MIRA INFORM REPORT
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Report Date : |
10.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SHIN-ETSU CHEMICAL CO LTD |
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Registered Office : |
Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku Tokyo 100-0004 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
September 1926 |
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Com. Reg. No.: |
0100-01-008680 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of PVC, semiconductor wafers, silicon |
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No. of Employees : |
16,167 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World
War II, government-industry cooperation, a strong work ethic, mastery of high
technology, and a comparatively small defense allocation (1% of GDP) helped
Japan develop a technologically advanced economy. Two notable characteristics
of the post-war economy were the close interlocking structures of
manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A tiny agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. Usually self-sufficient in rice, Japan imports about 60% of its
food on a caloric basis. Japan maintains one of the world's largest fishing
fleets and accounts for nearly 15% of the global catch. For three decades,
overall real economic growth had been spectacular - a 10% average in the 1960s,
a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed
markedly in the 1990s, averaging just 1.7%, largely because of the after
effects of inefficient investment and an asset price bubble in the late 1980s
that required a protracted period of time for firms to reduce excess debt,
capital, and labor. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2011 stood as the fourth-largest
economy in the world after second-place China, which surpassed Japan in 2001,
and third-place India, which edged out Japan in 2011. A sharp downturn in
business investment and global demand for Japan's exports in late 2008 pushed
Japan further into recession. Government stimulus spending helped the economy
recover in late 2009 and 2010, but the economy contracted again in 2011 as the
massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity
supplies remain tight because Japan has temporarily shut down almost all of its
nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled
by the earthquake and resulting tsunami. Estimates of the direct costs of the
damage - rebuilding homes, factories, and infrastructure - range from $235
billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister
Yoshihiko NODA has proposed opening the agricultural and services sectors to
greater foreign competition and boosting exports through membership in the
US-led Trans-Pacific Partnership trade talks and by pursuing free-trade
agreements with the EU and others, but debate continues on restructuring the
economy and reining in Japan's huge government debt, which exceeds 200% of GDP.
Persistent deflation, reliance on exports to drive growth, and an aging and
shrinking population are other major long-term challenges for the economy.
Source : CIA
Company
name and address
SHIN-ETSU CHEMICAL CO LTD
REGD NAME: Shin
Etsu Kagaku Kogyo KK
MAIN OFFICE: Asahi Tokai Bldg, 2-6-1 Ohtemachi Chiyodaku
Tokyo 100-0004 JAPAN
Tel:
03-3246-5011 Fax: 03-3246-5358
URL: http://www.shinetsu.co.jp/
E-Mail address: info@shinetsu.co.jp
ACTIVITIES
Mfg of PVC,
semiconductor wafers, silicon
BRANCHES
Osaka, Nagoya,
Fukuoka, Sapporo, Gunma
FACTORIES
Naoetsu, Takefu,
Gunma (Isobe, Matsuida), Kashima
OVERSEAS
USA (9), Mexico, Portugal, UK, Netherlands (4), Hungary, Germany, Malaysia (5), Korea (2), China (4), Taiwan (4), Singapore (2), Indonesia (2), Thailand (2), Philippines, Australia (2) (--subsidiaries)
CHIEF
EXEC
SHINZO MORI, PRES
& CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,047,731 M
PAYMENTSREGULAR CAPITAL Yen
119,419 M
TREND UP WORTH Yen 1,494,573 M
STARTED 1926 EMPLOYES 16,167
COMMENT
MFR SPECIALIZING IN PVC & ELECTRONIC MATERIALS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes: Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2013 fiscal term
HIGHLIGHTS
The subject company was established originally
as mfr of chemical fertilizer and limestone nitrogen, and has since developed
business operations into silicone production and PVC in 1950s. Now is known one of the world’s largest mfrs
of vinyl chloride, silicon resin and semiconductor silicon. Expanding into electronics materials,
including rare earths & synthetic quartz.
