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Report Date : |
11.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
ITOCHU CORPORATION |
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Registered Office : |
3-1-3 Umeda Kitaku |
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Country : |
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Financials (as on) : |
31.03.2014 (Consolidated) |
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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 : |
Subject is a 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. |
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No. of Employees : |
104,543 |
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 |
|
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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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. Prime Minister Shinzo ABE has declared the economy his
government's top priority; he has overturned his predecessor's plan to
permanently close nuclear power plants and is pursuing an economic
revitalization agenda of fiscal stimulus, monetary easing, and structural
reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact
that would open Japan's economy to increased foreign competition and create new
export opportunities for Japanese businesses. Measured on a purchasing power
parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of
GDP. To help raise government revenue and reduce public debt, Japan decided in
2013 to gradually increase the consumption tax to a total of 10% by the year
2015. Japan is making progress on ending deflation due to a weaker yen and
higher energy costs, but reliance on exports to drive growth and an aging,
shrinking population pose other major long-term challenges for the economy.
|
Source
: CIA |
Company name and address
ITOCHU CORPORATION
REGD NAME: Itochu Shoji KK
MAIN OFFICE: 2-5-1 Kitaaoyama
Minatoku Tokyo 107-8807 JAPAN
Tel:
03-3497-2121
Fax:
03-3497-4141
*.. Registered at: 3-1-3 Umeda Kitaku Osaka, as given
E-Mail address: webmaster@itochu.co.jp
ACTIVITIES
Subject is a 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.
BRANCHES
Osaka, Nagoya, Fukuoka, Hiroshima, Sapporo, other (Tot 90)
OVERSEAS
North/South America, Europe, China, S/E Asia, other (Tot 115 over 80
countries)
CHIEF EXEC
MASAHIRO OKAFUJI, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 14,566,820 M
PAYMENTS REGULAR CAPITAL Yen
202,241 M
TREND UP WORTH Yen 2,522,823 M
STARTED 1949 EMPLOYES 104,543
COMMENT
NATION’S LEADING GENERAL TRADING HOUSE.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
31/03/2011 |
11,392,589 |
182,097 |
160,975 |
(%) |
1,398,954 |
|
(Consolidated) |
31/03/2012 |
11,978,286 |
341,174 |
300,505 |
5.14 |
1,696,141 |
|
|
31/03/2013 |
12,551,557 |
311,112 |
280,297 |
4.79 |
2,112,619 |
|
|
31/03/2014 |
14,566,820 |
373,808 |
310,267 |
16.06 |
2,522,823 |
|
|
31/03/2015 |
14,700,000 |
438,000 |
300,000 |
0.91 |
.. |
Unit: In Million
Yen
Forecast (or
estimated) figures for 31/03/2015 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 is eager to acquire additional new metals resources in light
of opportunities presented by the deteriorating market, and will focus on iron
ore and coal. It will adopt IFRS from
the March 2015 term. The company plans
to increase payout ratio from the present figure of around 23%.
FINANCIAL INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 14,566,820
million, a 16.1% up from Yen 12,551,557 million in the previous term. Food business benefitted from the buyout of
US Dole. Energy business improved
without the impairment of shale gas interest last term. The weaker Yen pushed up earnings by overseas
subsidiaries. The recurring profit was
posted at Yen 373,808 million and the net profit at Yen 310,267 million,
respectively, compared with Yen 3,112,112 million recurring profit and Yen
280,297 million net profit, respectively, a year ago.
For the term that ended Mar 2015 the recurring profit was projected at
Yen 438,000 million and the net profit at Yen 300,000 million, respectively, on
a 1% up in turnover, to Yen 14,700,000 million.
The resource business will continue to struggle, but food and machinery
businesses will drive sales growth.
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 (4.9), Master
Trust Bank of Japan T (4.5), Chase London Omnibus Acct (2.5), Mizuho Bank
(2.4), Mitsui Sumitomo Ins (2.3), Nippon Life Ins (2.1), Bank of New York
Treaty Jasdec (1.7), Nippon Koa Ins (1..7), Asahi Life Ins (1.7), Barclays
Securities Japan (1.5); foreign owners (39.4)
No. of shareholders: 120,389
Listed on the S/Exchange (s) of: Tokyo
Managements: Eizo Kobayashi, ch; Masahiro Okafuji, pres; Yoichi
Kobayashi, v pres; Tadayuki Seki, v
pres; Yoshihisa Aoki, s/mgn dir; Koji Takayanagi, s/mgn dir; Ichiro Nakamura,
s/mgn dir; Tomofumi Yoshida, s/mgn dir; Hitoshi Okamoto, s/mgn dir; Takao
Shiomi, s/mgn dir; Yuji Fukuda, mgn dir; Shuichi Koseki, mgn dir; Junichi
Sasaki, 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 fibres, Inorganic fibres and related products
Machinery Company (9%): 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,
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
Energy, Metals & Minerals Company (33%): 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. 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,
.
