MIRA
INFORM REPORT
|
Report Date : |
01.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MITSUBISHI CHEMICAL CORPORATION |
|
|
|
|
Registered Office : |
4-14-1 Shiba Minatoku Tokyo 108-0014 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
June 1950 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturer of Petrochemicals, Functional Chemicals,
Health-Care Products, Other |
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 |
|
Maximum Credit Limit : |
YEN 50,676.5 Million |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
name & address
MITSUBISHI
CHEMICAL CORPORATION
REGD NAME: Mitsubishi Kagaku KK
MAIN OFFICE: 4-14-1 Shiba Minatoku Tokyo 108-0014 JAPAN
Tel:
03-6414-3730 Fax: 03-6414-3745
URL: http://www.m-kagaku.co.jp/
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of petrochemicals, functional chemicals, health-care
products, other
BRANCHES
Osaka, Nagoya, Fukuoka Sapporo
OVERSEAS
USA (2), Germany, Hong Kong, China (2), Singapore, Thailand
(--subsidiaries)
FACTORY(IES)
Kurosaki, Yokkaichi, Naoetsu, Mizushima, Sakaide, Kashima,
Tsukuba,
Matsuyama, Odawara
R&D Centers
Yokohama, Tsukuba
OFFICER(S)
YOSHIMITSU KOBAYASHI, PRES
Ken’ichi Uno, s/mgn dir (rep dir)
Etsujiro Koge, s/mgn dir
Atsushi Baba, s/mgn dir
Shotaro Yoshimura, s/mgn dir
Ryuichi Tomizawa, s/mgn dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 2,544,169 M
PAYMENTS REGULAR CAPITAL Yen 50,000 M
TREND STEADY WORTH Yen 515,210 M
STARTED 1950 EMPLOYES 25,204
COMMENT
MFR
SPECIALIZING IN CHEMICALS, WHOLLY OWNED BY MITSUBISHI CHEMICAL HOLDINGS
CORP.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT
ENGAGEMENTS:
US$15,000 / DA TERMS.
MAX CREDIT LIMIT: YEN 50,676.5 MILLION, 30 DAYS NORMAL
TERMS.
Forecast
(estimated) for the 31/03/2009 fiscal term
HIGHLIGHTS
This
is the nation’s largest comprehensive chemical mfr. Tops in ethylene production.
Reborn through the merger between Mitsubishi Kasei and Mitsubishi
Petrochemical. In Oct 2005, founded
joint-stock holding company, Mitsubishi Chemical Holdings Corp, jointly with
Mitsubishi Pharma Corp by means of a stock-to-stock exchange, and became its
wholly owned subsidiary, simultaneously de-listed from Tokyo & Osaka S/E’s. By the stead, Mitsubishi Chemical Holdings
Corp was listed on the two S/E’s. Core
of the group, with petrochemicals accounting or about 85% of total group
sales. The subject is the top ethylene
mfr, producing petrochemicals, functional chemicals, healthcare products,
other.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 2,544,169 million, a 5.5%
up from Yen 2,410,879 million in the previous term. Sales of mainline petrochemicals were hit by regular plant
maintenance, but helped by robust overseas demand. Two subsidiaries were withdrawn from the consolidated
financials. However, spurred by rising
costs of materials the sales volume rose robustly. The Petrochemical Div was up 15% to Yen 1,434,100 million;
Functional Chemicals were down due to price adjustment of DVD-related products;
Functional Materials down 9.1% to Yen 833,700 million, due to the said
withdrawal of two major mfrs in this segment.
The recurring profit was posted at Yen 72,269 million and the net profit
at Yen 30,847 million, respectively, compared with Yen 107,801 million
recurring profit and Yen 243,138 million net profit, respectively, a year
ago. The profit decline is due to the
withdrawal of the two profitable operations, in addition to fire accidente at
Kashima Ethylene Plant during the term.
(Apr/Jun/2008
results): Sales Yen 579,600 million, recurring profit Yen 5,460 million, net
profit Yen 5,860 million, total assets Yen 1,822,155 million, net worth Yen
5,640 million.
For
the current term ending Mar 2009 the recurring profit is projected at Yen
75,000 million and the net profit at Yen 35,000 million, respectively, on a 14%
rise in turnover, to Yen 2,900,000 million.
Chemicals may still feel impact of accident at Kashima Ethylene Plant,
but benefits will come from startup of Kurosaki Plant in 2nd
half. Approval is sought for
establishment of functional chemical JV in Beijing, expecting to complete new
plant in spring 2010.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 50,676.5 million, 30 days normal terms.
REGISTRATION
Date Registered: Jun 1950
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 5,900 million shares
Issued: 2,177,675,032 shares
Sum: 50,000 million
Major shareholders (%): Mitsubishi Chemical Holdings
Corp*(100)
*..
Joint-stock holding company, formed in Oct 2005, listed Tokyo, Osaka S/E’s,
with role of portfolio management of the group, capital Yen 50,000 million,
turnover Yen 2,929,810 million, operating profit Yen 125,046 million, recurring
profit Yen 128,885 million, net profit Yen 164,064 million, total assets Yen
2,765,837 million, net worth Yen 827,809 million, employees 39,305, pres
Yoshimitsu Kobayashi, concurrently.
Nothing detrimental is known as
to the commercial morality of executives.
