MIRA INFORM REPORT

 

 

Report No. :

345595

Report Date :

15.10.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA TSUSHO CORPORATION

 

 

Registered Office :

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

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

July 1948

 

 

Com. Reg. No.:

031731

 

 

Legal Form :

Limited Company

 

 

Line of Business :

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

 

 

No. of Employee :

2,809

 

 

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 :

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times since 2008. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 2014 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose 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

 

 

ACTIVITIES

 

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

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sendai, Niigata, Fukuoka, other (Total18 offices)

 

 

OVERSEAS   

 

Asia (54), Oceania (3), Europe+CIS (18), Mid East (5), Africa (10), N America (35), Central/South America (8)

 

 

Managements

 

JUN KARUBE, PRES    Junzo Shimizu, ch

Yoshio Shirai, vp;          Mikio Asano,s/mgn dir                                                                         

Yasuhiko Yokoi, s/mgn dir  Kuniaki Yamagiwa, mgn dir;

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

       FINANCES FAIR                             A/SALES          Yen 7,743,237 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 64,936 M

TREND UP                                WORTH            Yen 1,156,080 M

STARTED         1948                             EMPLOYES      2,809

 

 

COMMENT

 

GENERAL TRADING HOUSE AFFILIATED WITH TOYOTA MOTOR CORP. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                       

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.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 7,743,237 million, a 22.8% up from Yen 6,304,354 million in the previous term. Although the economy of developed countries, especially US, have been showing recovery trend, emerging market economies are suffering from capital outflows followed by expectation / announcement of ending QE (Quantative Easing).  Sales increased in all segments: Metals Section up 7.9% to Yen 1,828,281 million due to higher automobile production and weak Japanese Yen. Global Parts & Logistics Section up 12.7% to Yen 891,606 due to weak Yen. Automotives Section up 66% to Yen 1,298,042 million due to the impact of newly consolidated affiliate in Asia and Africa as well as weaker YEN. Machinery,Energy and Plant Project Unit up 21.8% to Yen 1,526,737 million due to volume increase of petroleum products as well as weaker YEN impact. Chemical and Electronics unit up to 28.8% to Yen 1,706,508 due to newly consolidated subsidiaries.

(Apr’13- Mar’14 results): Sales Yen 7,743,237 million (up 22.8%), operating profit Yen 161,321 million (up 39.2%), recurring profit Yen 163,438 million (up 30.9%), net profit Yen 73,034 million (up 8.3%)  (% Compared with the corresponding period a year ago). 

For the current term ending Mar 2015 the recurring profit is projected at Yen 177,000 million and the net profit at Yen 80,000 million are expected. This would result in a fifth consecutive year of increases in net sales and income. Main trigger of higher sales/profits are due to continued growth of automobile production.

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

 

REGISTRATION

 

Date Registered:                       Jul 1948

Regd No.:                                 (Nagoya-Nakamuraku) 031731

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 (5.5), Japan Trustee Services Bank (4.0), MUFG (2.3), Mitsui Sumitomo Ins (1.7), Aioi Ins (1.2), Tokio Marine Nichido Fire Ins (1.1), SMBC (1.2),

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

 

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

             

 

OPERATION

 

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

(Sales Breakdown by Divisions):

 

Metals Division (24%): 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;

 

Global Parts and Logistics(11%): Component parts for automotive production, Logistics business, tire and wheel assembly business, techno park business,

Automotive accessories materials, packaging materials, others

 

Automotive Division (17%): passenger cars, commercial cars, light vehicles, trucks & buses, automotive parts, other;

 

Machinary, Energy, Plant Project (20%); machines tools, industrial machinery, textile machinery, petroleum products, environmental equipment, water treatment, others

Chemicals & Electoronics (22%): electronics devices, organic chemicals, component parts for automobile production

 

Food and Agribusiness(4%); feed and oilseeds, grains, processed foods,

Food incredients and others

 

Consumer Products and Services(2%): Insurance, nursing related products and services, medical facilities and related services, housing and office materials and others

 

Overseas Sales Ratio (59.5%):

 

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

 

Payment record: No Complaints

 

Location: Business area in Nagoya. Tokyo, Osaka and others

 

Bank References:

 

MUFG (Nagoya)

SMBC (Nagoya)

Relations: Satisfactory

 

 

Finances

 

(in Million, unless otherwise stated)

 

       Terms Ending:

31/03/2015

31/03/2014

31/03/2013

31/03/2012

Annual Sales

 

8,600,000

7,743,237

6,304,354

5,916,759

Recur. Profit

 

177,000

163,438

124,814

115,110

Net Profit

 

80,000

73,034

67,432

66,205

Total Assets

 

4,480,001

4,072,728

3,592,368

2,837,428

Current Assets

 

2,772,974

2,520,885

2,294,151

1,976,974

Current Liabs

 

2,128,865

1,935,332

1,765,072

1,487,206

Net Worth

 

1,271,688

1,156,080

920,043

751,747

Capital, Paid-Up

 

64,936

64,936

64,936

64,936

Div.P.Share(¥)

 

50

50

44

42

<Analytical Data>

 

(%)

(%)

(%)

(%)

       S.Growth Rate

 

11.06

22.82

6.55

..

       Current Ratio

 

..

130.26

129.97

132.93

       N.Worth Ratio

 

..

28.39

25.61

26.49

       R.Profit/Sales

 

2.06

2.11

1.98

1.95

       N.Profit/Sales

 

0.93

0.94

1.07

1.12

       ROE

 

6.29

6.32

7.33

8.81

 

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.11

UK Pound

1

Rs.99.50

Euro

1

Rs.74.24

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

ASH

 

               

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.