MIRA
INFORM REPORT
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Report Date : |
22.08.2007 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU PULP
& PAPER CORPORATION |
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Registered Office : |
NOF Nihombashi-Honcho Bldg 8F, 2-7-1 Nihombashi-Honcho
Chuoku 103-0023 |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Jan 1972 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Wholesale, import, export of
printing paper, packaging paper, paperboard, etc |
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 800.4 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name
ITOCHU PULP &
PAPER CORPORATION
REGD NAME
Itochu Kami Pulp
KK
MAIN OFFICE
NOF Nihombashi-Honcho Bldg 8F, 2-7-1 Nihombashi-Honcho Chuoku 103-0023 JAPAN
Tel : 03-3639-7111
Fax : 03-3639-9009
URL : http://www.itcpp.co.jp/
E-Mail
address: info@itcpp.co.jp
*.. Bldg is the
same but renamed as captioned.
ACTIVITIES
Wholesale,
import, export of printing paper, packaging paper, paperboard, etc
BRANCHES
OFFICERS
TAKAYUKI
IWASAKI, PRES Jun’ichi
Kamai, mgn dir
Tamotsu
Kobayashi, dir Seiichi
Hataye, dir
Makoto
Ogawa, dir Shuichi
Morozumi, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 96,289 M
PAYMENTS REGULAR CAPITAL Yen 500 M
TREND STEADY WORTH Yen
3,643 M
STARTED 1972 EMPLOYES 195
COMMENT
TRADING HOUSE SPECIALIZING IN PULP & PAPER, WHOLLY OWNED BY ITOCHU CORP. FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR CREDIT ENGAGEMENTS: US$375,000 / O/A 30 DAYS.
MAX
CREDIT LIMIT: YEN 800.4 MILLION, 30 DAYA NORMAL TERMS.
HIGHLIGHTS
The subject company was established on the basis of a pulp
& paper sales division separated from Itochu Corp, major general trading
house of
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 96,289 million, a 4% down from Yen 100,478 million in the previous term. Downward pressure on prices continued amid harsh competition for paper products among the trade. Profits declined: recurring profits was posted at Yen 1,189 million, down 22% from Yen 1,529 million, and the net profit at Yen 735 million, down 25% from Yen 983 million, respectively, from a year ago.
For the current term ending Mar 2008 the net profit is projected at Yen 1,190 million and the net profit at Yen735 million, respectively, on a 2% rise in turnover, to Yen 98,000 million. The firm aims the sales to reach Yen 100,000 million.
The financial situation is considered FARI to GOOD and responsible for ORDINARY business engagements. Max credit limit is estimated at Yen 800.4 million, on 30 days normal terms. The proposed amount for 30 days terms is considered well within the firm’s financial capacities.
REGISTRATION
Date
Registered: Jan 1972
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 4 million shares
Issued: 1 million shares
Sum: Yen 500 million
Major shareholders (%): Itochu
Corp*(100)
*.. Japan’s leading trading house, Tokyo, founded 1949, listed Tokyo, Osaka, Nagoya, Sapporo, Fukuoka S/E’s, capital Yen 202,241 million, turnover Yen 11,579,059 million (up 11% from the previous year), recurring profit Yen 300,230 million, net profit Yen 177,059 million (up 22% from previously), total assets Yen 5,271,512 million, net worth Yen 896,195 million, employees 45,690, pres Eizo Kobayashi
Consolidated Financials are as attached (See SUPPLEMENTS)
Nothing detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports, exports and wholesales news print paper, printing paper, office-use paper supplies (--58%), paperboard (15%), pulp, packaging paper & materials, non-woven cloths, recycled waste paper, others (--27%).
(Import: 30-40%)
(Handling
products):
Printing & publishing paper: high & medium quality
paper, coated paper, gravure paper, thin paper, processed base paper;
Packaging paper: Kraft paper, bleached Kraft paper,
glazed paper, rolls, metal included paper, sterilized paper, processed base
paper;
Paperboard base paper: exterior/interior lining
materials, inner core material paper;
Packaging & paper goods: manila board, white board,
chip board, milk carton board, paperboard cases, paper containers, paper cups,
paper bags, other:
Plastics: plastic films, plastic bags, aluminum
foils;
Information-related & office-use paper: business
forms, thermal paper, PPC base paper, other.
Clients: [Printing Ind, paper mills, copy machine mfrs, chain
stores] Toppan Printing, Ricoh Co, First Retailing, Ito-Yokado, Daishowa Paper
Mfg, NBS Ricoh, Family Mart, Nissen (mail-order house), Itokei Co, DNP Trading,
Itochu Plastics, Coca-Cola National Beverages, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Daioh Paper, Itochu Corp, Oji Paper, Oji Paperboard, Chuetsu Pulp & Paper, Hyogo Paper Mfg, Okura Sanko, Takasaki Sanko, other.
