MIRA INFORM REPORT
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Report No. : |
308926 |
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Report Date : |
19.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO CORPORATION |
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Registered Office : |
Office Tower Y Harumi Island Triton Square, 1-8-11 Harumi Chuoku Tokyo 104-8610 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
December 1919 |
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Com. Reg. No.: |
008692 |
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Legal Form : |
Limited Company |
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Line of Business : |
General trading house for import, export and
wholesale of: ·
Metals Div (19%) ·
Transportation & Construction Machinery Div
(13%) ·
Machinery & Electricity Div (2%) ·
Media, Electronics & Network Business Div 9%) ·
Chemicals Div (5%) ·
Mineral Resources & Energy Div (22%) ·
Consumer Goods & Services Div (30%) |
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No. of Employees : |
75,099 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 |
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 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
summary
SUMITOMO CORPORATION
REGD
NAME
Sumitomo Shoji KK
MAIN
OFFICE
Office Tower Y Harumi Island Triton Square,
1-8-11 Harumi Chuoku Tokyo 104-8610 JAPAN
Tel:
03-5166-5000 Fax: 03-5166-6296
URL: http://www.sumitomocorp.co.jp/
E-Mail address: ir@sumitomocorp.co.jp (Investor Relations
Division)
ACTIVITIES: General
trading house of metals, industrial machinery, energy &
chemicals
BRANCHES: Osaka,
Nagoya, other (Tot 24 domestic); 115 overseas in 66 countries
CHIEF EXEC: KUNIHARU
NAKAMURA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 8,146,184 M
PAYMENTS REGULAR CAPITAL Yen 219,279 M
TREND UP WORTH Yen 2,540,184 M
STARTED 1919 EMPLOYES 75,099
COMMENT: LEADING GENERAL TRADING HOUSE, NUCLEUS OF SUMITOMO GROUP FIRMS. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESSENGAGEMENTS.
Forecast
(or estimated) figures for 31/03/2015 fiscal term (Unit in Million
Yen)
HIGHLIGHTS
This is leading general trading house, dating back to 1919, and a
nucleus of Sumitomo group firms. Among
trading houses, known for sound financial standing and stable management. Active in multimedia field with strong CATV
networks. Has JV with TCI, largest CATV
provider in US. Holds largest share in
Seiyu, a major supermarket chain operator, affiliated with Wall Mart. Holds 50% stake in Australian Bulk Alliance
Pty Ltd. Developing large-scale
coal-powered thermal power plant project in Indonesia. Boosting power-related operations in S/E
Asia. Acquired 25% interests in uranium
mine (minable reserve at 18,000 tons, annual output assumed at 1,000 tons) at Kazakhstan. Won joint project (worth Yen 150 billion) on
power generation/water desalination facilities in Bahrain. Finished additional acquisition of shares of
Jupiter Telecommunications, becoming the leading shareholder with a 40% equity
stake. The company will restructure
management of TBC, a struggling US tire sales firm, including through store
closures and business systems replacements, and aims to book a profit from
2014. It acquired a leading US steel
materials and steel pipes wholesaler for around Yen 50 billion.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 8,146,184
million, an 8.6% up from Yen 7,502,754 million in the previous term. The automobile financing business grew in
Japan and overseas. Steel pipes trading
benefitted from robust resource development in North America. The recurring profit was posted at Yen
304,246 million and the net profit at Yen 233,858 million, respectively,
compared with Yen 319,021 million recurring profit and Yen 243,695 million net
profit, respectively, a year ago.
(Apr/Dec/2014 results): Sales Yen 6,368,257 million (up 8.5%), operating
loss Yen 82,750 million (previously Yen 144,587 million profit), recurring
profit Yen 9,925 million (down 95.8%), net loss Yen 4,837 million (previously
Yen 187,529 profit). (% & figures as
compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected
at Yen 332,000 million and the net profit at Yen 250,000 million, respectively,
on a 5.6% rise in turnover, to Yen 8,600,000 million. The steel pipes and automobile businesses
will drive sales growth.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered:
Dec 1919
Regd No.:
(Tokyo-Chuoku)
008692
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 2,000
million shares
Issued:
1,250,602,867 shares
Sum: Yen
219,279 million
Major
shareholders (%): Master Trust Bank of Japan T (5.9), Japan Trustee Services T (4.6),
Liberty Programming Japan (3.6), Sumitomo Life Ins (2.4), Mitsui Sumitomo Ins
(2.1), 1apan Trustee Services T9 (1.6), Barclays Securities Japan (1.5), Chase
London SL Omnibus Acct (1.5), Bank of New York Treaty Jasdec (1.2), Dai-ichi
Life Ins (1.2); foreign owners (34.0)
No.
