MIRA INFORM REPORT

 

 

Report Date :

18.10.2013

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA TSUSHO CORPORATION

 

 

Registered Office :

Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013       

 

 

Date of Incorporation :

July 1948

 

 

Com. Reg. No.:

1800-01-031731 (Nagoya-Nakamuraku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Importer, exporter, wholesaler of metals, machinery, vehicles, industrial materials.

 

 

No. of Employees :

48,336

 

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

 

Status :

Satisfactory

Payment Behaviour :

No complaints

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

TOYOTA TSUSHO CORPORATION

REGD NAME:    Toyota Tsusho KK

MAIN OFFICE:  Century Toyota Bldg, 4-9-8 Meieki Nakamuraku Nagoya 400-8575 JAPAN

Tel: 052-584-5000    

Fax: 052-584-5663

 

URL:                 http://www.toyota-tsusho.co.jp/

E-Mail address: info@toyota-tsusho.co.jp

 

 

Osaka Branch Office

34 Ciz Section Osaka Toyota Bldg 4-3-11 Minamisenba Chuo-Ku Osaka 542-8550, Japan

 

 

ACTIVITIES

 

Import, export, wholesale of metals, machinery, vehicles, industrial materials.

 

 

BRANCHES

 

Tokyo, Osaka, Toyoda, Kariya, Sendai, Niigata, Fukuoka, other (Tot 42)

 

 

OVERSEAS   

 

Asia (32), Oceania (3), Europe (15), Mid East (2), Africa (3), N America

(24), Central/South America (7)

 

 

CHIEF EXEC

 

JUN KARUBE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 6,304,354 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 64,936 M

TREND UP                                WORTH            Yen 920,043 M

STARTED         1948                             EMPLOYES      48,336

 

 

COMMENT

 

GENERAL TRADING HOUSE AFFILIATED WITH TOYOTA MOTOR CORP. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

This is the sole general trading house in Toyota Motor group.  Established originally in 1936 as an auto loan firm for Toyota automobiles.  Incorporated in 1948 on the basis of a spin-off from Toyoda Sangyo Kaisha in order to engage in foreign trading, as Nisshin Tsusho Kaisha Ltd.  Renamed as captioned in 1987.  This is a general trading house specializing in automobile-related products, steel, machinery & chemical products.  Steel & nonferrous metals account for about 50% of total sales.  Active in overseas operations with offices in China, USA, Europe, Thailand, Australia, etc.  In April 2000, merged Kasho Co Ltd, then a mid-size trading firm.  In Mar 2000, went into capital investment and business tie-up with Tomen Corp, followed by the merger of the firm in Apr 2006.  The merger benefited the firm by expanded operations into other sectors which the subject was less competitive: Toyota excels in auto-related products, while Tomen in chemicals, food and non-automotive sectors.  The firm exports Toyota cars chiefly to S/E Asia, China, Mid/East & Latin America.  Growing into comprehensive trading company with strong growth of overseas trading.  Made 7% investment in Takeuchi Mfg, construction machinery firm, and forming tie-up for joint sales in Mid/South America.  Planning amalgamation of automobile seat fabrics business with Toyota Boshoku, textile mfr associated with Toyota Motor Group. Participating in pharmaceuticals development support field.  The company reached an agreement with the Kenya government in Aug 2012 over automobile production and infrastructure upgrade.  It will set up a subsidiary in Nairobi, and start market development in east Africa.  It obtained a 25% share in a lithium firm in Argentina, and start production in 2014.  Toyota Tsusho Group is comprised of 500 or more subsidiaries and affiliated companies both at home and abroad.

 

(Recent News):

 

1.       Toyota Tsusho plans to start producing hybrid vehicle batteries in China through a joint venture as early as 2015.  The firm will partner with a Chinese battery maker in Hunan Province, joint venture Corun PEVE (China) Automotive Battery Co, to be capitalized at Yen 5.21 million, will be headquartered in the city of Changshu in Jiangsu Province, where Toyota has a development base for next-generation eco-cars.

