MIRA
INFORM REPORT
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Report Date : |
19.07.2007 |
IDENTIFICATION DETAILS
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Name : |
JAPAN AIRLINES
INTERNATIONAL CO LTD |
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Registered Office : |
2-4-11 Higashi-Shinagawa Shinagawaku Tokyo 140-8605 |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Dec 1952 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Airline operator (domestic
& international) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 16115.4 millions |
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Status : |
Moderate |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
JAPAN AIRLINES
INTERNATIONAL CO LTD
REGD NAME
KK Nihon Kohku (Kohku
means airways) International
MAIN OFFICE
2-4-11
Higashi-Shinagawa Shinagawaku
Tel : 03-5769-6098
Fax : 03-5460-5915
URL : http://www.jal.com/
E-Mail
address: info@jal.com
ACTIVITIES
Airline
operator (domestic & international)
BRANCHES
Domestic
(46), overseas (60) (Tot 106 as of Mar/06)
CHIEF EXEC
Toshiyuki
Shinmachi, ch HARUKA
NISHIMATSU, PRES
Katsuhiko
Kawano, v pres Kiyoshi
Kishida, s/mgn dir
Tetsuya
Takenaka, mgn dir Kimio
Hiroike, dir
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES R/WEAK A/SALES Yen 2,120,623 M
PAYMENTS REGULAR CAPITAL Yen 100,000 M
TREND SLOW WORTH Yen
230,001 M
STARTED 2002 EMPLOYES 16,821
COMMENT
AIRLINE OPERATOR. FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 16,115.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
for the 31/03/2008 fiscal term.
HIGHLIGHTS
The subject company was established originally in Oct 1952 as a private company and was reorganized in Oct 1953 as a government-owned company according to the Japan Airlines Law. In Nov 1987, the government stake (then 34%) was entirely sold off and the firm was privatized. In Oct 2002, when the firm (JAL) integrated with Japan Air System (JAS, domestic flights operator), the group formed a holding company, Japan Airline Corporation. The subject changed the corporate name as captioned in Apr 2004. This is the nation’s largest airline company, vying with All Nippon Airways (ANA). The amalgamation with JAS bred strife in management over the safety operations and series of safety troubles followed. This led to the decrease in domestic passenger who fled to ANA. The internal strife is reported now subdued with new board members appointed.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 2,120,623 million, a 32.5% up from Yen 1,600,486 million in the previous term. Newly opened Japan/Shanghai route contributed. Also increased flights Tokyo/Delhi and Tokyo/Moscow caught new passengers. Bowing 777 flights were allocated to Japan/Europe routes to rationalize operations. International air cargo also grew. The recurring profit was posted at Yen 14,897 million but the bottom line was ended at Yen 15,174 million net losses. Early retirement allowance payments ate into profits. This compares with Yen 49,475 million recurring loss and Yen 40,990 million net loss, respectively, a year ago.
For the current term ending Mar 2008 the recurring profit is projected at Yen 18,900 million and the net profit at Yen 6,300 million, respectively, on a 3.7% rise in turnover, to Yen 2,200,000 million. Internal management strife is reportedly in pause.
The financial situation is considered RATHER WEAK but should be good for ORDINARY business engagements. Max credit limit is estimated at Yen 16,115.4 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1952
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 6,000 million shares
Issued: 1,982,383,250 shares
Sum: Yen 100,000 million
Major
shareholders (%): Japan Airlines Corp*(100),
*.. Holding company founded thru integration of JAL & JAS in Oct/2002, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 174,250 million, turnover Yen 2,301,916 million, recurring profit Yen 20,576 million, net losses Yen 16,267 million, total assets Yen 2,091,233 million, net worth Yen 311,086 million, employees 51,497, pres Haruka Nishimatsu, concurrently.
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Airline operator, providing scheduled & non scheduled air transport services, air cargo transport services, aircraft maintenance services, and the related services (100%).
(Overseas sales ratio 49.5%: Asia/Oceania 19.7%; N America
19.7%;
Clients:
Passengers, business firms, travel agents, other
No. of
accounts: Unavailable
Domestic
areas of activities: Nationwide
Payment
record: Regular
Location: Business area in
Bank References
Mizuho
Corporate Bank (H/O)
MUFG
(H/O)
Relations:
Satisfactory
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FINANCES (Non-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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2,120,623 |
1,600,486 |
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Cost of Sales |
1,761,986 |
1,388,350 |
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GROSS PROFIT |
358,636 |
212,136 |
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Selling & Adm Costs |
343,309 |
253,176 |
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OPERATING PROFIT |
15,326 |
-41,040 |
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Non-Operating P/L |
-14,429 |
-8,435 |
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RECURRING PROFIT |
14,897 |
-49,475 |
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NET PROFIT |
-15,174 |
-40,990 |
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BALANCE SHEET |
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Cash |
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185,542 |
127,594 |
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Receivables |
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259,763 |
231,971 |
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Inventory |
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82,093 |
70,297 |
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Securities, Marketable |
13,234 |
5,864 |
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Other Current Assets |
201,442 |
180,804 |
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TOTAL CURRENT ASSETS |
742,074 |
616,530 |
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Property & Equipment |
1,094,023 |
787,772 |
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Intangibles |
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76,653 |
64,154 |
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Investments, Other Fixed Assets |
182,854 |
201,810 |
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TOTAL ASSETS |
2,095,604 |
1,670,266 |
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Payables |
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260,795 |
186,299 |
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Short-Term Bank Loans |
150,594 |
57,459 |
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Other Current Liabs |
383,093 |
300,316 |
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TOTAL CURRENT LIABS |
794,482 |
544,074 |
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Debentures |
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80,000 |
150,000 |
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Long-Term Bank Loans |
705,414 |
579,850 |
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Reserve for Retirement Allw |
126,706 |
94,943 |
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Other Debts |
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159,001 |
127,580 |
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TOTAL LIABILITIES |
1,865,603 |
1,496,447 |
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MINORITY INTERESTS |
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17,290 |
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Common
stock |
100,000 |
188,550 |
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Additional
paid-in capital |
90,674 |
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Retained
earnings |
(13,532) |
(33,833) |
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Evaluation
p/l on investments/securities |
3,297 |
7,604 |
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Others |
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49,562 |
(5,793) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
230,001 |
156,528 |
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TOTAL EQUITIES |
2,095,604 |
1,670,266 |
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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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31,178 |
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Cash
Flows from Investment Activities |
31,650 |
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Cash
Flows from Financing Activities |
-94,276 |
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Cash,
Bank Deposits at the Term End |
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140,940 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
230,001 |
156,528 |
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Current
Ratio (%) |
93.40 |
113.32 |
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Net
Worth Ratio (%) |
10.98 |
9.37 |
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Recurring
Profit Ratio (%) |
0.70 |
-3.09 |
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Net
Profit Ratio (%) |
-0.72 |
-2.56 |
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Return
On Equity (%) |
-6.60 |
-26.19 |
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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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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%)