Imports from
Payment
record: Regular
Location: Business area in
Bank References
Mizuho
Bank (Horidome)
SMBC
(Ningyocho)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
31/03/2008 |
31/03/2007 |
31/03/2006 |
31/03/2005 |
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Annual
Sales |
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98,000 |
96,289 |
100,478 |
100,559 |
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Recur.
Profit |
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1,190 |
1,189 |
1,529 |
1,088 |
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Net
Profit |
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735 |
735 |
983 |
550 |
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Total
Assets |
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35,423 |
35,887 |
38,076 |
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Current
Assets |
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32,196 |
31,697 |
29,929 |
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Current
Liabs |
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29,340 |
28,749 |
28,943 |
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Net
Worth |
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3,643 |
3,797 |
2,929 |
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Capital,
Paid-Up |
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500 |
500 |
500 |
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Div.P.Share(¥) |
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700.00 |
465.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
1.78 |
-4.17 |
-0.08 |
-3.38 |
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Current Ratio |
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.. |
109.73 |
110.25 |
103.41 |
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N.Worth Ratio |
.. |
10.28 |
10.58 |
7.69 |
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R.Profit/Sales |
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1.21 |
1.23 |
1.52 |
1.08 |
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N.Profit/Sales |
0.75 |
0.76 |
0.98 |
0.55 |
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Return On Equity |
.. |
20.18 |
25.89 |
18.78 |
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Notes:
Forecast (or estimated) figures for 31/03/2008 fiscal term.
SUPPLEMENTS:
CONSOLIDATED
FINANCIALS OF THE PARENT, ITOCHU CORP
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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11,579,059 |
10,473,885 |
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Cost of Sales |
1,067,038 |
9,759,511 |
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GROSS PROFIT |
908,676 |
714,374 |
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Selling & Adm Costs |
644,055 |
520,985 |
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OPERATING PROFIT |
264,621 |
193,389 |
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Non-Operating P/L |
35,609 |
23,480 |
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RECURRING PROFIT |
300,230 |
216,869 |
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NET PROFIT |
177,059 |
145,146 |
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BALANCE SHEET |
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Cash |
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532,856 |
477,707 |
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Receivables |
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1,421,555 |
1,211,035 |
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Inventory |
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530,335 |
458,876 |
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Securities, Marketable |
31,161 |
48,282 |
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Other Current Assets |
550,998 |
483,723 |
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TOTAL CURRENT ASSETS |
3,066,905 |
2,679,623 |
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Property & Equipment |
530,045 |
487,788 |
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Intangibles |
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1,317,826 |
1,240,256 |
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Investments, Other Fixed Assets |
356,736 |
389,346 |
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TOTAL ASSETS |
5,271,512 |
4,797,013 |
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Payables |
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1,324,619 |
1,078,192 |
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Short-Term Bank Loans |
373,723 |
382,434 |
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Other Current Liabs |
690,954 |
669,200 |
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TOTAL CURRENT LIABS |
2,389,296 |
2,129,826 |
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Debentures |
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Long-Term Bank Loans |
1,795,333 |
1,762,103 |
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Reserve for Retirement Allw |
21,748 |
19,081 |
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Other Debts |
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25,885 |
29,470 |
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TOTAL LIABILITIES |
4,232,262 |
3,940,480 |
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MINORITY INTERESTS |
143,055 |
129,717 |
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Common
stock |
202,241 |
202,241 |
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Additional
paid-in capital |
136,842 |
137,035 |
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Retained
earnings |
477,159 |
315,928 |
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Evaluation
p/l on investments/securities |
122,736 |
97,689 |
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Others |
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(40,873) |
(24,800) |
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Treasury
stock, at cost |
(1,910) |
(1,277) |
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TOTAL S/HOLDERS` EQUITY |
896,195 |
726,816 |
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TOTAL EQUITIES |
5,271,512 |
4,797,013 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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235,917 |
185,147 |
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Cash
Flows from Investment Activities |
-83,394 |
-79,871 |
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Cash Flows
from Financing Activities |
-100,920 |
-85,193 |
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Cash,
Bank Deposits at the Term End |
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532,856 |
477,707 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
896,195 |
726,816 |
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Current
Ratio (%) |
128.36 |
125.81 |
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Net
Worth Ratio (%) |
17.00 |
15.15 |
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Recurring
Profit Ratio (%) |
2.59 |
2.07 |
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Net
Profit Ratio (%) |
1.53 |
1.39 |
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Return
On Equity (%) |
19.76 |
19.97 |
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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. |
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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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%)