MIRA INFORM REPORT

 

 

Report Date :

27.05.2014

 

IDENTIFICATION DETAILS

 

Name :

MARUBENI CORPORATION

 

 

Registered Office :

1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

December 1949

 

 

Com. Reg. No.:

0100-01-008776

 

 

Legal Form :

Limited Company

 

 

Line of Business :

General trading house for import, export and wholesale of:

(Sales breakdown by Divisions):

·         Energy Division

·         Foods Division

·         Metals & Resources Division

·         Chemicals Division

·         Transportation & Industrial Machinery Division

·         Plant, Ship & Infrastructure Projects Division

·         Materials & Paper/Pulp Division, others

·         Overseas operations

 

 

No. of Employees

38,662

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

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

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 10 domestic)

 

 

OVERSEAS   

 

56 overseas branches & offices; 33 overseas corporate subsidiaries with 64 offices for a total of 120 offices in 65 countries/areas.

 

 

CHIEF EXEC 

 

FUMIYA KOKUBU, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 10,509,088 M

PAYMENTSREGULAR   CAPITAL           Yen 262,686 M

TREND STEADY           WORTH            Yen 1,188,379 M

STARTED         1949                 EMPLOYES      38,662

 


COMMENT    

 

GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

7,965,055

166,427

95,312

(%)

799,746

(Consolidated)

31/03/2011

9,020,468

207,217

136,541

13.25

831,730

 

31/03/2012

10,584,393

260,983

172,125

17.34

915,770

 

31/03/2013

10,509,088

247,543

205,696

-0.71

1,188,379

 

31/03/2014

13,500,000

250,000

210,000

28.46

..

                        Notes: Unit: in Million Yen

Forecast (or estimated) figures for 31/03/2014 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 acquired 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.

 

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 10,509,088 million, a 0.7% down from Yen 10,584,393 million in the previous term.  The recurring profit was posted at Yen 247,543 million and the net profit at Yen 205,696 million, respectively, compared with Yen 260,983 million recurring profit, and Yen 172,125 million net profit, respectively, a year ago.

 

(Apr/Dec/2013 results): Sales Yen 9m783,308 million (up 26.1%), operating profits Yen 192,787 million (up 3.3%), recurring profits Yen 163,256 million (up 52.0%), net profit Yen 300,051 million (up 95.2%).  (% compared with the corresponding period a year ago.) 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 250,000 million and the net profit at Yen 210,000 million, respectively, on a 26.5% up in turnover, to Yen 13,500,000 million.  The bought-out US grains firm is struggling more than anticipated, and net profit contribution will fall to zero.  But electric power IPP and automobile financing businesses are growing.  The weaker than expected Yen is also pushing up overseas earnings, and  net profit will approach 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 (%): Master Trust Bank of Japan T (4.5), Japan Trustee Services T (4.1), Sompo Japan Ins (2.9), JP Morgan Chase Bank (2.7), Japan Trustee Services T9 (2.7), Meiji Yasuda Life Ins (2.4), Tokio Marine & Nichido Fire Ins (1.8), Mizuho Bank (1.7), Nippon Life Ins (1.4); foreign owners (30.1)

           

No. of shareholders: 116,331

 

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

 

Managements: Teruo Asada, ch; Fumiya Kokubu, pres; Shigeru Yamazoe, s/mgn dir; Mitsuru Akiyoshi, s/mgn dir; Yutaka Nomura, s/mgn dir; Daisuke Okada, mgn dir; Shoji Kuwayama, mgn dir; Kazuaki Tanaka, mgn dir; Yukihiko Matsumura, mgn dir; Masami Kakinoki, 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 (31%): 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 (21%): 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 (7%): 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;

Chemicals Division (10%): 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 (3%): 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;

Materials & Paper/Pulp Division, others (22%): 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; Lifestyle Division, Real estate Development Division, Iron & Steel Strategies & Coordination Division, Abu Dhabi Trade House Project Division, Overseas Operations, other

Overseas operations (30%)

 

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 Bank (Ohtemachi)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

10,509,088

10,584,393

 

  Cost of Sales

9,980,894

10,042,939

 

      GROSS PROFIT

528,194

541,454

 

  Selling & Adm Costs

405,262

384,139

 

      OPERATING PROFIT

122,932

157,315

 

  Non-Operating P/L

124,611

103,668

 

      RECURRING PROFIT

247,543

260,983

 

      NET PROFIT

205,696

172,125

BALANCE SHEET

 

 

 

 

  Cash

 

919,475

677,312

 

  Receivables

 

1,079,361

1,009,361

 

  Inventory

 

495,879

443,186

 

  Securities, Marketable

992

2,438

 

  Other Current Assets

566,982

511,596

 

      TOTAL CURRENT ASSETS

3,062,689

2,643,893

 

  Property & Equipment

739,435

648,533

 

  Intangibles

 

103,958

85,815

 

  Investments, Other Fixed Assets

2,059,004

1,751,646

 

      TOTAL ASSETS

5,965,086

5,129,887

 

  Payables

 

1,003,295

869,324

 

  Short-Term Bank Loans

109,705

126,459

 

 

 

 

 

 

  Other Current Liabs

1,130,796

843,168

 

      TOTAL CURRENT LIABS

2,243,796

1,838,951

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

2,416,398

2,268,552

 

  Reserve for Retirement Allw

54,821

60,887

 

  Other Debts

 

61,692

45,727

 

      TOTAL LIABILITIES

4,776,707

4,214,117

 

      MINORITY INTERESTS

 

 

 

Common stock

262,686

262,686

 

Additional paid-in capital

154,611

158,237

 

Retained earnings

1,023,782

856,286

 

Evaluation p/l on investments/securities

14,624

19,510

 

Others

 

(266,448)

(380,172)

 

Treasury stock, at cost

(876)

(777)

 

      TOTAL S/HOLDERS` EQUITY

1,188,379

915,770

 

      TOTAL EQUITIES

5,965,086

5,129,887

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

295,734

172,599

 

Cash Flows from Investment Activities

-210,878

-273,689

 

Cash Flows from Financing Activities

129,030

171,913

 

Cash, Bank Deposits at the Term End

 

919,475

677,312

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

1,188,379

915,770

 

 

Current Ratio (%)

136.50

143.77

 

 

Net Worth Ratio (%)

19.92

17.85

 

 

Recurring Profit Ratio (%)

2.36

2.47

 

 

Net Profit Ratio (%)

1.96

1.63

 

 

Return On Equity (%)

17.31

18.80

 

           

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.58

UK Pound

1

Rs.98.66

Euro

1

Rs.79.81

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SHG

 

               

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.