商社ハンドブック和英版.indd

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1 商社 ハンドブック

2 目次 Table of Contents 1 1 What's SHOSHA? Outline of SHOSHA's Transactions 4 1 Wide range of products handled 2 Global operations and a diverse set of transactions 3 Large sales volume and massive business scale 3 9 Wide Range of Business Fields of SHOSHA 10 1 Major business fields in Machinery 2 Major business fields in Energy, Metals & Minerals, and Chemicals 3 Major business fields in Consumer Goods 4 Major business fields in Other Businesses 4 17 Earnings Structure of SHOSHA 18 Appendix Table Financial Results of Shoshas for the year ended March 31, 2013 Regular Members of JFTC

3 商社ハンドブック Handbook of SHOSHA GDP Sales Volume by Industry in Japan and Aggregate Trading Transactions of 44 Regular Member Companies of JFTC (Non-consolidated data as of March 31, 2012) Iron & Steel 18(1%) Fabricated Metail Products 20 (1%) Petroleum & Coal Products 20 (1%) Real Estate 36 (3%) Chemical and Allied Products 39 (3%) Food 51 (4%) Information & Communication 55 (4%) Transportation & Postal Activities 63 (5%) Other Machinery 40 (7%) Transportation Equipment 62 (4%) Others 134 (10%) 1,381 1,381Tril. Construction 109 (8%) Wholesales 343 (25%) Services 160 (13%) (Unit : Tril.) Retail 169 (12%) 商社 89 (6%) ( 商社 ) 254 (18%) Regular member of JFTC 89 Tril. Wholesales (Excluding regular member of JFTC) 254 Tril. : Source: Financial Statements Statistics of Corporat ions by Industry, Annually (Ministry of Finance) Regular Member Survey of JFTC (As of November 2012) 1-2 GDP 2011 Japanese Nominal GDP vs SHOSHA's Trading Transactions (FY2011) GDP 473 Nominal GDP 473Tril. 44 社 44 Regular Member of JFTC 44 社 89 7 社 72 All 89Tril. The 7S 72Tril SNA Source: Financial Statements Statistics of Corporations by Industry, Annually (Ministry of Finance), Regular Member Survey of JFTC (As of November 2012) 1

4 1. 商社とは What's SHOSHA? 1. What's SHOSHA? The SHOSHA are said unarguably to be a business entity unique to Japan, which have played a major role in the development of Japanese economy. During the period after the war when Japan, a resource-poor country, rebuilt itself as a trading nation, the SHOSHA, like a spearhead, actively and progressively have led Japanese foreign trade and built up the extensive world-wide networks. The roots of the SHOSHA s activities lie thoroughly in trading such as buying, selling and intermediating trades. They handle a wide range of products in most types of industry, which is said to be everything from mineral water to communications satellites, The aggregate trading transactions of 44 regular member companies of Japan Foreign Trade Council, Inc. (JFTC) amounted to 89 trillion yen in fiscal 2011 (ended March 31, 2012) (See Fig. 1-1.), which is equivalent to 19% of Japanese nominal GDP. (See Fig. 1-2.) For the same period, 7 out of the 44 regular member companies of JFTC ranked in the top 20 listed companies in Japan. The chairman and vice chairmen of JFTC are selected from these seven companies, which will be referred to as the seven largest SHOSHAs (The 7S) hereinafter. (See Fig. 1-3.) The SHOSHA, constantly optimizing their diverse trading operations from upstream to downstream of procurement and distribution channels, have developed a wide range of functions and worldwide business/logistics locations. With trading as leverage, they are vigorously creating value chains and investing in global-scale businesses and projects. Today, they have changed and developed into a business entity unparalleled in the world The Top 30 Listed Companies in Japan (Consolidated data as of March 31, 2012) Trading Transactions 商 Mitsubishi Corporation Toyota Motor Corporation 商 Itochu Corporation JX Nippon Oil & Energy Corporation Marubeni Corporation Nippon Telegraph and Telephone Corporation Mitsui & Co., LTD. Hitachi, Ltd. Nissan Motor Co., Ltd. 商 Sumitomo Corporation Honda Motor Co., Ltd. Panasonic Corporation Sony Corporation TOSHIBA Corporation 商 Toyota Tsusho Corporation The Tokyo Electric Power Company, Incorporated (TEPCO) AEON Co., Ltd. Seven & i Holdings Co., Ltd. Sojitz Corporation FUJITSU Limited ( Tril.) Current Profit Nippon Telegraph and Telephone Corporation NTT DOCOMO, Inc. INPEX Corporation Softbank Corp. Hitachi, Ltd. Nissan Motor Co., Ltd. 商 Mitsubishi Corporation KDDI Corporation Japan Tobacco Inc. Toyota Motor Corporation Mitsui & Co., LTD. JX Nippon Oil & Energy Corporation Canon Inc. 商 Sumitomo Corporation 商 Itochu Corporation Seven & i Holdings Co., Ltd. East Japan Railway Company 2 Takeda Pharmaceutical Company Limited Central Japan Railway Company Marubeni Corporation ( Tril.) Note: Data comes as of March 31, 2012 with exceptions of Seven & i Holdings Co., Ltd. (As of February 29, 2012); and Canon Inc. (As of December 31, 2011) Source: The online site of the Nikkei Inc. 2

5 商社ハンドブック Handbook of SHOSHA 2 21 CSR 1 ICT Information & Communication Technology ,040 5,

