MIRA
INFORM REPORT
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Report Date : |
01.09.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
MARUBENI CORPORATION |
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Registered Office : |
1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
December
1949 |
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Com. Reg. No.: |
0100-01-008776
(Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company |
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Line of Business : |
A general trading house |
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No. of Employees : |
32,445 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
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
67 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 10,584,393 M
PAYMENTS
REGULAR CAPITAL Yen 262,686 M
TREND STEADY WORTH Yen 915,770 M
STARTED 1949 EMPLOYES 32,445
COMMENT
GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
Notes: Unit: in Million Yen
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. The firm will acquire the third-largest grain firm in the US in Sept 2012 at a cost of Yen 280 billion, making the company one of the world’s largest grain traders.
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal term amounted to Yen 10,584,393 million, a 17.3% up from Yen 9,020,468 million in the previous term. Energy & electric power sales fared better than expected thanks to oil price hikes. By Divisions: Energy up 22.4% to Yen 553,900 million, thanks to increased oil trading due to the oil price hike; Foods down 11.8% down Yen 100,000 million; Chemicals up 20.0% to Yen 159,800 million, as chemical prices were up and exports to China rose; Metals up 8.3% to Yen 940,500 million, due to price hikes of iron/ore and nonferrous metals; Transportation & Machinery up 17.0% to 117,700 million; Plants & Construction Materials up 90.4% to Yen 303,200 million, as new plants construction increased in Angola, Singapore, other. The recurring profit was posted at Yen 260,983 million and the net profit at Yen 172,125 million, respectively, compared with Yen 207,217 million recurring profit, and Yen 136,541 million net profit, respectively, a year ago.
(Apr/Jun/2012 results): Sales Yen 2,424,917 million (up 1.2%), operating profits Yen 26,795 million (down 32.0%), recurring profits Yen 65,181 million (down 8.0%), net profit Yen 52,413 million (up 8.3%). (% 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 285,000 million, respectively, on a 0.8% fall in turnover, to Yen 10,500,000 million. Valuation loss on construction materials, and inventory loss on grains will be absent. Main profit-earner metals will fare well, with steel products and sales volume growth through expansion of the Chile mine offsetting lower unit price.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
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 (7.3), Master Trust Bank of Japan T (4.9), Sompo Japan Ins (3.2), Meiji Yasuda Life Ins (2.4), Japan Trustee Services T9 (2.3), JP Morgan Chase Bank 380055 (2.2), SSBT OD05 Omnibus Acct Treaty Cl (2.2), Tokio Marine & Nichido Fire Ins (2.0), Mizuho Corporate Bank (1.7), Nippon Life Ins (1.4); foreign owners (30.2)
No. of shareholders: 116,331
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements: Nobuo Katsumata, ch; Teruo Asada, pres & CEO; Mamoru Sekiyama, v pres; Michihiko Ota, v pres; Fumiya Kokubu, v pres; Shigeru Yamazoe, s/mgn dir; Mitsuru Akiyoshi, s/mgn dir; Yutaka Nomura, mgn dir; Daisuke Okada, mgn dir; Keizo Torii, mgn dir; Shoji Kuwayama, mgn dir; Yukihiko Matsumura, mgn 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 (29%): 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 (19%): 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 (9%): 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 (6%): 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 (14%): 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):
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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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10,584,393 |
9,020,468 |
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Cost of Sales |
10,042,939 |
8,498,314 |
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GROSS PROFIT |
541,454 |
522,154 |
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Selling & Adm Costs |
384,139 |
376,380 |
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OPERATING PROFIT |
157,315 |
145,774 |
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Non-Operating P/L |
103,668 |
61,443 |
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RECURRING PROFIT |
260,983 |
207,217 |
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NET PROFIT |
172,125 |
136,541 |
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BALANCE SHEET |
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Cash |
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677,312 |
616,303 |
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Receivables |
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1,009,361 |
884,872 |
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Inventory |
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443,136 |
372,156 |
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Securities, Marketable |
2,438 |
2,870 |
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Other Current Assets |
511,646 |
521,590 |
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TOTAL CURRENT ASSETS |
2,643,893 |
2,397,791 |
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Property & Equipment |
648,533 |
639,366 |
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Intangibles |
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85,815 |
85,406 |
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Investments, Other Fixed Assets |
1,751,646 |
1,556,526 |
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TOTAL ASSETS |
5,129,887 |
4,679,089 |
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Payables |
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869,324 |
732,560 |
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Short-Term Bank Loans |
126,459 |
105,275 |
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Other Current Liabs |
843,168 |
898,317 |
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TOTAL CURRENT LIABS |
1,838,951 |
1,736,152 |
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Debentures |
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Long-Term Bank Loans |
2,268,552 |
2,021,241 |
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Reserve for Retirement Allw |
60,887 |
53,411 |
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Other Debts |
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45,727 |
36,555 |
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TOTAL LIABILITIES |
4,214,117 |
3,847,359 |
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MINORITY INTERESTS |
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Common
stock |
262,686 |
262,686 |
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Additional
paid-in capital |
158,237 |
157,908 |
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Retained
earnings |
856,286 |
212,815 |
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Evaluation
p/l on investments/securities |
19,510 |
21,005 |
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Others |
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(380,172) |
177,997 |
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Treasury
stock, at cost |
(777) |
(681) |
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TOTAL S/HOLDERS` EQUITY |
915,770 |
831,730 |
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TOTAL EQUITIES |
5,129,887 |
4,679,089 |
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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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172,599 |
210,044 |
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Cash
Flows from Investment Activities |
-273,689 |
-128,495 |
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Cash Flows
from Financing Activities |
171,913 |
-17,010 |
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Cash,
Bank Deposits at the Term End |
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677,312 |
616,003 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
915,770 |
831,730 |
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Current
Ratio (%) |
143.77 |
138.11 |
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Net
Worth Ratio (%) |
17.85 |
17.78 |
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Recurring
Profit Ratio (%) |
2.47 |
2.30 |
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Net
Profit Ratio (%) |
1.63 |
1.51 |
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Return
On Equity (%) |
18.80 |
16.42 |
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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.55.72 |
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UK Pound |
1 |
Rs.87.95 |
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Euro |
1 |
Rs.69.66 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.