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Report No. : |
321707 |
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Report Date : |
11.05.2015 |
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) : |
31.03.2014 |
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Date of Incorporation : |
December 1949 |
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Com. Reg. No.: |
0100-01-008776 |
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Legal Form : |
Limited Company |
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Line of Business : |
General trading
house for import, export and wholesale of: · Energy Division (31%) · Foods Division (21%) · Metals & Resources Division (7%): · Materials & Paper/Pulp Division (6%) · Chemicals Division (10%): · Transportation & Industrial Machinery Division (8%) · Plant, Ship & Infrastructure Projects Division (6%) ·
Other Divisions (11%) |
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No. of Employees : |
39,126 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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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 |
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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
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% 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 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. 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 |
MARUBENI
CORPORATION
Marubeni KK
1-4-2 Ohtemachi
Chiyodaku Tokyo 100-8088 JAPAN
Tel:
03-3282-2111 Fax: 03-3282-2331
*.. The is one of
its branch offices
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
FINANCES FAIR A/SALES Yen 13,633,520 M
PAYMENTSREGULAR CAPITAL Yen 262,686 M
TREND STEADY WORTH Yen 1,533,186 M
STARTED 1949 EMPLOYES 39,126
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: |
31/03/2011 |
9,020,468 |
207,217 |
136,541 |
(%) |
831,730 |
|
(Consolidated) |
31/03/2012 |
10,584,393 |
260,983 |
172,125 |
17.34 |
915,770 |
|
31/03/2013 |
10,674,395 |
157,254 |
134,508 |
0.85 |
1,203,008 |
|
|
31/03/2014 |
13,633,520 |
236,373 |
213,286 |
27.72 |
1,533,186 |
|
|
31/03/2015 |
14,300,000 |
300,000 |
230,000 |
4.89 |
.. |
Notes: Unit: in Million Yen
Forecast (or estimated) figures for 31/03/2015
fiscal term
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.
The sales volume for Mar/2014 fiscal term amounted to Yen 13,633,520 million, a 27.7% up from Yen 10,674,395 million in the previous term. Energy business turned around after booking asset impairment last term. The weaker Yen pushed up overseas earnings. The recurring profit was posted at Yen 236,373 million and the net profit at Yen 213,286 million, respectively, compared with Yen 157,254 million recurring profit and Yen 134,508 million net profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected at Yen 300,000 million and the net profit at Yen 230,000 million, respectively, on a 4.9% up in turnover, to Yen 14,300,000 million. Gavilon, a leading US grain firm, will rebound and contribute in full term. Electric power generation and transportation machinery businesses will also continue in good shape. Operating profit will grow.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
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), Barclays Securities Japan (1.4), Nippon Life Ins (1.4);
foreign owners (30.1)
No. of shareholders: 120,898
Listed on the S/Exchange (s) of: Tokyo, Nagoya
Managements: Teruo Asada, ch; Fuiya 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; Masazumi Kakinoki, mgn dir; Takao Kitabatake, dir; Yukiko Matsumoto, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Marubeni Energy, Marubeni Nisshin Feed, Marubeni Pulp & Paper, other
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;
Materials & Paper/Pulp Division (6%): 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;
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 (8%): 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;
Other Divisions (11%): 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, Mitsubishi Heavy Ind, Columbia Grain Trading, 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, 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:
SMBC (Osaka)
MUFG (H/O)
Relations:
Satisfactory
(In Million
Yen):
|
FINANCES: (Consolidated
in million yen) |
||||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
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Annual Sales |
|
13,633,520 |
10,674,395 |
|
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Cost of Sales |
12,982,457 |
10,334,747 |
||
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GROSS PROFIT |
651,063 |
539,648 |
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Selling & Adm Costs |
493,601 |
411,225 |
||
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OPERATING PROFIT |
157,462 |
128,423 |
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Non-Operating P/L |
78,911 |
28,831 |
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RECURRING PROFIT |
236,373 |
157,254 |
||
|
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NET PROFIT |
213,286 |
134,508 |
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BALANCE SHEET |
||||
|
Cash |
|
665,498 |
865,592 |
|
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Receivables |
1,414,045 |
1,320,305 |
||
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Inventory |
778,683 |
580,002 |
||
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Securities, Marketable |
0 |
949 |
||
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Other Current Assets |
452,800 |
407,538 |
||
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TOTAL CURRENT ASSETS |
3,311,026 |
3,174,386 |
||
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Property & Equipment |
1,175,046 |
782,112 |
||
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Intangibles |
350,443 |
118,789 |
||
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Investments, Other Fixed Assets |
2,418,865 |
2,040,496 |
||
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TOTAL ASSETS |
7,255,380 |
6,115,783 |
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Payables |
1,443,064 |
1,233,642 |
||
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Short-Term Bank Loans |
482,904 |
482,564 |
||
|
|
|
|
||
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Other Current Liabs |
719,718 |
637,716 |
||
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TOTAL CURRENT LIABS |
2,645,686 |
2,353,922 |
||
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Debentures |
|
|
||
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Long-Term Bank Loans |
2,699,461 |
2,271,066 |
||
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Reserve for Retirement Allw |
69,014 |
67,606 |
||
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Other Debts |
|
308,033 |
220,181 |
|
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TOTAL LIABILITIES |
5,722,194 |
4,912,775 |
||
|
MINORITY INTERESTS |
||||
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Common
stock |
262,686 |
262,686 |
||
|
Additional
paid-in capital |
154,054 |
153,874 |
||
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Retained
earnings |
701,906 |
550,841 |
||
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Evaluation
p/l on investments/securities |
120,738 |
122,996 |
||
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Others |
295,140 |
113,498 |
||
|
Treasury
stock, at cost |
(1,338) |
(887) |
||
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TOTAL S/HOLDERS` EQUITY |
1,533,186 |
1,203,008 |
||
|
|
TOTAL EQUITIES |
7,255,380 |
6,115,783 |
|
|
CONSOLIDATED CASH FLOWS |
||||
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Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash Flows
from Operating Activities |
|
291,188 |
6,115,783 |
|
|
Cash
Flows from Investment Activities |
-706,585 |
-192,825 |
||
|
Cash
Flows from Financing Activities |
196,779 |
111,585 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
665,498 |
865,592 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net
Worth (S/Holders' Equity) |
1,533,186 |
1,203,008 |
||
|
Current
Ratio (%) |
125.15 |
134.86 |
||
|
Net
Worth Ratio (%) |
21.13 |
19.67 |
||
|
Recurring
Profit Ratio (%) |
1.73 |
1.47 |
||
|
Net
Profit Ratio (%) |
1.56 |
1.26 |
||
|
Return
On Equity (%) |
13.91 |
11.18 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.05 |
|
|
1 |
Rs.99.04 |
|
Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.