MIRA INFORM REPORT

Report Date :

14.07.2007

IDENTIFICATION DETAILS

Name :	SUMITOMO CORPORATION (SINGAPORE) PTE. LTD.
Registered Office :	^20 Cecil Street, #23-01/08 & #24-01/08, Equity Plaza, Singapore – 049705
Country :	Singapore
Financials (as on) :	31.03.2006
Date of Incorporation :	^27/04/1991
Com. Reg. No.:	^199101899M
Legal Form :	^Pte Ltd
Line of Business :	Integrated Business Enterprise

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

SUMITOMO CORPORATION (SINGAPORE) PTE. LTD.

Line Of Business 

INTEGRATED BUSINESS ENTERPRISE ("SOGO JIGYOO GAISHA")

Parent Company

SUMMIT GLOBAL MANAGEMENT II B.V.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2006

COMPANY

Sales : US$3,655,531,000

Networth : US$ 69,805,000

Paid-Up Capital : US$ 27,714,000

Net result : US$ 19,017,000

Net Margin(%) : 0.52

Return on Equity(%) : 27.24

Leverage Ratio : 12.34 TIMES

COMPANY IDENTIFICATION

^{Subject Company : SUMITOMO CORPORATION (SINGAPORE) PTE. LTD.}

^{Former Name : -}

^{Business Address : 20 CECIL STREET}

^{#23-01/08 & #24-01/08}

^{EQUITY PLAZA}

^{Town : SINGAPORE}

^{Postcode : 049705}

^{County : -}

^{Country : Singapore}

^{Telephone : 6533 7722}

^{Fax : 6533 9693}

^{ROC Number : 199101899M}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in : USD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 27/04/1991}

^{Previous Legal Form : -}

^{Summary year : 31/03/2006}

^{Sales : 3,655,531,000}

^{Net Worth : 69,805,000}

^{Paid-Up Capital : 27,714,000}

^{Employees : -}

^{Net Result : 19,017,000}

^{Auditor : DELOITTE & TOUCHE}

REFERENCES

^{Litigation : NO}

^{Company status : TRADING}

^{Started : 27/04/1991}

PRINCIPAL(S)

^{MASAO TETSUYA G5747157W Managing Director}

DIRECTOR(S)

^{MASAO TETSUYA G5747157W Director}

^{Appointed on : 07/05/2004}

^{Street : 20 CECIL STREET}

^#24-01/08

^{EQUITY PLAZA}

^{Town : SINGAPORE}

^{Postcode : 049705}

^{Country : Singapore}

^{MASAO TETSUYA G5747157W Managing Director}

^{Appointed on : 07/05/2004}

^{Street : 20 CECIL STREET}

^#24-01/08

^{EQUITY PLAZA}

^{Town : SINGAPORE}

^{Postcode : 049705}

^{Country : Singapore}

^{CHAN LAI YIN S7480587F Company Secretary}

^{Appointed on : 01/07/2006}

^{Street : 22 SIMEI STREET 1}

^#04-02

^{MELVILLE PARK}

^{Town : SINGAPORE}

^{Postcode : 529945}

^{Country : Singapore}

^{KOJI YUZAKI F0419952U Director}

^{Appointed on : 01/04/2007}

^{Street : 32 ORANGE GROVE ROAD}

^#M-313

^{Town : SINGAPORE}

^{Postcode : 258354}

^{Country : Singapore}

^{LIN MOI HEYANG F1059693U Company Secretary}

^{Appointed on : 20/04/2007}

^{Street : 210 ANG MO KIO AVENUE 3}

^#07-1614

^{Town : SINGAPORE}

^{Postcode : 560210}

^{Country : Singapore}

^{KOJI SHIRAISHI G5713682R Director}

^{Appointed on : 01/04/2007}

^{Street : 3 BIDEFORD ROAD}

^#05-03

^{Town : SINGAPORE}

^{Postcode : 229920}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{HANAI YOSHIKAZU SH3790543}

