MIRA INFORM REPORT

 

 

Report Date :

09.05.2008

 

 

IDENTIFICATION DETAILS

 

Name :

SOJITZ CORPORATION

 

 

Registered Office :

Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku Tokyo 107-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

April 2003

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, Export, Wholesale of Chemicals, Textiles, Foods, Metals, other

 

 

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 66735.4 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

SOJITZ CORPORATION

 

 

REGD NAME

 

Sojitz KK

 

 

MAIN OFFICE

 

Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku Tokyo 107-0052 JAPAN

Tel        : 03-5520-5000

Fax       : 03-5520-2390

URL      : http://www.sojitz.com/

E-Mail   :  info@sojitz.com

 

 

ACTIVITIES

 

Import, export, wholesale of chemicals, textiles, foods, metals, other

 

 

BRANCHES

 

8 domestic; 64 overseas

 

 

SUBSIDIARIES

 

188 domestic; 409 overseas

 

 

CHIEF EXEC

 

AKIO DOBASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 4,972,059 M

PAYMENTS      REGULAR                     CAPITAL           Yen 130,549 M

TREND             STEADY                       WORTH            Yen 426,949 M

STARTED         2003                             EMPLOYES      17,213

 

 

COMMENT

 

GENERAL TRADING HOUSE, BORN BY THE MERGER OF FORMER NISSHOIWAI CORP & NICHIMENT CORP.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 66,735.4 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2007 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 Bank of Tokyo-Mitsubishi UFJ), the main bank of 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 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.

           

The sales volume for Mar/2006 fiscal term amounted to Yen 4,972,059 million, a 6.3% up from Yen 4,675,059 million in the previous term.  Energy, metals & machinery on upswing backed by hike in energy prices.  The recurring profit was posted at Yen 78,773 million and the net profit at Yen 43,706 million, respectively, compared with Yen 58,088 million recurring profit and Yen 412,475 million net losses, respectively, a year ago.  Term’s start cumulative losses of about Yen 55,800 million cleared by drawing on reserves.

           

For the current term ending Mar 2007 the recurring profit is projected at Yen 89,000 million and the net profit at Yen 56,000 million, respectively, on a 6.6% rise in turnover, to Yen 5,300,000 million.  Growth of energy and metals may slow down, but machinery, aerospace, chemicals and synthetic resins leading steady expansion.

 

Half-yearly results ending Sept 2006: sales Yen 2,529,244 million (up 7.4%), recurring profit Yen 46,394 million (up 8.8%), net profit Yen 31,356 million (up 21%)  (% in parenthesis compared with the same period the year ago.

           

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements. Max credit limit is estimated at Yen 66,735.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:            Apr 2003

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    1,179,000,000 shares

Issued:                          550,022,889 shares

Sum:                            Yen 130,549 million

Major shareholders (%): UBS (London) Asia Equities (6.5), Trustee Bank of Japan T (3.6), Master Trust Bank of

                                    Japan T (3.3), Morgan Stanley Securities (2.7), Leeman Brothers Asia Capital (1.9), State

                                    Street Bank & Trust (1.9), Isao Nasu (1.8), Bank of Tokyo-Mitsubishi UFJ (1.7), JP

                                    Morgan Chase (1.5), E-Trade Securities (1.5); foreign owners (27.2)

No. of shareholders:       104,053

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

Managements:               Akio Dobashi, pres & CEO; Yutaka Kase, v pres; Masaki Hashikawa, v pres; Yasuyuki

                                    Fujishima, s/mgn dir; Katsuhiko Kobayashi, s/mgn dir; Keisuke Ishihara, mgn dir; Yoji

                                    Sato, mgn dir; Shigeo Muraoka, dir; Yoshihiko Miyauchi, dir

 

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

 

 

Related companies

 

NI Electronics, Sojitz Machinery, Sojitz Marine & Engineering, Nissin Gas Engineering, other (Tot 321 as of Mar/06)

           

 

OPERATION

 

Activities: General trading house (sales breakdown by divisions):

Machinery, aircraft, aerospace (19%), Energy, metals, resources (24%), chemicals, synthetic resins (13%), building materials, construction materials, lumber (8%),textiles, household, lifestyle essentials (17%), others (18%).

           

Overseas trading ratio 35.2%: N America 6.5%, Europe 3.3%, Asia/Oceania 20.3%, others 5.0%

 

Clients: [Mfrs, wholesalers] Kobe Steel, NM Life, First Retailing, Varig SA, 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, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

Bank of Tokyo-Mitsubishi UFJ (H/O)

Mizuho Corporate Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

4,972,059

4,675,903

 

  Cost of Sales

4,729,892

4,431,656

 

      GROSS PROFIT

242,166

244,247

 

  Selling & Adm Costs

165,964

178,725

 

      OPERATING PROFIT

76,202

65,521

 

  Non-Operating P/L

2,571

-7,433

 

      RECURRING PROFIT

78,773

58,088

　

      NET PROFIT

43,706

-412,475

BALANCE SHEET

 

 

 

 

  Cash

　

521,937

426,082

 

  Receivables

 

613,513

618,086

 

  Inventory

 

214,163

194,694

 

  Securities, Marketable

6,471

7,150

 

  Other Current Assets

154,370

177,137

 

      TOTAL CURRENT ASSETS

1,510,454

1,423,149

 

  Property & Equipment

246,665

246,652

 

  Intangibles

 

100,131

103,850

 

  Investments, Other Fixed Assets

664,429

674,827

 

      TOTAL ASSETS

2,521,679

2,448,478

 

  Payables

 

451,438

472,513

 

  Short-Term Bank Loans

775,555

933,100

 

　

 

　

　

 

  Other Current Liabs

830,610

349,068

 

      TOTAL CURRENT LIABS

2,057,603

1,754,681

 

  Debentures

 

99,036

16,048

 

  Long-Term Bank Loans

473,109

296,927

 

  Reserve for Retirement Allw

25,558

29,046

 

  Other Debts

　

(597,703)

38,185

 

      TOTAL LIABILITIES

2,057,603

2,134,887

 

      MINORITY INTERESTS

37,125

33,349

 

Common stock

130,549

336,122

 

Additional paid-in capital

166,754

487,686

 

Retained earnings

92,487

(492,048)

 

Evaluation p/l on investments/securities

90,547

32,629

 

Others

 

(53,275)

(84,062)

 

Treasury stock, at cost

(113)

(86)

 

      TOTAL S/HOLDERS` EQUITY

426,949

280,241

　

      TOTAL EQUITIES

2,521,679

2,448,478

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

43,155

-19,774

 

Cash Flows from Investment Activities

99,155

238,410

 

Cash Flows from Financing Activities

-55,805

-212,264

　

Cash, Bank Deposits at the Term End

　

506,254

406,566

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

426,949

280,241

 

 

Current Ratio (%)

73.41

81.11

 

 

Net Worth Ratio (%)

16.93

11.45

 

 

Recurring Profit Ratio (%)

1.58

1.24

 

 

Net Profit Ratio (%)

0.88

-8.82

 

 

Return On Equity (%)

10.24

-147.19

 

 

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.

 

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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