MIRA INFORM REPORT

 

 

Report Date :           

12.04.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

MARUBENI CORPORATION

 

 

Registered Office :

1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

December 1949

 

 

Com. Reg. No.:

0100-01-008776 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

A general trading house

 

 

No. of Employees :

31,547

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 125,884.6 Million

 

 

Status :

Good

 

 

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 – March 31st, 2012

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

MARUBENI CORPORATION

 

 

REGD NAME

 

Marubeni KK

 

 

MAIN OFFICE

 

1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088 JAPAN

Tel: 03-3282-2111     Fax: 03-3282-2331

 

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

E-Mail address:            info@marubeni.co.jp

 

 

ACTIVITIES  

 

A general trading house

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, other (Tot 9 domestic)

 

 

OVERSEAS

 

57 overseas branches & offices; 32 overseas corporate subsidiaries with 62 offices, totaling 119 offices in 69 countries/areas.

 

 

CHIEF EXEC

 

TERUO ASADA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 9,020,468 M

PAYMENTS                  REGULAR         CAPITAL           Yen 262,686 M

TREND                         STEADY           WORTH            Yen 831,730 M

STARTED         1949                 EMPLOYES      31,547

 

 

COMMENT

 

GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

                       

MAX CREDIT LIMIT: YEN 125,884.6 MILLION, 30 DAYS NORMAL TERMS.

 

 

 

                        Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 

HIGHLIGHTS

 

This is one of the leading general trading house, originated in Osaka as a textile merchant, with its roots same as the present Itochu Corp, actually a breakaway from the same roots.  Strong in areas of grain, machinery, industrial plants, chemicals & communications.  Tops in pulps & paper.  Well-experienced in domestic construction operations, including housing.  Also maintains a strong presence in grain trading.  Recently strength being focused on information communications sector entering satellite broadcasting thru CATV network.  Developing & producing uranium at mine in Kazakhstan, jointly with Tokyo Electric Power & others, having right to obtain 2,000 tons/year with 60% equity share.  Acquired electric power holding company in Caribbean area at cost of some Yen 70 billion.  Tied up with largest grain reserve operation group firm in China to expand local supply of raw material soybeans and rapeseeds.  In China, making 30% capital participation in wastewater treatment plant construction/operation firm in preparation for central government’s plan to improve sewerages in urban areas.  In grain division, trying up with national oil extraction firm to take in surging soybean demand in China.  The firm acquired Chile’s third largest private sector waterworks business jointly with Innovation Network Corp of Japan.  It will further seek acquisitions in South America via the firm.  Chile’s Esperanza Mine, where the firm has a 30% stake, started shipments in Jan 2011.

 

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 9,020,468 million, a 13.3% up from Yen 7,965,055 million in the previous term.  This is referred to the robust resources business that offset food-segment losses from the March 11 Earthquake.  The firm logged several billion Yen in extraordinary losses as it wrote off the damage it sustained to food storage facilities and grain inventories.  But this was offset by the strength of its energy and resources business.  By Divisions, Energy up 29.3% to Yen 2,476,400 million; Foods up 11.9% to Yen 1,781,00 million; Metals/Resources up 29.3% to Yen 868,500 million; Paper & Pulp up 2.4% to Yen 22,300 million; Chemicals up 22.6% to Yen 799,900 million; Plant/Ships/Industrial Machinery up 2.4% to Yen 335,500 million; Transportation Machinery up 3.0% to Yen 690,400 million.  The recurring profit was posted at Yen 207,217 million (up 24.5%) and net profit at Yen 136,541 million (up 43.3%) 14.3%).  (% compared with the corresponding period a year ago).

 

(Apr/Dec/2011 results): Sales Yen 7,652,762 million (up 15.3%), operating profits Yen 125,979 million (up 26.2%), recurring profits Yen 214,778 million (up 38.2%), net profit Yen 141,253 million (up 32.1%).  (% compared with the corresponding period a year ago.)

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 255,000 million and the net profit at Yen 170,000 million, respectively, on a 10.9% rise in turnover, to Yen 10,000,000 million.  Resources including copper and coal are driving earnings growth backed by a strong market   Foods are benefitting from increased sales volume of grains.  Electric power, including IPP, infrastructure and transportation machinery businesses are in good shape.  Net profit will hit a new high.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 125,884.6 million, on 30 days normal terms. 

 

 

REGISTRATION

           

Date Registered: Dec 1949

Regd No.:         0100-01-008776 (Tokyo-Chiyodaku)

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      4,300 million shares

Issued:            1,737,940,900 shares

Sum:                 Yen 262,686 million

 

Major shareholders (%): Japan Trustee Services T (5.9), Master Trust Bank of Japan T (4.3), Sompo Japan Ins (3.2), Tokio Marine & Nichido Fire Ins (2..8), Meiji Yasuda Life Ins (2.4), Mizuho Corporate Bank (1.7), Japan Trustee Services T9 (1.6), Chase London SL Omnibus Acct (1.5), Nippon Life Ins (1.4), State Street Bank & Trust 505103 (1.3); foreign owners (33.2)

           

No. of shareholders: 115,657

 

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

 

Managements: Nobuo Katsumata, ch; Teruo Asada, pres & CEO; Mamoru Sekiyama, v pres; Michihiko Ota, s/mgn dir; Shinji Kawai, mgn dir; Shigemasa Sonobe, mgn dir; Shigeru Yamazoe, mgn dir; Mitsuru Akiyoshi, mgn dir; Toshiyuki Ogura, dir; Shigeaki Ishikawa, dir

           

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

 

