MIRA INFORM REPORT

 

 

Report Date :

04.03.2008

 

 

IDENTIFICATION DETAILS

 

Name :

TOKUYAMA CORP

 

 

Registered Office :

Shibuya Konno Bldg, 3-3-1 Shibuya Shibuyaku Tokyo 150-8383

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

February 1918

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing  of Industrial Chemicals, Cement, Polycrystalline Silicon

 

 

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 8,659.4 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

 

 

 

name & address

 

TOKUYAMA CORP

REGD NAME:   KK Tokuyama

MAIN OFFICE:  Shibuya Konno Bldg, 3-3-1 Shibuya Shibuyaku Tokyo 150-8383 JAPAN

                        Tel: 03-3499-8030     Fax: 03-3499-8958

 

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

E-Mail address: info@tokuyama.co.jp

 

 

ACTIVITIES

 

Mfg of industrial chemicals, cement, polycrystalline silicon

 

 

BRANCH(ES)

 

Shimbashi

 

 

OVERSEAS

 

Tokuyama America Inc; Tokuyama Europe GmbH (Düsseldorf);

Tokuyama Asia Pacific Pte Ltd (Singapore); Tokuyama Trading (Shanghai)

Co Ltd, other (Tot 12).

 

 

FACTORY(IES)

 

Tokuyama, Kashima

 

CHIEF EXEC

 

SHIGEAKI NAKAHARA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 292,764 M

PAYMENTS      REGULAR                     CAPITAL           Yen 29,975 M

TREND             STEADY                       WORTH            Yen 197,811 M

STARTED         1918                             EMPLOYES      4,852

 

 

COMMENT

 

MFR OF CHEMICALS, CEMENT, SILICON, OTHER. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

                       

 

MAX CREDIT LIMIT

 

YEN 8,659.4 MILLION, 30 DAYS NORMAL TERMS.

 

 

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1918 as producer of soda ash and caustic soda.  Diversified business into cement, construction materials and synthetic resins such as polypropylene.  Expanding specialty chemicals including polycrystalline silicon & dental materials.  Top maker of silicon.  Stepping up development of VLD process for solar cells to             prepare for polysilicon facility expansion in Spring 09.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 292,764 million, an 11.2 % up from Yen 263,373 million in the previous term.  This reflects higher sales volumes & successful efforts to secure upward price adjustments.  By divisions, Chemicals up 9% to Yen 112,537 million; Specialty Products up 18.0% to Yen 90,525 million; Cement, Building Materials, Others up 6.8% to Yen 89,702 million.  Recorded sales growth in all business segments.  The recurring profit was posted at Yen 31,672 million and the net profit at Yen 18,460 million, respectively, compared with Yen 21,493 million recurring profit and Yen 13,964 million net profit, respectively, a year ago. 

 

(Apr/Dec/2007 results): Sales Yen 228,312 million (up 4.9%), Operating profit Yen 26,908 million (up 7.3%), recurring profit Yen 25,008 million (up 8.4%), net profit Yen 15,553 million (up 6.4%).  (% compared with the corresponding period a year ago).  Sales of polycrystalline silicon & fumed silica remained brisk.  Results for photoresist developer for semiconductors & LCDs were also firm.

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 32,000 million and the net profit at Yen 20,000 million, on a 5.6% rise in turnover, to Yen 309,000 million. Polysilicon demand remaining strong.  Selling prices of caustic soda hiked.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 8,659.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Feb 1918

Legal Status:     Limited Company (Kabushiki Kaisha)

Authorized:        700 million shares

Issued:              275,671,876 shares

Sum:                Yen 29,975 million

 

 

Major shareholders (%)

 

 State Street Bank & Trust (7.3), Nippon Life Ins (5.7), Master Trust Bank of Japan T (5.4), Northern Trust Co AVFC (4.3), Chase Manhattan Bank (3.4), Japan Trustee Services Bank (3.3), Yamaguchi Bank (2.9), Meiji Yasuda Life Ins (2.9), MUFG (2.8); foreign owners (34.9)  

           

No. of shareholders: 11,492

 

 

Listed on the S/Exchange (s) of

 

Tokyo, Osaka

 

 

Managements

 

Shigeaki Nakahara, pres; Yoshikazu Mizuno, s/mgn dir; Masao Kusunoki, mgn dir; Etsuro Matsui, mgn dir; Shoji Iida, mgn dir; Nobuyuki Kuramoto, mgn dir; Seiichi Shiragami, mgn dir; Hiroo Momose, mgn dir; Tatsuo Segawa, dir; Koji Yasumoto, dir

           

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

 

 

Related companies

 

Sun Tox Co, Shin Daiichi Vinyl Corp, Shanon Corp, other (Tot 94 domestic; 12 overseas including 4 in China.