6 2. 商社が関わる取引の概要 Outline of SHOSHA's Transactions 2. Outline of SHOSHA's Transactions As the 21st century progresses, the industrial structure of Japanese economy has been adjusting to the global changes. In accordance with such changes, the SHOSHA are undertaking structural reforms including improvements of capital efficiency, earning capacity, and risk management capability in order to explore new markets for further growth. They are also actively engaged in activities related to compliances, corporate social responsibilities (CSR), and environmental considerations. The SHOSHA have successfully transformed their business activities responding to changes in the needs of this era and getting ahead of the times. This flexibility is their greatest strength. The transactions and activities of the SHOSHA today are often distinguished by the following major characteristics. Wide range of products handled The SHOSHA are involved in all types of transactions, from upstream to downstream in almost every kind of industry; machinery, automobiles, ships, aircraft, plants, communications equipment, metals, minerals, energy resources, chemicals, textiles, foodstuffs and food products. Similarly, they deal in all categories of products ranging from raw materials to manufactured goods and from consumer goods to industrial tools. They also have begun to enter the service sector in such areas as food services, supermarkets, convenience stores and mobile communications, and to become involved in promising new business fields related to information and communication technology (ICT), bio- and nanotechnology, life care, and the global environment. Global operations and a diverse set of transactions The SHOSHA are committed to global scale operations and engage in four major patterns of transactions: (a) purely domestic transactions in Japan; (b) export from Japan; (c) import to Japan; and (d) strictly offshore transactions between countries other than Japan. Of the combined transaction volume of the representative SHOSHA, foreign-related trade transactions account for roughly 40%. The SHOSHA are involved in a large portion of Japan s trade of raw materials such as iron and steel, nonferrous metals, and energy as well as in large scale overseas projects like power generation and plant export. In regional terms, transactions in the U.S, Europe, Australia, and Asian countries including China have largely expanded, fueled by the SHOSHA s investment. While in Central and South America, the Middle East, and Africa, business is often inspired by the SHOSHA s cooperation in the raising of funds and other financial arrangements. Except for intermediary trades, the foundation of both imports and exports is made in the transactions in Japan. In other words, the SHOSHA provide stable supplies of raw materials and fuels to Japanese manufacturers through imports, and they provide outlets with manufactured Japanese products through exports while playing an active role in domestic distribution. In Japan, for existing products the SHOSHA enhance their distribution networks focusing on quick and efficient logistics, expanding access to consumers, and strengthening and promoting sales force effectiveness. As a new business deployment, they are entering into medical, education, and leisure industries along with investing in food services industry, regional development, and leasing businesses. In the midst of rising protectionism and resource nationalism in overseas, the SHOSHA aggressively take part in a wide variety of projects including development of resources in order to secure sound markets, contribute to the economic development of industrializing countries, and ensure stable supply of resources. For ensuring stable supply of resources, the SHOSHA are aggressively investing in and securing invested interests in resources. According to the data compiled by JFTC from a handout for the results briefing together with publicly available information of each company, the aggregate equity share of production of the seven largest SHOSHAs as of the end of March 31, 2012 found as follows: Daily production of crude oil and natural gas in total of 460,000 barrels, annual iron ore production of 80.4 million tons, annual coal production of 53.7 million tons, and annual copper production of 360,000 tons. 4

7 商社ハンドブック Handbook of SHOSHA , Number of Consolidated Companies of the Seven SHOSHAs (As of the end of March) Itochu Sumitomo Sojitz Toyota Tsusho Marubeni Mitsui Mitsubishi Total ,890 (Number of Companies) 社 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, (As of the end of March) Source: Financial statements of respective companies 5

8 2. 商社が関わる取引の概要 Outline of SHOSHA's Transactions Large sales volume and massive business scale In fiscal 2012, the consolidated trading transactions of the seven largest SHOSHAs were 71 trillion yen. A major factor enabling these large sales is the existence of a large number of subsidiaries and affiliates inside and outside Japan. For example, the seven largest SHOSHAs have some 3,900 subsidiaries and affiliates, forming enormous business group. (See Fig. 2-1.) Moreover, the number of employees for the seven largest SHOSHAs and the companies under their umbrellas reaches about 360 thousand people. (See Fig. 2-2.) As mentioned in Global operations and a diverse set of transactions, the SHOSHA, while expanding existing businesses, often make inroads into new business territories by setting up new companies or buying out ongoing companies and they are naturally termed as enterprise creating SHOSHA. It is largely through close cooperation with these group companies that the SHOSHA pursue the expansion of their transactions and earnings. The seven largest SHOSHAs in total have 27 major business offices in Japan and almost 230 overseas locations that include subsidiaries, offices, and branches, where they are actively developing businesses that include trading in Japan as well as in overseas, looking after the needs for products and services, gathering information, and managing risks. (See Fig. 2-3 and Fig. 2-4.) Number of Employees in the Consolidated Companies of the Seven Largest SHOSHAs (As of the end of March) Consolidated Non-consolidated Itochu Sumitomo Sojitz Toyota Tsusho Marubeni Mitsui Mitsubishi Total 77,513 73,953 15,963 48,336 33,566 45,148 65, ,454 4,219 5,213 2,240 2,863 4,166 6,212 5,815 30,728 (Number of Employees) 400, , ,000 Consolidated Non-consolidated Consolidated Non-consolidated 250, , , ,000 50, (As of the end of March) Source: Financial statements of respective companies 6

9 商社ハンドブック 2-3 Handbook of SHOSHA 7 社の海外拠点 現地法人 海外事務所 海外支店 Overseas Locations of the Seven SHOSHAs (Subsidiaries, Offices, and Branches) Europe and New Independent States London Warsaw Brussels Prague Dusseldorf Budapest Frankfurt Bucharest Hamburg Sofia Berlin Belgrade Paris Moscow Valenciennes Saint Petersburg Amsterdam Vladivostok Oslo Khabarovsk Stockholm Yuzhno-Sakhalinsk Milan Togliatti Madrid Kiev Barcelona Astana Lisbon Almaty Athens Tashkent Aberdeen Baku Derby Ashgabat Risley Dublin Middle East Tehran Kuwait Bahrain Doha Abu Dhabi Dubai Muscat Riyadh Jeddah Dammam Al Khobar Baghdad Erbil Basra Amman Damascus Istanbul Ankara Kocaeli Cairo Tripoli Tel Aviv Africa Algiers Casablanca Alexandria Tunis Nairobi Luanda Addis Ababa Dakar Maputo Dar es Salaam Abuja Lagos Abidjan Accra Antananarivo Johannesburg Durban Asia Beijing Shanghai Changchun Dalian Shenyang Tianjin Qingdao Nanjing Chengdu Guangzhou Shenzhen Hong Kong Suzhou Wuhan Xian Guangdong Sichuan Ningbo Xiamen Chongqing Nantong Wuxi Yantai Harbin Kunming Zhangjiagang 各社海外拠点数 Number of Overseas Locations 7 Oceania DongGuan Jakarta Sydney Changshu Bandung Melbourne Jihan Surabaya Perth Changsha Cibitung Brisbane Nansha Hanoi Auckland Hohhot Ho Chi Minh City Port Moresby Ulan Bator Da Nang Taipei Quang Ngai Kaohsiung Phnom Penh Hsinchu Vientiane Seoul Yangon Busan New Delhi Gwangyang Mumbai Pohang Chennai Bangkok Bangalore Hat Yai Ahmedabad Singapore Goa Kuala Lumpur Kolkata Johor Bahru Pune Kuching Gurgaon Sibu Karachi Kota Kinabalu Islamabad Manila Lahore Calamba Colombo Batangas Dhaka Bandar Seri Begawan Chittagong Nai Pyi Taw 伊藤忠商事 Itochu 住友商事 Sumitomo 双日 Sojitz 豊田通商 Toyota Tsusho 丸紅 Marubeni 三井物産 Mitsui 三菱商事 Mitsubishi

