MIRA INFORM REPORT

 

 

Report Date :

1st March, 2007

                                                         

 

IDENTIFICATION DETAILS

 

Name :

DAI NIPPON PRINTING CO LTD

 

 

Registered Office :

1-1-1 Ichigaya-Kagacho Shinjukuku Tokyo 162-9001, Japan

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

January 1894

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Printing house

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 64,078.2 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

 

Company Name

 

DAI NIPPON PRINTING CO LTD

 

 

REGD NAME

 

Dai Nippon Insatsu KK

 

 

MAIN OFFICE

 

1-1-1 Ichigaya-Kagacho Shinjukuku Tokyo 162-9001 JAPAN

Tel                    : 03-3266-2111   

Fax                   : 03-5225-8239

URL                  : http://www.dnp.co.jp/

E-Mail address  : info@dnp.co.jp

 

 

ACTIVITIES

 

Printing house

 

 

BRANCHES

 

Sapporo, Aomori, Sendai, Tokyo, Yokohama, Nagoya, Osaka, Hiroshima,

Tokushima, Fukuoka, Kagoshima, Okinawa, other (Tot 49)

 

 

OVERSEAS

 

Seoul, Beijing, Shanghai, Taipei, Singapore, Australia, Jakarta, USA (8),

Düsseldorf, London, Copenhagen, Italy, Malaysia (Tot 22)

 

 

FACTORY(IES)

 

Tokyo (4), Saitama (7), Fukushima, Tochigi, Yokohama, Kobe, Fukuoka (Tot 36)

(Overseas): USA (2), Malaysia, Indonesia, Denmark, Taiwan, Singapore (Tot 7)

 

 

CHIEF EXEC

 

YOSHITOSHI KITAJIMA, PRES & CEO

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,507,505 M

PAYMENTS      REGULAR                     CAPITAL           Yen 114,464 M

TREND             STEADY                       WORTH            Yen 1,063,308 M

STARTED         1894                             EMPLOYES      35,596

 

 

COMMENT

 

PRINTING HOUSE

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 64,078.2 MILLION, 30 DAYS NORMAL TERMS..

 

 

Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1876 as a printing house and was Incorporated in 1894.  This is the nation’s largest printing house.  Boasts powerful marketing capability and involved heavily in such areas as information, telecommunications, construction materials, packaging materials and electronics.  Of particular emphasis is on electronics components      (including shadow masks, LCD color printers) and information media supplies.  Bolstering operations in precision electronics parts.  In Jan 2006, entered into collaboration with Intel for future mask technology development.  Production of 5G LC color filters in June at Hiroshima factory and 6G filters in Sept at Yawata factory 2006.  Reportedly some Yen 20,000 to Yen 25,000 million was invested for these factory expansion.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 1,507,505 million, a 5.8% up from Yen 1,424,942 million in the previous term.  LC filter plants, including new plant, improved operations.  The recurring profit was posted at Yen 124,715 million and the net profit at Yen 65,187 million, respectively, compared with Yen 120,485 million recurring profit and Yen 59,936 million net profit, respectively, a year ago.  Hike of fuel prices and materials ate into profits.

 

For the current term ending Mar 2007 the recurring profit is projected at Yen 125,000 million and the net profit at Yen 67,000 million, on a 7.5% rise in turnover, to Yen 1,620,000 million.  New filter plant will start full-capacity operations.  IC cards will grow.  Commercial printing will fare well. Profits will improve.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 64,078.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered : Jan 1894

Legal Status                  : Limited Company (Kabushiki Kaisha)

Authorized                     : 1,490 million shares

Issued                           : 740,480,693 shares

Sum                             : Yen 114,464 million

 

 

Major shareholders (%)

 

Master Trust Bank of Japan T (6.2), Company’s Treasury Stock     (4.7), Dai-ichi Life Ins (4.6), Japan Trustee Services Bank T (3.9), State Street Bank & Trust (2.7), UBS London Clientele Acct (2.4), Mizuho Corporate Bank (2.0), Nippon Life Ins (1.9), Mizuho Bank (1.6); foreign owners (34.2)

No. of shareholders: 22,186

 

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

 

Managements

 