OPERATION
Activities:
Manufactures petrochemicals (56%), functional chemicals (21%), functional materials (12%), healthcare products (3%),
services, others (8%).
(Products by divisions):
Petrochemicals Div: purified terephthalic acid, C4
chemicals, PET resins, glacial acrylic acid & derivatives, engineering
plastics, functional polymers;
Functional Chemicals Div: information & electronics products
(printing supplies, display materials, optical recording media), functional
chemicals (fine chemicals, ion-exchange resins, activated carbon, electronic
chemicals, food ingredients);
Functional Materials Div: functional materials (carbon
materials & products, inorganic materials); high performance materials
(films & sheets, construction & civil engineering materials,
agricultural materials);
Healthcare Products Div: active pharmaceutical
ingredients, diagnostic reagents & instruments, clinical testing, support
for drug discovery;
Other Div: carbon, etc.
Overseas sales ratio (29.8%): Asia (China, Taiwan, Korea,
Indonesia, Thailand, India) 20.8%; other regions (N America, Europe) 8.9%.
Clients
[Mfrs, wholesalers] Mitsubishi
Corp, Nisshin Steel, Meiwa Corp, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers]
Mitsubishi Corp, Nippon Oil Corp, Nisshin Steel, other.
Payment
record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned by the parent, Mitsubishi Chemical Holdings
Corp, and maintained satisfactorily.
Bank References
MUFG (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
|
|||||
|
|
|
Terms Ending: |
31/03/2008 |
31/03/2007 |
||
|
INCOME STATEMENT |
|
|
||||
|
|
Annual Sales |
|
2,544,169 |
2,410,879 |
||
|
|
Cost of Sales |
2,207,280 |
2,048,575 |
|||
|
|
GROSS PROFIT |
336,889 |
362,304 |
|||
|
|
Selling & Adm Costs |
269,433 |
273,041 |
|||
|
|
OPERATING PROFIT |
67,456 |
89,263 |
|||
|
|
Non-Operating P/L |
4,813 |
18,538 |
|||
|
|
RECURRING PROFIT |
72,269 |
107,801 |
|||
|
|
NET PROFIT |
30,847 |
243,138 |
|||
|
BALANCE SHEET |
|
|
|
|||
|
|
Cash |
|
29,832 |
55,603 |
||
|
|
Receivables |
|
435,920 |
511,452 |
||
|
|
Inventory |
|
328,921 |
318,518 |
||
|
|
Securities, Marketable |
|
|
|||
|
|
Other Current Assets |
93,666 |
225,126 |
|||
|
|
TOTAL CURRENT ASSETS |
888,339 |
1,110,699 |
|||
|
|
Property & Equipment |
644,379 |
647,708 |
|||
|
|
Intangibles |
|
19,208 |
32,177 |
||
|
|
Investments, Other Fixed Assets |
318,125 |
389,091 |
|||
|
|
TOTAL ASSETS |
1,870,051 |
2,179,675 |
|||
|
|
Payables |
|
369,878 |
420,791 |
||
|
|
Short-Term Bank Loans |
258,964 |
321,946 |
|||
|
|
|
|
|
|
||
|
|
Other Current Liabs |
277,057 |
297,714 |
|||
|
|
TOTAL CURRENT LIABS |
905,899 |
1,040,451 |
|||
|
|
Debentures |
|
155,000 |
209,115 |
||
|
|
Long-Term Bank Loans |
198,597 |
201,802 |
|||
|
|
Reserve for Retirement Allw |
58,378 |
81,666 |
|||
|
|
Other Debts |
|
36,967 |
45,653 |
||
|
|
TOTAL LIABILITIES |
1,354,841 |
1,578,687 |
|||
|
|
MINORITY INTERESTS |
|
|
|||
|
|
Common
stock |
50,000 |
50,000 |
|||
|
|
Additional
paid-in capital |
13,204 |
13,204 |
|||
|
|
Retained
earnings |
367,443 |
418,707 |
|||
|
|
Evaluation
p/l on investments/securities |
44,324 |
75,577 |
|||
|
|
Others |
|
40,239 |
43,500 |
||
|
|
Treasury
stock, at cost |
|
|
|||
|
|
TOTAL S/HOLDERS` EQUITY |
515,210 |
600,988 |
|||
|
|
TOTAL EQUITIES |
1,870,051 |
2,179,675 |
|||
|
CONSOLIDATED CASH FLOWS |
|
|
||||
|
|
|
Terms ending: |
31/03/2008 |
31/03/2007 |
||
|
|
Cash
Flows from Operating Activities |
|
82,270 |
60,932 |
||
|
|
Cash
Flows from Investment Activities |
-19,103 |
48,397 |
|||
|
|
Cash Flows
from Financing Activities |
-81,920 |
-107,140 |
|||
|
|
Cash,
Bank Deposits at the Term End |
|
29,831 |
55,370 |
||
|
ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
||||
|
|
|
Net
Worth (S/Holders' Equity) |
515,210 |
600,988 |
||
|
|
|
Current
Ratio (%) |
98.06 |
106.75 |
||
|
|
|
Net
Worth Ratio (%) |
27.55 |
27.57 |
||
|
|
|
Recurring
Profit Ratio (%) |
2.84 |
4.47 |
||
|
|
|
Net
Profit Ratio (%) |
1.21 |
10.09 |
||
|
|
|
Return
On Equity (%) |
5.99 |
40.46 |
||
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.62.84 |
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%)