10 2 商社が関わる取引の概要 2-4 Outline of SHOSHA's Transactions 7 社の国内拠点 主要都市 Figure 2-4 Business Locations of the Seven SHOSHAs in Japan (Major Cities) North America New York Washington D.C. Chicago Detroit Pittsburgh Houston Denver Portland Los Angeles Seattle Omaha Silicon Valley San Francisco Dallas Boston Tucson Georgetown Battle Creek Cincinnati Columbus Dania Beach Franklin Fremont Huntsville Jackson Lafayette Miami Missouri Princeton San Antonio San Diego Tennessee Memphis Tupelo West Virginia Cleveland Nashville Ontario Vancouver Calgary Toronto Montreal Central and South America Hokkaido Tohoku Region Hokuriku Region Mexico City Monterrey Inapuato Panama Guatemala Habana Quito Caracas Puerto Ordaz Bogota Lima Sao Paulo Rio de Janeiro Porto Alegre Recife Belo Horizonte Salvador Manaus San Jose La Paz Asuncion Santiago de Chile Buenos Aires Sapporo Tomakomai Muroran Sendai Niigata Toyama Kanazawa Kanto Region Tokyo Chubu Region Nagoya Matsumoto Mishima Shizuoka Hamamatsu Toyota Kinki Region Osaka Kobe Chugoku Region Shikoku Region Kyushu Region Hiroshima Fukuyama Takamatsu Niihama Fukuoka Kitakyushu Imabari Oita Nagasaki Okinawa Naha Kagoshima 各社国内拠点数 Number of Business Locations 伊藤忠商事 Itochu 住友商事 Sumitomo 双日 Sojitz 豊田通商 Toyota Tsusho 丸紅 Marubeni 三井物産 Mitsui 三菱商事 Mitsubishi 出所 各社ホームページ アニュアルレポート CSRレポート 2013年版 注１ 地域区分は外務省および国土交通省における区分に準拠 注２ 豊田通商は2013年3月31日現在 伊藤忠商事 住友商事 丸紅 三菱商事は2013年4月1日現在 三井物産は2013年6月1日現在 双日は2013年6月30日現在 Source: Annual report, CSR report and Website of the respective companies FY2013 Note 1 : Locations are classified by the definition adopted by the ministry of Foreign Affairs for overseas and by the ministry of Land, Infrastructure, Transport and Tourism for Japan. Note 2 : The information as of March 31, 2013 : Toyota Tsusho Corporation April 1, 2013 : Itochu Corporation, Sumitomo Corporation, Marubeni Corporation, Mitsubishi Corporation June 1, 2013 : Mitsui & Co., Ltd. June 30, 2013 : Sojitz Corporation 8

11 商社ハンドブック Handbook of SHOSHA Aggregate Consolidated Trading Transactions of the Seven SHOSHAs by Business Field 10 (in billion yen) 50, FY , ,000 FY ,000 FY , FY , ,000 FY ,000 FY , FY2011 5, FY2012 Machinery Enerygy, Metals, Consumer Goods Other Businesses

12 3. 商社が関わる幅広い事業分野 Wide Range of Business Fields of SHOSHA 3. Wide Range of Business Fields of SHOSHA The SHOSHA involve in a wide range of business fields with various business styles. But their transactions can be mainly categorized into four groups: Machinery, Energy, Metals, and Chemicals, Consumer Goods, and Other Businesses. In particular, the trading transactions in Energy, Metals, and Chemicals have grown significantly in recent years. For example, the aggregate trading transactions of this category that amounted for 37% of the consolidated transactions of the seven largest SHOSHAs in fiscal 2000 rose substantially to 50% in fiscal (See Fig. 3-1.) Although in fiscal 2009 they declined due to an impact of the global economic crisis, since fiscal 2010, again they kept exceeding the 50% level each year and remain to be a significant portion of the entire trading transactions. As demands for resources and energy are expected to keep rising globally, the proportion of the trading transactions in these fields is also expected to remain quite large. Figure 3-1 Source: Financial statements of respective companies Note 1: Respective categories include following businesses. Machinery: Machinery and Transport Machinery Energy, Metals, and Chemicals: Resources and Energy, Metals, and Chemicals Consumer Goods: Textiles, Foodstuff, and General Merchandise Other Businesses: Finance, Logistics, Real Estate, and IT Note 2: Mitsui & Co., Ltd. discontinued providing detailed information on trading transactions by business field in fiscal Hence, data of profits are used instead. Note 3: Sumitomo Corporation discontinued providing whole information in fiscal 2011 and

13 商社ハンドブック Handbook of SHOSHA 1 IPP SCM 2 11

14 3. 商社が関わる幅広い事業分野 Wide Range of Business Fields of SHOSHA (1) Major business fields in Machinery Machinery and plants The SHOSHA handle various kinds of machinery including construction machinery and machine tools. Particularly notable is their ability to propose and coordinate a best mix of global sourcing for the construction of power plants, chemical factories and other types of plants overseas, as well as to coordinate various other functions from financing and construction to operations management and maintenance services. Independent power producers (IPP) exemplify this type of business which draws on the comprehensive capabilities of the SHOSHA. Transport machinery The transport machinery business of the SHOSHA spans the land, sea, and air sectors such as automobiles, railway systems, ships, and aircraft. In the area of automobiles, for example, the SHOSHA have built dealer networks for Japanese-made models around the world, set up offshore assembly plants, and engaged in component supply, supply chain management (SCM), and automobile sales finance along with the offshore migration of production by Japanese automakers. As for aircraft area, the SHOSHA not only sell planes to domestic airlines but also sell used planes to third parties, and furnish financing and operating leases. (2) Major business fields in Energy, Metals, and Chemicals Steel In the field of steel, the SHOSHA sell a wide range of materials (e.g., sheet, pipes, rails, rods & wires, stainless steel, and specialty steel) to customers inside and outside Japan. They not only make deliveries on a just-in-time basis through their network of domestic and foreign agencies, but may also have their own inventories and offer value-added fabricating services such as cutting coil supplied from steel makers to meet customer needs and plating at surface processing plants of their own establishment. Non-ferrous metals Many non-ferrous metals are subject to intense price fluctuation. To assure a stable supply on a long-term basis, the SHOSHA are investing in various mines and going into the smelting business. Another role is to develop new applications and demand for such metals. In addition to the traditional physical trading based on actual demand, they are also involved in metals dealings, the creation of diverse investment commodities making full use of derivatives, and the establishment and sales of commodity funds. Mineral resources The development and import of iron ore, coal, and other mineral resources are another traditional business of the SHOSHA that have been a vital engine for economic growth in resource-poor Japan. The SHOSHA work for a steady supply of mineral resources through their integrated scope of services, ranging from natural resources exploration and negotiations with the relevant governments and interested parties to the sustainable maintenance of the ownership rights and interests, through financing and direct equity participation, and in the management of mine operations themselves. 12