Yoshitoshi Kitajima, pres & CEO; Koichi Takanami, s/mgn dir; Satoshi Saruwatari, s/mgn dir; Masayoshi Yamada, s/mgn dir; Mitsuhiko Hakii, s/mgn dir; Osamu Tsuchida, s/mgn dir; Teruomi Yoshino, s/mgn dir; Kosaku Mori, s/mgn dir; Yoshinaru Kitajima, s/mgn dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Hokkaido Coca-Cola Bottling, The Inctec, other (Tot 82 as of Mar/06)

 

 

OPERATION

 

Activities: Printing house (Sales breakdown by divisions):

 

Information/Communications Div (43%): textbooks, books & magazines, AD prints, security papers, office documents & supplies, design, mfg of sales promotional materials (AD), other;

 

Lifestyle/Industry Div (32%): containers, packaging materials, packaging equipment & systems, building exterior materials, industrial materials, other;

 

Electronics Div (20%): shadow masks, lead frames, photo masks, color filters for LCD color printers, screens for projection TV’s, other;

 

Non-alcoholic Beverage Div (5%): Coca-Cola, soda, other soft drinks.

 

Overseas Sales Ratio (17%)

 

 

Clients

 

[Business firms, publishers] Hitachi Ltd, Shueisha Co, Shogakukan Inc, Lion Corp, Kodansha Ltd, other.

 

 

No. of accounts

 

2,000

 

 

Domestic areas of activities

 

Nationwide

 

 

Suppliers

 

Mfrs, wholesalers] The Inctec, Japan Paper & Pulp, DNK, Dai Nippon Trading, NKK Trading Panac Co, Mitsubishi Paper Sales, other.

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Mizuho Corporate Bank (Ohtemachi)

SMBC (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,507,505

1,424,942

 

  Cost of Sales

1,202,159

1,121,373

 

      GROSS PROFIT

305,345

303,569

 

  Selling & Adm Costs

184,676

183,041

 

      OPERATING PROFIT

120,669

120,528

 

  Non-Operating P/L

4,046

-43

 

      RECURRING PROFIT

124,715

120,485

　

      NET PROFIT

65,187

59,936

BALANCE SHEET

 

 

 

 

  Cash

　

268,334

320,479

 

  Receivables

 

436,331

413,565

 

  Inventory

 

76,485

77,043

 

  Securities, Marketable

6,797

6,803

 

  Other Current Assets

17,180

20,845

 

      TOTAL CURRENT ASSETS

805,127

838,735

 

  Property & Equipment

568,965

528,008

 

  Intangibles

 

21,453

22,727

 

  Investments, Other Fixed Assets

266,832

210,659

 

      TOTAL ASSETS

1,662,377

1,600,129

 

  Payables

 

311,567

302,667

 

  Short-Term Bank Loans

11,654

12,424

 

　

 

　

　

 

  Other Current Liabs

129,662

135,903

 

      TOTAL CURRENT LIABS

452,883

450,994

 

  Debentures

 

50,000

50,000

 

  Long-Term Bank Loans

3,719

6,399

 

  Reserve for Retirement Allw

6,116

59,060

 

  Other Debts

　

58,452

343

 

      TOTAL LIABILITIES

571,170

566,796

 

      MINORITY INTERESTS

27,898

25,389

 

Common stock

114,464

114,464

 

Additional paid-in capital

144,908

144,905

 

Retained earnings

806,446

774,652

 

Evaluation p/l on investments/securities

55,489

30,441

 

Others

 

(549)

(4,891)

 

Treasury stock, at cost

(57,450)

(51,628)

 

      TOTAL S/HOLDERS` EQUITY

1,063,308

1,007,943

　

      TOTAL EQUITIES

1,662,377

1,600,129

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

141,673

178,341

 

Cash Flows from Investment Activities

-151,780

-126,228

 

Cash Flows from Financing Activities

-46,712

-40,568

　

Cash, Bank Deposits at the Term End

　

239,221

293,355

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

1,063,308

1,007,943

 

 

Current Ratio (%)

177.78

185.97

 

 

Net Worth Ratio (%)

63.96

62.99

 

 

Recurring Profit Ratio (%)

8.27

8.46

 

 

Net Profit Ratio (%)

4.32

4.21

 

 

Return On Equity (%)

6.13

5.95


 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions