MIRA INFORM REPORT

 

 

Report Date :

05.09.2014

 

IDENTIFICATION DETAILS

 

Name :

UBE INDUSTRIES LTD

 

 

Registered Office :

1978-96 Kogushi Ube City Yamaguchi-Pref

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March, 1942

 

 

Com. Reg. No.:

(Yamaguchi-Ube) 002992

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Mfg of chemicals, construction materials, machinery & metal molding, energy

 

 

No. of Employees

11,225

 

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 – 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 and address

 

UBE INDUSTRIES LTD

REGD NAME:    Ube Kosan KK

MAIN OFFICE:  Seavans North Bldg, 1-2-1 Shibaura Minatoku Tokyo 105-8449 JAPAN

Tel: 03-5419-6112     Fax: 03-5419-6237-

 

*.. Registered at: 1978-96 Kogushi Ube City Yamaguchi-Pref;

Phone: 0836-31-1111; Fax: 0836-21-2232

 

URL:                 http://www.ube-ind.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of chemicals, construction materials, machinery & metal molding, energy

 

 

BRANCHES   

 

Osaka, Nagoya, Fukuoka

 

 

OVERSEAS

 

China (5), Hong Kong, Singapore, Thailand (5), USA (2), Europe (4), Brazil

 

 

FACTORIES  

 

Ube (2), Chiba, Ise, Sakai

 

 

CHIEF EXEC 

 

MICHIO TAKESHITA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 650,510 M

PAYMENTSREGULAR   CAPITAL           Yen 58,435 M

TREND UP                    WORTH            Yen 265,355 M

STARTED         1954                 EMPLOYES      11,225

 

 

COMMENT

 

MFR OF CHEMICALS & CEMENT AS MAINLINE

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

The subject company was established originally as coal mining firm in 1987.  Made new start in 1942 thru merger of 3 firms in chemical, cement & machinery industries.  Now is a diversified mfr of chemicals & cement, as mainline.  Third ranked mfr of nylon materials in the world.  Also has strength in electronic materials.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 650,510 million, a 3.9% up from Yen 626,022 million in the previous term.  The recurring profit was posted at Yen 18,691 million and the net profit at Yen 12,623 million, respectively, compared with Yen 28,045 million recurring profit and Yen 8,265 million net profit, respectively, a year ago.　.

 

(Apr/Jun/2024 result): Sales Yen 148,567 million (down 3.2%), operating profit Yen 227 million (down 82.1%), recurring loss Yen 396 million (previously Yen 59 million profit), net loss Yen 1,196 million (previously Yen 271 million loss).  (% & figures compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 24,000 million and the net profit at Yen 13,500 million, on a 3.0% rise in turnover, to Yen 670,000 million.  Cosmetics and electric power businesses will bounce back from preceding term’s plant malfunction.

 

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

 

 

REGISTRATION

 

      Date Registered:    　   Mar 1942

      Regd No.:                     (Yamaguchi-Ube) 002992

Legal Status:          Limited Company (Kabushiki Kaisha

Authorized:                  3,300 million shares

Issued:                  1,062,001,076 shares

Sum:                     Yen 58,435 million

 

Major shareholders (%): Japan Trustee Services T (6.3), Master Trust Bank of Japan T (5.4), Zenkyoren (3.2), Nippon Life Ins (1.8), Sumitomo Life Ins (1.8), Nomura Lux Multi Currency J818517 (1.7), Yamaguchi Bank (1.4), BBH Boston Cust. BGAF620313 (1.2), MUFG (1.2), State Street Bank West Treaty (1.2); foreign owners (29.7)

 

No. of shareholders: 58,873

 

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

 

Managements: Michio Takeshita, pres; Yuzuru Yamamoto, s/mgn dir; Hidseyuki Sugishita, s/mgn dir; Charunya Phichitkul, mgn dir; Shinobu Watanabe, mgn dir; Nobuyuki Taenaka, mgn dir; Takanobu Kubota, mgn dir; Tadashi Matsunami, mgn dir

 

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

 

Related companies: Ube Materials, Ube Kosan Machinery, other.