15 商社ハンドブック Handbook of SHOSHA LPG LNG LPG 3 SCM 13

16 3. 商社が関わる幅広い事業分野 Wide Range of Business Fields of SHOSHA Energy A stable supply of energy resources is a vital task for Japan, which has few of its own. The SHOSHA are active on this front as well. They are involved in the development and import of crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), and uranium in the upstream sector; oil refining and trading of crude oil and petroleum products in the midstream sector; and the management of LPG sales stores and filling stations in the downstream sector. In recent years, they have also started to step up their business in power distribution and development of new energy as a result of the deregulation of the power sector. Chemicals The SHOSHA handle variety of products in this field. The list includes petrochemicals, inorganic chemicals (e.g., sulfur, salt etc.), precision chemicals (e.g., catalysts and fatty acids), electronic materials, agricultural chemicals, pharmaceuticals, and biochemicals. In the area of petrochemicals, they are investing in joint ventures in other countries in search of higher cost competitiveness, and are engaged in the production of ethylene, naphtha, polyvinyl chloride, ammonia, and methanol. They also distribute and sell the resulting products. Environment With the implementation of the new legislation enacted to create a recycling-based society, the SHOSHA are actively approaching new business fields such as photovoltaic and wind power generation, and the development of alternative fuels like bio-ethanol and bio-diesel in addition to the business in recycling and reusing items from various fields, which include PET bottles and other plastic products, electrical appliances, automobiles, and personal computers, as well as other recycling and reuse related businesses. (3) Major business fields in Consumer Goods Textiles In Textile Division, in addition to the traditional business in import of cotton, wool, and other raw materials as well as distribution of yarn, woven goods, and other products, the SHOSHA take part in creating brand and import, store development and management of stores they operate directly, and provision of apparel production and logistics (SCM etc.) capabilities through use of plants in Japan and abroad. General merchandise The commodities that the SHOSHA handle include everything from lumber, construction materials, paper, pulp, chips, glasses, rubber to hides, and all sorts of consumer goods. In connection with supply of lumber and pulp, they are actively promoting afforestation projects in all parts of the world and making efforts to curtail environmental burden to the minimum. In the area of consumer goods, they furnish a diversity of high value-added products such as sporting gears and brand-name goods. Foodstuff and food products Through import of foodstuffs from other countries, the SHOSHA procure and supply the optimal items for consumer wants and needs in all areas, from materials such as grains, raw sugar, marine products, livestock products, fresh fruits and beverage ingredients to processed foods such as alcoholic beverages, canned foods, and dairy products. They are also making direct investment in Japan as well as in overseas both upstream and downstream in grain elevators, agriculture/livestock farms, food processing operations, food wholesaling and retailing, and in rollout of convenience stores. 14

17 商社ハンドブック Handbook of SHOSHA 4 e- CATV IT FT M&A IC R&D 1 15

18 3. 商社が関わる幅広い事業分野 Wide Range of Business Fields of SHOSHA (4) Major business fields in Other Businesses Construction and real estate development In the field of construction and real estate that the SHOSHA are involved, their wide variety of activities encompass integrated regional development; development, construction, sale, and management of condominiums, houses, and other housing in Japan as well as in overseas; building management of hotels, commercial facilities, and office buildings including subleasing business; leasing and distribution; and the development and sales of industrial and housing estates abroad. IT and content The SHOSHA are engaged in broad areas in this field - everything from satellite launches and network construction of information communications (IC) to terminal sales of mobile telephones. In recent years, their activities are no longer confined to the handling of hardware; they have been participating in the development of applications, invention of e-business models resting on e-commerce, production of contents (e.g., cinema and animation) and its sales promotion worldwide, investment in and operation of broadcasting business (e.g., satellite broadcasting and CATV), and incubation of all sorts of information technology (IT) business. Logistics The SHOSHA have established a multimodal transportation system combining land, sea, and air transport by developing logistics bases and systems in order to provide the best and fastest logistics service. In addition, they operate logistics centers, and also own and operate special purpose vessels. Finance The financial services that the SHOSHA provide with their highly advanced financial technology (FT) have expanded into a wide range of areas including the handling of various derivatives, the establishment and sales of funds and M&A, as well as asset liquidation, leasing, securities, investment advisory, insurance-related businesses, and factoring. Retailing The importance of capturing and reflecting the changing consumer demands and establishing customer-centered business models based on them is increasing. In tune with these developments the SHOSHA streamline and revitalize their retail businesses by making the best use and combination of their wide range of functionality. Consumer related information is gathered from various sources including their credit card and internet community related businesses. The information obtained is analyzed and applied to the operation and support of the retail and food service businesses. Introduction of demand forecast systems and IC tags, support in logistics rationalization, and securitization of stores and other real estate (REITs) are also some of the examples of their operation. Health care and life care In response to a variety of social needs, the SHOSHA are actively developing business in different fields, such as outsourcing in the drug development process, hospital and clinic management consulting, anchored by REITs and medical logistics. These operations also encompass management support for drugstores, the on-line sales of drugs and health related products, the rental of nursing care products and the operation of health care facilities for the elderly. Bio- and nano-technology The SHOSHA are establishing a new business model based on the role of incubator of leading-edge technologies, getting involved right from the R&D stage in the discovery of new technologies and growing them into commercially viable profit making businesses. Specifically, the commercial utilization of such basic technologies as bio- and nano-technologies is too widespread to allow any single industry or company to be involved in the complete line of development, from the early stages all the way to commercialization and marketing. Thus, the SHOSHA are pursuing strategic tie-ups with the world's top-notch research institutions including universities, venture businesses and major companies to incubate bioand nano-technology related businesses. 16

