MIRA INFORM REPORT
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Report No. : |
354173 |
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Report Date : |
10.12.2015 |
IDENTIFICATION DETAILS
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Name : |
MARUBENI CORPORATION |
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Registered Office : |
1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Dec.,1949 |
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Com. Reg. No.: |
0100-01-008776 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
General Trading House, Core of Fuyo Group Firms. |
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No. of Employees : |
38,830 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 129,936.7 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 an 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. Scarce in many natural resources,
Japan has long been dependent on imported raw materials. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become even more dependent than it was
previously on imported fossil 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
impressive - 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 aftereffects 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 four times
since 2008. 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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose 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
*.. The is its Osaka Office
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
64 overseas branches & offices; 32
overseas corporate subsidiaries with 62 offices, totaling 117 offices in
64 countries/areas.
CHIEF
EXEC
FUMIYA KOKUBU,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 12,925,339 M
PAYMENTSREGULAR CAPITAL Yen 262,686 M
TREND STEADY WORTH Yen 1,678,713 M
STARTED 1949 EMPLOYES 38,830
COMMENT
GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS
MAX CREDIT LIMIT: YEN 129,936.7 MILLION, 30 DAYS NORMAL
TERMS.
Unit;
In Million Yen
Forecast
(or estimated) figures for 31/03/2016 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 will actively engage in the power generation business also in
Japan. It acquired a thermal power plant
in Sodegaura, Chiba-Pref. It will also
start collaborating with US firms to create business meeting the needs of
domestic customers. It will book partial
asset impairment on shale gas development.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 13,925,339 million, a 2.1% up from Yen
13,633,520 million in the previous term.
The recurring profit was posted at Yen 124,614 million and the net
profit at Yen 105,604 million, respectively, compared with Yen 236,373 million
recurring profit and Yen 210,945 million net profit, respectively, a year ago.
(Apr/Sept/2015
results): Sales 6,524,221 million (down 8.2%), operating profit Yen 74,592
million (down 19.3%), recurring profit Yen 117,392 million (down 31.2%), net
profit Yen 101,218 million (down 22.3%).
(% as compared with the corresponding period a year ago).
For the current
term ending Mar 2016 the recurring profit is projected at Yen 250,000 million
and the net profit at Yen 190,000 million, respectively, on a 3% fall in
turnover, to Yen 7,600,000
million. Metals and energy businesses will struggle as a result of market
downturns.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is estimated at Yen 129,936.7 million, on
30 days normal terms.
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
(%): Japan Trustee Service T (4.3), Master Trust Bank of Japan T (3.8), Sompo
Japan Ins (2.4), Meiji Yasuda Life Ins (2.1), Mizuho Bank (1.7), Japan Trustee
Services T9 (1.4), Barclays Securities Japan (1.4), Tokio Marine & Nichido
Fire Ins (1.4), Dai-ichi Life Ins (1.4), JP Morgan Chase Bank 380055 (1.3);
foreign owners (26.2)
No.
of shareholders: 188,527
Listed
on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Teruo Asada, ch;
Fuiya Kokubu, pres; Mitsuru Akiyoshi, v pres; Shigeru Yamazoe, v pres; Kaoru
Iwase, s/mgn dir; Shinji Kawai, s/mgn dir; Yukihiko Matsuura, s/mgn dir; Hikaru
Minami, mgn dir; Akira Terakawa, mgn dir; Ichiro Takahara, 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
(7%): 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
(34%): 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 (30%): 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
(9%): 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 (5%): aircraft, aero engines, helicopters, defense
systems, automotive, 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 (4%): 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;
Other Divisions
(10%): Lifestyle Division, Real estate Development Division, Iron & Steel
Strategies & Coordination Division, Abu Dhabi Trade House Project Division,
Overseas Operations, other
Overseas
operations (40%)
Clients: [Mfrs, electric
powers, wholesalers] Tokyo Electric Power, Chubu Electric Power, Nissan Motors,
Showa Denko, Idemitsu Kosan, JFE Steel, Uniqlo, Daio Paper Corp, Mitsubishi
Heavy Ind, Columbia Grain Trading, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Nissan Motors, Showa Denko, Nippon Paper, Hitachi Construction
Machinery, Idemitsu Kosan, Komatsu Ltd, Marubeni International Commodities,
Marubeni USA, 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):
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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7,834,295 |
7,055,700 |
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Cost of Sales |
7,126,977 |
6,404,637 |
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GROSS PROFIT |
707,318 |
651,063 |
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Selling & Adm Costs |
683,686 |
441,003 |
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OPERATING PROFIT |
23,632 |
110,060 |
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Non-Operating P/L |
100,982 |
126,313 |
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RECURRING PROFIT |
124,614 |
236,373 |
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NET PROFIT |
105,604 |
210,945 |
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BALANCE SHEET |
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Cash |
|
469,106 |
665,498 |
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Receivables |
1,350,473 |
1,414,045 |
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Inventory |
898,870 |
778,683 |
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Securities, Marketable |
601 |
0 |
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Other Current Assets |
541,617 |
452,800 |
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TOTAL CURRENT ASSETS |
3,260,667 |
3,311,026 |
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Property & Equipment |
1,363,776 |
1,175,046 |
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Intangibles |
366,185 |
350,443 |
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Investments, Other Fixed Assets |
2,682,436 |
2,419,570 |
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TOTAL ASSETS |
7,673,064 |
7,256,085 |
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Payables |
1,443,064 |
1,313,065 |
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Short-Term Bank Loans |
482,904 |
522,992 |
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Other Current Liabs |
722,378 |
893,952 |
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TOTAL CURRENT LIABS |
2,648,346 |
2,730,009 |
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Debentures |
2,699,461 |
1,846,082 |
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Long-Term Bank Loans |
19,714 |
20,649 |
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Reserve for Retirement Allw |
69,014 |
76,135 |
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Other Debts |
|
(2,788,189) |
(1,942,866) |
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TOTAL LIABILITIES |
2,648,346 |
2,730,009 |
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MINORITY INTERESTS |
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Common
stock |
262,686 |
262,686 |
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Additional
paid-in capital |
154,054 |
154,054 |
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Retained
earnings |
154,054 |
699,951 |
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Evaluation
p/l on investments/securities |
120,738 |
120,738 |
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Others |
988,519 |
295,144 |
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Treasury
stock, at cost |
(1,338) |
(1,338) |
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TOTAL S/HOLDERS` EQUITY |
1,678,713 |
1,531,235 |
|
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TOTAL EQUITIES |
7,673,064 |
7,256,085 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
|
170,943 |
291,188 |
|
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Cash Flows
from Investment Activities |
-331,411 |
-706,685 |
|
|
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Cash
Flows from Financing Activities |
-70,705 |
196,775 |
|
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Cash,
Bank Deposits at the Term End |
|
469,106 |
665,498 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
1,678,713 |
1,531,235 |
|
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Current
Ratio (%) |
123.12 |
121.28 |
|
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Net
Worth Ratio (%) |
21.88 |
21.10 |
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Recurring
Profit Ratio (%) |
1.59 |
3.35 |
|
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Net
Profit Ratio (%) |
1.35 |
2.99 |
|
|
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Return
On Equity (%) |
6.29 |
13.78 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.75 |
|
|
1 |
Rs.100.29 |
|
Euro |
1 |
Rs.72.89 |
|
JPY |
1 |
Rs. 0.55 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
RATING EXPLANATIONS
|
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 |
|
|
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.