MIRA INFORM REPORT

 

 

Report Date :

28.02.2011

 

IDENTIFICATION DETAILS

 

Name :

SUMITOMO CORPORATION

 

 

Registered Office :

Office Tower Y Harumi Island Triton Square, 1-8-11 Harumi Chuoku Tokyo 104-8610

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

December 1919

 

 

Com. Reg. No.:

(Tokyo-Chuoku) 008692

 

 

Legal Form :

Limited Company

 

 

Line of Business :

General Trading House of metals, industrial machinery, energy & chemicals

 

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 138,250.8 Million

Status :

Excellent

Payment Behaviour :

Regular

Litigation :

---

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

SUMITOMO CORPORATION

 

 

REGD NAME 

 

Sumitomo Shoji KK

 

 

MAIN OFFICE

 

Office Tower Y Harumi Island Triton Square, 1-8-11 Harumi Chuoku Tokyo 104-8610 JAPAN

Tel: 03-5166-5000     Fax: 03-5166-6296

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

E-Mail address: ir@sumitomocorp.co.jp (Investor Relations Div)

 

 

ACTIVITIES

 

General trading house of metals, industrial machinery, energy & chemicals

 

 

BRANCHES   

 

Osaka, Nagoya, other (Tot 26 domestic); 115 overseas in 65 countries

 

 

CHIEF EXEC

 

SUSUMU KATOH, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 7,767,163 M

PAYMENTS      REGULAR         CAPITAL           Yen 219,279 M

TREND             SLOW              WORTH            Yen 1,694,658 M

STARTED         1919                 EMPLOYES      72,030

 

COMMENT    

 

LEADING GENERAL TRADING HOUSE, NUCLEUS OF SUMITOMO GROUP FIRMS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESSENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 138,250.8 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

 

This is leading general trading house, dating back to 1919, and a nucleus of Sumitomo group firms.  Among trading houses, known for sound financial standing and stable management.  Active in multimedia field with strong CATV networks.  Has JV with TCI, largest CATV provider in US.  Holds largest share in Seiyu, a major supermarket chain operator, affiliated with Wall Mart.  Holds 50% stake in Australian Bulk Alliance Pty Ltd.  Developing large-scale coal-powered thermal power plant project in Indonesia.  Boosting power-related operations in S/E Asia.   Acquired 25% interests in uranium mine (minable reserve at 18,000 tons, annual output assumed at 1,000 tons) at Kazakhstan.  Won joint project (worth Yen 150 billion) on power generation/water desalination facilities in Bahrain.  Finished additional acquisition of shares of Jupiter Telecommunications, becoming the leading shareholder with a 40% equity stake.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 7,767,163 million, a 27.7% down from Yen 10,749,996 million in the previous term, as substantially affected by the global economic downturn.  Exports were hurt by the strong yen, reducing export revenues and profits in Yen terms.  By Divisions, Metals down 37.4% to Yen 54,100 million; Transportation & Construction down 15.9% to Yen 130,800 million; Infrastructures down 22.8% to Yen 31,200 million; Resources & Chemicals down 7.9% to Yen 84,600 million.  The recurring profit was posted at Yen 223,256 million and the net profit at Yen 155,199 million, respectively, compared with Yen 319,635 million recurring profit and Yen 215,678 million net profit, respectively, a year ago.

 

(Apr/Jun/2010 results): Sales Yen 2,024,527 million (up 7.9%), operating profit Yen 58,234 million (up 192.4%), recurring profit Yen 89,470 million (up 162.5%), net profit Yen 64,560 million (up 158.4%).  (% compared with the corresponding period a year go). 

           

For the current term ending Mar 2011 the recurring profit is projected at Yen 245,000 million and the net profit at Yen 160,000 million, respectively, on an 8.1% rise in turnover, to Yen 8,400,000 million.  Gains on sale of concessions related to profit-earner mineral resources swelled in the preceding term, but will be gone.  Large scale infrastructure projects will be in cyclical slump.  Metal business will be benefited by higher operating rate of steel product processing as well as improved profitability of steel pipes in North America.  Profits of CATV and TV mail-order sales will be solid.  

           

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 138,250.8 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:  Dec 1919

Regd No.:            (Tokyo-Chuoku) 008692

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,000 million shares

Issued:                1,250,602,867 shares

Sum:                   Yen 219,279 million

           

Major shareholders (%): Master Trust Bank of Japan T (6.4), Japan Trustee Services T (6.3), Liberty Programming Japan (3.6), Mitsui Sumitomo Ins (2.6), Sumitomo Life Ins (2.4), Japan Trustee Services T4 (1.9), Sumitomo Metal Ind (1.5), Nippon Life Ins (1.3), Dai-ichi Lie Ins (1.2); foreign owners (35.9)

 

No. of shareholders: 126,335

 

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

 

