MIRA INFORM REPORT

 

 

Report Date :

24.07.2007

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI CORPORATION

 

 

Registered Office :

1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

Dec 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

A general trading house

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 98697.1 millions

 

 

Status :

Fair

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

MARUBENI CORPORATION

 

 

REGD NAME

 

Marubeni KK

 

 

MAIN OFFICE

 

1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088 JAPAN

Tel: 03-3282-2111

Fax: 03-3282-2331

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

E-Mail address: info@marubeni.co.jp

 

 

ACTIVITIES

 

A general trading house

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, other (Tot 15 domestic)

 

 

OVERSEAS : 48 overseas branches & offices; 27 overseas corporate subsidiaries with 76 offices, totaling 124 offices in 74 countries.

 

 

CHIEF EXEC

 

NOBUO KATSUMATA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 8,686,532 M

PAYMENTS      REGULAR                     CAPITAL           Yen 262,686 M

TREND             STEADY                       WORTH            Yen 663,787 M

STARTED         1949                             EMPLOYES      27,377

 

 

COMMENT

 

GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 98,697.1 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

 

This is one of the leading general trading house, originated in Osaka as a textile merchant, with its roots same as the present Itochu Corp, actually a breakaway from the same roots.  Strong in overseas management dealing in heavy electric machinery, industrial plants, paper/pulp and chemicals.  Tops in pulps & paper.  Also maintains a strong presence in grain trading.  Recently strength being focused on information communications sector entering satellite broadcasting thru CATV network.  The firm withdrew from a petrochemical JV, PT Chandra Asri, in Indonesia, with       24.59% state therein transferred to Commerzbank International Trust (Singapore) Ltd.  Acquired crude oil production/development interests in Gulf of Mexico at cost of Yen 136,000 million: total       output exceeding 80,000 bbl/day, up 60%.

           

(Recent report from The Nikkei 27/Jan/07 edition):

Marubeni signed Yen 16,000 million contract with JSW Steel Ltd, a unit of the Indian Conglomerate Jindai group.  Marubeni will supply hot-rolling equipment that turns crude steel into plate.  The equipment, made by Mitsubishi-Hitachi Metals Machinery Inc, is capable of making 3.5 million tons of steel plate a year.  

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 8,686,532 million, a 9.5% hike from Yen 7,936,348 million in the previous term.  The recurring profit jumped to Yen 101,453 million and the net profit to Yen 73,801 million, respectively, from Yen 55,852 million recurring profit and Yen 41,247 million net profit, respectively, a year ago.  The improved net profits are led by strong earnings growth in its energy & chemicals businesses.  By divisions, Chemicals up by 17.2% to Yen 114,500 million, thanks to increased sales of basic chemicals, electronics materials and synthetic resins.  Energy was up by 23.5% to Yen 2,191,700 million, led by rising oil prices.  Metals up by 20.1% to Yen 122,700 million, spurred by rising prices of coal, iron ore, copper, etc materials.

 

For the current term ending Mar 2007 the recurring profit is projected at Yen 187,000 million and the net profit at Yen 115,000 million, respectively, on a 9.4% rise in turnover, to Yen 9,500,000 million.  Energy will enjoy growth on contribution from new large-scale interests on crude oil.  High    commodity and energy prices will contribute to the growth.

 

(Apr/Dec/06 results): Sales Yen 6,990,100 million (up 14%), operating profit Yen 123,700 million (up 18%), recurring profit Yen 156,700 million (up 26%), net profit Yen 95,600 million (up 54%).  (% compared with the same period the last year).  Higher energy and resources prices contributed to the sales growth.  Copper operations grew rapidly, particularly in China, thanks to higher copper prices, which shot up from the previous US$3,600/ton to more than US$6,000 this fiscal year.  Crude oil exploration in the Gulf of Mexico also contributed.  Profit at its paper/pulp unit             rose sharply, with the firm in fiscal 2005 pulling out from unprofitable non-resource operations and acquiring an Indonesian pulp business.

