MIRA INFORM REPORT

 

 

Report Date :

28.02.2011

 

IDENTIFICATION DETAILS

 

Name :

UBE INDUSTRIES Ltd

 

 

Registered Office :

Seavans North Bldg, Shibaura Minatoku Tokyo 105-8449

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

March 1942

 

 

Com. Reg. No.:

(Yamaguchi-Ube) 002992             

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of chemicals, construction materials, machinery & metal molding, energy

 

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 11,536.4 Million

Status :

Satisfactory

Payment Behaviour :

Usually Correct 

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

 

UBE INDUSTRIES Ltd

 

 

REGD NAMe 

 

Ube Kosan KK

 

 

MAIN OFFICE

 

 Seavans North Bldg, Shibaura Minatoku Tokyo 105-8449 JAPAN

Tel: 03-5419-6112     Fax: 03-5419-6237-

 

*.. Registered at: 1978-96 Kogushi Ube City Yamaguchi-Pref;

 

Phone: 0836-31-1111; Fax: 0836-21-2232

 

URL:                             http://www.ube-ind.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Mfg of chemicals, construction materials, machinery & metal molding, energy

 

 

BRANCHES

 

Osaka, Nagoya, Fukuoka

 

 

OVERSEAS   

 

China (5), Hong Kong, Singapore, Thailand (5), USA (2), Europe (4), Brazil

 

 

FACTORIES

 

Ube (2), Chiba, Ise, Sakai

CHIEF EXEC 

 

MICHIO TAKESHITA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 549,556 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 58,435 M

TREND             SLOW              　WORTH         Yen 202,190 M

STARTED                     1954                 　EMPLOYES   1,242

 

 

COMMENT    

 

MFR OF CHEMICALS & CEMENT AS MAINLINE 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 11,536.4 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Forecast figures for the 31/03/2011 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established originally as coal mining firm in 1987.  Made new start in 1942 thru merger of 3 firms in chemical, cement & machinery industries.  Now is a diversified mfr of chemicals & cement, as mainline.  Third ranked mfr of nylon materials in the world.  Also has strength in electronic materials.  The firm will boost its global production of caprolactam from current 390,000 tons to 418,000 tons per year by early 2012.  Silicon nitride for solar cells is going into full-scale production soon.  It will rush to start mass production of highly scratch-resistant polymer materials.  

 

 

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 549,556 million, a 19.7% down from Yen 684,703 million in the previous term.  Global economic downturn affected the sales.  Exports were hurt by the high Yen.  Sales declined in all segments.  By Divisions, Chemicals & Resins down 24.2% to Yen 161,100 million, as sales price of the products decreased due to slowdown in the market along with drop of raw material prices; Functional Materials & Fine Chemicals down 13.4% to Yen 184,800 million, as shipment of polyimide products is still in process of recovery, and that of gas separation membranes remained low; Cement & Construction Materials down 11.7% to Yen 184,800 million, due to depressed public investment; Machinery & Metal Molding down 26.6% to Yen 80.800 million, due to depressed capital investment in the automobile industry; Energy & environment down 29.4% to Yen 43,600 million  The recurring profit was posted at Yen 18,995 million and the net profit at Yen 8,217 million,　respectively, compared with Yen 20,397 million recurring profit and Yen 11,66 million net profit, respectively, a year ago.　. 

           

(Apr/Dec/2010 results): Sales 452,449 million (up 13.6%), operating profit Yen 30,612 million (up 66.4%), recurring profit Yen 26,261 million (up 117.8%), net profit Yen 15,036 million (up 180.5%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 28,500 million and the net profit at Yen 17,000 million, on a 6.9% rise in turnover, to Yen 613,000 million.  Sales of nylon material caprolactam will be quite strong, and the rubber will grow steadily.  Growth of cement sales will dwindle, but not so fast as predicted.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,536.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　      Mar 1942

Regd No.:                                 (Yamaguchi-Ube) 002992

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                   3,300 million shares

Issued:                         1,009,165,006 shares

Sum:                            Yen 58,435 million

 

Major shareholders (%): Japan Trustee Services T (9.7), Master Trust Bank of Japan T (6.8), Japan Trustee Services T9 (2.0), Nippon Life Ins (1.9), Sumitomo Life Ins (1.9), Zenkyoren (1.8), Japan Trustee Services T4 (1.7), Nomura Trust Inv T (1.5), MUFG (1.3), Mizuho Corporate Bank (1.2); foreign owners (26.7)

 

No. of shareholders: 59,174

 

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

 

Managements: Hiroaki Tamura, ch; Michio Takeshita, pres; Kazuhiko Okada, v pres; Nobuyuki Takahashi, s/mgn dir; Akinori Furukawa, s/mgn dir; Kazuma Sekiya, s/mgn dir; Yuzuru Yamamoto, s/mgn dir; Charyunya Phichitkul, mgn dir; Akinori Furukawa, mgn dir

 

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

Related companies: Ube Materials, Ube Kosan Machinery, other.

