MIRA INFORM REPORT

Report Date :

28.01.2011

IDENTIFICATION DETAILS

Name :	Nihon Medi-Physics Co Ltd.

Registered Office :	3-4-10 Shinsuna Kotoku Tokyo 130-0076

Country :	Japan

Financials (as on) :	31.03.2010

Date of Incorporation :	March, 1973

Legal Form :	Limited Company

Line of Business :	Research, Development, Manufacture, Sale, Purchase, Import, and Export of Radioactive Pharmaceuticals, Radioactive Medical Devices and Their Related Products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	YEN 1,338.2 Million

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	----

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2010

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

Japan

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

NIHON MEDI-PHYSICS CO LTD

REGD NAME

Nihon Medi-Physics KK

MAIN OFFICE

3-4-10 Shinsuna Kotoku Tokyo 130-0076JAPAN

Tel: 03-5634-7006 Fax: 03-5634-7646

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

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

ACTIVITIES

Mfg of radioactive pharmaceuticals, radioactive medical devices

BRANCHES

Tokyo, Osaka, Nagoya, Sapporo, Sendai, Morioka, Yokohama, Kyoto,

Kanazawa, Okayama, Hiroshima, Takamatsu, Fukuoka, Kagoshima

OVERSEAS

Los Angeles, San Francisco (USA)

FACTORIES

Chiba, Sanda (Hyogo-Pref)

PET LABS

Tokyo, Kobe, Kyoto, Sapporo, Odawara, Toyota, Okayama, Fukuoka

OFFICERS

NOBUYOSHI MIKAMI, PRES

Naohiro Shimada, v pres

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 30,728 M

PAYMENTS REGULAR CAPITAL Yen 3,146 M

TREND STEADY WORTH Yen 36,579 M

STARTED 1973 EMPLOYES 797

COMMENT

MFR OF RADIOACTIVE PHARMACEUTICALS AND MEDICAL DEVICES, JOINTLY OWNED BY SUMITOMO CHEMICAL & GE HEALTHCARE .

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY CREDIT ENGAGEMENTS

MAX CREDIT LIMIT: YEN 1,338.2 MILLION, 30 DAYS NORMAL TERMS. .

HIGHLIGHTS

The subject company was established as a joint venture of Medi-Physics Inc, USA, Sumitomo Chemical Co Ltd and Sumitomo Corporation. Through mergers and affiliation, the firm is now 50/50 owned by Sumitomo Chemical and GE Healthcare Ltd, effective in 2004, when the UK parent (Amersham Group) was absorbed by GE. This is a specialized mfr of radioactive pharmaceuticals, radioactive medical devices and their related products. Goods are both imported and exported. The firm is pursuing new business possibilities responding to needs in the medical care area in the increasing aging society in Japan. Its main business focus is in-vivo diagnostic radioactive pharmaceuticals used in highly specialized field of nuclear medicine, making steady progress in promotion of PET (positron emission tomography) agent for the early detection of malignant tumors (See OPERATION). Clients are major hospitals throughout Japan & overseas, mainly Asia and Oceania. Has two sales offices in USA, too.

FINANCIAL INFORMATION

Financials are consolidated by the Japan partner, Sumitomo Chemical Co, and only available in digest form. Sumitomo Chemical’s consolidated financials are attached.

The sales volume for Dec/2009 fiscal term amounted to Yen 30,728 million, a 7% up from Yen 28,800 million in the previous term. Newly developed drugs contributed. The recurring profit was posted at Yen 5,965 million and the net profit at Yen 3,350 million, respectively, compared with Yen 3,646 million recurring profit and Yen 1,849 million net profit, respectively, a year ago.

For the term that just ended Dec 2010 the recurring profit was projected at Yen 6,000 million and the net profit at Yen 3,400 million, respectively, on a 4% rise in turnover, to Yen 32,000. Final results are yet to be released.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 1,338.2 million, on 30 days normal terms.

REGISTRATION

Date Registered: Mar 1973

Regd No.: (Tokyo-Kotoku) 035335

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 6,291,560 shares

Issued: 6,291,560 shares

Sum: Yen 3,145.78 million

Major shareholders (%): Sumitomo Chemical Co Ltd*(50), GE Healthcare Ltd (50)

No. of shareholders: 2

*.. Sumitomo Chemical Co Ltd, nation’s major comprehensive chemical mfr, Tokyo, founded 1925, listed Tokyo, Osaka S/E’s, capital Yen 89,699 million, turnover Yen 1,620,915 million, recurring profit Yen 34,957 million, net profit Yen 14,723 million, total assets Yen 2,359,217 million, net worth Yen 528,576 million, employees 28,480, pres Hiroshi Hirose

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

OPERATION

Activities: Research, development, mfg, sale, purchase and import/export of radioactive pharmaceuticals, radioactive medical devices and their related products (--100).