 

2.       Toyota Tsusho to make rare earths with State-owned India firm.  Toyota Tsusho will begin joint production of rare-earth metals with a state-owned Indian company, Indian Rare Earths Ltd, this autumn, planning to ship 4,000 tons a year t Japan, or about 20% of the nation’s demand.

 

3.       Toyota Tsusho to invest in Indonesian Autoparts giants.  Toyota Tsusho will acquire 4.9% of the outstanding shares in Indonesia’s largest Autoparts manufacture, PT Astra Otoparts Tbk.  The deal is valued at around 886 billion Indonesian rupiah, or roughly Yen 9.3% billion.  It will mark Toyota Tsusho’s first time investing in an overseas parts maker.  The company will purchase the share from PT Astra International Tbk.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 6,304,353 million, a 6.6% up from Yen 5,916,759 million in the previous term.  The global economy was generally sluggish amid a protracted sovereign debt crisis in Europe, slowdown in Chinese economic growth, and deceleration in the US economy.  However, Europe’s financial sector stabilized, the Chinese economy has started t show signs of gradual recovery, and the US economy is regaining momentum driven by household sector recovery.  Operating profits rose 25.4% attributable mainly to growth in gross profits.  By Divisions, Metals up 2.3% to Yen 38,800 million; Machinery & Electronics up 2.4% to Yen 1,254,400 million; Automotives up 16.9% to Yen 781,900 million; Energy & Chemicals up 16.5% to Yen 1,324,800 million; Foodstuffs up 6.7% to Yen 290,200 million.  The recurring profit was posted at Yen 124,814 million and the net profit at Yen 67,432 million, respectively, compared with Yen 115,110 million recurring profit and Yen 66,205 million net profit, respectively, a year ago.

 

(Apr/Jun/2013 results): Sales Yen 1,896,469 million (up 15.6%), operating profit Yen 40,915 million (up 55.3%), recurring profit Yen 46,069 million (up 21.8%), net profit Yen 21,779 million (down 3.9%)  (% compared with the corresponding period a year ago). 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 162,000 million and the net profit at Yen 71,000 million, on a 19% rise in turnover, to Yen 7,500 million.  Exports of vehicles and parts will grow, backed by increased automobile production.  Automobile production facilities in North America and S/E Asia will expand.  The conversion of a leading French trading company to a subsidiary will also contribute to earnings.  The company will easily absorb the downturn in petroleum products, and operating profit will continue growing.

 

The financial situation is considered FAIR to EXCELLENT and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:                      Jul 1948

Regd No.:                                 1800-01-031731 (Nagoya-Nakamuraku)

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                              1,000 million shares

Issued:                         354,056,576 shares

Sum:                            Yen 64,936 million

           

Major shareholders (%): Toyota Motor Corp (21.5), Toyota Industries (11.1), Master Trust Bank of Japan T (5.3), Japan Trustee Services Bank (3.7), MUFG (2.2), Mitsui Sumitomo Ins (1.6), Aioi Nissay Dowa Ins (1.1), Nippon Life Ins (1.1), Tokio Marine Nichido Fire Ins (1.1); foreign owners (19.8)

 

No. of shareholders: 35,354

 

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

 

Managements: Junzo Shimizu, ch; Yoshio Shirai, v ch; Jun Karube, pres Mikio Asano, v pres; Yasuhiko Yokoi, v pres; Hiroki Sawayama, s/mgn dir; Takumi Shirai, mgn dir; Kuniaki Yamagiwa, mgn dir; Soichiro Matsudaira, mgn dir; Takeshi Hattori, mgn dir; Yoshiki Miura, mgn dir; Yuichi Oi, mgn dir; Hideki Yanase, mgn dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Toyota Tsusho America Inc, other

           

 

OPERATION

 

Activities: A general trading house for import, export, wholesale operations:

 

(Sales Breakdown by Divisions):

 

Metals Division (27%): special steel products, unwrought nonferrous & precious metals,     rolled light metal products, copper, copper alloy products, scrap iron & scrap nonferrous metals, Ferro-alloy products, recycling & disposable catalysts, other;