of shareholders: 153,361
Listed on the S/Exchange (s) of: Tokyo
Managements: Kazuo Ohmori,
ch; Kuniharu Nakamura, pres; Shin’ichi Sasaki, v pres; Takuro Kawahara, v pres;
Azuhisa Togashi, v pres; Yasuyuki Abe, s/mgn dir; Naoki Hidaka, s/mgn dir; Toru
Furihata, s/mgn dir; Hiroyuki Inohara, s/mgn dir; Michihiko Kanegae, s/mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Sumitomo Auto
Lease, Sumisho Computer Systems,
Sumisho
Electronics, Sumitomo USA Inc, other
OPERATION
Activities: General trading house for import, export
and wholesale of:
(Sales breakdown by divisions):
Metals
Div (19%): steel, steel pipes, nonferrous metal products, metal products for
automotive industries;
Transportation
& Construction Machinery Div (13%): ships, railroad & transportation systems, lease & auto loans for
construction equipment, motor vehicles, aircraft;
Machinery & Electricity Div (2%): electric power,
information &
Tele-communications,
water & sewage, natural gas-related projects & pipelines;
Media,
Electronics & Network Business Div 9%): providing infrastructure & content services with Jupiter Telecommunications
Co, a cable TV operator, other;
Chemicals
Div (5%): electronics & batteries, bio-related materials, pharmaceuticals,
agricultural chemicals;
Mineral Resources & Energy Div (22%): copper, coal, oil,
LNG;
Consumer
Goods & Services Div (30%): foodstuff, foods, textiles, supermarket
chain operations, other.
Overseas Trading Ratio (50%)
Clients: [Mfrs,
wholesalers] Sumitomo Communication Global Commodities Ltd, Nippon Steel &
Sumitomo Metal Corp, Sumitomo Metal Mining, Sumisho Materials Corp, Mitsubishi
Materials, Chung Hung Steel, PT Hino Motors Manufacturing Indonesia, Idemitsu
Kosan Kaisha, Kansai Electric Power, Sumitomo Chemical, other.
No. of accounts:
3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Sumitomo Communication Global Commodities Ltd, Nippon Steel & Sumitomo
Metal Corp, Sumisho Materials Corp, Sumitomo Metal Mining, Oshima Shipbuilding
Co, Petro Summit Pte Ltd, Hino Motors, Idemitsu Kosan Kaisha, Mitsubishi
Material, TonenGeneral Sekiyu, Toshiba Corp, other.
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank
References:
SMBC (Tokyo)
MUFG (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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8,146,184 |
7,502,724 |
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Cost of Sales |
7,254,768 |
6,675,762 |
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GROSS PROFIT |
894,416 |
826,962 |
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Selling & Adm Costs |
722,666 |
664,481 |
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OPERATING PROFIT |
171,750 |
162,481 |
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Non-Operating P/L |
132,496 |
156,540 |
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RECURRING PROFIT |
304,246 |
319,021 |
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NET PROFIT |
233,858 |
243,695 |
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BALANCE SHEET |
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Cash |
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1,111,192 |
924,513 |
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Receivables |
1,549,363 |
1,470,942 |
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Inventory |
872,030 |
770,450 |
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Securities, Marketable |
33,683 |
29,653 |
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Other Current Assets |
373,230 |
351,298 |
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TOTAL CURRENT ASSETS |
3,939,498 |
3,546,856 |
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Property & Equipment |
921,157 |
821,981 |
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Intangibles |
367,906 |
279,809 |
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Investments, Other Fixed Assets |
3,440,177 |
3,204,111 |
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TOTAL ASSETS |
8,668,738 |
7,852,757 |
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Payables |
1,076,713 |
1,080,699 |
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Short-Term Bank Loans |
876,379 |
695,665 |
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Other Current Liabs |
416,732 |
400,221 |
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TOTAL CURRENT LIABS |
2,369,824 |
2,176,585 |
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Debentures |
3,362,553 |
3,165,737 |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
29,353 |
38,509 |
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Other Debts |
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366,824 |
276,044 |
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TOTAL LIABILITIES |
6,128,554 |
5,656,875 |
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MINORITY INTERESTS |
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Common
stock |
219,275 |
219,275 |
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Additional
paid-in capital |
268,332 |
269,285 |
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Retained
earnings |
268,332 |
269,285 |
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Evaluation
p/l on investments/securities |
346,222 |
173,044 |
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Others |
1,441,975 |
1,245,225 |
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Treasury
stock, at cost |
(3,952) |
(232) |
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TOTAL S/HOLDERS` EQUITY |
2,540,184 |
2,175,882 |
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TOTAL EQUITIES |
8,668,738 |
7,832,757 |
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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 |
|
78,237 |
80,305 |
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Cash
Flows from Investment Activities |
-249,852 |
-186,203 |
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Cash
Flows from Financing Activities |
145,908 |
-24,667 |
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Cash,
Bank Deposits at the Term End |
|
1,111,192 |
924,513 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
2,540,184 |
2,175,882 |
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Current
Ratio (%) |
166.24 |
162.96 |
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Net
Worth Ratio (%) |
29.30 |
27.78 |
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Recurring
Profit Ratio (%) |
3.73 |
4.25 |
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Net
Profit Ratio (%) |
2.87 |
3.25 |
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Return
On Equity (%) |
9.21 |
11.20 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.25 |
|
|
1 |
Rs.95.57 |
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Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.