MIRA INFORM REPORT

 

 

 

Report Date :

24.12.2008

 

IDENTIFICATION DETAILS

 

Name :

KDDI CORPORATION

 

 

Registered Office :

Garden Air Tower 25F, 3-10-10 Iidabashi Chiyodaku Tokyo 102-8460

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

June 1984

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Telecommunications Business

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

YEN 120,228.8 Million

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

name & address

 

KDDI CORP

REGD NAME:    KDDI KK

MAIN OFFICE:  Garden Air Tower 25F, 3-10-10 Iidabashi Chiyodaku Tokyo 102-8460 JAPAN

                                    Tel: 03-3347-0077     Fax: 03-3347-7000

 

URL:                 http://www.kddi.com/

E-Mail address: info@kddi.com

 

 

ACTIVITIES  

 

Telecommunications business

 

 

BRANCH(ES) 

 

Sapporo, Sendai, Saitama, Yokohama, Kanazawa, Nagoya, Osaka, Hiroshima, Fukuoka, other (Tot168).

 

 

OVERSEAS   

 

USA (3), Asia (3), Europe (3), Oceania (1), South Africa

 

 

CHIEF EXEC 

 

TADASHI ONODERA, PRES & CEIO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 3,596,284 M

PAYMENTS      REGULAR                     CAPITAL           Yen 141,851 M

TREND             STEADY                       WORTH            Yen 1,715,730 M

STARTED         1984                             EMPLOYES      14,358

 

 

COMMENT    

 

TELECOMMUNICATIONS BUSINESS. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

 

MAX CREDIT LIMIT

 

YEN 120,228.8 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2009 fiscal term

 

 

HIGHLIGHTS

 

This is comprehensive communications service provider from fixed and mobile phone service, with mobile phone (branded as “au”) business as mainline.  Second ranked in mobile phone market in Japan after NTT DoCoMo.  Affiliate of Kyocera Corp.  Merged with KDD and IDO in Oct 2000.  In Jan 2005 the total number of “au” mobile phone subscribers in Japan reached 20 million.   Emphasis is placed more on IP networks.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2008 fiscal term amounted to Yen 3,596,284 million, a 7.8% up from Yen 3,355,259 million in the previous term.  The number of mobile phone subscribers sharply rose.  The recurring profit was posted at Yen 407,946 million and the net profit at Yen 217,786 million, respectively, compared with Yen 350,923 million recurring profit and Yen 186,747 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2009 the recurring profit is projected at Yen 440,000           million and the net profit at Yen 250,000 million, on a 2.9% rise in turnover, to Yen 3,700,000         million.  Mobile phones contract volume is on uptrend, posting 6% growth, thanks to introduction            of number of new models.

 

The financial situation is considered FAIR and good for ORDINARY business          engagements.    Max credit limit is estimated at Yen 120,228.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Jun 1984

Legal Status:               Limited Company (Kabushiki Kaisha)

Issued:                         4,4481,818 shares

Sum:                            Yen 141,851 million

           

 

Major shareholders (%)

 

Kyocera Corp (12.7), Toyota Motor (11.0), Tokyo Electric Power (7.9), Master Trust Bank of Japan T (5.1), Japan Trust Bank of Japan T (5.1), Japan Trustee Services T4 (1.7), Yusei Kyosai Kumiai (1.8), State Street Bank & Trust (1.3), Chase Manhattan Bank (London) (0.8); foreign owners (31.0).

           

No. of shareholders: 74,102

 

 

Listed on the S/Exchange (s) of

 

Tokyo

 

 

Managements

 

Sadanori Amano, v ch; Tadashi Onodera, pres; Nobuhiko Nakano, v pres; Yasuhiko Ito, v pres; Satoshi Nagao, v pres; Hirofumi Morozumi, s/mgn dir; Takashi Tanaka, mgn dir; Makoto Takahashi, mgn dir; Noboru Nakamura, dir; Hiroshi Okuda, dir

           

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

 

 

Related companies

 

KDDI Network & Solutions, Okinawa Cellular Phone Co, other

 

           

OPERATION

           

Activities: Telecommunications service provider: telephone service, Internet service, Intranet service, data center services, domestic & overseas (--100%).

 

Fixed line communications (18%); mobile communications (80%); others (2%).

 

 

Clients

 

Business firms, individual users, other

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

           

 

Suppliers

 

Mfrs, wholesalers.

 

 

Payment record

 

Regular

 

 

 

Location

 

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

 

 

Bank References

 

MFUG (H/O)

Mitsubishi UFG Trust Bank (H/O)

            Relations: Satisfactory

 

 

FINACIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2008

31/03/2007

INCOME STATEMENT

 

 

 

  Annual Sales

　

3,596,284

3,335,259

 

  Cost of Sales

2,421,162

2,277,228

 

      GROSS PROFIT

1,175,122

1,058,031

 

  Selling & Adm Costs

　

　

 

      OPERATING PROFIT

400,451

344,700

 

  Non-Operating P/L

7,495

6,223

 

      RECURRING PROFIT

407,946

350,923

　

      NET PROFIT

217,786

186,747

BALANCE SHEET

 

 

 

 

  Cash

　

73,771

174,036

 

  Receivables

 

402,055

410,937

 

  Inventory

 

61,910

55,099

 

  Securities, Marketable

3,227

20,247

 

  Other Current Assets

111,338

74,250

 

      TOTAL CURRENT ASSETS

652,301

734,569

 

  Property & Equipment

75,403

38,496

 

  Intangibles

 

53,572

7,215

 

  Investments, Other Fixed Assets

2,097,998

2,022,960

 

      TOTAL ASSETS

2,879,274

2,803,240

 

  Payables

 

77,169

143,043

 

  Short-Term Bank Loans

5,665

4,077

 

　

 

　

　

 

  Other Current Liabs

524,293

687,446

 

      TOTAL CURRENT LIABS

607,127

834,566

 

  Debentures

 

207,767

167,779

 

  Long-Term Bank Loans

264,855

192,858

 

  Reserve for Retirement Allw

17,737

17,522

 

  Other Debts

　

66,058

53,401

 

      TOTAL LIABILITIES

1,163,544

1,266,126

 

      MINORITY INTERESTS

 

 

 

Common stock

141,851

141,851

 

Additional paid-in capital

367,226

367,271

 

Retained earnings

1,173,826

1,000,662

 

Evaluation p/l on investments/securities

18,570

22,322

 

Others

 

34,782

25,317

 

Treasury stock, at cost

(20,525)

(20,310)

 

      TOTAL S/HOLDERS` EQUITY

1,715,730

1,537,113

　

      TOTAL EQUITIES

2,879,274

2,803,240

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2008

31/03/2007

 

Cash Flows from Operating Activities

　

545,233

738,703

 

Cash Flows from Investment Activities

-557,688

-442,218

 

Cash Flows from Financing Activities

-104,409

-258,919

　

Cash, Bank Deposits at the Term End

　

75,545

192,654

ANALYTICAL RATIOS            Terms ending:

31/03/2008

31/03/2007

 

 

Net Worth (S/Holders' Equity)

1,715,730

1,537,113

 

 

Current Ratio (%)

107.44

88.02

 

 

Net Worth Ratio (%)

59.59

54.83

 

 

Recurring Profit Ratio (%)

11.34

10.52

 

 

Net Profit Ratio (%)

6.06

5.60

 

 

Return On Equity (%)

12.69

12.15

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.49

UK Pound

1

Rs.71.89

Euro

1

Rs.67.86

 

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.

 

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