 

 

OPERATION

           

Activities: Manufactures chemicals & cement, as mainline:

 

(Sales Breakdown by Divisions):

 

Chemicals & Resins Division (29%): synthetic rubber, caprolactam chain (caprolactam, polyamide resins, industrial chemicals);

 

Functional Materials & Fine Chemicals Division (14%): specialty products (polyamide, battery materials, high purity chemicals, separation membranes, ceramics, telecommunication devices, aerospace materials), fine chemicals, pharmaceuticals (active ingredients, intermediates);

 

Construction Materials Division (34%): cement, resource recycling, building materials (self-leveling materials, plastering materials & waterproofing materials), limestone, ready-mixed concrete, calcia, magnesia, specialty inorganic materials;

 

Machinery & Metal Molding Division (15%): machinery (molding machines, die-casting machines, injection molding machines, industrial machinery, bridges & structures, steelmaking materials, aluminum wheels;

 

Energy & Environment Division (8%): coal, power:

 

Others (1%)

 

Overseas Sales Ratio (27.6%): Asia 20.8%, Europe 5.0%, others 1.8%

           

Clients: [Mfrs, wholesalers] Ube Mitsubishi Cement, Unitika Ltd, Toyota Tsusho Corp, Bridgestone Corp, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Sojitz Corp, Mitsubishi Corporation, Ube Ammonia Ind,

            Sumitomo Corp, Rio Tinto Japan, Toho Tenax Co, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Corporate Bank (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

　

549,556

684,703

 

  Cost of Sales

448,328

572,010

 

      GROSS PROFIT

101,228

112,693

 

  Selling & Adm Costs

73,633

81,530

 

      OPERATING PROFIT

27,595

31,163

 

  Non-Operating P/L

-8,600

-10,766

 

      RECURRING PROFIT

18,995

20,397

　

      NET PROFIT

8,217

11,664

BALANCE SHEET

 

 

 

 

  Cash

　

37,511

39,343

 

  Receivables

 

133,522

124,049

 

  Inventory

 

69,704

92,612

 

  Securities, Marketable

　

　

 

  Other Current Assets

20,850

21,549

 

      TOTAL CURRENT ASSETS

261,587

277,553

 

  Property & Equipment

324,732

332,418

 

  Intangibles

 

4,213

4,158

 

  Investments, Other Fixed Assets

64,261

63,857

 

      TOTAL ASSETS

654,793

677,986

 

  Payables

 

78,983

80,304

 

  Short-Term Bank Loans

111,555

130,146

 

　

 

　

　

 

  Other Current Liabs

55,935

58,575

 

      TOTAL CURRENT LIABS

246,473

269,025

 

  Debentures

 

15,140

16,000

 

  Long-Term Bank Loans

152,954

159,810

 

  Reserve for Retirement Allw

1,126

1,157

 

  Other Debts

　

36,910

37,271

 

      TOTAL LIABILITIES

452,603

483,263

 

      MINORITY INTERESTS

 

 

 

Common stock

58,435

58,435

 

Additional paid-in capital

28,445

28,440

 

Retained earnings

101,579

97,511

 

Evaluation p/l on investments/securities

1,556

1,119

 

Others

 

12,945

9,842

 

Treasury stock, at cost

(770)

(624)

 

      TOTAL S/HOLDERS` EQUITY

202,190

194,723

　

      TOTAL EQUITIES

654,793

677,986

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

60,107

45,531

 

Cash Flows from Investment Activities

-29,928

-32,929

 

Cash Flows from Financing Activities

-32,265

4,300

　

Cash, Bank Deposits at the Term End

　

37,281

39,131

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

202,190

194,723

 

 

Current Ratio (%)

106.13

103.17

 

 

Net Worth Ratio (%)

30.88

28.72

 

 

Recurring Profit Ratio (%)

3.46

2.98

 

 

Net Profit Ratio (%)

1.50

1.70

 

 

Return On Equity (%)

4.06

5.99

 

 

           


 

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.