Related companies: Marubeni Energy, Marubeni Nisshin Feed, Marubeni Pulp     & Paper, other

           

 

OPERATION

 

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

 

(Sales breakdown by Divisions):

 

Energy Division (27%): oil & gas exploration & production (E&P), LNG projects, nuclear fuels from Kazakhstan, naphtha trading, LPG, other; engaged in Peru LNG project, promoting Kazakhstan uranium mine project;

 

Foods Division (20%): production & trading of food-related products, including livestock feed & fodder, grain, soybeans, wheat, sugar, processed foods, beverages & related ingredients, commercial foods & agricultural & marine products, frozen/chilled foods; engaged in midstream/downstream operations with Daiei Inc, Maruetsu Inc (--supermarket chains) as subsidiaries;

 

Metals & Resources Division (10%): invests in metals & mineral resources development, including the mining of steelmaking raw materials, coal & nonferrous metals, smelting of aluminum, steel-making raw materials, thermal coal for power utilities & general industries, nonferrous ingots, electronics materials, recycling & new energy businesses;

 

Materials & Paper/Pulp Division (6%): afforestation operations, wood chips, pulp & wastepaper, paper & paperboards, natural rubber, rubber products, leather, footwear, fitness equipment & other sporting goods, timber & plywood, other; engaged in development recycled paper business, pulp production plant in Indonesia, afforestation & wood chip production in Brazil;

 

Chemicals Division (9%): basic chemicals (olefins & synthetic fiber intermediates), petrochemical products (vinyl alkali products & polymers), inorganic chemicals (salt, sulfur, agrochemicals, specialty chemicals, electronic materials (LCD, semiconductor-related products; engaged in synthetic rubber business in China;

 

Transportation & Industrial Machinery Division (8%): aircraft, aero engines, helicopters, defense systems, automotives, construction & agricultural machinery, automotive production lines, pulp & paper machinery, semiconductor & DVD production machinery, precision machine tools, printing machinery, visual inspection systems, food packaging machines, chemical machinery & new energy-related systems;

 

Plant, Ship & Infrastructure Projects Division (4%): plant machinery & equipment (oil & gas, steel & cement), infrastructure (rail transport, airports, water supply, sewage) projects, shipbuilding & related equipment, sale & purchase of used vessels, textile machinery & related equipment;

 

Other Divisions (16%): Lifestyle Division, Real estate Development Division, Iron & Steel Strategies & Coordination Division, Abu Dhabi Trade House Project Division, Overseas Operations, other

 

Overseas operations (28%)

 

Clients: [Mfrs, electric powers, wholesalers] Tokyo Electric Power, Chubu Electric Power, Nissan Motors, Showa Denko, Idemitsu Kosan, JFE Steel, Uniqlo, Daio Paper Corp, other.

            No. of accounts: 3,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Nissan Motors, Showa Denko, Nippon Paper, Hitachi Construction Machinery, Idemitsu Kosan, Komatsu Ltd, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (H/O)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen):

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

9,020,468

7,965,055

 

  Cost of Sales

8,498,316

7,473,382

 

      GROSS PROFIT

522,152

491,673

 

  Selling & Adm Costs

370,963

366,922

 

      OPERATING PROFIT

151,189

124,751

 

  Non-Operating P/L

56,028

41,676

 

      RECURRING PROFIT

207,217

166,427

　

      NET PROFIT

136,541

95,312

BALANCE SHEET

 

 

 

 

  Cash

　

616,003

570,789

 

  Receivables

 

884,874

864,760

 

  Inventory

 

372,156

328,915

 

  Securities, Marketable

2,870

3,743

 

  Other Current Assets

521,888

472,921

 

      TOTAL CURRENT ASSETS

2,397,791

2,241,128

 

  Property & Equipment

639,366

691,136

 

  Intangibles

 

8,540,692,388

　

 

  Investments, Other Fixed Assets

(8,539,050,456)

1,654,308

 

      TOTAL ASSETS

4,679,089

4,586,572

 

  Payables

 

732,560

675,736

 

  Short-Term Bank Loans

106,275

96,362

 

　

 

　

　

 

  Other Current Liabs

897,317

831,674

 

      TOTAL CURRENT LIABS

1,736,152

1,603,772

 

  Debentures

 

2,021,241

2,104,718

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

53,411

44,154

 

  Other Debts

　

36,555

34,182

 

      TOTAL LIABILITIES

3,847,359

3,786,826

 

      MINORITY INTERESTS

 

 

 

Common stock

262,686

262,686

 

Additional paid-in capital

157,908

158,409

 

Retained earnings

712,815

594,508

 

Evaluation p/l on investments/securities

21,005

33,808

 

Others

 

(322,003)

(249,029)

 

Treasury stock, at cost

(681)

(636)

 

      TOTAL S/HOLDERS` EQUITY

831,730

799,746

　

      TOTAL EQUITIES

4,679,089

4,586,572

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

210,044

280,610

 

Cash Flows from Investment Activities

-128,495

-35,207

 

Cash Flows from Financing Activities

-17,010

-254,655

　

Cash, Bank Deposits at the Term End

　

616,003

570,789

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

831,730

799,746

 

 

Current Ratio (%)

138.11

139.74

 

 

Net Worth Ratio (%)

17.78

17.44

 

 

Recurring Profit Ratio (%)

2.30

2.09

 

 

Net Profit Ratio (%)

1.51

1.20

 

 

Return On Equity (%)

16.42

11.92

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.51.55

UK Pound

1

Rs.81.95

Euro

1

Rs.67.57

 

 

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

----

NB

New Business

----

 

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.