MIRA INFORM REPORT
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Report Date : |
04.10.2013 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO METAL MINING CO LTD |
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Registered Office : |
5-11-3 Shimbashi Minatoku Tokyo 105-8716 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
Mar 1950 |
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Com. Reg. No.: |
0104-01-015273
(Tokyo-Minatoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Smelter of nonferrous metals |
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No. of Employees : |
8,370 |
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 : |
--- |
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,
2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 small
agricultural sector is highly subsidized and protected, with crop yields among
the highest in the world. While self-sufficient in rice production, Japan
imports about 60% of its food on a caloric basis. 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.
Modest economic growth continued after 2000, but the economy has fallen into
recession three times since 2008. A sharp downturn in business investment and
global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy
has largely recovered in the two years since the disaster, but reconstruction
in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE
has declared the economy his government's top priority; he has pledged to
reconsider his predecessor's plan to permanently close nuclear power plants and
is pursuing an economic revitalization agenda of fiscal stimulus and regulatory
reform and has said he will press the Bank of Japan to loosen monetary policy.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, Japan in 2012 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 2012. The new government will continue a longstanding
debate 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
SUMITOMO METAL
MINING CO LTD
REGD NAME
Sumitomo Kinzoku
Kozan KK
MAIN OFFICE
5-11-3 Shimbashi
Minatoku Tokyo 105-8716 JAPAN
Tel:
03-3436-7701
Fax: 03-3434-2215
E-Mail
address: info@smm.co.jp
ACTIVITIES
Smelting
of nonferrous metals
BRANCHES
Osaka,
Nagoya, Niihama, Ichikawa, other (Tot 15)
OVERSEAS
UK,
USA (3), Chile, Peru, Indonesia, China
FACTORIES
Ehime
(3), Kakogawa (Hyogo), Yamato (Kanagawa)
CHIEF EXEC
YOSHIAKI
NAKAZATO, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 808,540 M
PAYMENTS REGULAR CAPITAL Yen 93,242 M
TREND SLOW WORTH Yen
844,547 M
STARTED 1950 EMPLOYES 8,370
COMMENT
NONFERROUS METAL SMELTER.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for
31/03/2014 fiscal term
HIGHLIGHTS
The
subject company was established originally in 1590 when Sumitomo family smelted
copper in Kyoto and was incorporated in 1950.
This is top-class comprehensive smelter of nonferrous metals including
copper, nickel and gold. Leader in
overseas mining with stakes in mining projects in Indonesia, Chile, Australia
and elsewhere. Sales ratio of nickel and
gold high in nonferrous metal division.
Its Hishikari gold mine in Kyushu has largest domestic output. Fostering electronic materials/parts and home
building material divisions into mainstays.
The firm increased investment in copper mine in Chile, slated to start
operation in 2014, to 3.9 billion dollars from 2.9 billion dollars, reflecting
rising construction cost. It plans
commercialization of collection business for rare earth scandium in 2015.
FINANCIAL INFORMATION
The sales
volume for Mar/2013 fiscal term amounted to Yen 808,540 million, a 4.6% down
from Yen 847,897 million in the previous term.
Demand for smelting was solid. Valuation
loss on inventory expanded sharply, seriously affected by a
faster-than-expected decrease in nickel prices.
Profitability on resource development at an overseas copper mine
deteriorated rapidly. The recurring
profit was posted at Yen 115,034 million and net profit at Yen 86,640 million,
respectively, compared with Yen 108,829 million recurring profit and Yen 65,286
million net profit, respectively, a year ago.
(Apr/June/2013 results): Sales Yen 210,503
million (up 2.9%), operating profit Yen 20,220 million (down 1.2%), recurring
profit Yen 31,501 million (up 49.5%), net proit Yen 23,271 million (up
36.9%). (% compared with the
corresponding period a year ago.)
For
the current term ending Mar 2014 the recurring profit is projected at Yen
106,000 million and net profit at Yen 74,000 million, respectively, on a 7.8%
rise in turnover, to Yen 872,000 million.
The resource and smelting divisions are boosted by Yen’s
depreciation. But international prices
of copper, nickel and gold are falling.