^{JUNICHI MITSUMATA SM3828826}

^{YAMAZAKI KAZUHIKO SN9109654}

^{HISAYOSHI UNO MN8117681}

^{SHUNICHI ARAI F2065970W}

^{YOSHIO SAWAMURA F2079091K}

^{NORIO AKASHI MP4574472}

^{YOSHIKI NAKAI F2440928R}

^{MASANORI BANNO F5618892N}

^{TOSHIO MATSUKI F5645619T}

^{CHAN LILY S2668267C}

^{TAKAHIDE ENOMOTO G5561883L}

^{YOSHIYUKI MATSUOKA G5657502U}

^{YUSUKE MIURA G5689076P}

^{SABRINA RUSKIN S0185709F}

^{LIM CHOI HWEE S7330244G}

^{LIM MEE FUN S7476088J}

^{LIM KA BEE S2581084H}

ACTIVITY (IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{CHEMICALS Code: 3970}

^{PETROLEUM PRODUCTS Code: 16350}

^{PLASTIC PRODUCTS Code: 16940}

^{STEEL PRODUCTS Code: 20410}

^{BASED ON ACRA'S RECORD AS AT 06/07/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS; INTEGRATED BUSINESS ENTERPRISE (SOGO JIGYOO GAISHA)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI UFJ, LTD}

^{THE SUMITOMO BANK LTD}

^{THE INDUSTRIAL BANK OF JAPAN LTD}

^{AMERICAN EXPRESS BANK LTD}

ASSOCIATED COMPANY(IES)

^{D.L. PROPERTIES LTD}

^{20 CECIL ST #14-01}

^{EQUITY PLAZA}

^{SINGAPORE Singapore}

^{WUXI KUANYU PACKAGING MATERIAL CO China}

^{PT SUMMITPLAST INTERBENUA Indonesia}

^{KINETIC ENERGY PTE LTD}

^{SINGAPORE Singapore}

^{SUMITRONICS ASIA PTE. LTD.}

^{31 INTERNATIONAL BUSINESS PARK}

^#05-10

^{CREATIVE RESOURCE BUILDING}

^{SINGAPORE Singapore}

^{SUMIKENG (M) SDN BHD Malaysia}

^{SC PIPE SERVICE INC United States}

^{MARS INTERNATIONAL CO LTD Myanmar}

^{PETRO SUMMIT PTE. LTD.}

^{20 CECIL STREET}

^#17-05/07

^{EQUITY PLAZA}

^{SINGAPORE Singapore}

^{NEW PORT BULK TERMINAL SDN BHD}

^{PO BOX 64, PASIR GUDANG FREE TRADE}

^ZONE

^{PASIR GUDANG Malaysia}

^{PT FUMAKILLA INDONESIA Indonesia}

^{SUMMIT PETROCHEMICAL TRADING INC United States}

^{SEKISUI PLASTICS S.E.A. PRIVATE LTD}

^{43 SHIPYARD ROAD}

^{SINGAPORE Singapore}

^{TELEMONEY ASIA PTE LTD Singapore}

^{VAM FAR EAST PTE LTD}

^{593 HAVELOCK ROAD}

^#01-03

^{TECK HUAT CHAMBERS}

^{SINGAPORE Singapore}

^{CITRA SUMIT VALIND INVESTMENTS}

^{133 NEW BRIDGE ROAD}

^{21-01 CHINATOWN POINT}

^{SINGAPORE Singapore}

^{COMEASE PTE. LTD.}

^{11 KALLANG PLACE}

^06-12

^{SINGAPORE Singapore}

SHAREHOLDERS(S)

^{SUMMIT GLOBAL MANAGEMENT II B.V. 47,000,000 Company}

^{Street : STRAWINSKYLAAN 917}

^{Town : AMSTERDAM}

^{Postcode : 1077XX}

^{Country : Netherlands}

FORMER SHAREHOLDER(S)

^{SUMITOMO CORPORATION 47,000,000}

^{SAWADA TOYOHARU 1}

^{MURAYAMA KANJI 1}

HOLDING COMPANY

^{SUMMIT GLOBAL MANAGEMENT II B.V. UF40823G % : 100}

SUBSIDIARY (IES)

^{SUMMIT CHEMICALS ASIA PTE LTD Singapore}

^{SC ASIAN TUBULAR SUPPLY PTE LTD Singapore}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : GOOD}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in : USD}

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

^{(CLEAN) (CLEAN) (CLEAN)}

^{Date Account Lodged: 20/07/2006}

^{Balance Sheet Date: 31/03/2006 31/03/2005 31/03/2004}

^{Number of weeks: 52 14 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 10,896,000 12,186,000 12,492,000}

^{Investments 25,478,000 27,208,000 30,076,000}

^{Total Fixed Assets: 36,374,000 39,394,000 42,568,000}

^{Inventories: 187,104,000 66,947,000 68,643,000}

^{Receivables: 628,141,000 430,165,000 364,482,000}

^{Cash, Banks, Securities: 608,000 5,357,000 8,279,000}

^{Other current assets: 78,858,000 99,852,000 60,312,000}

^{Total Current Assets: 894,711,000 602,321,000 501,716,000}

^{TOTAL ASSETS: 931,085,000 641,715,000 544,284,000}

^{--- LIABILITIES ---}

^{Equity capital: 27,714,000 27,714,000 27,714,000}

^{Reserves: 1,096,000 - -}

^{Profit & loss Account: 40,995,000 26,296,000 23,973,000}

^{Total Equity: 69,805,000 54,010,000 51,687,000}

^{Long Term Loans: 3,500,000 931,000 973,000}

^{Total L/T Liabilities: 3,500,000 931,000 973,000}

^{Trade Creditors: 561,604,000 351,447,000 270,682,000}

^{Due to Bank: 75,242,000 52,913,000 75,333,000}

^{Provisions: 5,705,000 4,135,000 3,335,000}

^{Other Short term Liab.: 215,229,000 178,279,000 142,274,000}

^{Total short term Liab.: 857,780,000 586,774,000 491,624,000}

^{TOTAL LIABILITIES: 861,280,000 587,705,000 492,597,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 3,655,531,000 702,089,000 3,027,088,000}

^{NET RESULT BEFORE TAX: 23,504,000 3,123,000 6,920,000}

^{Tax : 4,487,000 800,000 3,149,000}

^{Net income/loss year: 19,017,000 2,323,000 3,771,000}

^{Interest Paid: 8,018,000 1,135,000 2,622,000}

^{Depreciation: 1,537,000 378,000 1,497,000}

^{Directors Emoluments: 666,000 130,000 377,000}

^{Wages and Salaries: 7,349,000 2,111,000 7,274,000}

^{Financial Income: 565,000 113,000 512,000}

RATIOS

^{31/03/2006 31/03/2005 31/03/2004}

^{Net result / Turnover(%): 0.01 0.00 0.00}

^{Stock / Turnover(%): 0.05 0.10 0.02}

^{Net Margin(%): 0.52 0.33 0.12}

^{Return on Equity(%): 27.24 4.30 7.30}

^{Return on Assets(%): 2.04 0.36 0.69}

^{Net Working capital: 36931000.00 15547000.00 10092000.00}

^{Cash Ratio: 0.00 0.01 0.02}

^{Quick Ratio: 0.73 0.74 0.76}

^{Current ratio: 1.04 1.03 1.02}

^{Receivables Turnover: 61.86 220.57 43.35}

^{Leverage Ratio: 12.34 10.88 9.53}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets-Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING BY 29.24% AMOUNTING TO USD69,805,000 (2005: USD54,010,000). THIS WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF USD40,995,000 (2005: USD26,296,000).}

^LEVERAGE:

^{THE LEVERAGE HAD GONE UP TO 12.34 TIMES (2005: 10.88 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS SURGED BY 59.80% TO USD561,604,000 (2005: USD351,447,000). LIKEWISE, AMOUNT DUE TO BANKS ALSO ROSE TO USD75,242,000 (2005: USD52,913,000) AND COMPRISED OF:}

