MIRA INFORM REPORT
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Report Date : |
11.06.2013 |
IDENTIFICATION DETAILS
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Name : |
MITSUI & CO LTD |
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Registered Office : |
Mitsui Bussan Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
July 1947 |
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Com. Reg. No.: |
0100-01-008767 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of: iron & steel, metals, machinery, chemicals, foodstuffs, textiles, crude oil, fuels, electronics, etc |
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No. of Employees : |
44,805 |
RATING & COMMENTS
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MIRA’s 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 |
COMPANY NAME AND
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
E-Mail address: (through the URL to each division)
ACTIVITIES: Import,
export, wholesale of: iron & steel, metals, machinery, chemicals,
foodstuffs, textiles, crude oil, fuels, electronics, etc
BRANCHES: 150
offices in 67 countries: Domestic (12); Overseas (138)
CHIEF EXEC: MASAMI
IIJIMA, PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 10,049,637 M PAYMENTS REGULAR CAPITAL Yen 341,482 M
TREND STEADY WORTH Yen
2,440,104 M
STARTED 1947 EMPLOYES 44,805
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
167,424.7 MILLION, 30 DAYS NORMAL TERMS.
Unit: In million Yen
Forecast (or estimated) figures for 31/03/2014
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. The
company paid Yen 88.6 billion out-of-court settlement reached with BP,
regarding the oil spill incident in the Gulf of Mexico recorded for the year
ended Mar 31/2011. BP is to pay in full
any further compensation that may emerge but there is little risk of losses. The company plans to establish a specialty
steel mfg company in collaboration with the Mahindra Group, India’s leading
financial group, and will continue to seek collaborative business. It intends to establish a JV with a Canadian
bio firm and plans production of chemicals derived from biomass. The company will continue mineral exploration
in Mozambique in view of the massive volume of deposits, and will make a
decision in 2013 over the advisability of development.
FINANCIAL
INFORMATION:
The sales volume for Mar/2013
fiscal term amounted to Yen 10,049,637 million, a 4.1% down from Yen 10,481,186
million in the previous term. Energy
business performed better than expected, backed by solid oil prices and
dividend income from an LNG affiliate.
But the softening mainline iron ore market hurt. Economic downturn in China affected the
chemicals business. Net profit took a
downturn, despite decrease in the Yen 50 billion securities valuation loss of
the preceding term. The recurring profit
was posted at Yen 314,098 million and the net profit at Yen 307,926 million,
respectively, compared with Yen 413,211 million recurring profit and Yen
434,497 million net profit, respectively, a year ago.
For the current term
ending Mar 2014 the recurring profit is projected at Yen 360,000 million and
the net profit at Yen 370,000 million, respectively, on a 4.5% rise in
turnover, to Yen 10,500,000 million. New
copper concession in Chile will increase.
Iron ore market will rebound after hitting the bottom in the second half
of the preceding term. Grains business
will be free of further impact from droughts.
Net profit will rise.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
Max credit limit is estimated at Yen 167,424.7 million, on 30 days
normal terms.
REGISTRATION
Date Registered:
Jul 1947
Regd No.:
0100-01-008767 (Tokyo-Chiyodaku)
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 (8.8), Japan Trustee Services Bank T
(6.8), SSBT OD05 Omnibus Acct Treaty Cl. (2.2), SMBC (2.1), Japan Trustee
Services T9 (1.9), Nippon Life Ins (1.9), Mitsui Sumitomo Ins (1.3), Sumitomo
Mitsui Trust Bank (1.2), Deutsche Securities (1.2), Barclays Securities Japan
(1.1); foreign owners (28.8)
No. of shareholders: 222,566
Listed on the S/Exchange (s) of: Tokyo
Managements: Shoei Utsuda, ch;
Masami Iijima, pres; Seiichi Tanaka, v pres; Fuminobu Kawashima, v pres;
Daisuke Saiga, s/mgn dir; Joji Okada, s/mgn dir; Masayuki Kinoshita, s/mgn dir;
Shintaro Ambe, s/mgn dir; Takashi Yamauchi, s/mgn dir; Koichi Tanaka, mgn dir;
Atsushi Oi, mgn dir; Mitsuhiko Kawai, 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
(11%): iron ore, steel materials, ferroalloys, coal, coke, nonferrous metals,
precious metals, electric wires, other;
Machinery
& Information (4%): industrial machinery,
automobiles, electronics & information equipment, office machines, other;
Chemicals (15%): organic & inorganic
chemicals, petrochemicals, fine chemicals, fertilizers, other;
Energy (33%): crude oil, LNG, LPG, fuels,
other petroleum products, other,
Lifestyle
(14%): clothing, upholstery, fabrics, textile raw materials, other;
Steel
Products (6%); steel slabs, billets, hot-rolled sheets, coated sheets, tin plates,
electrical sheets, pipes, wire rods, automotive steel, stainless steel, other;
Others
(17%): lumber, flooring, other construction materials, sporting goods,
cereals, alcoholic beverages, other foodstuffs).
