MIRA
INFORM REPORT
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Report Date : |
18.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
IWATANI CORPORATION |
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Registered Office : |
3-4-8 Honmachi Chuoku Osaka 541-0053 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
February 1945 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Wholesale, Import, Export of Gases for Industrial and
Household Use |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 8,176.0 MILLION |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
IWATANI CORPORATION
REGD NAME: Iwatani Sangyo KK
MAIN OFFICE: 3-4-8 Honmachi Chuoku Osaka 541-0053 JAPAN
Tel:
06-6267-3355 Fax: 06-6267-3350
* The given address is its Tokyo Head Office
URL: http://www.iwatani.co.jp/
E-Mail address: iicworld@iwatani.co.jp
ACTIVITIES
Wholesale, import, export of gases for industrial &
household use
BRANCHES
Tokyo (address as given),
Sapporo, Sendai, Nagoya, Hiroshima, Fukuoka, other (Tot 84): 59 Branch Offices, 23 Sales Offices, 2 Training Centers
OVERSEAS
China, Hong Kong, Taiwan, Korea, Singapore, Thailand,
Malaysia, Indonesia, Philippines, Australia, USA, Europe (Tot 67). (--Branch offices, subsidiaries, JV &
affiliates)
CHIEF EXEC
AKIJI MAKINO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 748,967 M
PAYMENTS REGULAR CAPITAL Yen 20,096 M
TREND STEADY WORTH Yen 65,096 M
STARTED 1945 EMPLOYES 7,418
COMMENT
TRADING COMPANY SPECIALIZING IN GASES FOR INDUSTRIAL &
HOUSE HOLD USE.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
MAX CREDIT LIMIT: YEN 8,176.0 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The
subject company was established originally in 1930 by Naoji Iwatani, on his account,
for selling oxygen, carbide and solvents, and has been succeeded by his
descendants. The founder’s name is
retained in “Iwatani Naoji Memorial
Foundation”, holding 8.1% of the firm’s share, being the top shareholder. This is a trading company specializing in
gases for industrial & household use.
Largest in LPG trading. Has many
JV’s set up with overseas firms, including Union Carbide (USA) in China,
Indonesia, etc. JV’s & affiliates
in China total 34 including Hong Kong & Taiwan. Jointly with Mitsubishi Heavy Ind, involved in production (thru
affiliate) of liquid hydrogen. The firm
has withdrawn from unprofitable single-family housing business.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal
term amounted to Yen 748,967 million, an 8.6% hike from Yen 689,449 million in
the previous term. By divisions, Energy
& Lifestyle Div rose 9.4% to Yen 432,607 million, boosted by the hike in
LPG imports prices; Industrial Gases Div was up 6.4% to Yen 163,557 million,
demand sharply rising from automakers, digital home electronics; Materials
& Electronics up 9.3% to Yen 139,397 million; in the material area sales
increased in synthetic plastics operation due to higher prices of
general-purpose resins, such as polypropylene & PET resins. The recurring profit was posted at Yen
17,152 million and the net profit at Yen 5,244 million, respectively, compared
with Yen 12,088 million recurring profit and Yen 5,524 million net profit,
respectively, a year ago. High-priced
inventory in 1st half squeezed profit in peak demand period.
(Apr/Jun/2008
results): Sales Yen 174,058 million (up 1.5%), operating profit Yen 2,622
million (up 69%), recurring profit Yen 2,754 million (up 63%), net profit Yen
924 million (up from Yen 1,509 net losses a year ago). (% compared with the corresponding period a
year ago).
For
the current term ending Mar 2009 the recurring profit is projected at Yen
16,500 million and the net profit at Yen 7,800 million, respectively, on a 1.3%
rise in turnover, to Yen 759,000million.
Mainstay LPG business will steadily rise. Sharp drop in imported gas prices may erode earnings &
profits.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 8,176.0 million, on 30 days normal terms.
REGISTRATION
Date
Registered Feb 1945
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 400 million shares
Issued: 251,365,028 shares
Sum: Yen 20,096 million
Major shareholders (%)
Iwatani Naoji Memorial
Foundation (8.1), MUFG (4.4), Dresdner, Morgan Stanley Int’l (4.1), Tetsu
Iwatani Co (2.7), Iwatani Enyukai (2.3), Resona Bank (2.3), Nippon Life Ins (2.2),
Mizuho Corporate Bank (1.8), Master Trust Bank of Japan T (1.8), Employees’
S/Holding Assn (1.8); foreign owners (8.6)
No. of
shareholders: 21,292
Listed
on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements
Akiji Makino, pres; Toshio Watanabe,
v pres; Kazuhiko Minamimoto, s/mgn dir; Tadashi Danhara, s/mgn dir; Takashi
Miyagawa, s/mgn dir; Daizaburo Sasaki, s/mgn dir; Eisuke Takeda, s/mgn dir;
Kyohei Nishida, s/mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Iwatani Industrial Gases Corp, Central Sekiyu Gas Co,
Iwatani
Materials Corp, other
OPERATION
Activities:
Leading trading house specializing in energy & gases:
(Sales breakdown by Divisions):
Energy & Lifestyle-related Div (58%): LPG, LNG, kerosene, LPG supply equipment, gas heat pumps, wind power generation systems, housing equipment, bathroom units, integrated kitchen systems, foods, livestock animal feeds, fertilizer, agricultural equipment, horticultural equipment & supplies, seeds & seedlings, other;
Industrial Gas Div (22%): welding gases, gas equipment, solvents, cleaning equipment, jigs & robots, other;
Materials & Electronics Div (19%): semiconductor mfg equipment, communication devices, synthetic resin materials, ceramics, iron & metals, building materials, other;
Others (2%).
