MIRA
INFORM REPORT
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Report Date : |
8th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
IWATANI
INTERNATIONAL CORPORATION |
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Registered Office : |
3-4-8 Honmachi Chuoku Osaka 541-0053 JAPAN |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
February
1945 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale, import, export of gases for industrial &
household use |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 6,010.4 MILLION |
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Status : |
Fair |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company Name
IWATANI INTERNATIONAL CORPORATION
REGD NAME
Iwatani Sangyo KK
MAIN OFFICE
3-4-8 Honmachi Chuoku Osaka 541-0053 JAPAN
Tel :
06-6267-3355
Fax :
06-6267-3350
URL : http://www.iwatani.co.jp/
E-Mail address : iicworld@iwatani.co.jp
ACTIVITIES
Wholesale, import, export of
gases for industrial & household use
BRANCHES
Tokyo (address as given),
Sapporo, Sendai, Nagoya, Hiroshima, Fukuoka, other (Tot 92): 62 Branch Offices, 28 Sales Offices, 2 Training Centers
OVERSEAS
China (30), Hong Kong (3),
Taiwan, Korea, Singapore (5), Thailand (5),
Malaysia (2), Indonesia (2),
Philippines, Australia (5), USA (2), Europe (2)
(--branch offices, subsidiaries,
JV & affiliates)
CHIEF EXEC
AKIJI MAKINO, PRES
Yen Amount
In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 640,073 M
PAYMENTS REGULAR CAPITAL Yen 20,096 M
TREND STEADY WORTH Yen 56,257 M
STARTED 1945 EMPLOYES 7,144
COMMENT
TRADING COMPANY SPECIALIZING IN GASES FOR INDUSTRIAL & HOUSE HOLD USE.
FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS:
US$500,000 / OVER 45 DAYS
FROM B/L
MAX CREDIT LIMIT: YEN 6,010.4
MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures
for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established originally in 1930 by Naoji
Iwatani, on his account, for selling oxygen, carbide and solvents, and has been
succeeded by his descendants. The
founder’s name is retained in “Iwatani Naoji
Memorial Foundation”, holding 8.1% of the firm’s share. This is a trading company specializing in
gases for industrial & household use.
Largest in LPG trading. Has many
JV’s set up with overseas firms, including Union Carbide (USA) in China, Indonesia,
etc. JV’s & affiliates in China
total 34 including Hong Kong & Taiwan.
Jointly with Mit- subishi
Heavy Ind, involved in production (thru affiliate) of liquid hydrogen.The firm
has withdrawn from unprofitable single-family housing business.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 640,073 million, a 9.7% hike from Yen 583,575 million in the previous term. By divisions, Energy & Lifestyle Div rose 13.3% to Yen 362,190 million, boosted by the hike in LPG imports prices; Industrial Gases Div was up 13.1% to Yen 151,396 million, demand sharply rising from automakers, digital home electronics, IT industries; Materials & Electronics Div up 3.4% to Yen 113,049 million, thanks to the expanded demand for synthetic resins. The recurring profit was posted at Yen 11,768 million and the net profit at Yen 2,340 million, respectively, compared with Yen 9,692 million recurring profit and Yen 4,145 million net profit, respectively, a year ago. The decrease in net profits refers to asset impairment losses.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 12,000 million and the net profit at Yen 4,700 million,
respectively, on a 5.5% rise in turnover, to Yen 675,000 million. Half-yearly
business estimates ending Sept/2006: sales Yen 319,000 million, recurring
profit Yen 2,640 million, net profit Yen 840 million. Industrial gases & solvents are steady and fared well, added to rising prices of
imports. Operation costs reduction
contributed to the profits growth. For the full year, industrial gas & LPG showing
steady sales expansion on back of increased customers. Special asset impairment
losses gone. Planning LNG supply to
1,700 general households and plants in Koka, Shiga-Pref jointly with Kansai
Electric Power.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is estimated at Yen 6,010.4 million, on
30 days normal terms.The proposed amount is considered well within the firm’s
financial capacities.
REGISTRATION
Date Registered : Feb 1945
Legal Status : Limited Company (Kabushiki
Kaisha)
Authorized : 400 shares
Issued : 251,365,028 shares
Sum : Yen 20,096 million
Major shareholders (%)
Iwatani Naoji Memorial
Foundation (8.1), Bank of Tokyo-Mitsubishi UFJ (4.4), Dresdner Bank Frankfurt
Equities C (3.1), Morgan Stanley Int’l (3.0), Tetsuro Iwatani (2.7), Resona
Bank (2.3), Iwatani Enyukai (2.2), Nippon Life Ins (2.2), Employees’ S/Holding
Assn (1.9), Mizuho Corporate Bank (1.8); foreign owners (10.1)
No. of shareholders
21,292
Listed on the S/Exchange (s) of:
Tokyo, Osaka, Nagoya
Managements
Akiji Makino, pres; Toshio
Watanabe, v pres; Seiichi Mori, s/mgn dir; Kazu-hiko Minamimoto, s/mgn dir;
Tadashi Danhara, s/mgn dir; Takashi Miyagawa, s/mgn dir; Daizaburo Sasaki,
s/mgn dir; Eisuke Takeda, s/mgn dir; Toyofumi Obaman, mgn dir; Kyohei Nishida,
mgn dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies
Iwatani Industrial Gases Corp,
Central Sekiyu Gas Co, Iwatani Materi- als
Corp, other (Tot 88 as of Mar/06).