Managements: Motoyuki Oka, ch; Susumu Kato, pres; Kazuo Ohmori, v pres; Shunichi Arai, s/mgn dir; Nobuo Kitagawa, s/mgn dir; Toyosaku Hamada, s/mgn dir; Takahiro Moriyama, s/mgn dir; Takashi Kano, s/mgn dir; Kuniharu Nakamura, s/mgn dir; Takuro Kawahara, mgn dir; Yoshio Oosawa, mgn dir

           

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

 

Related companies: Sumitomo Auto Lease, Sumisho Computer Systems, Sumisho Electronics, Sumitomo USA Inc, other

 

 

OPERATION

 

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

           

(Sales breakdown by divisions):

Metals Div (17%): steel, steel pipes, nonferrous metal products, metal products for automotive industries;

 

Transportation & Construction Machinery Div (15%): ships, railroad & transportation      systems, lease & auto loans for construction equipment, motor vehicles, aircraft;

 

Machinery & Electricity Div (4%): electric power, information & telecommunications, water & sewage, natural gas-related projects & pipelines;

 

Media, Electronics & Network Business Div (8%): providing infrastructure & content         services with Jupiter Telecommunications Co, a cable TV operator, other;

Chemicals Div (8%): electronics & batteries, bio-related materials, pharmaceuticals, agricultural chemicals;

 

Mineral Resources & Energy Div (27%): copper, coal, oil, LNG;

 

Consumer Goods & Services Div (21%): foodstuff, foods, textiles, supermarket chain operations, other.

 

Overseas Trading Ratio (49%): Asia 7.5%; USA 20.6%, other N America 4.7%; Europe 11.4%; other regions 4.8%

 

Clients: [Mfrs, wholesalers] Sumitomo Metal Ind, Sumitomo Light Metal Ind, Mazda Motor, Mitsubishi Heavy Ind, Sumitomo Chemical, Nippon Oil Corp, NEC Corp, Dowa Mining, other.

            No. of accounts: 3,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumitomo Metal Ind, Sumitomo Chemical, Sumitomo Light Metal Ind, Nippon Steel, Idemitsu Kosan Co, Mazda Motor, TonenGeneral Sekiyu, Toshiba Corp, Pan Pacific, Japan Energy, other.

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Tokyo)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES: (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

7,767,163

10,749,996

 

  Cost of Sales

6,987,651

9,814,764

 

      GROSS PROFIT

779,512

935,232

 

  Selling & Adm Costs

658,995

671,840

 

      OPERATING PROFIT

120,517

263,392

 

  Non-Operating P/L

102,739

56,243

 

      RECURRING PROFIT

223,256

319,635

　

      NET PROFIT

155,199

215,078

BALANCE SHEET

 

 

 

 

  Cash

　

813,833

511,350

 

  Receivables

 

1,204,927

1,304,030

 

  Inventory

 

676,840

840,088

 

  Securities, Marketable

5,259

18,963

 

  Other Current Assets

611,065

700,416

 

      TOTAL CURRENT ASSETS

3,311,924

3,374,847

 

  Property & Equipment

1,124,379

1,055,149

 

  Intangibles

 

392,940

400,555

 

  Investments, Other Fixed Assets

2,308,555

2,187,605

 

      TOTAL ASSETS

7,137,798

7,018,156

 

  Payables

 

921,003

830,356

 

  Short-Term Bank Loans

453,361

792,169

 

　

 

　

　

 

  Other Current Liabs

945,540

957,178

 

      TOTAL CURRENT LIABS

2,319,904

2,579,703

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,938,465

2,821,287

 

  Reserve for Retirement Allw

19,166

20,003

 

  Other Debts

　

165,605

138,264

 

      TOTAL LIABILITIES

5,443,140

5,559,257

 

      MINORITY INTERESTS

 

 

 

Common stock

219,279

219,279

 

Additional paid-in capital

288,564

291,256

 

Retained earnings

1,252,336

1,127,138

 

Evaluation p/l on investments/securities

74,491

18,955

 

Others

 

(138,929)

(196,587)

 

Treasury stock, at cost

(1,083)

(1,142)

 

      TOTAL S/HOLDERS` EQUITY

1,694,658

1,458,899

　

      TOTAL EQUITIES

7,137,798

7,018,156

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

510,425

348,779

 

Cash Flows from Investment Activities

-59,381

-161,517

 

Cash Flows from Financing Activities

-150,103

-5,844

　

Cash, Bank Deposits at the Term End

　

813,833

511,350

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

1,694,658

1,458,899

 

 

Current Ratio (%)

142.76

130.82

 

 

Net Worth Ratio (%)

23.74

20.79

 

 

Recurring Profit Ratio (%)

2.87

2.97

 

 

Net Profit Ratio (%)

2.00

2.00

 

 

Return On Equity (%)

9.16

14.74


FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.37

UK Pound

1

Rs.73.25

Euro

1

Rs.62.68

 

 

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

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

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.