MIRA
INFORM REPORT
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Report Date : |
07.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
SOJITZ CORPORATION |
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Registered Office : |
6-1-20 Akasaka Minatoku Tokyo 107-8655 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
December 1982 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Trading house born by the merger of former Nissho-Iwai
Corp & Nichimen Corp |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
YEN 89,232.3 Million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name & address
SOJITZ CORPORATION
REGD NAME: Sojitz KK
MAIN OFFICE: 6-1-20 Akasaka
Minatoku Tokyo 107-8655 JAPAN
Tel:
03-5520-5000 Fax: 03-5520-2390
E-Mail address: info@sojitz.com
ACTIVITIES
Trading house born by the merger of former Nissho-Iwai Corp
& Nichimen Corp
BRANCHES
12 domestic, 90 overseas
(Subsidiaries/affiliates): 201 domestic, 424 overseas
CHIEF EXECS
YUTAKA KASE, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 5,771,028 M
PAYMENTS REGULAR CAPITAL Yen 160,339 M
TREND STEADY WORTH Yen 520,327 M
STARTED 2003 EMPLOYES 18,440 M
COMMENT
GENERAL
TRADING HOUSE.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 89,232.3 MILLION, 30 DAYS NORMAL TERMS
Forecast figures for the 31/03/2009 fiscal
term.
HIGHLIGHTS
The subject company was
established in Apr 2003 by forming a joint holding company, named Nissho Iwai-Nichimen
Holdings Company, and subsequently the two merged in Apr 2004 into Sojitz Corp
as captioned. The holding company, at
the same time, renamed Sojitz Holdings Corporation. The merger was formed in order to restructure the two firms
through supports from financial institutions including the then UFJ Bank (now
MUFG), the main bank for the two firms.
On 01/Oct/2005, in order to further streamline the Group’s
management framework, Sojitz Holdings merged with its principal operating arm
and wholly owned subsidiary, Sojitz Corporation. The company’s name changed to Sojitz Corporation. This is a general trading house succeeding
the business rights & operations of the said two firms, excluding
liquidation or separation of unprofitable divisions & operations. Major handling items are machinery, energy
& resources, which former Nissho Iwai Corp was the strongest, and textiles,
etc, which the former Nichimen Corp was stronger. Highly competitive in fields of aircraft, lumber and urban
development.
(Recent news from Nikkei Shimbun dated 01/05/2008):
Sojitz and Itochu Corp announced plans to
invest combined Yen 30.8 billion to expand alumina-refining operation in
Western Australia. Sojitz has 9% share
and Itochu 5% in the Worsley Alumina JV, which is 86% owned by Anglo-Australian
mining company BHP Billiton Ltd. The
venture’s output capacity will be raised 30% to 4.6 million tons a year by fall
of 2012 from the current 3.5 million tons.
The venture’s post-expansion total output will roughly match Japan’s
annual need for aluminum ingot imports.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 5,771,028 million, a 10.6% hike from Yen 5,218,153
million in the previous term. Sales growth
was benefited from price hikes on coal, rare metals & methanol as well as
stronger car exports. Development of
commercial facilities made greater contribution. Chemicals rose steadily.
Bi divisions, Machinery/Aerospace up 39.5% to Yen 74.8 billion;
Energy/Metals flat; Chemicals up 10.2% to Yen 53.8 billion. The recurring profit was posted at Yen
101,480 million and the net profit at Yen 62,693 million, respectively,
compared with Yen 88,085 million recurring profit and Yen 58,766 million net
profit, respectively, a year ago.
Drastic cost reductions contributed to the sales growth.