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 (6%): 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
Overseas trading ratio: (42%)
Clients: [Wholesalers, mfrs] Itochu Shokuhin, Nippon Access, Idemitsu
Kosan Kaisha, Japan Gas Energy, JX Nippon Oil & Energy Corp, 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, Dole Japan Inc, JX Nippon Oil & Energy
Corp, Japan Petroleum Exploration Co, Sakhalin Oil & Gas, other.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
Mizuho Bank (H/O)
SMBC (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
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Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME
STATEMENT |
|
|
||
|
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Annual Sales |
|
14,566,820 |
12,551,557 |
|
|
Cost of Sales |
13,538,547 |
11,635,678 |
|
|
|
GROSS PROFIT |
1,028,273 |
915,879 |
|
|
|
Selling & Adm Costs |
749,179 |
671,660 |
|
|
|
OPERATING PROFIT |
279,094 |
244,219 |
|
|
|
Non-Operating P/L |
94,714 |
66,893 |
|
|
|
RECURRING PROFIT |
373,808 |
311,112 |
|
|
|
NET PROFIT |
310,267 |
280,297 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
653,332 |
569,716 |
|
|
Receivables |
|
1,639,774 |
1,543,851 |
|
|
Inventory |
|
749,927 |
657,853 |
|
|
Securities, Marketable |
4,536 |
3,655 |
|
|
|
Other Current Assets |
787,300 |
781,108 |
|
|
|
TOTAL CURRENT ASSETS |
3,834,869 |
3,556,183 |
|
|
|
Property & Equipment |
856,912 |
804,255 |
|
|
|
Intangibles |
|
|
|
|
|
Investments, Other Fixed Assets |
3,156,659 |
2,757,008 |
|
|
|
TOTAL ASSETS |
7,848,440 |
7,117,446 |
|
|
|
Payables |
|
1,333,025 |
1,288,770 |
|
|
Short-Term Bank Loans |
402,262 |
135,880 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
847,687 |
1,051,291 |
|
|
|
TOTAL CURRENT LIABS |
2,582,974 |
2,475,941 |
|
|
|
Debentures |
|
|
|
|
|
Long-Term Bank Loans |
2,628,937 |
2,447,868 |
|
|
|
Reserve for Retirement Allw |
41,613 |
36,804 |
|
|
|
Other Debts |
|
72,093 |
44,214 |
|
|
TOTAL LIABILITIES |
5,325,617 |
5,004,827 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common stock |
202,241 |
202,241 |
|
|
|
Additional paid-in capital |
113,820 |
113,408 |
|
|
|
Retained earnings |
1,746,843 |
1,501,428 |
|
|
|
Evaluation p/l on
investments/securities |
99,737 |
99,018 |
|
|
|
Others |
|
362,982 |
199,227 |
|
|
Treasury stock, at cost |
(2,800) |
(2,703) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
2,522,823 |
2,112,619 |
|
|
|
TOTAL EQUITIES |
7,848,440 |
7,117,446 |
|
|
CONSOLIDATED
CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
Cash Flows from Operating Activities |
|
418,396 |
245,661 |
|
|
Cash Flows from Investment
Activities |
-266,692 |
-199,990 |
|
|
|
Cash Flows from Financing Activities |
-71,707 |
-11,323 |
|
|
|
Cash, Bank Deposits at the Term End |
|
653,332 |
569,716 |
|
ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net Worth (S/Holders' Equity) |
2,522,823 |
2,112,619 |
|
|
|
Current Ratio (%) |
148.47 |
143.63 |
|
|
|
Net Worth Ratio (%) |
32.14 |
29.68 |
|
|
|
Recurring Profit Ratio (%) |
2.57 |
2.48 |
|
|
|
Net Profit Ratio (%) |
2.13 |
2.23 |
|
|
|
Return On Equity (%) |
12.30 |
13.27 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.56 |
|
|
1 |
Rs.103.50 |
|
Euro |
1 |
Rs.82.41 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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.