           

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 98,697.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:            Dec 1949

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    4,500 million shares

Issued:                          1,683,951,165 shares

Sum:                            Yen 262,686 million

Major shareholders (%): Japan Trustee Services Bank (4.5), Master Trust Bank of Japan T (3.7), Sompo Japan

 Ins (3.2), Chase (London) (3.1), Tokio Marine & Nichido Fire Ins (2.9), State Street Bank

 & Trust (1.9), Mizuho Corporate Bank (1.8), Meiji Yasuda Life Ins (1.6), Nippon Life Ins

 (1.6), Goldman Sachs International (1.5); foreign owners (32.6)

No. of shareholders:       126,238

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

Managements:               Tohru Tsuji, ch; Nobuo Katsumata, pres & CEO; Kazuhiko Sakamoto, v pres; Akira

                                    Matsuda, v pres; Kazuo Ogawa, v pres; Ko Mori, v pres; Teruo Asada, v pres; Mamoru

                                    Sekiyama, s/mgn dir; Koichi Mochizuki, s/mgn dir; Masaru Funai, s/mgn dir

           

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

 

 

Related companies

 

Marubeni Energy, Marubeni Nisshin Feed, Marubeni Pulp & Paper, other (Tot 388 as of Mar/06)

           

 

OPERATION

 

Activities: General trading house for import, export and wholesale of:

           

(Sales breakdown by divisions):

IT, infrastructure, plants ships (--12%); energy (25%); chemicals, general merchandise, paper & pulp (18%); foodstuffs, textiles (15%); metals (6%), transportation, industrial systems (9%), development, construction (2%), others (13%).

           

Overseas operations 45.5%: N America 9.2%; Europe 7.0%; Asia/Oceania 19.6%; other regions 9.7%.

 

Clients: [Mfrs, electric powers, wholesalers] Tokyo Electric Power, Chubu Electric Power,   Nissan Motors, Showa Denko, other.

 

No. of accounts: 3,000

 

Domestic areas of activities: Nationwide

 

           

Suppliers: [Mfrs, wholesalers] Nissan Motors, Showa Denko, Daishowa Paper Mfg, Hitachi Construction Machinery, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Mizuho Bank (H/O)

Bank of Tokyo-Mitsubishi UFJ (Tokyo)

 

Relations: Satisfactory

 

 

FINANCES

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

8,686,532

7,936,348

 

  Cost of Sales

8,184,508

7,502,953

 

      GROSS PROFIT

502,024

433,395

 

  Selling & Adm Costs

358,776

368,020

 

      OPERATING PROFIT

143,248

65,375

 

  Non-Operating P/L

-41,795

-9,523

 

      RECURRING PROFIT

101,453

55,852

　

      NET PROFIT

73,801

41,247

BALANCE SHEET

 

 

 

 

  Cash

　

268,936

459,194

 

  Receivables

 

896,781

783,001

 

  Inventory

 

395,599

376,480

 

  Securities, Marketable

20,989

32,946

 

  Other Current Assets

586,312

441,731

 

      TOTAL CURRENT ASSETS

2,168,617

2,093,352

 

  Property & Equipment

780,809

532,306

 

  Intangibles

 

89,325

35,548

 

  Investments, Other Fixed Assets

1,548,321

1,546,831

 

      TOTAL ASSETS

4,587,072

4,208,037

 

  Payables

 

715,370

650,387

 

  Short-Term Bank Loans

368,491

344,597

 

　

 

　

　

 

  Other Current Liabs

877,368

887,594

 

      TOTAL CURRENT LIABS

1,961,229

1,882,578

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

1,879,739

1,813,722

 

  Reserve for Retirement Allw

9,129

9,319

 

  Other Debts

　

26,189

18,851

 

      TOTAL LIABILITIES

3,876,286

3,724,470

 

      MINORITY INTERESTS

46,999

40,415

 

Common stock

37,750

37,750

 

Additional paid-in capital

155,903

125,436

 

Retained earnings

193,772

131,195

 

Evaluation p/l on investments/securities

109,035

46,661

 

Others

 

167,653

102,252

 

Treasury stock, at cost

(326)

(142)

 

      TOTAL S/HOLDERS` EQUITY

663,787

443,152

　

      TOTAL EQUITIES

4,587,072

4,208,037

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

133,408

173,824

 

Cash Flows from Investment Activities

-193,781

46,043

 

Cash Flows from Financing Activities

-46,037

-238,057

　

Cash, Bank Deposits at the Term End

　

368,936

459,194

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

663,787

443,152

 

 

Current Ratio (%)

110.57

111.20

 

 

Net Worth Ratio (%)

14.47

10.53

 

 

Recurring Profit Ratio (%)

1.17

0.70

 

 

Net Profit Ratio (%)

0.85

0.52

 

 

Return On Equity (%)

11.12

9.31

 

 

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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