MIRA INFORM REPORT

 

 

Report Date :

25.10.2013

 

IDENTIFICATION DETAILS

 

Name :

SUMITOMO BAKELITE CO LTD

 

 

Registered Office :

Tonnoz Parkside Bldg, 2-5-8 Higashi-Shinagawa Shinagawaku Tokyo 140-0002

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

January, 1932

 

 

Com. Reg. No.:

0107-01-005073 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of synthetic resins, other

 

 

No. of Employees :

5,340

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 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 BAKELITE CO LTD

 

 

REGD NAME

 

Sumitomo Bakelite KK

 

MAIN OFFICE

 

Tonnoz Parkside Bldg, 2-5-8 Higashi-Shinagawa Shinagawaku Tokyo 140-0002 JAPAN

Tel: 03-5462-4111    

Fax: 03-5462-4873     -

 

URL:                 http://www.sumibe.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of synthetic resins, other

 

 

BRANCHES

 

Nagoya, Kobe, Amagasaki, Kanuma, Shizuoka, Utsunomiya, Nogata (Fukuoka)

 

 

OVERSEAS   

 

Switz, Belgium (2), Spain, China (5), Taiwan (2), Hong Kong, Indonesia (3), Korea, Singapore, Malaysia,Thailand, India, USA (3), Canada

 

 

FACTORIES

 

Amagasaki, Kanuma, Shizuoka, Utsunomiya; China, Indonesia, Vietnam, other

 

 

CHIEF EXEC

 

SHIGERU HAYASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 183,362 M

PAYMENTS                  REGULAR         CAPITAL           Yen 37,143 M

TREND             UP                    WORTH            Yen 131,311 M

STARTED                     1932                 EMPLOYES      5,340

 

 

COMMENT

 

MFR OF SYNTHETIC RESINS, CIRCUIT MODULES, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is a major comprehensive processor of synthetic resins.  Member of Sumitomo Chemical group.  Once supplier as producer of molded products phenolic resins “Bakelite” and melamine resins.  World’s largest maker of semiconductor sealings for PCs and VCRs.  Expanding overseas, centered on S/E Asia.  The company is dividing sealant market with a JV in China through information sharing.  It aims to shut down carrier tape business and printed circuit but for automobiles.  It will double numbers of medical product sales offices to 15 in a year, including one opened in Morioka in Jun 2013. .

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 183,362 million, a 1.0% down from Yen 185,237 million in the previous term.  Sales of surgical kits and drug packaging materials were steady.  Circuit module business was helped by pullout from flexible circuit production and a review of production processes in Japan and overseas.  But mainline semiconductor sealant sales rallied slowly.  The value of phenolic resin earnings was reduced due to the higher Yen.  The recurring profit was posted at Yen 8,551 million and the net profit at Yen 3,443 million, respectively, compared with Yen 5,931 million recurring profit and Yen 2,525 million net profit, respectively, a year ago. 

 

(Apr/Jun/2013 results): Sales Yen 45,112 million (down 0.7%), operating profit Yen 1,912 million (down 4.7%), recurring profit Yen 2,468 million (up 11.5%), net profit Yen 1,558 million (up 85.2%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 12,600 million and the net profit at Yen 6,400 million, on a 14.5% rise in turnover, to Yen 210,000 million.  Sales volume of mainline semiconductor sealants will dwindle due to IC miniaturization.  New substrate “L alpha Z” will face tougher competition.  Phenolic resin sales will benefit from price hikes toward the second half, but huge cost for nationwide openings of medical product sales offices will pose a burden.  