^{* BANK LOANS (UNSECURED) OF USD72,528,000 (2005: USD50,267,000)}

^{* BANK OVERDRAFTS (UNSECURED) OF USD1,863,000 (2005: USD225,000)}

^{* SHORT TERM PORTION OF LONG-TERM LOANS OF USD851,000 (2005: USD2,421,000)}

^{CERTAIN BANKS HAVE THE RIGHT TO OFFSET AGAINST ALL SUMS OF MONEY HELD BY THEM IN RESPECT OF THE BANK LOANS.}

^{OTHER THAN THE RIGHT TO OFFSET, THE BANK LOANS AND BANK OVERDRAFT ARE UNSECURED.}

^{OTHER CURRENT LIABILITIES OF USD215,229,000 (2005: USD178,279,000) REPRESENTED:}

^{* LOANS TO RELATED COMPANIES OF USD157,226,000 (2005: USD106,606,000)}

^{* REEVALUATION OF FINANCIAL DERIVATIVES OF USD56,984,000 (2005: USD71,672,000)}

^{* OTHERS OF USD1,019,000 (2005: USD1,000)}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY. NET WORKING CAPITAL SURGED TO REGISTER AT USD36,931,000 (2005: USD15,547,000).}

^{ON THE OTHER HAND, BOTH THE QUICK AND CURRENT RATIOS WERE LACKING AT 0.73 TIMES (2005: 0.74 TIMES) AND 1.04 TIMES (2005: 1.03 TIMES) RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 IMPROVED SIGNIFICANTLY BY 4.21 TIMES TOTALLING USD3,655,531,000 (2005: USD702,089,000). THIS WAS IN TANDEM WITH THE NET INCOME, WHICH SURGED BY 7.19 TIMES, ACCOUNTING FOR USD19,017,000 (2005: USD2,323,000).}

^{AS A RESULT, NET MARGIN STOOD HIGHER AT 0.52% (2005: 0.33%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT NET WORKING CAPITAL, INCREASED REVENUES AND NET INCOMES, AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{IN ADDITION, AVERAGE COLLECTION PERIOD HAD SHORTENED TO 62 DAYS (2005: 221 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES (UNSECURED) - GROUP & COMPANY}

^{* GUARANTEES OF USD1,222,000 (2005: USD1,858,000}

^{IN 2004, THE COMPANY ENTERED INTO SEVERAL AGREEMENTS WITH A FINANCIAL INSTITUTION UNDER WHICH IT UNDERTOOK TO ASSUME THE LIABILITY FOR 29.26% OF THE INTEREST OBLIGATIONS OF AN ASSOCIATE, DL PROPERTIES LTD IN THE EVENT THAT THE ASSOCIATE FAILS IN ITS PAYMENT OF LOAN INTEREST TO THE FINANCIAL INSTITUTION. OUT OF THE 29.26%, THE ULTIMATE HOLDING COMPANY HAS AGREED TO REIMBURSE THE COMPANY 23.41% OF THE INTEREST OBLIGATION SHOULD THE ASSOCIATE DEFAULT IN INTEREST PAYMENT.}

^{COMPARATIVE FIGURES}

^{THE FINANCIAL STATEMENTS FOR 2006 COVER THE FINANCIAL YEAR FROM APRIL 1, 2005 TO MARCH 31 2006. THE FINANCIAL STATEMENTS FOR FY2005 COVERED THE FINANCIAL PERIOD FROM JANUARY 1, 2005 TO MARCH 31, 2005.}

^{THE COMPANY CHANGED ITS FINANCIAL YEAR END FROM DECEMBER 31 TO MARCH 31 DURING THE PREVIOUS FINANCIAL PERIOD TO BE CO-TERMINOUS WITH THAT OF THE ULTIMATE HOLDING COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 27/04/1991 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE OF "SUMITOMO CORPORATION (SINGAPORE) PTE. LTD.".}

^{AS AT 06/07/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 47,000,000 SHARES OF A VALUE OF S$47,000,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS; INTEGRATED BUSINESS ENTERPRISE (SOGO JIGYOO GAISHA)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT IS PRINCIPALLY ENGAGED AS AN INTEGRATED BUSINESS ENTERPRISE ("SOGO JIGYOO GAISHA").}

^{THE COMPANY IS A SUBSIDIARY OF SUMMIT GLOBAL MANAGEMENT B.V., INCORPORATED IN THE NETHERLANDS. THE COMPANY'S ULTIMATE HOLDING COMPANY IS SUMITOMO CORPORATION, INCORPORATED IN JAPAN.}

^{FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: IMPORTERS AND EXPORTERS.}

^BACKGROUND:

