Mitsui & Co., Ltd. ("Mitsui") announced today that it has changed presentation of total trading transactions effective April 1, 2009. Mitsui previously presented total trading transactions for transactions where Mitsui and its subsidiaries were not a contracting party and acted as an agent based on total amounts of the gross transaction volume and the commission they received, because Japanese trading companies comparable to Mitsui generally had the same accounting practice. In light of the risks Mitsui and its subsidiaries have related to such transactions, Mitsui has now changed the presentation to include only the commission amount in total trading transactions. Accordingly, Mitsui will restate total trading transactions for the previous years.
Total trading transactions, as presented in the statements of consolidated income, are voluntary disclosures as permitted by ASC605-45, "Revenue Recognition - Principal Agent Considerations," which was formerly Financial Accounting Standards Board ("FASB") Emerging Issues Task Force Issue ("EITF") No. 99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent," and represent the gross transaction volume or the aggregate nominal value of the sales contracts in which Mitsui and its subsidiaries act as principal and transactions in which they serve as an agent. Total trading transactions are generally used as an industry benchmark.
In accordance with this change in presentation, Mitsui has revised its forecast total trading transactions to be 10.0 trillion yen, a decline of 1.5 trillion yen, or 13.0%, from 11.5 trillion yen as the previous forecast.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.