MIRA INFORM REPORT

 

 

Report Date :

22.03.2013

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI CORPORATION

 

 

Registered Office :

1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

December 1949

 

 

Com. Reg. No.:

0100-01-008776 (Tokyo-Chiyodaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

A general trading house

 

 

No. of Employees :

32,445

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Excellent

Payment Behaviour :

Regular

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 and address

 

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

PAYMENTSREGULAR   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 31/03/2013 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.

 

 

ANCIAL 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/Dec/2012 results): Sales Yen 7,697,794 million (UP 0.6%), operating profits Yen 95,646 million (down 24.1%), recurring profits Yen 204,699 million (down 4.7%), net profit Yen 152,450 million (up 7.8%).  (% compared with the corresponding period a year ago.) 

 

For the current term ending Mar 2013 the recurring profit is projected at Yen 275,000 million and the net profit at Yen 100,000 million, respectively, on a 0.1% up in turnover, to Yen 10,600,000 million.  Drought-affected grains sales is lower than projected, and pulp and paper business will reach breakeven at best.  But rising sales volume of construction and agricultural machinery, and an upturn in overseas power generation business is compensating.  Resources remain robust on the strength of sales volume growth.  Net profit will hit a new high.

 

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):

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

10,584,393

9,020,468

 

  Cost of Sales

10,042,939

8,498,314

 

      GROSS PROFIT

541,454

522,154

 

  Selling & Adm Costs

384,139

376,380

 

      OPERATING PROFIT

157,315

145,774

 

  Non-Operating P/L

103,668

61,443

 

      RECURRING PROFIT

260,983

207,217

　

      NET PROFIT

172,125

136,541

BALANCE SHEET

 

 

 

 

  Cash

　

677,312

616,303

 

  Receivables

 

1,009,361

884,872

 

  Inventory

 

443,136

372,156

 

  Securities, Marketable

2,438

2,870

 

  Other Current Assets

511,646

521,590

 

      TOTAL CURRENT ASSETS

2,643,893

2,397,791

 

  Property & Equipment

648,533

639,366

 

  Intangibles

 

85,815

85,406

 

  Investments, Other Fixed Assets

1,751,646

1,556,526

 

      TOTAL ASSETS

5,129,887

4,679,089

 

  Payables

 

869,324

732,560

 

  Short-Term Bank Loans

126,459

105,275

 

　

 

　

　

 

  Other Current Liabs

843,168

898,317

 

      TOTAL CURRENT LIABS

1,838,951

1,736,152

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,268,552

2,021,241

 

  Reserve for Retirement Allw

60,887

53,411

 

  Other Debts

　

45,727

36,555

 

      TOTAL LIABILITIES

4,214,117

3,847,359

 

      MINORITY INTERESTS

 

 

 

Common stock

262,686

262,686

 

Additional paid-in capital

158,237

157,908

 

Retained earnings

856,286

212,815

 

Evaluation p/l on investments/securities

19,510

21,005

 

Others

 

(380,172)

177,997

 

Treasury stock, at cost

(777)

(681)

 

      TOTAL S/HOLDERS` EQUITY

915,770

831,730

　

      TOTAL EQUITIES

5,129,887

4,679,089

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

172,599

210,044

 

Cash Flows from Investment Activities

-273,689

-128,495

 

Cash Flows from Financing Activities

171,913

-17,010

　

Cash, Bank Deposits at the Term End

　

677,312

616,003

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

915,770

831,730

 

 

Current Ratio (%)

143.77

138.11

 

 

Net Worth Ratio (%)

17.85

17.78

 

 

Recurring Profit Ratio (%)

2.47

2.30

 

 

Net Profit Ratio (%)

1.63

1.51

 

 

Return On Equity (%)

18.80

16.42

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.28

UK Pound

1

Rs.82.65

Euro

1

Rs.70.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.