|
Report Date : |
19.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
ITOCHU CORPORATION |
|
|
|
|
Registered Office : |
North Gate Bld, 24F 3-1-3, Umeda Kita-Ku |
|
|
|
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Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
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) |
|
|
|
|
Line of Business : |
A
general trading house; Sales breakdown by divisions: Textile Company (5%), Machinery Company (9%), Aerospace,
Electronics & Multimedia Company (2%), Energy, Metals & Minerals
Company (33%), Chemicals, Forest Products & General Merchandise Company
(18%), Food Company (27%), Finance, Realty, Insurance & Logistics
Services Company (6%): Finance, Overseas trading ratio (42%) |
|
|
|
|
No. of Employees |
104,543 |
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 |
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|
|
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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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
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
General
trading house
Osaka,
Nagoya, Fukuoka, Hiroshima, Sapporo, other (Tot 90)
North/South
America, Europe, China, S/E Asia, other (Tot 115 over 80 countries)
MASAHIRO
OKAFUJI, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 14,566,820 M
PAYMENTSNO
COMPLAINTS CAPITAL Yen 202,241 M
TREND UP WORTH Yen 2,522,823 M
STARTED 1949 EMPLOYES 104,543
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
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%.
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 current term ending Mar 2015 the recurring profit is
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.
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
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 (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, 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 (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, 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
(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, etc.
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: No
Complaints
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
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
|
||
|
|
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.61.06 |
|
UK Pound |
1 |
Rs.101.84 |
|
Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SDA |
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.