OPERATION
Activities: Leading trading house specializing in energy &
gases: Sales breakdown by divisions:
Energy & Lifestyle-related
Div (57%): LPG, LNG, kerosene, LPG supply equipment, gas heat pumps, wind
power generation systems, housing equipment, bathroom units, inte-grated
kitchen systems, foods, livestock animal feeds, fertilizer, agricultural
equipment, horticultural equipment & supplies, seeds & seedlings,
other;
Industrial Gas Div (24%): welding gases, gas
equipment, solvents, cleaning equipment, jigs
& robots, other;
Materials & Electronics Div
(18%):
semiconductor mfg equipment, communication devices, synthetic resin materials,
ceramics, iron & metals, building materials, other;
Others (2%).
Overseas trading ratio 8.9%: East Asia (China & Taiwan)
(4.4%); S/E Asia (Singapore & Thailand) (1.3%); other region (USA,
Australia ) (3.2%)
Clients
[Mfrs, wholesalers] Matsushita Electric Ind, Sharp Corp, Nippon
Oil Corp, Furukawa Electric, Murata Mfg, Marubeni Gas Energy, Yasukawa Electric
Corp, Marubeni Gas Energy, Zen-Noh, Iwatani Industrial Gases, Nippon Gas, Taiyo
Nippon-Sanso Corp, Cosmo Petro-leum Gas, Japan Air Gases, ^, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Oil refiners, mfrs,
wholesalers] Iwatani Industrial Gases, Nippon Oil Corp, Cosmo Petroleum Gas,
Kobe Steel, Marubeni Gas Energy, Mitsubishi Electric, Nippon Air Liquid,
Yasukawa Electric Corp, other.
Payment record
Regular
Location
Business area in Osaka. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ
(Osaka)
Mizuho Corporate Bank (Osaka)
Relations: Satisfactory
FINANCES
(Consolidated in million yen)
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual Sales |
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640,073 |
583,575 |
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Cost of Sales |
515,227 |
465,603 |
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GROSS PROFIT |
124,846 |
117,972 |
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Selling & Adm Costs |
111,970 |
107,594 |
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OPERATING PROFIT |
12,875 |
10,377 |
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Non-Operating P/L |
-1,107 |
-685 |
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RECURRING PROFIT |
11,768 |
9,692 |
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NET PROFIT |
2,340 |
4,145 |
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BALANCE SHEET |
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Cash |
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20,658 |
22,359 |
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Receivables |
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124,827 |
119,373 |
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Inventory |
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40,389 |
32,913 |
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Securities, Marketable |
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Other Current Assets |
10,714 |
13,804 |
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TOTAL CURRENT ASSETS |
196,588 |
188,449 |
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Property & Equipment |
116,738 |
129,578 |
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Intangibles |
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11,503 |
11,319 |
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Investments, Other Fixed Assets |
77,044 |
52,844 |
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TOTAL ASSETS |
401,873 |
382,190 |
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Payables |
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118,012 |
109,568 |
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Short-Term Bank Loans |
75,931 |
79,340 |
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Other Current Liabs |
32,921 |
25,001 |
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TOTAL CURRENT LIABS |
226,864 |
213,909 |
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Debentures |
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23,370 |
28,680 |
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Long-Term Bank Loans |
82,160 |
77,893 |
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Reserve for Retirement Allw |
3,236 |
2,816 |
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Other Debts |
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5,336 |
5,738 |
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TOTAL LIABILITIES |
340,966 |
329,036 |
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MINORITY INTERESTS |
4,648 |
5,067 |
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Common stock |
20,096 |
20,096 |
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Additional paid-in capital |
17,908 |
17,908 |
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Retained earnings |
10,661 |
10,044 |
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Evaluation p/l on investments/securities |
8,948 |
3,214 |
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Others |
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(1,192) |
(3,039) |
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Treasury stock, at cost |
(164) |
(136) |
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TOTAL S/HOLDERS` EQUITY |
56,257 |
48,087 |
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TOTAL EQUITIES |
401,873 |
382,190 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash Flows from Operating Activities |
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17,550 |
19,919 |
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Cash Flows from Investment Activities |
-19,364 |
-21,887 |
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Cash Flows from Financing Activities |
-332 |
-603 |
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Cash, Bank Deposits at the Term End |
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20,444 |
22,066 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
56,257 |
48,087 |
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Current Ratio (%) |
86.65 |
88.10 |
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Net Worth Ratio (%) |
14.00 |
12.58 |
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Recurring Profit Ratio (%) |
1.84 |
1.66 |
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Net Profit Ratio (%) |
0.37 |
0.71 |
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Return On Equity (%) |
4.16 |
8.62 |
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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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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