MIRA INFORM REPORT

 

 

Report No. :

305576

Report Date :

02.02.2015

 

IDENTIFICATION DETAILS

 

Name :

MITSUI & CO LTD

 

 

Registered Office :

Mitsui Bussan Bldg, 1-2-1 Ohtemachi Chiyodaku Tokyo 100-0004 

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

July 1947

 

 

Com. Reg. No.:

0100-01-008767 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is a General Trading House for Importer, Exporter and Wholesaler of

 

Metals

Iron Ore, Steel Materials, Ferroalloys, Coal, Coke, Nonferrous Metals, Precious Metals, Electric Wires

 

Machinery & Information

Industrial Machinery, Automobiles, Electronics & Information Equipment, Office Machines

 

Chemicals

Organic & Inorganic Chemicals, Petrochemicals, Fine Chemicals, Fertilizers

 

Energy

Crude Oil, Lng, Lpg, Fuels, Other Petroleum Products

 

Lifestyle

Clothing, Upholstery, Fabrics, Textile Raw Materials

 

Steel Products

Steel Slabs, Billets, Hot-Rolled Sheets, Coated Sheets, Tin Plates, Electrical Sheets, Pipes, Wire Rods, Automotive Steel, Stainless Steel

 

Others

Lumber, Flooring, Other Construction Materials, Sporting Goods, Cereals, Alcoholic Beverages, Other Foodstuffs)

 

 

No of Employees :

45,148

 

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

 

Maximum Credit Limit :

Yen 301,959.5 Million

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

 

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

 

URL:                 http://www.mitsui.co.jp/

E-Mail address:            (through the URL to each division)

 

ACTIVITIES

 

Subject is a General Trading House for Importer, Exporter and Wholesaler of

 

Metals

Iron Ore, Steel Materials, Ferroalloys, Coal, Coke, Nonferrous Metals, Precious Metals, Electric Wires

 

Machinery & Information

Industrial Machinery, Automobiles, Electronics & Information Equipment, Office Machines

 

Chemicals

Organic & Inorganic Chemicals, Petrochemicals, Fine Chemicals, Fertilizers

 

Energy

Crude Oil, Lng, Lpg, Fuels, Other Petroleum Products

 

Lifestyle

Clothing, Upholstery, Fabrics, Textile Raw Materials

 

Steel Products

Steel Slabs, Billets, Hot-Rolled Sheets, Coated Sheets, Tin Plates, Electrical Sheets, Pipes, Wire Rods, Automotive Steel, Stainless Steel

 

Others

Lumber, Flooring, Other Construction Materials, Sporting Goods, Cereals, Alcoholic Beverages, Other Foodstuffs)

 

BRANCHES

 

Domestic (12); Overseas (133: 34 offices & 99 subsidiaries))

 

 

CHIEF EXEC

 

MASAMI IIJIMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 11,165,660 M                                             

PAYMENTSREGULAR   CAPITAL           Yen 341,482 M

TREND STEADY           WORTH            Yen 3,868,066 M

STARTED         1947                 EMPLOYES      45,148

 

 

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 301,959.5 MILLION, 30 DAYS NORMAL TERMS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

9,942,472

272,697

306,659

(%)

2,553,334

(Consolidated)

31/03/2012

10,481,166

413,211

434,497

5.42

2,860,810

31/03/2013

10,049,637

314,098

307,926

-4.12

3,440,104

31/03/2014

11,165,660

453,732

422,161

11.11

3,868,066

31/03/2015

11,450,000

470,000

435,000

2.55

..

                        Unit: In million Yen

Forecast (or estimated) figures for 31/03/2015 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.  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 will invest around Yen 66 billion in the general cargo transportation business of Brazil-based Vale, with the aim of expanding the infrastructure business.  The copper mine in Chile will book Yen 14 billion in asset impairment due to swelling development costs.  The company plans to adopt IFRS from the March 2015 term.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 11,165,660 million, an 11.1% up from Yen 10,049,637 million in the previous term.  Main profit-earner iron ore production volume expanded, and price cuts were limited.  The energy business was benefitted from steady growth of gas projects, including Sakhalin.  The weaker Yen pushed up earnings at overseas subsidiaries, and net profit rebounded.  The recurring profit was posted at Yen 453,732 million and the net profit at Yen 422,161 million, respectively, compared with Yen 314,098 million recurring profit and Yen 307,926 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2015 the recurring profit is reportedly projected at Yen 470,000 million and the net profit at Yen 435,000 million, respectively, on a 2.6% rise in turnover, to Yen 11,450,000.  Increased production of iron ore and energy will drive sales growth. 