19 商社ハンドブック Handbook of SHOSHA DER Aggregate Consolidated Investment Balance of the Seven SHOSHAs (in billion yen) 10 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, (Fiscal Year) Source: Financial statements of respective companies Note 1: The aggregate balance of former Nissho Iwai and Nichimen is used for Sojitz in The balances of Sojitz from 2004 are unadjusted. Note 2: The aggregate balance of pre-merger Toyota Tsusho and former Tomen are used for Toyota Tsusho from 2003 to The balances of Toyota Tsusho (post-merger) from 2006 are unadjusted. 17

20 4. 商社の収益構造 Earnings Structure of SHOSHA 4 Earnings Structure of SHOSHA The large sales volume used to be regarded, in the context of growth strategy, as one of the most important management barometers during Japan s high economic growth period. However, with the trend toward globalization and mega-competition era starting in the 1990 s, alignment with global standards drove a shift in management strategy from going after even larger sales volume to pursuing returns commensurate with the asset risk, that is putting more emphasis on profitability with clearly defined portfolio management standards and loss-cutting and profit-taking rules for conscious maintenance of sound asset quality. When the bubble economy burst in the 90 s, the SHOSHA were burdened with huge non-performing assets. During the bubble economy, they started diversifying the business from their primary business, trading to investments in businesses. However, their policy on risk and portfolio management was not thorough enough. Furthermore, the old criteria became insufficient to modify the business benchmarks suitable for them at that point. This is considered to be one of the reasons. After the Asian financial crisis in 1997, the SHOSHA implemented the management reform and established the management system that is effective for their business structure after some trial and error. Since the beginning of the 21st century, their investments in businesses have been growing steadily and soundly. (See Fig. 4-1.) Drawing on this experience, the SHOSHA are controlling the acquisition of risk assets under the newly developed risk management framework while improving their financial standings. And they are no longer highly leveraged. (See Fig. 4-2: Declining Debt-to Equity Ratio.) 4-2 DER Debt-to-Equity Ratio (Multiple) 0 (Fiscal Year) 7 Source: Financial statements of respective companies Note: Average of the seven SHOSHAs on consolidated basis 18

21 商社ハンドブック Handbook of SHOSHA ROE 4-3 ROA 4-4 ROE ROA ROE Return on Equity Ratio 20 (%) (Fiscal Year) Source: Financial statements of respective companies Note: Average of the seven SHOSHAs on consolidated basis 4-4 ROA Return on Assets Ratio (%) (Fiscal Year) Source: Financial statements of respective companies Note: Average of the seven SHOSHAs on consolidated basis

22 4. 商社の収益構造 Earnings Structure of SHOSHA During the worldwide boom of 2004 to 2007, rising prices of resources prompted the SHOSHA to create new business models. Under this climate, they can take credit for their effective management of the shareholders equity and total assets and for resulting earnings growth. (See Fig. 4-3: Return on Equity Ratio; and Fig. 4-4: Return on Asset Ratio.) The Lehman Shock in the fall of 2008 caused resource prices to plummet. As a consequence, SHOSHA s earnings declined and both ROE and ROA worsened. However, they have bounced back and improved since fiscal In fiscal 2012, the negative impact of plummet of metals and energy prices was compensated for profits originated from other business fields that are unrelated to resources. Aggregate non-consolidated financial statement of the seven SHOSHAs Judging from the non-consolidated financial statements of the seven largest SHOSHAs, there has been a tendency that operating income, an authentic indicator of trade prowess, has been declining while dividend income has been steadily larger than operating income. Six out of seven SHOSHAs posted an operating loss in fiscal These losses have been offset by dividend incomes. Consequently, this result indicates that the consolidated companies have contributed to the earnings of their parent companies. 4-5 Aggregate Non-Consolidated Trading Transactions, Net Profit of the seven SHOSHAs (In billion yen) 10 60,000 50,000 40,000 30,000 20,000 益 Trading Transactions Net Profit (In billion yen) 10 1, , (Fiscal Year) 10 in billion yen Trading Transactions 58,360 51,572 47,291 44,269 44,563 46,538 47,281 49,675 46,119 30,099 32,622 35,164 35,954 Gross Trading Profit 1,151 1,032 1, ,058 1, Gross Trading Profit Ratio 1.97% 2.00% 2.12% 2.21% 2.21% 2.11% 2.24% 2.23% 2.07% 2.51% 2.36% 2.26% Selling, General, and Administrative 1, Expenses Operating Income Current Profit Corporation Taxes Net Profit Source: Financial statements of respective companies Note 1: The aggregate balances of former Nissho Iwai and Nichimen are used for Sojitz from 2000 to The balances of Sojitz from 2004 are unadjusted. Note 2: The aggregate balances of pre-merger Toyota Tsusho and former Tomen are used for Toyota Tsusho from 2000 to 2005.The balances of Toyota Tsusho (post-merger) from 2006 are unadjusted. Fiscal Year 20

23 商社ハンドブック Handbook of SHOSHA Aggregate Consolidated Trading Transactions, Net Profit and Divided Income of the seven SHOSHAs (In billion yen) Trading Transactions Net Profit Divided Income (In billion yen) ,000 1,800 90,000 1,600 80,000 1,400 70,000 1,200 60,000 1,000 50, , , , , (Fiscal Year) Source: Financial statements of respective companies 21

