MIRA
INFORM REPORT
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Report Date : |
30.08.2014 |
IDENTIFICATION DETAILS
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Name : |
MITSUI CHEMICALS INC |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
July 1955 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures Chemicals, Petrochemicals, Urethane, Polymers and Other |
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No of Employees : |
14,271 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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.
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Source
: CIA |
Company name & address
MITSUI CHEMICALS INC
REGD NAME
Mitsui Kagaku KK
MAIN OFFICE
Shiodome City Center,
1-5-2 Higashi-Shimbashi Minatoku Tokyo 105-7117 Japan
Tel:
03-6253-2100
Fax:
03-6253-4245 -
URL: http://www.mitsuichem.com
E-Mail address: (thru the URL)
ACTIVITIES: Mfg
of chemicals, resins, petrochemical products, other
BRANCHES: Nagoya,
Osaka, Fukuoka
OVERSEAS: North/South
Americas, Europe, Asia/Oceania, S/E Asia (Tot 51 subsidiaries)
FACTORIES: Kashima,
Ichihara, Mobara, Nagoya, Osaka, Iwakuni, Tokuyama, Omuta
CHIEF EXEC: TSUTOMU
TANNOWA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,566,046 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
125,053 M
TREND UP WORTH Yen
409,647 M
STARTED 1955 EMPLOYES 14,271
COMMENT: MFR OF CHEMICALS, OTHER FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is one of major comprehensive chemical mfrs, with basis chemicals
and resins as mainline. Born out of Oct
’97 merger between Mitsui Toatsu Chemicals and Mitsui Petrochemical Ind. To-ranked maker of polypropylene in Japan. Places emphasis on propylene aroma chain, and
functional resins.
FINANCIAL INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 1,566,046
million, an 11.4% up from Yen 1,406,220 million in the previous term. Sales volume of functional chemicals and
petrochemicals swiftly recovered, assisted by the weaker Yen. The recurring profit was posted at Yen 22,522
million, but resulted in Yen 25,138 million net losses for the term, compared
with Yen 9206 million recurring profit and Yen 8,149 million net losses,
respectively, a year ago. The firm wrote
off Yen 39,664 million in extraordinary losses for the term.
(Apr/Jun/2014 results): Sales Yen 389,166 million (up 7.2%), operating
profit Yen 10,415 million (up 12.0%), recurring profit Yen 8,582 million (down
12.9%), net profit Yen 3,383 million (down 28.4%). (% compared with the corresponding period a
year ago).
For the current term ending Mar 2015 the recurring profit is projected
at Yen 31,000 million and the net profit at Yen 12,000 million, respectively,
on a 7.3% rise in turnover, to Yen 1,680,000 million. Functional chemicals will lead growth. The weaker Yen may help raise earnings in Yen
term.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Jul 1955
Legal Status: Limited Company (Kabushiki Kaisha
Authorized:
3,000 million shares
Issued: 1,022,020,076
shares
Sum: Yen
125,053 million
Major
shareholders (%): Japan Trustee Services T (6.7), Master Trust Bank of Japan T (5.6), JTSB
(Toray Industries) (3.6), Japan Trustee Services T4 (2.5), SMBC (2.1),
Company’s Treasury Stock (2.0), Mitsui & Co (1.7), JTSB (Mitsui Co) (1.7),
Mitsui Sumitomo Ins (1.6), Bank of New York Mellon SANV10 (1.5); foreign owners
(28.3)
No.
of shareholders: 3347,744
Listed on the S/Exchange (s) of: Tokyo
Managements: Tsutomu Tannowa,
pres; Yasuji Omura, v pres; Minoru Koshibe, v pres; Masaharu Kubo, s/mgn dir;
Shigeru Isayama, mgn dir; Akio Ayukawa, dir; Kenji Ueki, dir; Taeko Nagai, dir;
Yoshio Suzuki, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Mitsui Chemical Tohcello Co, Prime Polymer Co, Osaka Petrochemicals,
other.