 

 

OPERATION

 

Activities: Manufactures chemicals & cement, as mainline:

 

(Sales Breakdown by Divisions):

Chemicals & Resins Division (33%): synthetic rubber, caprolactam chain (caprolactam, polyamide resins, industrial chemicals);

Functional Materials & Fine Chemicals Division (9%): specialty products (polyamide, battery materials, high purity chemicals, separation membranes, ceramics, telecommunication devices, aerospace materials), fine chemicals, pharmaceuticals (active ingredients, intermediates);

Construction Materials Division (34%): cement, resource recycling, building materials (self-leveling materials, plastering materials & waterproofing materials), limestone, ready-mixed concrete, calcia, magnesia, specialty inorganic materials;

Machinery & Metal Molding Division (15%): machinery (molding machines, die-casting machines, injection molding machines, industrial machinery, bridges & structures, steelmaking materials, aluminum wheels;

Energy & Environment Division (8%): coal, power:

Others (1%)

Overseas Sales Ratio (32%)

 

Clients: [Mfrs, wholesalers] Ube Mitsubishi Cement, Unitika Ltd, Toyota Tsusho Corp, Bridgestone Corp, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Sojitz Corp, Mitsubishi Corporation, Ube Ammonia Ind,

Sumitomo Corp, Rio Tinto Japan, Toho Tenax Co, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

650,510

626,022

　

  Cost of Sales

546,340

517,769

　

      GROSS PROFIT

104,170

108,253

　

  Selling & Adm Costs

79,757

78,291

　

      OPERATING PROFIT

24,413

29,962

　

  Non-Operating P/L

-5,722

-1,917

　

      RECURRING PROFIT

18,691

28,045

　

      NET PROFIT

12,623

8,265

BALANCE SHEET

 

 

　

　

  Cash

　

30,560

36,280

　

  Receivables

 

153,160

143,223

　

  Inventory

 

82,402

81,754

　

  Securities, Marketable

　

　

　

  Other Current Assets

30,416

26,142

　

      TOTAL CURRENT ASSETS

296,538

287,399

　

  Property & Equipment

332,416

323,717

　

  Intangibles

 

5,264

4,876

　

  Investments, Other Fixed Assets

66,497

69,892

　

      TOTAL ASSETS

700,715

685,884

　

  Payables

 

89,229

83,247

　

  Short-Term Bank Loans

95,494

102,559

　

　

 

　

　

　

  Other Current Liabs

73,235

65,130

　

      TOTAL CURRENT LIABS

257,958

250,936

　

  Debentures

 

40,000

30,000

　

  Long-Term Bank Loans

96,818

110,390

　

  Reserve for Retirement Allw

7,019

6,544

　

  Other Debts

　

33,565

37,261

　

      TOTAL LIABILITIES

435,360

435,131

　

      MINORITY INTERESTS

 

　

　

Common stock

58,435

58,435

　

Additional paid-in capital

38,398

28,465

　

Retained earnings

142,307

135,981

　

Evaluation p/l on investments/securities

2,985

2,436

　

Others

 

24,109

26,212

　

Treasury stock, at cost

(879)

(776)

　

      TOTAL S/HOLDERS` EQUITY

265,355

250,753

　

      TOTAL EQUITIES

700,715

685,884

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

37,060

46,126

　

Cash Flows from Investment Activities

-40,742

-39,063

　

Cash Flows from Financing Activities

-7,491

-5,872

　

Cash, Bank Deposits at the Term End

　

30,098

35,962

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

265,355

250,753

　

 

Current Ratio (%)

114.96

114.53

　

 

Net Worth Ratio (%)

37.87

36.56

　

 

Recurring Profit Ratio (%)

2.87

4.48

　

 

Net Profit Ratio (%)

1.94

1.32

　

　

Return On Equity (%)

4.76

3.30

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.45

UK Pound

1

Rs.99.46

Euro

1

Rs.79.46

                

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.