/mgn dir; Tatsuo Fujino, mgn
dir; Takeshi Kumedawa, mgn dir; Yoshiharu Matsumoto, mgn dir; Shintaro
Ishimaru, mgn dir; Toru Matsushima, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Itochu Techno Solutions, Itochu Shokuhin,
Itochu Enex, 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 fibers, Inorganic fibers and
related products, etc.
Machinery Company (12%): 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 (2%): 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 (19%): 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 fibers, 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 fibers, 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 (1%): 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, Sumitomo Chemical Co,
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: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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11,978,276 |
11,393,584 |
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Cost of Sales |
8,947,829 |
10,417,206 |
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GROSS PROFIT |
3,030,447 |
976,378 |
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Selling & Adm Costs |
2,757,822 |
720,075 |
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OPERATING PROFIT |
272,620 |
256,303 |
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Non-Operating P/L |
68,554 |
-73,971 |
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RECURRING PROFIT |
341,174 |
182,332 |
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NET PROFIT |
300,505 |
161,114 |
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BALANCE SHEET |
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Cash |
|
513,489 |
633,756 |
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Receivables |
|
1,653,412 |
1,426,677 |
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Inventory |
|
574,345 |
504,342 |
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Securities, Marketable |
2,770 |
3,560 |
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Other Current Assets |
636,070 |
507,321 |
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TOTAL CURRENT ASSETS |
3,380,086 |
3,075,656 |
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Property & Equipment |
707,933 |
643,974 |
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Intangibles |
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Investments, Other Fixed Assets |
2,419,254 |
1,957,079 |
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TOTAL ASSETS |
6,507,273 |
5,676,709 |
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Payables |
|
1,434,241 |
1,236,561 |
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Short-Term Bank Loans |
415,268 |
241,915 |
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Other Current Liabs |
601,565 |
565,066 |
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TOTAL CURRENT LIABS |
2,451,074 |
2,043,542 |
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Debentures |
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Long-Term Bank Loans |
2,259,717 |
2,160,772 |
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Reserve for Retirement Allw |
64,304 |
52,564 |
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Other Debts |
|
36,037 |
20,877 |
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TOTAL LIABILITIES |
4,811,132 |
4,277,755 |
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MINORITY INTERESTS |
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Common
stock |
202,241 |
202,241 |
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Additional
paid-in capital |
112,370 |
112,370 |
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Retained
earnings |
1,296,265 |
1,036,095 |
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Evaluation
p/l on investments/securities |
(244,394) |
(193,683) |
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Others |
|
332,344 |
244,605 |
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Treasury
stock, at cost |
(2,685) |
(2,674) |
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TOTAL S/HOLDERS` EQUITY |
1,696,141 |
1,398,954 |
|||
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TOTAL EQUITIES |
6,507,273 |
5,676,709 |
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CONSOLIDATED CASH FLOWS |
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|
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Terms ending: |
31/03/2012 |
31/03/2011 |
||
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Cash Flows
from Operating Activities |
|
212,830 |
335,361 |
||
|
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Cash
Flows from Investment Activities |
-416,315 |
-230,866 |
|||
|
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Cash
Flows from Financing Activities |
84,704 |
53,202 |
|||
|
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Cash,
Bank Deposits at the Term End |
|
513,489 |
633,756 |
||
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
1,696,141 |
1,398,954 |
||
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Current
Ratio (%) |
137.90 |
150.51 |
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Net
Worth Ratio (%) |
26.07 |
24.64 |
||
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Recurring
Profit Ratio (%) |
2.85 |
1.60 |
||
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Net
Profit Ratio (%) |
2.51 |
1.41 |
||
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|
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Return
On Equity (%) |
17.72 |
11.52 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.