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MIRA INFORM REPORT
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Report No. : |
502200 |
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Report Date : |
05.04.2018 |
IDENTIFICATION DETAILS
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Name : |
MARUBENI CORPORATION |
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Registered Office : |
Tokyo Nihombashi Tower, 2-7-1 Chuoku Tokyo 103.0027 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Dec 1949 |
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Com. Reg. No.: |
0100-01-008776 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
A General Trading House |
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No. of Employees : |
4,458 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name & address
MARUBENI CORPORATION
REGD NAME: Marubeni
KK
MAIN OFFICE: Tokyo
Nihombashi Tower, 2-7-1 Chuoku Tokyo 103.0027 JAPAN
Tel:
03-3282-2111 Fax: 03-3282-7456
URL: http://www.marubeni.co.jp/
E-Mail address: info@marubeni.co.jp
ACTIVITIES: A
general trading house
BRANCHES: Tokyo,
Osaka, Nagoya, other (Tot 68 domestic)
OVERSEAS: 65 overseas branches & offices; 30 overseas corporate subsidiaries totaling 95 offices in 64 countries/areas.
OFFICERS: FUMIYA
KOKUBU, PRES Teruo
Asada, ch
Mitsuru Akiyoshi, v pres Shigeru Yamazoe, v pres
Akira Minami, mgn dir Nobuhiro Yabe, mgn dir
Yen Amount: In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 5,407,811 M
PAYMENTS REGULAR CAPITAL Yen 262,686 M
TREND SLOW WORTH Yen
591,895 M
STARTED 1949 EMPLOYES 4,458
COMMENT: GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
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/2017 fiscal term amounted to Yen 5,407,811 million, a 12% fall from Yen 6,127,775 million in the previous term. The recurring profit was posted at Yen 43,529 million and the net profit at Yen 63.565 million, respectively, compared with Yen 245,190 million recurring profit and Yen 146,212 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 46,000 million and the net profit at Yen 69,000 million, respectively, on a 9% rise in turnover, to Yen 5,894,550 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date Registered: Dec
1949
Regd No.:
0100-01-008776
(Tokyo-Chuoku)
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 (4.9), Japan Trustee Service T (4.6), Sompo
Japan Ins (2.4), Meiji Yasuda Life Ins (2.4), Japan Trustee Services T9 (2.1),
others: foreign owners (28.7)
No. of shareholders: 184,758
Listed on the S/Exchange (s) of: Tokyo, Nagoya
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 (22%): 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 (45%): 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;
Power Project & Plant (4%);
Chemicals Division (22%): 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 (7%): 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;
Overseas operations (50%)
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
(Non-consolidate In Million Yen):
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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5,894,550 |
5,407,811 |
6,127,775 |
7,328,553 |
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Recur.
Profit |
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46,000 |
42,529 |
245,190 |
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Net
Profit |
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69,000 |
63,565 |
146,212 |
6,650 |
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Total
Assets |
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3,777,546 |
3,718,490 |
3,701,236 |
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Current
Assets |
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1,425,581 |
1,441,397 |
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Current
Liabs |
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1,586,715 |
1,551,382 |
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Net
Worth |
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591,895 |
562,495 |
378,071 |
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Capital,
Paid-Up |
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262,686 |
262,686 |
262,686 |
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Div.Ttl
in Million (¥) |
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34,711 |
40,786 |
44.257 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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9.00 |
-11.75 |
-16.38 |
-7.26 |
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Current Ratio |
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.. |
89.84 |
92.91 |
.. |
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N.Worth Ratio |
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.. |
15.67 |
15.13 |
10.21 |
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R.Profit/Sales |
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0.78 |
0.79 |
4.00 |
.. |
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N.Profit/Sales |
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1.17 |
1.18 |
2.39 |
0.09 |
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Return On Equity |
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.. |
10.74 |
25.99 |
1.76 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.02 |
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1 |
INR 91.49 |
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Euro |
1 |
INR 79.79 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.