Has many excellent subsidiaries both in Japan & abroad. Noted for high earnings power. Production of rare-earth kept rising for 31st consecutive
month in value terms in spring 2008, climbing 19% from a year earlier to Yen
8.51 billion, according to a study by the Japan Electronics & Information
Technology Industries Association.
Considering start of in-house production of poly-silicon; technical
development already completed, but location of plant & construction
schedule unfixed yet. Planned capacity
buildup of 300mm wafers & release of solar cell-use products possible put
off for some time, the firm says. The
firm is building a rare-earth magnet alloy plan in Fujian, China, aiming for
stable material procurement, the new plant is scheduled to start up in Jan
2013. Water-soluble materials will be
produced in the US as well as in Japan & Europe, when a new US plant goes
into operation in early 2014.
FINANCIAL
INFORMATION
The sales volume for Mar/2012 fiscal
term amounted to Yen 1,047,731 million, a 1.0% down from Yen 1,058,257 million
in the previous term. Due to the effects
of the great east Japan Earthquake, the flood damage in Thailand and the
additional headwind resulting from the progression in the rapid appreciation of
the Japanese Yen, overall, the severe situation of the Japanese economy
continued. By divisions, Organic &
Inorganic Chemicals up 14.3% to Yen 324,030 million; Electronic Materials up
25.8% to Yen 177,792 million; Functional Materials up 4.3% to Yen 87,127
million; Silicones down 5.3% to Yen 135,461 million; Semiconductor Silicones
down 19.1% to Yen 329,656 million. The
recurring profit was posted at Yen 165,237 million and the net profit at Yen
100,643 million, respectively, compared with Yen 160,338 million recurring
profit and Yen 100,119 million net profit, respectively, a year ago..
(Apr/Jun/2012 results):
Sales Yen 265,516 million (up 6.6%), operating profit Yen 40,338 million (up
0.8%), recurring profit Yen 41,006 million (down 2.9%), net profit Yen 26,625
million (up 11.7%). (% compared with the
corresponding period a year ago).
For the current
term ending Mar 2013 the recurring profit is projected at Yen 170,000 million
and the net profit at Yen 105,000 million, respectively, on a 1.2% rise in
turnover, to Yen 1,060,000 million. In
the PVC segment, domestic sales will be sluggish, but overseas sales will
remain active on the strength of brisk demand.
Sales of semiconductor wafers are getting off to a rather slow start in
the first half, but will recover in the second half. Sales of cellulose derivatives will grow
strongly in Japan & Germany. Sales
of electronic materials, mainly for LEDs & optical fibers, will be
steady.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Sept 1926
Regd No.:
0100-01-008680 (Tokyo-Chiyodaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 1,720
million shares
Issued: 432,106,693 shares
Sum: Yen 119,419 million
Major
shareholders (%): Master Trust Bank of Japan, T (7.8), Japan Trustee Services Bank T
(7.4), Nippon Life Ins (5.6), Hachijuni Bank (2.7), Japan Trustee Services t4
(2.7), Meiji Yasuda Life Ins (2.5), SSBT OD05 Omnibus Acct Treaty Cl (2.1),
Company’s Treasury Stock (1.7), State Street Bank & Trust 505225 (1.4),
Mellon Bank Mellon Omnibus US P (1.4); foreign owners (39.9)
No. of shareholders: 61,206
Listed on the S/Exchange (s) of: Tokyo, Osaka,
Nagoya
Managements: Chihiro Kanagawa,
ch; Shunzo Mori, pres & CEO; Fumio Akiya, v pres; Yasuhiko Saitoh, v pres;
Yoshiaki Ono, s/mgn dir; Kiichi Habata, mgn dir; Koji Takasugi, mgn dir;
Toshinobu Ishihara, mgn dir; Masahiko Todoroki, mgn dir; Toshiya Akimoto, mgn
dir
Nothing
detrimental is knows as to the commercial morality of executives.