24 4. 商社の収益構造 Earnings Structure of SHOSHA Aggregate consolidated financial statement of the seven SHOSHAs According to the consolidated financial statements of the seven largest SHOSHAs, net profit declined in fiscal 2009 in the aftermath of the Lehman Shock, but a significant improvement proves to be evident in fiscal In fiscal 2011, four out of the seven largest SHOSHAs smashed the record of highest net profit in the past. As a result, the aggregate net profit of the seven largest SHOSHAs grew for two years in a row to 1.7 trillion yen, an increase of 25.4% from a year earlier. In fiscal 2012, net profit declined 12% to 1.5 trillion yen mainly due to the negative impact of falling resource prices. (See Fig. 4-6.) Core earnings take a role of an indicator for SHOSHA s earning power compounded of trading, investment, and financing. Although the aggregate core earnings of the seven largest SHOSHAs for fiscal 2009 plunged to 1.3 trillion yen, a 46.3% decline from the previous year, not only did they grow back to 2.2 trillion yen in fiscal 2010, a 68.4% increase from fiscal 2009, but continued increasing to 2.4 trillion yen in 2011, a 9.0% increase from fiscal Although in fiscal 2012, they fell 17% to 2.0 trillion yen, income dividend from consolidated companies compensated for the declined operating income of the parent companies. The contribution of consolidated companies to the parent company s earnings was evident. Currently SHOSHA s earnings come from two sources: Profit from trading and profit from investments in businesses. Profit from investments in businesses such as dividend income and equity in earnings of affiliated companies is on the rise, thus SHOSHA appear to be shifting from trading to investments in businesses. However, the foundation of the SHOSHA lies thoroughly in the conventional trading that was built on years of knowledge and experiences as well as their worldwide network. At the same time, they make investment in and loans to businesses. One of their aims of such activities sees to expand trade in each level of multi-tiered distribution channels within various points in upstream, midstream, and downstream of value chains in accordance with the changing needs of markets and customers. It is good balance between conventional trading and investments in new businesses that can drive earnings growth for the SHOSHA in billion yen Fiscal Year Total Assets 37,936 35,853 33,514 33,759 35,278 39,868 44,966 44,752 40,643 40,863 42,049 45,422 51,329 Liabilities 34,461 32,214 30,170 29,634 30,213 32,352 34,764 34,349 31,781 30,331 30,958 33,238 36,554 Common Stock 1,071 1,071 1,135 1,285 1,336 1,379 1,394 1,449 1,452 1,454 1,455 1,455 1,455 Total Sharehoulders Equity 3,451 3,600 3,328 4,269 5,065 7,507 10,202 10,403 8,557 10,532 11,091 12,184 14,776 Trading Transactions 72,305 68,044 64,458 64,129 67,700 74,178 78,967 87,412 80,245 61,447 67,699 71,854 71,080 Gross Trading Profit 3,403 3,306 3,326 3,310 3,818 4,306 4,930 5,335 5,665 4,373 4,895 5,072 4,687 Gross Trading Profit Ratio 4.71% 4.86% 5.16% 5.16% 5.64% 5.81% 6.24% 6.10% 7.06% 7.12% 7.23% 7.06% 6.59% Selling, General, and Administrative 2,735 2,741 2,707 2,686 2,797 2,983 3,325 3,636 3,715 3,539 3,487 3,606 3,590 Expenses Operating Income ,306 1,590 1,675 1, ,358 1,426 1,067 Divided Income Investment Profit on Equity Method Net Profit ,360 1,608 1, ,335 1,674 1,468 Source: Financial statements of respective companies Note 1: The aggregate balances of former Nissho Iwai and Nichimen are used for Sojitz from 2000 to The balances of Sojitz from 2004 are unadjusted. Note 2: The aggregate balances of pre-merger Toyota Tsusho and former Tomen are used for Toyota Tsusho from 2000 to The balances of Toyota Tsusho (post-merger) from 2006 are unadjusted. Note 3: No applicable data for equity in earnings of affiliated companies of Sumitomo Corporation in 2000 and

25 商社ハンドブック Handbook of SHOSHA N DNA 4 23

26 4. 商社の収益構造 Earnings Structure of SHOSHA As we have seen, the excellent results achieved in recent years are largely attributable to the growing business of trade transaction in oil, gas, iron ore, coal and LNG, the natural resources in which each company has invested and acquired interests for many years. In addition to the successful trades, which have efficiently worked as a driving force for profit growth, now, the SHOSHA are striving to increase trade other than natural resources in order to create a stably and steadily balanced structure in earnings. What we have sketched out here is a broad overview of SHOSHA s characteristics, business fields and earnings structure. They utilize their extensive locations in Japan and abroad so as to develop markets, provide transportation and distribution services, develop resources, and enter into new business fields. Until now, the SHOSHA, as a facilitator of collaborations across diverse fields and businesses, have been one of the contributing businesses to the economic development in Japan. As the economy continues to globalize, SHOSHA s contribution, we believe, will continue in years to come not only to the Japanese economy but also to the world economy. Before coming to the end, we proudly provide a brief introduction of an interesting book, which is produced as a part of the educational activity of JFTC s Special Research Committee on Sogo SHOSHA Principles: Research on SOGO SHOSHA: Origins, Establishment, and Development. This is an informative guide authored by Professor Takayuki Tanaka, School of Economics, Senshu University, which was issued from Toyo Keizai, Inc. in March The author outlines the current position of SOGO SHOSHA and recognizes the trading organization as a general business management and investment entity, where he suggests the four possible future directions in the final chapter of the report. 1. Strengthening a general business management and investment entity 2. Strengthening the overseas businesses development 3. Maintaining trade as its foundation business 4. Maintaining the business relationship with domestic industries Here, on closing, we d like to present some extracts from this publication, which pay attention to the possible directions of SHOSHA s development in the future, although we hope you to obtain and read it personally for further details. Dr. Tanaka finds analytically the uniqueness of the SOGO SHOSHA: Considering of these four directions, we find that Points 1 and 3 as well as Points 2 and 4 are conflicting characteristics. In practice, the SOGO SHOSHA have fundamentally taken the course of Points 1 and 2, while there is no question that Points 3 and 4 unequivocally characterize the recent activities of Japanese SOGO SHOSHA. Nowadays, the SOGO SHOSHA take their operation on delicate balance among the conflicting forces working toward different directions. It is this balance that makes one of the important features of SOGO SHOSHA to be a general trader, which represents a unique characteristic of contemporary Japanese SOGO SHOSHA. In the conclusive words, the author points out what is vital for future growth of SOGO SHOSHA: The SOGO SHOSHA have high capability in sensing of, understanding of, and adjusting themselves to the environmental changes, which can be called adaptability of an organization. Indeed, this flexibility allows every trading company of SOGO SHOSHA to modify its business model properly based on cultures cultivated deeply within the company, which has its own inherited knowledge and experiences like the memory of DNA. As long as this remodeling ability remains intact, the SOGO SHOSHA could go on developing as a unique business entity with holding balance of the growth power spreading over the four different directions, while each company of SOGO SHOSHA may serve for its own purpose. 24

