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MIRA INFORM REPORT
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Report No. : |
511893 |
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Report Date : |
26.05.2018 |
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) : |
31.03.2018 |
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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 : |
A
general trading house |
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No. of Employees : |
4,463 |
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 - averaging 10% 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 resulted in several years of economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is 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.
Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. 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). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.
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Source
: CIA |
Company
summery
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, adviser Shigeru Yamazoe, v ch
Hikaru
Minami, mgn dir Nobuhiro
Yabe, mgn dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 7,540,337 M
PAYMENTS REGULAR CAPITAL Yen 262,686 M
TREND STEADY WORTH Yen
1,771,475 M
STARTED 1949 EMPLOYES 4,463
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/2018 fiscal term amounted to Yen 7,540,337 million, a 5.77% up
from Yen 7,128,805 million in the previous term. The recurring profit was posted at Yen
255,004 million and the net profit at Yen 211,259 million, respectively,
compared with Yen 200,271 million recurring profit and Yen 155,350 million net
profit, respectively, a year ago.
For
the current term ending Mar 2019 the recurring profit is projected at Yen
245,000 million and the net profit at Yen 195,000 million, respectively, on a
0.53% fall in turnover, to Yen 7,500,000 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 (5.1), Japan Trustee Service T (4.5), Sompo Japan Ins
(2.4), Meiji Yasuda Life Ins (2.4), Japan Trustee Services T5 (2.2), others:
foreign owners (30.5)
No. of shareholders: 171,446
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
(47%)
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 (H/O)
MUFG
(H/O)
Relations:
Satisfactory
Banking details
Nissan Motor: Mizuho Bank (H/O), MUFG (H/O)
Showa Denko: Mizuho Bank (H/O), Norin Chukin Bank (H/O)
Nippon Paper: Norin Chukin Bank (H/O), SMBC (H/O)
Hitachi Construction Machinery: Mizuho Bank (H/O), MUFG (H/O)
Idemitsu Kosan: MUFG (H/O), SMBC (Tokyo)
Komatsu Ltd: SMBC (H/O), Mizuho Bank (H/O)
FINANCES
(In Million Yen):
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Terms Ending: |
31/03/2019 |
31/03/2018 |
31/03/2017 |
31/03/2016 |
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Annual Sales |
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7,500,000
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7,540,337
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7,128,805
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7,300,299
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Recur. Profit |
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245,000
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255,004
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200,271
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90,559
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Net Profit |
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195,000
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211,259
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155,350
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62,264
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Total Assets |
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6,877,117
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6,896,733
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7,117,686
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Current Assets |
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3,278,771
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3,164,486
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3,162,580
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Current Liabs |
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2,761,714
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2,616,205
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2,594,216
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Net Worth |
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1,771,475
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1,683,723
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1,316,052
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Capital, Paid-Up |
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262,686
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262,686
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262,686
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Div.P.Share(¥) |
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29.00 |
23.00 |
21.00 |
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<Analytical
Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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-0.53 |
5.77 |
-2.35 |
-6.82 |
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Current Ratio |
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.. |
118.72
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120.96
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121.91
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N.Worth Ratio |
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.. |
25.76 |
24.41 |
18.49 |
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R.Profit/Sales |
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3.27 |
3.38 |
2.81 |
1.24 |
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N.Profit/Sales |
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2.60 |
2.80 |
2.18 |
0.85 |
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Return On Equity |
|
.. |
11.93 |
9.23 |
4.73 |
Notes: Forecast (or estimated)
figures for the 31/03/2019 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 68.26 |
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|
1 |
INR 91.22 |
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Euro |
1 |
INR 79.88 |
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YEN |
1 |
INR 0.62 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
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.