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 301,959.5 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 (7.9), Japan Trustee Services Bank T (6.0), SMBC (2.1), Japan Trustee Services T9 (2.0), Nippon Life Ins (1.9), Bank of New York Treaty Jasdec (1.4), Barclays Securities Japan (1.3), Mitsui Sumitomo ins (1.3), Bank of New York Jasdec Treaty (1.1), JP Morgan Chase Bank 380055 (1.1):; foreign owners (32.6)

           

No. of shareholders: 215,654

 

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

 

Managements: Shoei Utsuda, ch; Masami Iijima, pres; Daisuke Sanga, v pres; Joji Okada, v pres; Motomu Takahashi, v pres; Hiroyuki Kato, v pres; Yoshihiro Hombo, v pres; Hironobu Ishikawa, s/mgn dir; Atsushi Kume, s/mgn dir; Takeshi Kanamori, s/mgn dir; Satoshi Tanaka, s/mgn dir; Makoto Suzuki, s/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 (7%): industrial machinery, automobiles, electronics & information equipment, office machines, other;

 

Chemicals (15%): organic & inorganic chemicals, petrochemicals, fine chemicals, fertilizers, other;

 

Energy (29%): crude oil, LNG, LPG, fuels, other petroleum products, other,

 

Lifestyle (16%): 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 (12%): 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 Bank (H/O)

Relations: Satisfactory

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

　

11,165,660

10,049,637

  Cost of Sales

10,305,728

9,259,198

      GROSS PROFIT

859,932

790,439

  Selling & Adm Costs

584,716

535,836

      OPERATING PROFIT

275,216

254,603

  Non-Operating P/L

178,516

59,495

      RECURRING PROFIT

453,732

314,098

　

      NET PROFIT

422,161

307,926

BALANCE SHEET

  Cash

　

1,225,079

1,425,174

  Receivables

1,664,240

1,608,915

  Inventory

702,555

746,584

  Securities, Marketable

　

　

  Other Current Assets

838,405

850,858

      TOTAL CURRENT ASSETS

4,430,279

4,631,531

  Property & Equipment

1,834,134

1,570,270

  Intangibles

141,346

118,448

  Investments, Other Fixed Assets

4,595,505

4,004,332

      TOTAL ASSETS

11,001,264

10,324,581

  Payables

1,362,839

1,438,287

  Short-Term Bank Loans

519,220

663,129

　

　

　

  Other Current Liabs

1,090,102

943,914

      TOTAL CURRENT LIABS

2,972,161

3,045,330

  Debentures

　

　

  Long-Term Bank Loans

3,432,501

3,184,957

  Reserve for Retirement Allw

69,492

68,312

  Other Debts

　

659,044

585,878

      TOTAL LIABILITIES

7,133,198

6,884,477

      MINORITY INTERESTS

Common stock

341,482

341,482

Additional paid-in capital

418,796

429,828

Retained earnings

2,737,792

2,405,008

Evaluation p/l on investments/securities

164,896

135,832

Others

259,240

133,928

Treasury stock, at cost

(54,140)

(5,974)

      TOTAL S/HOLDERS` EQUITY

3,868,066

3,440,104

　

      TOTAL EQUITIES

11,001,264

10,324,581

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

　

521,524

461,430

Cash Flows from Investment Activities

-704,516

-753,297

Cash Flows from Financing Activities

-34,698

221,635

　

Cash, Bank Deposits at the Term End

　

1,225,079

1,425,174

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

3,868,066

3,440,104

Current Ratio (%)

149.06

152.09

Net Worth Ratio (%)

35.16

33.32

Recurring Profit Ratio (%)

4.06

3.13

Net Profit Ratio (%)

3.78

3.06

Return On Equity (%)

10.91

8.95

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.76

UK Pound

1

Rs.93.13

Euro

1

Rs.70.03

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.