27 商社ハンドブック Handbook of SHOSHA , , , , , , , , , , 世界国際連合成立第2次世界大戦終わるマーシャルプラン(欧州復興計画)GATT調印中華人民共和国成立ココム設立北大西洋条約機構(NATO)調印朝鮮戦争起る朝鮮休戦協定調印バンドン会議EEC発足GATT東京総会開催GATTディロン ラウンド交渉開始OPEC結成EFTA発足GATTディロン ラウンド交渉妥結OECD発足キューバ封鎖GATTケネディラウンド交渉開始米軍のベトナム北爆開始中国文化大革命起るGATTケネディラウンド交渉妥結第3次中東戦争起るインド パキスタン戦争多国間通貨調整 スミソニアン合意米国 新経済政策発表/ニクソン ショック中国 国連加盟英 EC加盟GATT東京ラウンド交渉開始第1次オイルショック第4次中東戦争起るベトナム和平成立第1回先進国首脳会議(ランブイエ サミット)ベトナム戦争終わるASEAN発足日本GHQ 4大財閥本社解散命令日本貿易会創立(5月)GHQ 制限付民間貿易再開を許可(単一為替レート1ドル360円設定)GHQ 日本商社の海外支店設置を原則了解民間輸出始まる民間航空復活日米安全保障条約調印サンフランシスコ講話会議 平和条約調印日本 IMF 世銀に加盟奄美諸島復帰輸出入取引法施行経済自立3目標 4原則(緊縮政策)繊維商社105件の倒産(戦後最高記録)日本 GATTに加盟商社外貨保有制度 商社等本支店間交互計算勘定制度実施政府 輸出会議に貿易業輸出会議を設置1万円札発行商社の海外支店等の適正配置要綱発表(通産省)貿易 為替自由化計画大綱を決定日米新安全保障条約調印日米貿易経済合同委員会日中総合貿易覚書貿易自由化88%日本 OECDに加盟貿易記念日(6月28日)制定東京オリンピック新輸出振興税制措置の実施(輸出所得控除制度の廃止)日本 IMF8条国に移行日韓基本条約調印第1回赤字国債発行資本自由化正式実施小笠原返還ドル防衛協力(日米貿易経済合同委員会ホノルル会議)日米繊維交渉開始第2次資本自由化実施第3次資本自由化実施日米安全保障条約自動延長日本万国博覧会核拡散防止条約調印(1ドル308円に切上げスミソニアン体制)第4次資本自由化実施(93%)対米繊維輸出自主規制宣言日中国交正常化沖縄復帰日米政府間繊維協定調印生活関連物資の買占めおよび売惜しみに対する緊急措置に関する法律公布6大商社の実態調査に関する報告書(公正取引委員会)変動相場制への移行(スミソニアン体制崩壊)日本貿易会 総合商社行動基準制定(5月)貿易自由化100%決定総合商社に関する調査報告書(公正取引委員会)総合商社に関する第2回報告 独占禁止政策からみた商社問題について (公正取引委員会)ロッキード疑獄事件領海12カイリ法 漁業水域200カイリ暫定措置法成立日米漁業協定調印成田空港運営開始景気特需景気朝鮮戦争の反動投資 消費景気昭和29 年不況神武景気なべ底不況岩戸景気転換型不況オリンピック景気証券不況いざなぎ景気ニクソン不況列島改造景気第1次石油危機安定成長景気円高不況公共投資景気商社の特徴 1950s: 1960s: s: 1973

28 付表 Appendix ソ連軍アフガニスタン侵攻GATT東京ラウンド交渉妥結第2次オイルショックイラン イラク戦争第1回南北サミットフォークランド諸島事件プラザ合意メキシコ大地震チェルノブイリ原子力発電所大事故GATTウルグアイ ラウンド交渉開始ブラックマンデーソ連 ペレストロイカ始まるルーブル合意イラン イラク戦争終結第1回APEC会議ベルリンの壁崩壊天安門事件ドイツ統一成るイラク クウェートに侵攻多国籍軍イラクを攻撃湾岸戦争ソ連邦解体マーストリヒト条約発効EU統合市場発足ココム解散WTO発足GATTウルグアイ ラウンド交渉妥結アジア通貨危機香港返還インド パキスタン地下核実験コソボ紛争でNATO軍ユーゴ空爆EU通貨統合スタート南北朝鮮首脳会談(平壌)米国同時多発テロ(9 11 )WTOドーハ開発ラウンド交渉開始中国WTO加盟北朝鮮核兵器開発表明ユーロ紙幣 貨幣流通開始イラク戦争勃発北朝鮮NPT脱退宣言スマトラ沖島大地震(インド洋沿岸大津波)EUに旧東欧10カ国が加盟し25カ国体制にイラクなどで自爆テロ頻発第1回東アジアサミット(16カ国)中国人民元2%切上げバンドン会議50周年記念アジア アフリカ首脳会議原油価格高騰(一時1バレル78ドル台)中国外貨準備世界一に北朝鮮地下核実験 国連安保理制裁決議サブプライムローン危機(8月)イラクでテロ頻発インド ムンバイ同時多発テロリーマン ショック(9月)原油価格高騰(一時100ドル台)中国四川省大地震中国建国60周年(10 1)ジャスミン革命(12月)ギリシャ財政危機 欧州ソブリン危機タイ洪水(7月~2012年1月)ロシアWTO加盟米ミシガン州デトロイロ市が破たん(7月)東京サミットグラマン ダグラス疑獄事件外国為替及び外国貿易管理法改正日米自動車交渉開始行政改革推進本部発足大韓航空機撃墜事件(急激な円高)NTT JT民営化日本貿易会 経済団体から業界団体に改組(6月)東京サミット新貿易保険法施行国鉄分割 JRグループ発足米国 対日経済制裁措置発表日米牛肉 オレンジ交渉最終決着消費税導入昭和天皇逝去日米構造問題協議最終決着国際花と緑の博覧会(大阪)株価暴落始まりバブル現象露呈(2月)牛肉 オレンジ市場自由化開放自衛隊カンボジア出動(PKO活動)国連平和維持活動(PKO)法成立政府 94項目の規制緩和措置(対ドル円相場 100円突破)関西空港開港自衛隊ルワンダ難民救援出動(PKO)APEC大阪会議日米自動車交渉合意阪神 淡路大震災ペルー日本大使公邸人質事件日米半導体交渉合意自衛隊ゴラン高原到着(PKO)地球温暖化防止京都会議日米安保条約の新ガイドライン合意日銀法 独禁法改正(持株会社解禁)日本貿易会 創立50周年消費税5%長野冬期オリンピック金融再生関連法成立日本貿易会 商社行動基準(総合商社行動基準を改定 7月)九州 沖縄サミット日本貿易会 国際社会貢献センター(ABIC)を設置自衛隊対米支援のためインド洋派遣国際社会貢献センター(ABIC) NPO認証取得日朝首脳会談イラク復興支援特別措置法成立(自衛隊派遣可能)自衛隊サマワ(イラク)入り自衛隊の多国籍軍参加を決定日本貿易会 商社行動基準を改定(6月)愛知万博開催(愛 地球博)京都議定書発効日銀ゼロ金利解除(0% 0 25%) いざなぎ景気 超え発表日銀利上げ(0 25% 0 5%)郵政民営化日本貿易会 創立60周年航空自衛隊イラクから撤収(5年間活動)北海道洞爺湖サミット第4回アフリカ開発会議 横浜宣言民主党 社民党 国民新党3党連立内閣成立日本航空再建国際社会貢献センター(ABIC) 創立10周年31年ぶり貿易赤字地上デジタル放送に完全移行東北地方太平洋沖地震(3 11)自民党 公明党連立内閣成立日中国交正常化40周年復興特別所得税の課税開始(1月~)第2次石油危機ハイテク景気円高不況バブル景気バブル崩壊カンフル景気列島総不況IT景気デフレ不況いざなみ景気世界同時不況2000s: 1990s: 10 IT LT FT IT 1980s: ODA

