MIRA INFORM REPORT

 

 

Report Date :

15.12.2012

 

IDENTIFICATION DETAILS

 

Name :

TOHO TITANIUM CO LTD

 

 

Registered Office :

3-3-5 Chigasaki Chigasaki City Yokohama-Pref 253-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

August, 1953

 

 

Reg. No.:

0210-01-007190

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Titanium metal smelting

 

 

No. of Employees :

1,050

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

 

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

japan - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA

 

 

 

Company name and address

 

TOHO TITANIUM CO LTD

 

 

REGD NAME

 

Toho Titanium KK

 

 

MAIN OFFICE

 

3-3-5 Chigasaki Chigasaki City Yokohama-Pref 253-8510 JAPAN

Tel: 0467-87-2830          -

 

URL:                 http://www.toho-titanium.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Titanium metal smelting

 

 

BRANCHES   

 

Hitachi, Yawata, Kurobe, Wakamatsu

 

 

OVERSEAS

 

USA, UK (--subsidiaries)

 

 

FACTORIES  

 

At the caption address, Hitachi, Yawata, Kurobe, Wakamatsu

 

 

CHIEF EXEC 

 

KIYONOBU SUGIUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES        Yen 36,006 M

PAYMENTS      REGULAR         　CAPITAL        Yen 11,963 M

TREND             UP                    　WORTH          Yen 28,125 M

STARTED         1953                 　EMPLOYES   1,050

 

 

COMMENT    

 

TITANIUM METAL SMELTER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading titanium metal smelter belonging to Nippon Mining Holdings.  Titanium products include titanium sponges, ingots & powder.  Vies with Osaka Titanium Technologies.  Holds big share in world market in trichloride titanium for polypropylene catalysts. (See OPERATION).  Advancing into next-generation catalysts and electronic materials including solar cell silicon.  The company aims to develop utilization technology of low-grade material ore...

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 36,006 million, a 28% up from Yen 28,135 million in the previous term.  Sales grew, getting boost from higher titanium prices and demand expansion.  Sales of products for desalination plants in Middle East also grew.  Sales of products for aircraft also grew, led by strong demand overseas.  The profits continued in the red, reflecting higher electricity charges and rise in ore prices, raw materials for titanium.  By Divisions: Metallic Titanium up 41.3% to Yen 27,941 million; Metal Powder down 3.6% to Yen 8,065 million.  The recurring loss was posted at Yen 1,016 million and the net loss at Yen 621 million, respectively, compared with Yen 5,377 million recurring loss and Yen 5,505 million net losses, respectively, a year ago.

 

(Apr/Sept/2012 results): Sales Yen 17,904 million (up 4.3%), operating profit Yen 587 million (previously Yen 485 million loss), recurring profit Yen 468 million (previously Yen 897 million loss), net profit Yen 370 million (previously Yen 268 million loss).  (% & figures compared with the corresponding period a year ago.) 

           

For the current term ending Mar 2013 the recurring profit is projected at Yen 500 million and the net profit at Yen 700 million, on a 10.3% rise in turnover, to Yen 39,700 million.  Overall sales will show a rapid expansion, getting boost from rise in titanium prices.  Sales of titanium metals will increase overseas, benefitting from growing demand for new models of aircraft Bowing 787.  Fine chemicals will show a solid growth, thanks to support from sales expansion in nickel powder for laminated ceramic capacitors.  Operating profits will emerge, relieving from three straight terms of deficits, absorbing higher electricity and material prices. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 737.2 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Aug 1953

Regd No.:            0210-01-007190 (Yokohama-Chigasaki)

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:         160 million shares

Issued:                60,770,910 shares

Sum:                   Yen 11,963 million

 

Major shareholders (%): JX Holdings (42.5), Nippon Steel & Sumitomo Metal (4.9), Morgan S National Assn PB Custody (3.3), Mitsui & Co (3.3), Japan Trustee Services T (1.2), Master Trust Bank of Japan T (0.6), Goldman Sachs (Regular) Acct (0.5), Japan Trustee Services T4 (0.4), Japan Trustee Services T1 (0.4), Japan Trustee Services T6 (0.4); foreign owners (7.6)