Machinery & Electronics Division (20%): machine tools, industrial & textile machinery, testing & measuring instruments, environmental equipment, information & telecommunications equipment, electronic devices & parts, PC’s & peripherals, software, automotive parts, forklifts, intelligence transport equipment, other;

Automotive Division (12%): passenger cars, commercial cars, light vehicles, trucks & buses, automotive parts, other;

Energy & Chemicals Division (20%): petroleum products & LPG, coal, petroleum chemicals, synthetic resin, fat & oil products, chemical additives, natural & synthetic rubbers, other;

Consumer Products, Services & Materials Division (10%): agricultural & livestock products, foods, condominium & commercial buildings, construction & housing materials, furniture, textile products & materials, jewelry, automotive interior parts & materials, packaging materials, paper & pulp, life & health insurance & property & casualty insurance, other.

Others (11%)

Overseas Sales Ratio (60%):

 

Clients: [Car makers, wholesalers, other mfrs] Toyota Motor, Toyota Tsusho America, Toyota Steel Center, Crown Motors, Denso Corp, Toyota Motor China, JX Nippon Oil & Minerals Corp, other.

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Toyota Motor, JFE Steel, Nippon Steel, Toyota Steel Center, Toyota Industries, Denso Corp, Toyota Tsusho America, other.

 

Payment record: No Complaints

 

Location: Business area in Nagoya.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

MUFG (Nagoya)

SMBC (Nagoya)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

6,304,354

5,916,759

 

  Cost of Sales

5,900,465

5,572,759

 

      GROSS PROFIT

403,888

343,999

 

  Selling & Adm Costs

288,013

251,596

 

      OPERATING PROFIT

115,875

92,403

 

  Non-Operating P/L

8,939

22,707

 

      RECURRING PROFIT

124,814

115,110

　

      NET PROFIT

67,432

66,205

BALANCE SHEET

 

 

 

 

  Cash

　

391,409

354,811

 

  Receivables

 

1,106,604

1,054,602

 

  Inventory

 

593,155

406,546

 

  Securities, Marketable

　

1,000

 

  Other Current Assets

202,983

160,015

 

      TOTAL CURRENT ASSETS

2,294,151

1,976,974

 

  Property & Equipment

445,370

353,042

 

  Intangibles

 

364,729

112,560

 

  Investments, Other Fixed Assets

488,118

394,852

 

      TOTAL ASSETS

3,592,368

2,837,428

 

  Payables

 

876,595

800,067

 

  Short-Term Bank Loans

420,602

350,001

 

　

 

　

　

 

  Other Current Liabs

467,875

337,138

 

      TOTAL CURRENT LIABS

1,765,072

1,487,206

 

  Debentures

 

65,000

85,000

 

  Long-Term Bank Loans

727,244

444,521

 

  Reserve for Retirement Allw

21,037

15,237

 

  Other Debts

　

93,971

53,717

 

      TOTAL LIABILITIES

2,672,324

2,085,681

 

      MINORITY INTERESTS

 

 

 

Common stock

64,936

64,936

 

Additional paid-in capital

154,539

154,367

 

Retained earnings

531,049

483,255

 

Evaluation p/l on investments/securities

44,637

16,924

 

Others

 

130,227

39,109

 

Treasury stock, at cost

(5,345)

(6,844)

 

      TOTAL S/HOLDERS` EQUITY

920,043

751,747

　

      TOTAL EQUITIES

3,592,368

2,837,428

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

124,156

63,782

 

Cash Flows from Investment Activities

-323,389

-58,771

 

Cash Flows from Financing Activities

223,374

97,358

　

Cash, Bank Deposits at the Term End

　

391,352

354,755

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

920,043

751,747

 

 

Current Ratio (%)

129.97

132.93

 

 

Net Worth Ratio (%)

25.61

26.49

 

 

Recurring Profit Ratio (%)

1.98

1.95

 

 

Net Profit Ratio (%)

1.07

1.12

 

 

Return On Equity (%)

7.33

8.81

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.58

UK Pound

1

Rs.98.51

Euro

1

Rs.83.49

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

 

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.