Overseas trading ratio (10.6%): East Asia (China & Taiwan) (5.1%); S/E Asia (Singapore & Thailand) (2.4%); other region (USA, Australia ) (3.1%)
Clients
[Mfrs, wholesalers] Matsushita Electric Ind, Sharp Corp, Nippon Oil Corp, Furukawa Electric, Murata Mfg, Marubeni Gas Energy, Yasukawa Electric Corp, Marubeni Gas Energy, Zen-Noh, Iwatani Industrial Gases, Nippon Gas, Taiyo Nippon-Sanso Corp, Cosmo Petroleum Gas, Japan Air Gases, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Oil refiners, mfrs, wholesalers] Iwatani Industrial Gases, Nippon Oil Corp, Cosmo Petroleum Gas, Kobe Steel, Marubeni Gas Energy, Mitsubishi Electric, Nippon Air Liquid, Yasukawa Electric Corp, other.
Payment record: Regular
Location: Business area in Osaka. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
MUFG (Osaka)
Mizuho Corporate Bank (Osaka)
Relations: Satisfactory
FINANCES
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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748,967 |
689,449 |
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Cost of Sales |
610,137 |
560,713 |
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GROSS PROFIT |
138,829 |
128,735 |
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Selling & Adm Costs |
120,435 |
115,186 |
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OPERATING PROFIT |
18,393 |
13,549 |
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Non-Operating P/L |
-1,241 |
-1,461 |
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RECURRING PROFIT |
17,152 |
12,088 |
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NET PROFIT |
5,244 |
5,524 |
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BALANCE SHEET |
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Cash |
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18,678 |
16,844 |
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Receivables |
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130,859 |
129,783 |
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Inventory |
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42,005 |
39,978 |
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Securities, Marketable |
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Other Current Assets |
11,209 |
11,113 |
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TOTAL CURRENT ASSETS |
202,751 |
197,718 |
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Property & Equipment |
120,276 |
120,157 |
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Intangibles |
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15,207 |
14,216 |
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Investments, Other Fixed Assets |
66,583 |
76,508 |
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TOTAL ASSETS |
404,817 |
408,599 |
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Payables |
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123,811 |
129,128 |
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Short-Term Bank Loans |
48,292 |
44,037 |
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Other Current Liabs |
53,665 |
57,449 |
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TOTAL CURRENT LIABS |
225,768 |
230,614 |
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Debentures |
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20,786 |
27,106 |
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Long-Term Bank Loans |
83,144 |
76,972 |
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Reserve for Retirement Allw |
3,573 |
3,389 |
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Other Debts |
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6,449 |
5,741 |
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TOTAL LIABILITIES |
339,720 |
343,822 |
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MINORITY INTERESTS |
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Common
stock |
20,096 |
20,096 |
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Additional
paid-in capital |
17,909 |
17,909 |
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Retained
earnings |
18,684 |
14,714 |
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Evaluation
p/l on investments/securities |
3,714 |
7,425 |
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Others |
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4,904 |
4,825 |
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Treasury
stock, at cost |
(211) |
(193) |
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TOTAL S/HOLDERS` EQUITY |
65,096 |
64,776 |
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TOTAL EQUITIES |
404,817 |
408,599 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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20,781 |
25,408 |
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Cash
Flows from Investment Activities |
-17,559 |
-20,577 |
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Cash Flows
from Financing Activities |
-1,461 |
-9,199 |
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Cash,
Bank Deposits at the Term End |
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18,422 |
16,657 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
65,096 |
64,776 |
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Current
Ratio(%) |
89.81 |
85.74 |
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Net
Worth Ratio (%) |
16.08 |
15.85 |
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Recurring
Profit Ratio (%) |
2.29 |
1.75 |
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Net
Profit Ratio (%) |
0.70 |
0.80 |
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Return
On Equity (%) |
8.06 |
8.53 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.68 |
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UK Pound |
1 |
Rs.84.37 |
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Euro |
1 |
Rs.65.70 |
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%)