Overseas
sales ratio (45%)
Clients: [Steel mills,
mfrs, wholesalers] Mitsui Foods, Mitsui & Co Hong Kong, Mitsui Oil
Hong Kong, Taiyo Kenki Rental Co, Kato
Sangyo Co, Toray Ind, Tokyo Electric Power, Mitsui Engineering &
Shipbuilding Ind, Mitsui Oil & Gas, other.
No. of accounts:
2,000 – 3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui Chemical, Mitsui Oil, Toshiba Corp, Toyota Motor,
Fuji Heavy Ind, Abu Dhabi Gas Liquefaction,
Mitsui & Co USA, Toyo Suisan Kaisha, 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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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5,000 |
10,481,166 |
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Cost of Sales |
3,000 |
9,602,887 |
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GROSS PROFIT |
2,000 |
878,279 |
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Selling & Adm Costs |
1,000 |
529,895 |
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OPERATING PROFIT |
1,000 |
348,384 |
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Non-Operating P/L |
-169,110 |
64,837 |
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RECURRING PROFIT |
-67,443 |
413,221 |
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NET PROFIT |
-40,794 |
434,497 |
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BALANCE SHEET |
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Cash |
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1,425,174 |
1,431,112 |
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Receivables |
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1,608,915 |
1,616,191 |
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Inventory |
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746,584 |
515,758 |
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Securities, Marketable |
367 |
1,087 |
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Other Current Assets |
850,491 |
862,175 |
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TOTAL CURRENT ASSETS |
4,631,531 |
4,426,323 |
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Property & Equipment |
1,570,270 |
1,255,883 |
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Intangibles |
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118,448 |
110,307 |
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Investments, Other Fixed Assets |
4,004,332 |
3,219,310 |
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TOTAL ASSETS |
10,324,581 |
9,011,823 |
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Payables |
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1,438,287 |
1,342,343 |
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Short-Term Bank Loans |
421,211 |
372,657 |
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Other Current Liabs |
1,185,832 |
909,030 |
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TOTAL CURRENT LIABS |
3,045,330 |
2,624,030 |
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Debentures |
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Long-Term Bank Loans |
3,184,957 |
2,898,217 |
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Reserve for Retirement Allw |
68,312 |
55,799 |
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Other Debts |
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585,878 |
572,967 |
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TOTAL LIABILITIES |
6,884,477 |
6,151,013 |
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MINORITY INTERESTS |
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Common
stock |
341,482 |
341,482 |
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Additional
paid-in capital |
429,828 |
430,491 |
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Retained
earnings |
2,405,008 |
2,192,494 |
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Evaluation
p/l on investments/securities |
135,832 |
90,476 |
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Others |
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133,928 |
(187,930) |
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Treasury
stock, at cost |
(5,974) |
(6,203) |
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TOTAL S/HOLDERS` EQUITY |
3,440,104 |
2,860,810 |
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TOTAL EQUITIES |
10,324,581 |
9,011,823 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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461,430 |
380,984 |
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Cash
Flows from Investment Activities |
-753,297 |
-438,191 |
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Cash
Flows from Financing Activities |
221,635 |
57,394 |
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Cash,
Bank Deposits at the Term End |
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1,425,174 |
1,431,112 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
3,440,104 |
2,860,810 |
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Current
Ratio (%) |
152.09 |
168.68 |
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Net
Worth Ratio (%) |
33.32 |
31.75 |
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Recurring
Profit Ratio (%) |
-1348.86 |
3.94 |
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Net
Profit Ratio (%) |
-815.88 |
4.15 |
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Return
On Equity (%) |
-1.19 |
15.19 |
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RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<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
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.