29 商社ハンドブック Handbook of SHOSHA Financial Results of Shoshas (for the year ended March 31, 2013) (Consolidated) Total Assets Liabilities Common Stock Total Shareholders'Equity Trading Transactions Gross Trading Profit Gross Trading Profit Ratio Selling, General, and Administrative Expenses Itochu Corporation Sumitomo Corporation Sojitz Corporation Toyota Tsusho Corporation (in million yen; compared with previous year) Marubeni Corporation Mitsui & Co., LTD. Mitsubishi Corporation 7,117, % 7,832, % 2,086, % 3,592, % 5,965, % 10,324, % 14,410, % 5,004, % 5,656, % 1,703, % 2,672, % 4,776, % 6,884, % 9,854, % 202, % 219, % 160, % 64, % 262, % 341, % 204, % 2,112, % 2,175, % 382, % 920, % 1,188, % 3,440, % 4,556, % 12,551, % 7,502, % 3,955, % 6,304, % 10,509, % 10,049, % 20,207, % 915, % 826, % 192, % 403, % 528, % 790, % 1,029, % 7.30% 11.02% 4.86% 6.41% 5.03% 7.87% 5.10% 671, % 657, % 158, % 288, % 403, % 521, % 889, % Operating Income Financial Balance Net Profit 244, % 162, % 33, % 115, % 122, % 254, % 133, % 20,572-2,331-13, ,218 78, , , % 232, % 14,263 67, % 205, % 307, % 360, % (Consolidated) Total Assets Liabilities Common Stock Total Shareholders'Equity Trading Transactions Gross Trading Profit Gross Trading Profit Ratio Selling, General, and Administrative Expenses Operating Income Financial Balance Net Profit Inabata & Co., Ltd. Iwatani Corporation Kanematsu Corporation Nippon Steel & Sumikin Bussan Corporation Chori Co., Ltd. Nagase & Co., Ltd. Hanwa Co., Ltd. Hitachi High-Technologies 276, % 386, % 399, % 356, % 71, % 486, % 552, % 433, % 178, % 295, % 323, % 278, % 40, % 248, % 432, % 166, % 9, % 20, % 27, % 12, % 6, % 9, % 45, % 7, % 98, % 90, % 75, % 78, % 31, % 237, % 120, % 267, % 501, % 657, % 1,019, % 788, % 221, % 666, % 1,511, % 575, % 34, % 139, % 80, % 64, % 19, % 82, % 44, % 104, % 6.83% 21.27% 7.85% 8.19% 8.91% 12.39% 2.96% 18.22% 26, % 123, % 61, % 49, % 14, % 67, % 32, % 85, % 8, % 16, % 18, % 14, % 5, % 15, % 12, % 18, % 624-1,669-2, , , % 8, % 9, % 10, % 2, % 14, % 4, % 12, % 1 4 IFRSIFRS JFE JFE ( ) 4 Source: Financial statements of respective companies Note: (1) Financial results of ITOCHU, MARUBENI, MITSUI, MITSUBISHI are based on US GAAP. Financial results of SUMITOMO are based on the International Financial Reporting Standard (IFRS). Operating income of Sumitomo indicates profits relevant to operation on IFRS. (2) Non-consolidated financial results of each company has not been displayed here since the year ended March 31, (3) JFE SHOJI TRADE was delisted and became a wholly owned subsidiary of JFE Holdings, Inc. on October 1, (4) As for Nippon Steel & Sumikin Bussan, financial results of the former Sumikin Bussan are indicated * * * NI * * * CBC * JFE * * * * * * * * * * * Regular Members of JFTC As of October 1, 2013 ALL NIPPON AIRWAYS TRADING CO., LTD., ASSOCIATED LUMBER & TRADING CO., LTD., CBC CO., LTD., CHORI CO., LTD., D. NAGATA CO., LTD., HANWA CO., LTD., HITACHI HIGH-TECHNOLOGIES CORPORATION, INABATA & CO., LTD., ITOCHU CORPORATION, IWATANI CORPORATION, JFE SHOJI TRADE CORPORATION, KANEMATSU CORPORATION, KOWA COMPANY, LTD., KYOEI SHOJI CO., LTD., KYOKUTO BOEKI KAISHA, LTD., MARUBENI CORPORATION, MARUBENI-ITOCHU STEEL INC., MEIWA CORPORATION, METAL ONE CORPORATION, MITSUBISHI CORPORATION, MITSUI & CO., LTD., MORIMURA BROS., INC., NAGASE & CO., LTD., NIPPON STEEL & SUMIKIN BUSSAN CORPORATION, N. I. TEIJIN SHOJI CO., LTD., NOMURA TRADING CO., LTD., NOSAWA & CO., LTD., OKAYA & CO., LTD., SANKYO SEIKO CO., LTD., SEIKA CORPORATION, SHINSHO CORPORATION, SHINYEI KAISHA, SMILE CORP., SOJITZ CORPORATION, SUMITOMO CORPORATION, T.CHATANI & CO., LTD., THE TOSHO CO., LTD., TOHO BUSSAN KAISHA, LTD., TOKYO BOEKI LTD., TOYOTA TSUSHO CORPORATION, Y. NISHIDA & CO., LTD., YAGI TSUSHO LTD., YUASA TRADING CO., LTD. 27