MIRA INFORM REPORT

 

 

Report Date :

10.10.2012

 

IDENTIFICATION DETAILS

 

Name :

SUMCO CORPORATION

 

 

Registered Office :

Seavance N Bldg, 1-2-1 Shibaura Minatoku Tokyo 105-8634

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2012

 

 

Date of Incorporation :

July 1999

 

 

Com. Reg. No.:

0104-01-046159 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of silicon wafers for semiconductor industry

 

 

No. of Employees :

8,814

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but Correct

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

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

SUMCO CORPORATION

 

 

REGD NAME

 

KK Sumco

 

 

MAIN OFFICE

 

Seavance N Bldg, 1-2-1 Shibaura Minatoku Tokyo 105-8634 JAPAN

Tel: 03-5444-0808          -

URL:                             http://www.sumcosi.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of silicon wafers for semiconductor industry

 

 

BRANCHES

 

Osaka, Fukuoka

 

 

OVERSEAS

 

USA (2), UK, Taiwan (3), Indonesia, Singapore, China (3)

 

 

FACTORIES

 

Saga (2), Hyogo, Yamagata, Chitose (Hokkaido)

 

 

CHIEF EXEC

 

MAYUKI HASHIMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             　A/SALES       Yen 247,177 M

PAYMENTSSlow but Correct  　CAPITAL  Yen 114,107 M

TREND SLOW                           　WORTH         Yen 126,773 M

STARTED         1999                             　EMPLOYES   8,814

 

 

COMMENT

 

MFR OF SILICON WATERS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        Unit: In Million Yen

Forecast figures for the 31/01/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of silicon wafers, born out of consolidation between semiconductor base-use silicon wafer business of Sumitomo Metal Ind and Mitsubishi Materials.  Ranks 2nd in world market share next to Shin-Etsu Handotai Co.  Expanding operations globally, and world’s top-class mfr of silicon wafers for semiconductors.

 

 

FINANCIAL INFORMATION

 

The sales volume for Jan/2012 fiscal term amounted to Yen 247,147 million, a 10.8% down from Yen 276,962 million in the previous term.   Overall sales contracted due to the pulling out from solar battery wafers.  Semiconductor wafers sales hovered low, partly due to lower production capacity.  The operations continued in the red to register Yen 5,695 million recurring loss and Yen84,369 million net losses, respectively, compared with Yen 26,158 million recurring loss and Yen 65,587 million net losses, respectively, a year ago.  The losses are referred to the reconstruction charges due to withdrawal from solar battery wafers business.

 

(Feb/July/2012 results): Sales Yen 108,662 million (down 19.5%), operating profit Yen 6,898 million (up 27.1%), recurring profit Yen 5,299 million (up 245.0%), net profit Yen 4,980 million (previously Yen 1,362 million loss).  (% & figures compared with the corresponding period a year ago).. 

           

For the current term ending 11,000Mar 2013 the operations are projected to come back to profitability to post Yen 11,000 million recurring profit and Yen 3,000 million net profit, respectively, on a 6.9% fall in turnover, to Yen 230,000 million.  Semiconductor wafer sales will further fall due to lower production capacity.  Operating profit will emerge, thanks to no deficits on solar battery wafers, a large decline in depreciation costs and extensive streamlining effect, but still more efforts are needed. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:　Jul 1999

Regd No.:         0104-01-046159 (Tokyo-Minatoku)

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       804 million shares

Issued:                267,751,739 shares

Sum:                   Yen 114,107 million

 

Major shareholders (%): Sumitomo Metal Ind (27.8), Mitsubishi Materials (27.8), Mellon Bank Treaty CI Omnibus (3.5), Bank of New York Jasdec Treaty (2.2), Komatsu Ltd (1.5), Master Trust Bank of Japan T (1.5), Mellon Bank ABN Amro Global C (1.3), Japan Trustee Services T (1.2), Nomura Trust Inv T (1.2), State Street Bank & Trust 505225 (0.6); foreign owners (22.7)

No. of shareholders: 55,205

 

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

 

Managements: Mayuki Hashimoto, pres; Michiharu Takii, v pres, Yukihiro saeki, s/mgn dir; Yoichi Tsuchiya, s/mgn dir; Harumitsu Endo, s/mgn dir; Hisashi Furuya, mgn dir; Kazuo Hiramoto, mgn dir; Hosaku Shibuya, mgn dir

 

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

 

Related companies: Sumco TECHXIV, other.

 

 

OPERATION

           

Activities: Manufactures silicon wafers for semiconductors/LEDs, other (--100%).

           

Clients: [Mfrs, wholesalers] Sumitomo Corp, Samsung Japan, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hemlock Semiconductor Corp, Mitsubishi Materials,   Osaka Titanium Technologies, other

 

Payment record: Slow but Correct 

 

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

 

Bank References:

MUFG (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/01/2012

31/01/2011

INCOME STATEMENT

  Annual Sales

　

247,177

276,962

  Cost of Sales

218,097

254,490

      GROSS PROFIT

29,079

22,471

  Selling & Adm Costs

28,112

30,903

      OPERATING PROFIT

967

-8,431

  Non-Operating P/L

-4,728

-17,727

      RECURRING PROFIT

-5,695

-26,158

　

      NET PROFIT

-84,369

-65,587

BALANCE SHEET

  Cash

　

25,464

63,876

  Receivables

36,181

18,954

  Inventory

80,152

71,081

  Securities, Marketable

　

　

  Other Current Assets

9,109

30,777

      TOTAL CURRENT ASSETS

150,906

184,688

  Property & Equipment

192,104

256,342

  Intangibles

20,348

35,538

  Investments, Other Fixed Assets

73,062

85,209

      TOTAL ASSETS

436,420

561,777

  Payables

26,661

24,081

  Short-Term Bank Loans

95,693

88,221

　

　

　

  Other Current Liabs

32,167

34,054

      TOTAL CURRENT LIABS

154,521

146,356

  Debentures

　

　

  Long-Term Bank Loans

118,298

146,155

  Reserve for Retirement Allw

18,844

19,297

  Other Debts

　

17,984

33,825

      TOTAL LIABILITIES

309,647

345,633

      MINORITY INTERESTS

Common stock

114,107

114,107

Additional paid-in capital

89,291

89,291

Retained earnings

(89,692)

1,883

Evaluation p/l on investments/securities

149

852

Others

27,039

22,022

Treasury stock, at cost

(14,121)

(12,012)

      TOTAL S/HOLDERS` EQUITY

126,773

216,143

　

      TOTAL EQUITIES

436,420

561,777

CONSOLIDATED CASH FLOWS

Terms ending:

31/01/2012

31/01/2011

Cash Flows from Operating Activities

　

18,916

29,188

Cash Flows from Investment Activities

-17,472

-12,017

Cash Flows from Financing Activities

-29,583

-34,344

　

Cash, Bank Deposits at the Term End

　

25,464

53,876

ANALYTICAL RATIOS            Terms ending:

31/01/2012

31/01/2011

Net Worth (S/Holders' Equity)

126,773

216,143

Current Ratio (%)

97.66

126.19

Net Worth Ratio (%)

29.05

38.47

Recurring Profit Ratio (%)

-2.30

-9.44

Net Profit Ratio (%)

-34.13

-23.68

Return On Equity (%)

-66.55

-30.34

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.52.38

UK Pound

1

Rs.83.99

Euro

1

Rs.67.99

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

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