MIRA INFORM REPORT

 

 

Report Date :           

01.03.2012

 

IDENTIFICATION DETAILS

 

Name :

MANDOM CORPORATION

 

 

Registered Office :

5-12 Junikencho Chuoku Osaka 540-8530

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

December 1927

 

 

Com. Reg. No.:

1200-01-090234 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of hair & skin care products, other cosmetics

 

 

No. of Employees :

2,249

 

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 1,830.8 Million

Status :

Good

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

MANDOM CORPORATION

 

 

REGD NAME

 

KK Mandom

 

 

MAIN OFFICE

 

5-12 Junikencho Chuoku Osaka 540-8530 JAPAN

Tel: 06-6767-5001     Fax: 06-6767-5044-

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of hair & skin care products, other cosmetics

 

 

BRANCHES

 

Tokyo, Sapporo, Sendai, Osaka, Hiroshima, Fukuoka, other (Tot 10)

 

 

OVERSEAS

 

Korea, Taiwan, Philippines, Malaysia, Indonesia, Thailand, Singapore, Brazil, China (2), Hong Kong

 

 

FACTORIES

 

Kanzakigun (Hyogo); Indonesia, China

 

 

CHIEF EXEC

 

MOTONOBU NISHIMURA, PRES

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY    

 

FINANCES                    FAIR                 　A/SALES       Yen 57,262 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 11,394 M

TREND             STEADY           　WORTH         Yen 45,291 M

STARTED                     1927                 　EMPLOYES   2,249

 

 

COMMENT

 

MFR OF MEN’S COSMETICS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,830.8 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the second largest mfr of men’s cosmetics, hair-care being the core product, only after Shiseido.  Aggressively expanded into overseas markets through subsidiaries in Korea, Taiwan, China (Hong Kong), Thailand, Indonesia and Brazil.  Core brand Gatsby (men’s cosmetics) continues to enjoy strong global sales.  In China, the company is planning to expand its retailing network from Shanghai, Beijing and other urban cities to inland areas.  It has set up an English version of “Gatsby” website.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 57,262 million, a 5.4% up from Yen 5,304 million in the previous term.  Japanese economy struggled in a climate of uncertainty, with tough employment conditions and inflationary forces.  World economic trends and the strength of the Yen compounded the gloom.  In Asia, where the Group’s overseas business is conducted, the economic stimulus package deployed in China resulted in sustained increase in domestic demand, and other countries and the regions in general showed indications of regeneration.  The sales growth is mainly thanks to the increased sales of the core brand Gatsby in Japan, and the steady growth in local-currency denominated sales by PT Mandom IndonesiaTbk chiefly on the strength of women’s cosmetics.  The recurring profit was posted at Yen 6,006 million and the net profit at Yen 2,672 million, respectively, compared with Yen 5,715 million recurring profit and Yen 2,802 million net profit, respectively, a year ago.

 

(Apr/Dec/2011 results): Sales Yen 46,646 million (up 5.7%), operating profit Yen 5,876million (up 5.2%), recurring profit Yen 6,103 million (up 4.3%), net profit Yen 3,237 million (up 16.3%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar/2012 the recurring profit is projected at Yen 5,450 million and the net profit at Yen 3,420 million, on a 5.7% rise in turnover, to Yen 60,500 million.  “Gatsby” brand face cleansing papers remain in good shape.  Overseas sales of women’s cosmetics are increasing in Indonesia.  Operating profit will continue   Net profit will take a rapid upturn.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 1,830.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Dec 1927

Regd No.:                         1200-01-090234 (Osaka-Chuoku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:          81,969,760 shares

Issued:                24,134,606 shares

Sum:                   Yen 11,394 million

 

 

Major shareholders (%): Nishimura Int’l Scholarship F (7.4), Master Trust Bank of Japan T (6.3), Japan Trustee Services T (5.9), Company’s Treasury Stock (3.1), Employees’ S/Holding Assn (3.0), Motonobu Nishimura (2.9), Trust & Custody Services Inv T (2.6), State Street Bank & Trust (2.4), BNP Paribas LDN Aberdeen Inv (2.0), BNP Paribas Lux Aberdeen GCA (1.6); foreign owners (21.7)

 

No. of shareholders: 17,421

 

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

 

Managements: Motonobu Nishimura, pres; Hiroshi Kamei, v pres; Masyoshi Momota, s/mgn dir; Yoshiaki Saito, mgn dir; Ryuichi Terabayashi, mgn dir; Tsutomu Tsukada, dir; Toshikazu Tamura, dir

 

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

 

Related companies: PT Mandom Indonesia, other.

 

 

OPERATION

           

Activities: Manufactures cosmetics for men (69%), for women (20%), others (12%).

 

Overseas Sales Ratio (36%): Indonesia (29%), others 7%)

           

Clients: [Mfrs, wholesalers] Paltac, Ida Ryogokudo, Chuo Bussan Corp, Tokyodo Co,

            Arata Corp, other

            No. of accounts: 800

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Yoshino Kogyosho, Takeuchi Press Ind, Toyo Aerosol, Nippon Alcohol Hambai, Hasegawa Co, other.

 

Payment record: Regular

 

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

 

Bank References:

·         Mizuho Bank (Minamisemba)

·         SMBC (Uemachi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

57,262

54,304

 

  Cost of Sales

25,868

24,553

 

      GROSS PROFIT

31,394

29,750

 

  Selling & Adm Costs

25,647

24,381

 

      OPERATING PROFIT

5,747

5,368

 

  Non-Operating P/L

259

347

 

      RECURRING PROFIT

6,006

5,715

　

      NET PROFIT

2,672

2,802

BALANCE SHEET

 

 

 

 

  Cash

　

6,285

5,531

 

  Receivables

 

6,240

5,986

 

  Inventory

 

6,551

6,301

 

  Securities, Marketable

12,933

13,615

 

  Other Current Assets

1,645

1,485

 

      TOTAL CURRENT ASSETS

33,654

32,918

 

  Property & Equipment

12,089

12,960

 

  Intangibles

 

604

616

 

  Investments, Other Fixed Assets

6,981

7,688

 

      TOTAL ASSETS

53,328

54,182

 

  Payables

 

715

1,205

 

  Short-Term Bank Loans

　

　

 

　

 

　

　

 

  Other Current Liabs

5,265

6,021

 

      TOTAL CURRENT LIABS

5,980

7,226

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

1,050

848

 

  Other Debts

　

1,006

1,049

 

      TOTAL LIABILITIES

8,036

9,123

 

      MINORITY INTERESTS

 

 

 

Common stock

11,394

11,394

 

Additional paid-in capital

11,235

11,235

 

Retained earnings

26,733

26,733

 

Evaluation p/l on investments/securities

(559)

(273)

 

Others

 

(1,664)

448

 

Treasury stock, at cost

(1,848)

(4,479)

 

      TOTAL S/HOLDERS` EQUITY

45,291

45,058

　

      TOTAL EQUITIES

53,328

54,182

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

4,063

7,766

 

Cash Flows from Investment Activities

-1,408

-5,111

 

Cash Flows from Financing Activities

-1,661

-2,291

　

Cash, Bank Deposits at the Term End

　

10,550

9,742

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

45,291

45,058

 

 

Current Ratio (%)

562.78

455.55

 

 

Net Worth Ratio (%)

84.93

83.16

 

 

Recurring Profit Ratio (%)

10.49

10.52

 

 

Net Profit Ratio (%)

4.67

5.16

 

 

Return On Equity (%)

5.90

6.22

 

 

           


FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.94

UK Pound

1

Rs.77.95

Euro

1

Rs.65.94

 

 

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.