The
financial situation is considered FAIR and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Mar 1950
Regd No.: 0104-01-015273 (Tokyo-Minatoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,000 million shares
Issued:
581,628,031 shares
Sum: Yen
93,242 million
Major shareholders (%): Japan Trustee Services (5.9),
Master Trust Bank of Japan T (5.0), Company’s Treasury Stock (5.0), SSBT OD05
Omnibus Acct (1.6), Nippon Steel & Sumitomo Metal (1.4), NTRE Government of
Singapore Inv (1.4), SMBC (1.3), Sumitomo Life Ins (1.2), Japan Trustee
Services T9 (1.2); foreign owners (30.3)
No. of shareholders:
41,620
Listed on the S/Exchange (s) of: Tokyo
Managements: Nobumasa Kemori, ch; Yoshiaki
Nakazato, pres; Yukio Kawaguchi, s/mgn dir; Takeshi Kubota, s/mgn dir; Toru
Yamasaki, s/mgn dir; Naoyuki Tsuchida, s/mgn dir; Takashi Itou, mgn dir;
Yasushi Hashimoto, mgn dir; Mikinobu Ogata, mgn dir; Toru Iijima, mgn dir;
Kazuo Ikeda, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Sumitomo Metal Mining America Inc,
Sumiko Packaging Materials, other
OPERATION
Activities: Smelter of nonferrous metals:
(Sales Breakdown by Divisions):
Mineral Resources Division (8%):production of nonferrous metal
resources, exploration, mine development, consultant;
Nonferrous Metals & Smelting Division (75%):
gold, silver, copper, nickel, lead, zinc, other;
Electronics materials Division (17%):: IC
packaging materials (lead frames, TAB tape, bonding wire, solder), Electronics
materials (thick film paste, targer materials, alloy performs), Crystal materials
(GaP, YAG, LT), printed wiring board, optical communications materials and
device connector, switch, electrical contact, TV frames;
Overseas Sales Ratio (41%)
Clients: [Mfrs, wholesalers] Sumitomo Corp,
Mitsui & Co, Marubeni Corp, Sojitz Corp, Sumitomo Electric Ind, Hitachi
Metals, Hitachi Cable, MS Zinc, Daido Kogyo, Ishifuku Metal Ind, Malaysian
Electronic Materials, Siliconware Precision Co, other.
No. of
accounts:1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Corp,
Mitsui & Co, Mitsubishi Corp, Ohkuchi Electronics, Mitsubishi Electric Ind,
MS Zinc, INCO TNC Ltd, PT Valley Indonesia, Oktedi Mining Ltd, BHP billiton,
Coral Bay Nickel, other.
Also from WMC Resources
Marketing, PT International Nickel, Glencore International AG, BHP, etc.
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
SMBC
(H/O)
Sumitomo
Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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808,540 |
847,897 |
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Cost of Sales |
667,890 |
716,476 |
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GROSS PROFIT |
140,650 |
131,421 |
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Selling & Adm Costs |
44,865 |
43,844 |
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OPERATING PROFIT |
95,785 |
87,577 |
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Non-Operating P/L |
19,249 |
21,262 |
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RECURRING PROFIT |
115,034 |
108,829 |
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NET PROFIT |
86,640 |
65,286 |
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BALANCE SHEET |
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Cash |
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82,791 |
76,245 |
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Receivables |
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92,127 |
99,499 |
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Inventory |
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142,962 |
151,068 |
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Securities, Marketable |
158,000 |
109,500 |
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Other Current Assets |
74,372 |
63,183 |
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TOTAL CURRENT ASSETS |
550,252 |
499,495 |
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Property & Equipment |
342,067 |
291,222 |
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Intangibles |
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10,381 |
10,411 |
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Investments, Other Fixed Assets |
448,453 |
(686,369) |
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TOTAL ASSETS |
1,351,153 |
114,759 |
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Payables |
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35,212 |
43,426 |
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Short-Term Bank Loans |
67,760 |
58,832 |
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Other Current Liabs |
108,414 |
84,695 |
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TOTAL CURRENT LIABS |
211,386 |
186,953 |
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Debentures |
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50,000 |
50,000 |
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Long-Term Bank Loans |
212,323 |
157,119 |
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Reserve for Retirement Allw |
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Other Debts |
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32,897 |
26,648 |
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TOTAL LIABILITIES |
506,606 |
420,720 |
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MINORITY INTERESTS |
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Common
stock |
93,242 |
93,242 |
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Additional
paid-in capital |
86,062 |
86,063 |
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Retained
earnings |
644,642 |
572,576 |
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Evaluation
p/l on investments/securities |
24,645 |
10,986 |
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Others |
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27,851 |
(14,983) |
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Treasury
stock, at cost |
(31,895) |
(21,845) |
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TOTAL S/HOLDERS` EQUITY |
844,547 |
726,039 |
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TOTAL EQUITIES |
1,351,153 |
1,146,759 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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114,665 |
144,999 |
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Cash
Flows from Investment Activities |
-88,745 |
-135,932 |
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Cash Flows
from Financing Activities |
21,549 |
50,314 |
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Cash,
Bank Deposits at the Term End |
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239,691 |
185,708 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
844,547 |
726,039 |
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Current
Ratio (%) |
260.31 |
267.18 |
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Net
Worth Ratio (%) |
62.51 |
63.31 |
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Recurring
Profit Ratio (%) |
14.23 |
12.84 |
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Net
Profit Ratio (%) |
10.72 |
7.70 |
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Return
On Equity (%) |
10.26 |
8.99 |
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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.61.93 |
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UK Pound |
1 |
Rs.100.43 |
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Euro |
1 |
Rs.84.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
|
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 |
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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.