 

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

 

 

REGISTRATION

           

Date Registered:          Jan 1932

Regd No.:                                 0107-01-005073 (Tokyo-Shinagawaku)

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                  800 million shares

Issued:                         262,952,394 shares

Sum:                            Yen 37,143 million

 

Major shareholders (%): Sumitomo Chemical (19.9), Company’s Treasury Stock (8.3), Japan Trustee Services T (7.8), Master Trust Bank of Japan T (6.1), Master Trust Bank of Japan T9 (2.4), Juniper (1.9), JTSB (Sumitomo Mitsui Trust Bank) (1.6), SMBC (1.6), Trust & Custody Services Trust B (1.0), Mitsui Sumitomo Ins (1.0); foreign owners (15.7)

 

No. of shareholders: 14,545

 

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

 

Managements: Tomitaro Ogawa, ch; Shigeru Hayashi, pres; Tamotsu Yahata, v pres; Tsuneo Terasawa, s/mgn dir; Shin-ichiro Ito, s/mgn dir; Shigeki Muto, s/mgn dir; Kazuhisa Hirano, mgn dir; Noboru Yamawaki, mgn dir

 

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

 

Related companies: Akita Sumitomo Bakelite, other.

 

 

OPERATION

 

Activities: Manufactures semiconductor materials (27%), circuit modules (7%), highly functional plastics (34%), QOL-related products (12%)

Overseas Sales Ratio (52%)

 

Clients: [Mfrs, wholesalers] Kanae Co, Chang Wa Technology, Samsung Mobile Japan,

Kuroda Electric Co, Morimura Bros Inc, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Kyushu Sumitomo Bakelite, Akita Sumitomo Bakelite, Sumitomo Bakelite Vietnam, Mitsui & Co, Mitsubishi Shoji Plastics, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (Tokyo)

MUFG (Shimbashi)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

183,362

185,237

 

  Cost of Sales

131,528

135,140

 

      GROSS PROFIT

51,834

50,096

 

  Selling & Adm Costs

43,878

45,370

 

      OPERATING PROFIT

7,956

4,726

 

  Non-Operating P/L

595

1,205

 

      RECURRING PROFIT

8,551

5,931

　

      NET PROFIT

3,443

2,525

BALANCE SHEET

 

 

 

 

  Cash

　

32,056

26,957

 

  Receivables

 

40,673

42,309

 

  Inventory

 

25,075

23,151

 

  Securities, Marketable

　

　

 

  Other Current Assets

7,073

7,735

 

      TOTAL CURRENT ASSETS

104,877

100,152

 

  Property & Equipment

80,286

74,745

 

  Intangibles

 

6,080

6,343

 

  Investments, Other Fixed Assets

22,583

20,075

 

      TOTAL ASSETS

213,826

201,315

 

  Payables

 

28,649

27,353

 

  Short-Term Bank Loans

9,853

4,833

 

　

 

　

　

 

  Other Current Liabs

28,533

29,284

 

      TOTAL CURRENT LIABS

67,035

61,470

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

7,700

10,600

 

  Reserve for Retirement Allw

5,399

6,996

 

  Other Debts

　

2,381

3,225

 

      TOTAL LIABILITIES

82,515

82,291

 

      MINORITY INTERESTS

 

 

 

Common stock

37,143

37,143

 

Additional paid-in capital

35,358

35,358

 

Retained earnings

79,085

78,051

 

Evaluation p/l on investments/securities

4,226

2,171

 

Others

 

(12,569)

(21,770)

 

Treasury stock, at cost

(11,932)

(11,930)

 

      TOTAL S/HOLDERS` EQUITY

131,311

119,023

　

      TOTAL EQUITIES

213,826

201,315

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

16,644

6,730

 

Cash Flows from Investment Activities

-13,088

-13,340

 

Cash Flows from Financing Activities

-642

-3,942

　

Cash, Bank Deposits at the Term End

　

31,778

26,834

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

131,311

119,023

 

 

Current Ratio (%)

156.45

162.93

 

 

Net Worth Ratio (%)

61.41

59.12

 

 

Recurring Profit Ratio (%)

4.66

3.20

 

 

Net Profit Ratio (%)

1.88

1.36

 

 

Return On Equity (%)

2.62

2.12

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.99.53

Euro

1

Rs.84.82

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.