Newly developed PET (positron emission tomography) radio diagnostic,

FDGScan injectable (generic name: Fludeoxyglucose (FDG):

PET procedure allows early diagnosis of malignant tumors utilizing innovative imaging procedure. By injecting the agent into a patient’s body and taking an image of the agent accumulating in the targeted organ or lesion from outside the body, PET proce-dure is able to provide vital diagnostic information about the condition of diseases. In July 2005, the firm obtained approval for the use of FDGScan injectable as pharmaceu-tical, and this PET diagnostic agent began to be covered under Japan’s national health insurance in Sept the same year. Because the half-life of PET agent is as short as 2 hours, the firm has established nine supply facilities located close to major medical institutions for timely distribution nationwide. (Cited from Sumitomo Chemical Co’s annual report)

Clients: [Hospitals, universities, R&D centers] Japan Radioisotope Assn, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Pharmaceutical mfrs, chemical mfrs] Sumitomo Chemical, GE group, other.

Payment record: Regular

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

Bank References:

SMBC (Osaka H/O)

Sumitomo Trust Bank (H/O)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/12/2008	31/12/2007	31/12/2006	31/12/2005
Annual Sales	29,000	28,943	28,299	27,935
Recur. Profit	3,440	3,437	2,445	4,080
Net Profit	1,480	1,490	1,367	2,309
Total Assets		46,675	45,228	45,207
Current Assets		19,010	15,958	13,555
Current Liabs		4,167	4,069	4,650
Net Worth		32,979	32,169	31,812
Capital, Paid-Up		3,146	3,146	3,146
Div.P.Share(¥)
<Analytical Data>	(%)	(%)	(%)	(%)
S.Growth Rate	0.20	2.28	1.30	-1.77
Current Ratio	..	456.20	392.18	291.51
N.Worth Ratio	..	70.66	71.13	70.37
R.Profit/Sales	11.86	11.88	8.64	14.61
N.Profit/Sales	5.10	5.15	4.83	8.27
Return On Equity	..	4.52	4.25	7.26

Note: Forecast (or estimated) for the 31/12/2008 fiscal term.

SUPPLEMENTS

Consolidated financials of the Japan parent, Sumitomo Chemical Co Ltd

FINANCES: (Consolidated in million yen)
			Terms Ending:		31/03/2010	31/03/2009
INCOME STATEMENT
	Annual Sales				1,620,915	1,788,223
	Cost of Sales				1,192,341	1,412,613
	GROSS PROFIT				428,574	375,610
	Selling & Adm Costs				377,119	373,496
	OPERATING PROFIT				51,455	2,114
	Non-Operating P/L				-16,498	-34,738
	RECURRING PROFIT				34,957	-32,624
	NET PROFIT				14,723	-59,164
BALANCE SHEET
	Cash				70,925	60,827
	Receivables				382,477	294,316
	Inventory				355,667	335,715
	Securities, Marketable				63,165	36,522
	Other Current Assets				141,226	110,756
	TOTAL CURRENT ASSETS				1,013,460	838,136
	Property & Equipment				581,843	567,820
	Intangibles				249,746	63,358
	Investments, Other Fixed Assets				538,857	553,239
	TOTAL ASSETS				2,383,906	2,022,553
	Payables				214,614	151,519
	Short-Term Bank Loans				294,563	165,357

	Other Current Liabs				358,429	351,224
	TOTAL CURRENT LIABS				867,606	668,100
	Debentures				282,000	272,040
	Long-Term Bank Loans				310,757	204,851
	Reserve for Retirement Allw				29,565	29,613
	Other Debts				72,542	72,321
	TOTAL LIABILITIES				1,562,470	1,246,925
	MINORITY INTERESTS
	Common stock				89,699	89,699
	Additional paid-in capital				23,725	23,719
	Retained earnings				490,858	481,459
	Evaluation p/l on investments/securities				54,636	45,743
	Others				165,278	137,762
	Treasury stock, at cost				(2,760)	(2,754)
	TOTAL S/HOLDERS` EQUITY				821,436	775,628
	TOTAL EQUITIES				2,383,906	2,022,553
CONSOLIDATED CASH FLOWS
				Terms ending:	31/03/2010	31/03/2009
	Cash Flows from Operating Activities				132,872	78,428
	Cash Flows from Investment Activities				-269,402	-206,237
	Cash Flows from Financing Activities				168,709	112,539
	Cash, Bank Deposits at the Term End				120,660	85,802
ANALYTICAL RATIOS Terms ending:					31/03/2010	31/03/2009
		Net Worth (S/Holders' Equity)			821,436	775,628
		Current Ratio (%)			116.81	125.45
		Net Worth Ratio (%)			34.46	38.35
		Recurring Profit Ratio (%)			2.16	-1.82
		Net Profit Ratio (%)			0.91	-3.31
		Return On Equity (%)			1.79	-7.63

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.57
UK Pound	1	Rs.72.50
Euro	1	Rs.62.46

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	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
----	NB	New Company	----

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%)

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