MIRA INFORM REPORT

Report Date :

02.08.2014

IDENTIFICATION DETAILS

Name :	SOJITZU AEROSPACE CORPORATION

Registered Office :	Marunouchi Trust Tower 4F, 1-8-3 Marunouchi Chiyodaku Tokyo 100-0005

Country :	Japan

Financials (as on) :	31.03.2014

Date of Incorporation :	April, 1975

Com. Reg. No.:	0104-01-021742 (Tokyo-Chiyodaku)

Legal Form :	Limited Company (Kabushiki Kaisha)

Line of Business :	Import, wholesale of aerospace & defense equipment, ships, other

No. of Employees	128

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	Yen 3,133.1 million
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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

Source : CIA

Company name and address

SOJITZU AEROSPACE CORPORATION

REGD NAME: Sojitz Aerospace KK

MAIN OFFICE: Marunouchi Trust Tower 4F, 1-8-3 Marunouchi Chiyodaku Tokyo 100-0005 JAPAN

Tel: 03-5574-6006 Fax: 03-5574-6001

*.. Moved to the caption address (Registered) from the one as given

URL: http://www.sojitz-aero.com/

E-Mail address: info@sojitz-aero.com

ACTIVITIES

Import, wholesale of aerospace & defense equipment, ships, other

BRANCHES

Nagoya, Osaka

OVERSEAS

Sojitz Aerospace America Corp (New York, Los Angeles, St Louis, Masa), Sojitz Aerospace Europe

OFFICER(S)

MIKIO TAKEUCHI, PRES Takao Miyazaki, s/mgn dir

Takanori Hasegawa, dir Masayuki Haga, dir

Masahiro Komiyama, dir Masuichiro Tsuchiya, dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 151,705 M

PAYMENTS SLOW BUT CORRECT CAPITAL Yen 1,410 M

TREND STEADY WORTH Yen 5,659 M

STARTED 1975 EMPLOYES 128

COMMENT

IMPORTER OF AEROSPACE & DEFENSE EQUIPMENT, WHOLLY OWNED BYSOJITZ CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 3,133.1 MILLION, 30 DAYS NORMAL TERMS

HIGHLIGHTS

The subject company was established originally by the then Nissho Iwai Corp in order to

advance into aerospace business. In 2004, when Nissho Iwai Corp merged with Nichimen Corp to become Sojitz Corp (See REGISTRATION), the firm renamed as captioned. This is a trading house handling aviation, space, ships, vehicles, rockets, information, others. Major client is Japan’s Maritime Self-Defense Forces, to which the firm supplies escort ships, submarines, vehicles, other. Has a subsidiary in USA & Europe.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 151,705 million, a 23% up from Yen 122,940 million in the previous term. The price hike of materials & equipment pushed the sales amount in Yen terms. Demand rose from LCC carriers. The recurring profit was posted at Yen 666 million and the net profit at Yen 432 million, respectively, compared with Yen 814 million recurring profit and Yen 479 million net profit, respectively, a year ago.

For the current term ending Mar 2015the recurring profit is projected at Yen 700 million and the net profit at Yen 450 million, respectively, on a 5% rise in turnover, to Yen 160,000 million. Business is seen expanding steadily.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 3,133.1 million, on 30 days normal terms.

REGISTRATION

Date Registered: Apr 1975

Regd No.: 0104-01-021742 (Tokyo-Chiyodaku)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 11 million shares

Issued: 2.82 million shares

Sum: Yen 1,410 million

Major shareholders (%): Sojitz Corp*(100)

* General Trading House, specializing in aircraft, lumber & urban development, founded 2003 by the merger of the then Nissho Iwai Corp & Nichimen Corp, listed Tokyo S/E, capital Yen 160,339 million, turnover Yen 4,046,577 million, operating profit Yen 23,694 million recurring profit Yen 44,033 million, net profit Yen 27,250 million, total assets Yen 2,220,236 million, net worth Yen 459,853 million, employees 15,915, pres Yoji Sato

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

OPERATION

Activities: Imports and wholesales aircrafts, their parts & components, space ships, defense equipment & products, vehicles, bridges, information, others (--100%).

(Handling Items):

Aviation: aircrafts, their parts & components;

Maritime: Escort ships/submarines for National Defense Forces;

Land: Vehicles, temporary panel bridges others for National Defense Forces;

Space: Rockets boosters, high-tech products for satellite, others.

Clients: [Governments, mfrs, wholesalers] National Self-Defense Forces, Mitsubishi Heavy Ind, IHI, Kawasaki Heavy Ind, Fuji Heavy Ind, Toshiba Corp, Mitsubishi Electric Co, IHI Aerospace, Boeing Japan, Asahi Kasei Chemicals, Japan Air Lines, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Heavy Ind, Fuji Heavy Ind, Kawasaki Heavy Ind, Sojitz Aerospace America, Sojitz Corp America, Yokohama Rubber, Shin-Meiwa Corp, Toshiba Corp, Boeing, Synfonia Technology, Kobe Steel, NIPPI Corp, 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)

Mizuho Corporate Bank (Uchisaiwaicho)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/03/2015	31/03/2014	31/03/2013	31/03/2012
Annual Sales	160,000	151,705	122,940	112,349
Recur. Profit	700	666	814	620
Net Profit	450	432	479	381
Total Assets		23,497	23,011	24,960
Current Assets		22,568	22,295	24,196
Current Liabs		17,653	17,546	19,895
Net Worth		5,659	5,330	4,887
Capital, Paid-Up		1,410	1,410	1,410
Div.Ttl in Million (¥)		100	100	100
*<Analytical Data>*	(%)	(%)	(%)	(%)
S.Growth Rate	5.47	23.40	9.43	14.87
Current Ratio	..	127.84	127.07	121.62
N.Worth Ratio	..	24.08	23.16	19.58
R.Profit/Sales	0.44	0.44	0.66	0.55
N.Profit/Sales	0.28	0.28	0.39	0.34
Return On Equity	..	7.63	8.99	7.80

Notes: Forecast (or estimated) figures for the 31/03/2015 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.81.46

INFORMATION DETAILS

Analysis Done by :	RAS

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%)

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