For
the current term ending Mar 2009 the recurring profit is projected at Yen
100,000 million and net profit at Yen 60,000 million, on a 0.5% rise in
turnover, to Yen 5,800,000. Machinery
& aerospace showing profit growth, driven by automobiles & plants.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 89,232.3 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec
1982
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,488,525,000
shares
Issued: 1,233,562,344
shares
Sum: Yen
160,339 million
Major shareholders (%)
Master
Trust Bank of Japan T (8.0), Japan Trustee Services Bank T (7.3), Japan
Securities Finance (3.9), Bank of NY GCM Client EISG (3.4), UBS AG (London)
Asia Equities (1.8), Morgan Stanley & Co (1.5), Trust & Custody
Services Inv T (1.4), Japan Trustee
Services T4 (1.4), Nomura Trust Inv T (1.2), Goldman Sachs Int’l (1.2); foreign owners (30.9) (as of Mar/2007)
No. of shareholders: 148,060 (as of Mar/2007)
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Akio Dobashi,
ch; Yutaka Kase, pres; Masaki Hashikawa, v pres; Yasuyuki
Fujishima, s/mgn dir; Yoji Sato,
s/mgn dir; Shigeo Muraoka, dir; Yoshihiko Miyauchi, dir
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities:
A general trading house:
(Sales breakdown by divisions):
Synthetic resins, Chemicals Div (13.0%):
synthetic resin materials, organic & inorganic Industrial chemicals,
electronic materials, pulp & paper, agrochemicals, pharmaceuticals, fine chemicals;
Textiles Div (18.0%): clothing, beddings, furs,
textile machinery;
Construction & Lumber Div (7.0%):
condominium construction, building materials, real estate, logs, sawn timber,
laminated woods
Machinery/Aerospace & Metals Div
(21.0%): power plants, petrochemical plants, tele- communications facilities, construction
machinery & vehicles, aircrafts, ships, automobiles, steel & iron
products, nonferrous metals, precious stones;
Energy/Metals (25%);
Others (16%): foodstuffs, others.
(Overseas trading (37.2%): N America 4.0%, Europe 4.1%,
Asia/Oceania 22.5%, other 6.6%).
Clients
[Mfrs, wholesalers]
Kobe Steel, NM Life, First Retailing, Varig S.A., other
No. of accounts
4,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs,
wholesalers] Hitachi Zosen, Hitachi Ltd, Toyo Rubber, Yamazaki Nabisco, Sun Building Materials Corp, other.
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References
MUFG (Tokyo)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
Consolidated Finances
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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5,771,028 |
5,218,153 |
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Cost of Sales |
5,493,296 |
4,963,686 |
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GROSS PROFIT |
277,732 |
254,466 |
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Selling & Adm Costs |
185,368 |
176,533 |
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OPERATING PROFIT |
92,363 |
77,932 |
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Non-Operating P/L |
9,117 |
10,153 |
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RECURRING PROFIT |
101,480 |
88,085 |
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NET PROFIT |
62,693 |
58,766 |
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BALANCE SHEET |
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Cash |
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380,195 |
471,570 |
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Receivables |
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691,492 |
672,658 |
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Inventory |
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422,158 |
315,885 |
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Securities, Marketable |
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Other Current Assets |
182,101 |
154,968 |
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TOTAL CURRENT ASSETS |
1,675,946 |
1,615,081 |
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Property & Equipment |
332,018 |
229,966 |
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Intangibles |
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133,343 |
99,127 |
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Investments, Other Fixed Assets |
528,045 |
675,333 |
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TOTAL ASSETS |
2,669,352 |
2,619,507 |
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Payables |
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578,995 |
531,508 |
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Short-Term Bank Loans |
497,208 |
501,055 |
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Other Current Liabs |
307,248 |
186,934 |
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TOTAL CURRENT LIABS |
1,383,451 |
1,219,497 |
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Debentures |
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141,496 |
245,540 |
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Long-Term Bank Loans |
560,281 |
560,187 |
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Reserve for Retirement Allw |
20,360 |
23,920 |
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Other Debts |
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43,436 |
38,728 |
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TOTAL LIABILITIES |
2,149,024 |
2,087,872 |
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MINORITY INTERESTS |
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Common
stock |
160,339 |
122,790 |
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Additional
paid-in capital |
152,160 |
158,593 |
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Retained
earnings |
139,264 |
147,206 |
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Evaluation
p/l on investments/securities |
60,280 |
94,316 |
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Others |
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8,429 |
8,856 |
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Treasury
stock, at cost |
(145) |
(126) |
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TOTAL S/HOLDERS` EQUITY |
520,327 |
531,635 |
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TOTAL EQUITIES |
2,669,352 |
2,619,507 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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35,407 |
7,040 |
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Cash
Flows from Investment Activities |
-68,723 |
42,706 |
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Cash
Flows from Financing Activities |
-53,723 |
-95,478 |
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Cash,
Bank Deposits at the Term End |
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373,883 |
464,273 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
520,327 |
531,635 |
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Current
Ratio (%) |
121.14 |
132.44 |
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Net
Worth Ratio (%) |
19.49 |
20.30 |
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Recurring
Profit Ratio (%) |
1.76 |
1.69 |
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Net
Profit Ratio (%) |
1.09 |
1.13 |
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Return
On Equity (%) |
12.05 |
11.05 |
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RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)