|
Report Date : |
02.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ITOCHU CORPORATION |
|
|
|
|
Registered Office : |
2-5-1 Kitaaoyama Minatoku Tokyo 107-8807 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
December 1949 |
|
|
|
|
Com. Reg. No.: |
1200-01-077358 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Subject is a general trading house, currently top textile
trader |
|
|
|
|
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 |
|
Payment Behaviour : |
Regular |
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. 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
E-Mail address: webmaster@itochu.co.jp
General trading
house
Osaka, Nagoya,
Fukuoka, Hiroshima, Sapporo, other (Tot 9)
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 12,551,557 M
PAYMENTSREGULAR CAPITAL Yen
202,241 M
TREND UP WORTH Yen 2,112,619 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: |
31/03/2010 |
10,308,629 |
154,986 |
128,153 |
(%) |
1,312,573 |
|
(Consolidated) |
31/03/2011 |
11,323,793 |
182,097 |
160,975 |
9.85 |
1,398,954 |
|
31/03/2012 |
11,904,749 |
341,174 |
300,505 |
5.13 |
1,696,141 |
|
|
31/03/2013 |
12,551,557 |
311,112 |
280,297 |
5.43 |
2,112,619 |
|
|
31/03/2014 |
14,400,000 |
337,000 |
310,000 |
14.73 |
.. |
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2014 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/2013 fiscal term amounted to Yen 12,551,557
million, a 5.4% up from Yen 11,904,749 million in the previous term. It was attributable to higher revenues in
several division companies. The
recurring profit was posted at Yen 311,112 million and the net profit at Yen 280,297
million, respectively, compared with Yen 341,174 million recurring profit and
Yen 300,505 million net profit, respectively, a year ago.
(Apr/Dec/2013 results): Sales Yen 10,740,018 million (up 15.8%),
operating profit Yen 195,076 million (up 18.8%), recurring profit Yen 250,286
million (up 31.3%), net profit Yen 240,326 million (up 15.5%). (% compared with the corresponding period a
year ago).
For the term that ended Mar 2014 the recurring profit was projected at Yen
337,000 million and the net profit at Yen 310,000 million, respectively, on a
14.7% rise in turnover, to Yen 14,400,000 million. Food business is benefiting from the buyout
of US Dole. Energy business improved
without impairment of shale gas interests last term. The weaker Yen pushed up earnings by overseas
subsidiaries, and net profit hit a new high.
Final results are yet to be released.
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: 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, Yukijirushi Access Inc, Nisseki Itochu, Nishino Trading, Prima Meat Packers,
Sumitomo Access, Nippon Access Inc, Japan Gas Energy, Sumitomo Chemical Co,
Tokyo Electric Power, Idemitsu Kosan, Itochu Shokuhin 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, Dole Japan Inc, JX Nippon Oil &
Energy Corp, Japan Petroleum Exploration Co, 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
(In Million
Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
12,551,557 |
11,904,749 |
|
|
Cost of Sales |
11,635,678 |
10,947,829 |
||
|
GROSS PROFIT |
915,879 |
956,920 |
||
|
Selling & Adm Costs |
671,660 |
684,300 |
||
|
OPERATING PROFIT |
244,219 |
272,620 |
||
|
Non-Operating P/L |
66,893 |
68,554 |
||
|
RECURRING PROFIT |
311,112 |
341,174 |
||
|
|
NET PROFIT |
280,297 |
300,505 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
569,716 |
513,489 |
|
|
Receivables |
1,543,851 |
1,496,861 |
||
|
Inventory |
657,853 |
574,345 |
||
|
Securities, Marketable |
3,655 |
2,770 |
||
|
Other Current Assets |
781,108 |
792,621 |
||
|
TOTAL CURRENT ASSETS |
3,556,183 |
3,380,086 |
||
|
Property & Equipment |
804,255 |
707,933 |
||
|
Intangibles |
|
|
||
|
Investments, Other Fixed Assets |
2,757,008 |
2,419,254 |
||
|
TOTAL ASSETS |
7,117,446 |
6,507,273 |
||
|
Payables |
1,288,770 |
1,260,123 |
||
|
Short-Term Bank Loans |
435,880 |
415,268 |
||
|
|
|
|
||
|
Other Current Liabs |
751,291 |
775,683 |
||
|
TOTAL CURRENT LIABS |
2,475,941 |
2,451,074 |
||
|
Debentures |
|
|
||
|
Long-Term Bank Loans |
2,447,868 |
2,259,717 |
||
|
Reserve for Retirement Allw |
36,804 |
64,304 |
||
|
Other Debts |
|
44,214 |
36,037 |
|
|
TOTAL LIABILITIES |
5,004,827 |
4,811,132 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
202,241 |
202,241 |
||
|
Additional
paid-in capital |
113,408 |
112,370 |
||
|
Retained
earnings |
1,501,428 |
1,296,265 |
||
|
Evaluation
p/l on investments/securities |
99,018 |
65,674 |
||
|
Others |
199,227 |
22,276 |
||
|
Treasury
stock, at cost |
(2,703) |
(2,685) |
||
|
TOTAL S/HOLDERS` EQUITY |
2,112,619 |
1,696,141 |
||
|
|
TOTAL EQUITIES |
7,117,446 |
6,507,273 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
Cash
Flows from Operating Activities |
|
245,661 |
212,830 |
|
|
Cash
Flows from Investment Activities |
-199,990 |
-416,315 |
||
|
Cash Flows
from Financing Activities |
-11,323 |
84,704 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
569,716 |
513,489 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
Net
Worth (S/Holders' Equity) |
2,112,619 |
1,696,141 |
||
|
Current
Ratio (%) |
143.63 |
137.90 |
||
|
Net
Worth Ratio (%) |
29.68 |
26.07 |
||
|
Recurring
Profit Ratio (%) |
2.48 |
2.87 |
||
|
Net
Profit Ratio (%) |
2.41 |
2.70 |
||
|
Return
On Equity (%) |
14.33 |
18.98 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.34 |
|
|
1 |
Rs.101.45 |
|
Euro |
1 |
Rs.83.31 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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.