Related
companies: Shintech Inc (USA), Shin-Etsu Polymer, Shin-Etsu Handotai, other
OPERATION
Activities: Manufactures
industrial chemicals:
(Sales
Breakdown by Divisions):
Organic
& Inorganic Chemicals Div (55%): PVC, silicones, methanol, chloromethane,
cellulose derivatives, caustic soda, silicon metal;
Electronic
Materials Div (35%): semiconductor silicone, organic materials for
electronics industry, rare earth magnets for electronics industry,
photo-resists;
Functional
Materials Div (10%): synthetic quartz products, oxide single crystals,
rare earths, rare earth magnets, construction of plants engineering,
information processing, export of technology & plants, import of goods,
others.
Overseas
sales ratios (61.3%)
Clients: [Mfrs,
wholesalers] Shin-Etsu Handotai (meaning semiconductor), Mitsubishi Corp,
Shin-Etsu Electronics Materials Singapore, Mitsui & Co, Shin-Etsu Astech,
other.
No. of accounts:
3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Shin-Etsu Handotai, Naoetsu Electronics, Mitsui & Co, Kashima
PVC Monomer, Mitsubishi Chemical, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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1,047,731 |
1,058,257 |
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Cost of Sales |
798,592 |
803,574 |
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GROSS PROFIT |
249,138 |
254,682 |
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Selling & Adm Costs |
99,505 |
105,460 |
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OPERATING PROFIT |
149,632 |
149,221 |
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Non-Operating P/L |
15,605 |
11,117 |
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RECURRING PROFIT |
165,237 |
160,338 |
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NET PROFIT |
100,643 |
100,119 |
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BALANCE SHEET |
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Cash |
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241,390 |
244,002 |
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Receivables |
264,283 |
270,499 |
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Inventory |
260,308 |
188,283 |
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Securities, Marketable |
89,301 |
116,714 |
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Other Current Assets |
86,962 |
68,429 |
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TOTAL CURRENT ASSETS |
942,244 |
887,927 |
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Property & Equipment |
598,558 |
620,334 |
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Intangibles |
13,587 |
14,020 |
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Investments, Other Fixed Assets |
255,452 |
261,885 |
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TOTAL ASSETS |
1,809,841 |
1,784,166 |
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Payables |
109,378 |
110,753 |
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Short-Term Bank Loans |
13,862 |
8,712 |
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Other Current Liabs |
124,201 |
129,969 |
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TOTAL CURRENT LIABS |
247,441 |
249,434 |
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Debentures |
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Long-Term Bank Loans |
1,454 |
5,548 |
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Reserve for Retirement Allw |
16,687 |
14,119 |
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Other Debts |
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49,686 |
45,636 |
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TOTAL LIABILITIES |
315,268 |
314,737 |
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MINORITY INTERESTS |
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Common
stock |
119,419 |
119,419 |
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Additional
paid-in capital |
128,117 |
128,117 |
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Retained
earnings |
1,435,693 |
1,376,043 |
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Evaluation
p/l on investments/securities |
1,212 |
3,275 |
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Others |
(148,943) |
(116,508) |
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Treasury
stock, at cost |
(40,925) |
(40,917) |
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TOTAL S/HOLDERS` EQUITY |
1,494,573 |
1,469,429 |
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TOTAL EQUITIES |
1,809,841 |
1,784,166 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash Flows
from Operating Activities |
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96,567 |
217,490 |
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Cash
Flows from Investment Activities |
-89,190 |
-132,005 |
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Cash
Flows from Financing Activities |
-42,174 |
-48,521 |
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Cash,
Bank Deposits at the Term End |
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270,321 |
302,285 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
1,494,573 |
1,469,429 |
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Current
Ratio (%) |
380.80 |
355.98 |
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Net
Worth Ratio (%) |
82.58 |
82.36 |
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Recurring
Profit Ratio (%) |
15.77 |
15.15 |
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Net
Profit Ratio (%) |
9.61 |
9.46 |
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Return
On Equity (%) |
6.73 |
6.81 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.52.37 |
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1 |
Rs.83.99 |
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Euro |
1 |
Rs.67.99 |
INFORMATION DETAILS
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Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.