OPERATION
Activities: Manufactures
chemicals, petrochemicals, urethane, polymers, other;
(Sales
Breakdown by Divisions):
Petrochemicals
& Materials (35%): petrochemical feedstock;
Basis
Chemicals (24%): phenols, PTA & PET, industrial chemicals;
Urethane
(11%): polyurethane, coatings & engineering materials;
Functional
Resins (11%): resins, polymers, other;
Functional
Chemicals (12%): fine & performance chemicals, health care materials, nonwovens,
licensing, agrochemicals, other;
Film/Sheets
(5%); packaging films, industrial films, high-performance films, functional
sheets, photovoltaic encapsulant sheets, other
Others
(2%)
Overseas
Sales Ratio (45%)
Clients: [Mfrs, wholesalers] Prime Polymer, Mitsui
& Co, Mitsui Bussan Chemicals, JSR, Sumitomo Corp, Osaka Petrochemicals,
Tohoku Adhesives, Blue Energy Co, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Osaka Petrochemicals,
Idemitsu Kosan, JSR, Keiyo
Ethylene, Kyokuto Petroleum Industries,
Taiyo Oil, Osaka Gas, Shell Chemicals Japan, other
Payment record: Slow but Correct
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
SMBC (Tokyo)
Mizuho Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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1,566,046 |
1,406,220 |
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Cost of Sales |
1,353,536 |
1,233,303 |
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GROSS PROFIT |
212,510 |
172,917 |
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Selling & Adm Costs |
187,611 |
168,627 |
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OPERATING PROFIT |
24,899 |
4,290 |
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Non-Operating P/L |
-2,377 |
4,916 |
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RECURRING PROFIT |
22,522 |
9,206 |
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NET PROFIT |
-25,138 |
-8,149 |
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BALANCE SHEET |
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Cash |
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71,979 |
46,514 |
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Receivables |
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296,492 |
298,411 |
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Inventory |
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301,158 |
284,643 |
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Securities, Marketable |
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Other Current Assets |
107,386 |
85,828 |
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TOTAL CURRENT ASSETS |
777,015 |
715,396 |
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Property & Equipment |
425,840 |
446,637 |
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Intangibles |
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72,210 |
14,635 |
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Investments, Other Fixed Assets |
157,097 |
161,327 |
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TOTAL ASSETS |
1,432,162 |
1,337,995 |
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Payables |
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219,849 |
215,666 |
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Short-Term Bank Loans |
121,967 |
106,685 |
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Other Current Liabs |
165,240 |
(128,443) |
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TOTAL CURRENT LIABS |
507,056 |
193,908 |
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Debentures |
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99,000 |
97,000 |
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Long-Term Bank Loans |
290,595 |
223,956 |
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Reserve for Retirement Allw |
58,324 |
50,855 |
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Other Debts |
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67,540 |
343,362 |
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TOTAL LIABILITIES |
1,022,515 |
909,081 |
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MINORITY INTERESTS |
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Common
stock |
125,053 |
125,053 |
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Additional
paid-in capital |
91,065 |
91,065 |
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Retained
earnings |
149,287 |
180,451 |
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Evaluation
p/l on investments/securities |
16,678 |
12,862 |
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Others |
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41,905 |
33,747 |
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Treasury
stock, at cost |
(14,341) |
(14,264) |
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TOTAL S/HOLDERS` EQUITY |
409,647 |
428,914 |
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TOTAL EQUITIES |
1,432,162 |
1,337,995 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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43,476 |
18,512 |
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Cash
Flows from Investment Activities |
-89,781 |
-58,136 |
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Cash
Flows from Financing Activities |
66,868 |
27,268 |
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Cash,
Bank Deposits at the Term End |
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71,210 |
44,996 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
409,647 |
428,914 |
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Current
Ratio (%) |
153.24 |
368.94 |
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Net Worth
Ratio (%) |
28.60 |
32.06 |
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Recurring
Profit Ratio (%) |
1.44 |
0.65 |
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Net
Profit Ratio (%) |
-1.61 |
-0.58 |
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Return
On Equity (%) |
-6.14 |
-1.90 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.47 |
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1 |
Rs.100.35 |
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Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
TPT |
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 |
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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.