 

No. of shareholders: 2,029

 

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

 

Managements: Takeshi Kurushima, ch; Kiyonobu Sugiuchi, pres; Shin’ichi Watanabe, dir; Masashi Funatsu, dir; Susumu Kosemura, dir; Ryoichi Kanai, dir; Hiroaki Sato, dir; Ichiro Uchijima, dir; Seiichi Murayama, dir; Yoshihisa Murasawa, dir

 

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

 

Related companies: Toho Tech, Tesco, TTA, other.

 

 

OPERATION

           

Activities: Titanium metals smelting: metallic titanium (78%), functional chemicals (22%)

Overseas Sales Ratio (37%)

 

(Products):

Titanium metals: titanium sponges, titanium ingots, high-purity titanium, titanium powder, fabricated titanium products;

Propylene polymerization catalyst: THC catalysts;

Electronic Materials: high-purity titanium, dioxide, ultra-fine nickel powder;

Chemicals: titanium tetrachloride, titanium tetrachloride aqueous solution, magnesium dichlotide, anhydride (MgC12), other

           

Clients: [Mfrs, wholesalers] Nippon Steel & Sumitomo Metals, Toho Titanium America, Toho Titanium Europe, Toho Tech, other

            No. of accounts: 500

            Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Tokyo Electric Power, Nippon Steel & Sumitomo Metal, Kyushu Electric Power, Furukawa Sangyo Kaisha, other

 

Payment record: Slow

 

Location: Business area in Chigasaki City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

  Annual Sales

　

36,006

28,135

  Cost of Sales

30,869

27,656

      GROSS PROFIT

5,137

479

  Selling & Adm Costs

5,470

4,975

      OPERATING PROFIT

-333

-4,496

  Non-Operating P/L

-683

-881

      RECURRING PROFIT

-1,016

-5,377

　

      NET PROFIT

-621

-5,505

BALANCE SHEET

  Cash

　

1,416

286

  Receivables

7,154

6,100

  Inventory

21,671

14,064

  Securities, Marketable

　

　

  Other Current Assets

810

725

      TOTAL CURRENT ASSETS

31,051

21,175

  Property & Equipment

64,874

65,204

  Intangibles

546

627

  Investments, Other Fixed Assets

1,672

1,483

      TOTAL ASSETS

98,143

88,489

  Payables

2,215

1,751

  Short-Term Bank Loans

35,694

15,562

　

　

　

  Other Current Liabs

3,322

2,964

      TOTAL CURRENT LIABS

41,231

20,277

  Debentures

　

　

  Long-Term Bank Loans

21,447

31,991

  Reserve for Retirement Allw

480

352

  Other Debts

　

6,859

6,770

      TOTAL LIABILITIES

70,017

59,390

      MINORITY INTERESTS

Common stock

4,812

4,812

Additional paid-in capital

5,872

5,872

Retained earnings

17,402

18,314

Evaluation p/l on investments/securities

63

85

Others

51

91

Treasury stock, at cost

(75)

(75)

      TOTAL S/HOLDERS` EQUITY

28,125

29,099

　

      TOTAL EQUITIES

98,143

88,489

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2012

31/03/2011

Cash Flows from Operating Activities

　

-1,904

4,371

Cash Flows from Investment Activities

-5,035

-5,588

Cash Flows from Financing Activities

7,775

767

　

Cash, Bank Deposits at the Term End

　

1,416

286

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

Net Worth (S/Holders' Equity)

28,125

29,099

Current Ratio (%)

75.31

104.43

Net Worth Ratio (%)

28.66

32.88

Recurring Profit Ratio (%)

-2.82

-19.11

Net Profit Ratio (%)

-1.72

-19.57

Return On Equity (%)

-2.21

-18.92

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.87.78

Euro

1

Rs.71.29

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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 Business

 

--

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.