MIRA INFORM REPORT

 

 

Report Date :

02.10.2014

 

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) :

31.03.2014

 

 

Date of Incorporation :

January 1932

 

 

Com. Reg. No.:

0107-01-005073 (Tokyo-Shinagawaku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufactures semiconductor materials (26%), highly functional plastics (42%), QOL-related products (31%)

 

 

No of Employees :

5,262

 

 

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 :

Satisfactory

Payment Behaviour :

No Complaints

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

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. 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

 

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 206,047 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 37,143 M

TREND UP                                WORTH            Yen 150,344 M

STARTED         1932                             EMPLOYES      5,262

 

 

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 31/03/2015 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 divided sealant market with a JV in China through information sharing. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 206,047 million, a 12.4% up from Yen 183,362 million in the previous term.  Sales of automobile-related products were solid.  Weaker Yen also had positive effect.  The recurring profit was posted at Yen 11,498 million and the net profit at Yen 6,493 million, respectively, compared with Yen 8,551 million recurring profit and Yen 3,443 million net profit, respectively, a year ago. 

 

(Apr/Jun/2014 results): Sales Yen 49,320 million (up 9.3%, operating profit Yen 2,401 million (up 25.5%), recurring profit Yen 2,719 million (up 10.2%), net profit Yen 1,954 million (up 25.4%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 11,200 million and the net profit at Yen 6,300 million, on a 1.9% rise in turnover, to Yen 210,000 million.  Sales of substrate materials for semiconductors will return to growth.  Operating profit will continue to increase.  Weaker Yen also contribute.  

 

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: 14,737

 

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

 

Managements: Shigeru Hayashi, pres; Tamotsu Yahata, v pres; Tsuneo Terasawa, s/mgn dir; Shigeki Muto, s/mgn dir; Noboru Yamawaki, mgn dir; Kazuhiko Fujiwara, mgn dir; Kiyohiko Nakae, dir

 

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

 

Related companies: Akita Sumitomo Bakelite, other.

 

 

OPERATION

           

Activities:         Manufactures semiconductor materials (26%), highly functional plastics (42%), QOL-related products (31%)

Overseas Sales Ratio (57%)

           

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: No Complaints

 

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

 

Bank References:

SMBC (Tokyo)

Mizuho Bank (Ohtemachi)

Relations: Satisfactory

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

206,047

183,362

　

  Cost of Sales

150,330

131,528

　

      GROSS PROFIT

55,717

51,834

　

  Selling & Adm Costs

45,014

43,878

　

      OPERATING PROFIT

10,702

7,956

　

  Non-Operating P/L

796

595

　

      RECURRING PROFIT

11,498

8,551

　

      NET PROFIT

6,493

3,443

BALANCE SHEET

 

 

　

　

  Cash

　

41,341

32,056

　

  Receivables

 

41,932

40,673

　

  Inventory

 

26,975

25,075

　

  Securities, Marketable

　

　

　

  Other Current Assets

5,954

7,073

　

      TOTAL CURRENT ASSETS

116,202

104,877

　

  Property & Equipment

87,426

80,286

　

  Intangibles

 

5,953

6,080

　

  Investments, Other Fixed Assets

27,244

22,583

　

      TOTAL ASSETS

236,825

213,826

　

  Payables

 

30,587

28,649

　

  Short-Term Bank Loans

5,763

9,853

　

　

 

　

　

　

  Other Current Liabs

31,788

28,533

　

      TOTAL CURRENT LIABS

68,138

67,035

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

11,300

7,700

　

  Reserve for Retirement Allw

3,133

5,399

　

  Other Debts

　

3,909

2,381

　

      TOTAL LIABILITIES

86,480

82,515

　

      MINORITY INTERESTS

 

　

　

Common stock

37,143

37,143

　

Additional paid-in capital

35,358

35,358

　

Retained earnings

83,169

79,085

　

Evaluation p/l on investments/securities

6,317

4,226

　

Others

 

297

(12,569)

　

Treasury stock, at cost

(11,940)

(11,932)

　

      TOTAL S/HOLDERS` EQUITY

150,344

131,311

　

      TOTAL EQUITIES

236,825

213,826

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

17,852

16,644

　

Cash Flows from Investment Activities

-15,220

-13,088

　

Cash Flows from Financing Activities

2,722

-642

　

Cash, Bank Deposits at the Term End

　

41,341

31,776

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

150,344

131,311

　

 

Current Ratio (%)

170.54

156.45

　

 

Net Worth Ratio (%)

63.48

61.41

　

 

Recurring Profit Ratio (%)

5.58

4.66

　

 

Net Profit Ratio (%)

3.15

1.88

　

　

Return On Equity (%)

4.32

2.62

 

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.100.07

Euro

1

Rs.77.95

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

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.