^{* SUBJECT IS A WELL-ESTABLISHED JAPANESE MNC ENGAGED IN INTERNATIONAL TRADE AND INVESTMENT ACTIVITIES. THEY TRADE IN A WIDE RANGE OF PRODUCTS INCLUDING CHEMICALS, PLASTICS, MACHINERY, STEEL, PETROLEUM AND MANY OTHER PRODUCTS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* IMPORTER AND EXPORTER OF GENERAL MERCHANDISE INVESTMENTS – TO INDUSTRIAL PROJECTS}

^{BUSINESS AREAS:}

^{* STEEL PRODUCTS}

^{- IMPORT FROM JAPAN, UNITED STATES OF AMERICA & EUROPE}

^{* MACHINERY & ELECTRONICS}

^{- MACHINERY & ELECTRIC DEPARTMENT}

^{- ELECTRONIC MATERIALS & EQUIPMENT DEPARTMENT}

^{- NON-FERROUS METALS DEPARTMENT}

^{* CHEMICALS}

^{- ORGANIC CHEMICALS DEPARTMENT}

^{- INORGANIC, AGRI-SCIENCE AND SPECIALTY CHEMICALS DEPARTMENT}

^{- MAINLY EXPORT TO ASIAN REGION}

^{* PLASTICS}

^{- SERVE ASIA PACIFIC REGION}

^{- HAS 6 JOINT VENTURE COMPANIES IN CHINA, INDONESIA, MALAYSIA, INDIA, VIETNAME AND OMAN}

^{* PETROLEUM & CARBON}

^{- CRUDE OIL}

^{- TRADE WITH ASIAN COUNTRIES (VIETNAM & MALAYSIA, AND MIDDLE EAST)}

^{- PETROLEUM PRODUCTS}

^{- TRADE WITH TAIWAN, THAILAND, VIETNAM, INDONESIA, MYANMAR AND MIDDLE EAST}

^{- FUEL OIL OPERATIONS}

^{- JOINT VENTURE OF BLENDING AND STORAGE OPERATION AT VOPAK TERMINAL IN 2001 WITH KINETIC ENERGY PTE. LTD. & HAVE ACQUIRED 65% OF ITS SHARE}

^{- IMPORT FROM INDIA, MIDDLE EAST & EUROPE AND EXPORT TO VIETNAM, AUSTRALIA, CHINA, ETC}

^{- BUNKER}

^{- PROVIDES BUNKER SUPPLY SERVICES NOT ONLY TO VESSELS CALLING AT SINGAPORE BUT ALSO TO OTHER MAJOR PORTS, MAINLY FOR NEPTUNE ORIENT LINES (NOL), 'K' LINE AND MITSUI OSK LINES (MOL)}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE.}

^{NO. OF EMPLOYEES (31 MARCH):}

^{* GROUP - 2006: NOT AVAILABLE (2005: 158; 2004: 169, 2003: 166, 2002: 166)}

^{* COMPANY - 2006: NOT AVAILABLE (2005: 158 (2004: 155, 2003: 151, 2002: 150)}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 12/07/2007 AS A TELE-INTERVIEW REQUEST WAS DENIED BY SUBJECT'S PERSONNEL.}

^{REGISTERED OFFICE AND BUSINESS ADDRESS:}

^{20 CECIL STREET}

^#23-01/08

^{EQUITY PLAZA}

^{SINGAPORE 049705}

^{DATE OF CHANGE OF ADDRESS: 09/08/2000}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY: D.L. PROPERTIES LTD}

^{OTHER BUSINESS ADDRESS:}

^{20 CECIL STREET}

^#24-01/08

^{EQUITY PLAZA}

^{SINGAPORE 049705}

^WEBSITE:

^{* www.sumitomocorp.com.sg}

^EMAIL:

^{* general@sumitomocorp.com.sg}

MANAGEMENT

^{THE DIRECTORS IN OFFICE AT THE TIME OF THE REPORT ARE:}

^{1) KOJI YUZAKI, A JAPANESE}

^{- BASED IN SINGAPORE}

^{2) KOJI SHIRAISHI, A JAPANESE}

^{- BASED IN SINGAPORE}

^{3) MASAO TETSUYA, A JAPANESE}

^{- BASED IN SINGAPORE}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD AND BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

FIRMS IN THE RETAIL TRADE FORESEE BUSINESS TO BE LESS BRISK. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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%)

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