 

 

           

OPERATION

           

Activities: Manufactures chemicals, specialty products, cement & construction materials;

 

(Sales Breakdown by Divisions):

 

Chemicals (38%): caustic soda, propylene oxide, methylene chloride, soda ash, calcium    chloride, vinyl chloride monomer/polymer, isopropylene film, isopropyl alcohol (IPA), microporous film;

Specialty Products (31%): Si (polycrystalline silicon, precipitated silica, fumed silica); Advanced Materials (aluminum nitride, pharmaceutical intermediates, optical lens materials, high purity chemicals for semiconductor base materials, cleaning solvents & systems, ion exchange membranes, dental materials, medical diagnosis systems);

 

Cement, Building Materials, others (31%): cement, ready-mixed concrete, plastic window sashes, cement type stabilizer, waste recycling;

 

Overseas Sales Ratio (17.7%): Asia 13.0% (China, Taiwan, Korea, etc); USA/Europe 4.7%.

 

 

Clients

 

[Mfrs, wholesalers] Shin Daiichi Vinyl Corp, Hitachi High Technologies, Marubeni Corp, other.

 

 

No. of accounts

 

1,000

 

 

Domestic areas of activities

 

Nationwide

 

           

Suppliers

 

 [Mfrs, wholesalers] Idemitsu Kosan, Mitsui & Co, Tokuyama Logistics, other.

 

 

Payment record

 

Regular

 

 

Location

 

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

 

 

Bank References

                       

MUFG (Tokyo)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

 

 

 

Financials

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

292,764

263,373

 

  Cost of Sales

196,334

179,960

 

      GROSS PROFIT

96,430

83,413

 

  Selling & Adm Costs

61,692

59,101

 

      OPERATING PROFIT

34,737

24,311

 

  Non-Operating P/L

-3,065

-2,818

 

      RECURRING PROFIT

31,672

21,493

　

      NET PROFIT

18,460

13,964

BALANCE SHEET

 

 

 

 

  Cash

　

29,911

31,476

 

  Receivables

 

85,687

76,634

 

  Inventory

 

29,414

26,214

 

  Securities, Marketable

0

49

 

  Other Current Assets

10,129

8,906

 

      TOTAL CURRENT ASSETS

155,141

143,279

 

  Property & Equipment

146,523

142,806

 

  Intangibles

 

1,724

1,976

 

  Investments, Other Fixed Assets

70,357

73,042

 

      TOTAL ASSETS

373,745

361,103

 

  Payables

 

44,311

37,646

 

  Short-Term Bank Loans

18,865

20,166

 

　

 

　

　

 

  Other Current Liabs

41,720

37,258

 

      TOTAL CURRENT LIABS

104,896

95,070

 

  Debentures

 

25,000

30,000

 

  Long-Term Bank Loans

23,140

28,556

 

  Reserve for Retirement Allw

10,468

9,697

 

  Other Debts

　

12,429

14,255

 

      TOTAL LIABILITIES

175,933

177,578

 

      MINORITY INTERESTS

 

4,499

 

Common stock

29,975

29,975

 

Additional paid-in capital

34,192

34,191

 

Retained earnings

108,627

91,888

 

Evaluation p/l on investments/securities

20,365

24,250

 

Others

 

5,663

(605)

 

Treasury stock, at cost

(1,011)

(675)

 

      TOTAL S/HOLDERS` EQUITY

197,811

179,024

　

      TOTAL EQUITIES

373,745

361,103

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

31,178

　

 

Cash Flows from Investment Activities

31,650

　

 

Cash Flows from Financing Activities

-94,276

　

　

Cash, Bank Deposits at the Term End

　

140,940

　

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

197,811

179,024

 

 

Current Ratio (%)

147.90

150.71

 

 

Net Worth Ratio (%)

52.93

49.58

 

 

Recurring Profit Ratio (%)

10.82

8.16

 

 

Net Profit Ratio (%)

6.31

5.30

 

 

Return On Equity (%)

9.33

7.80

 

 

 

 

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