MIRA INFORM REPORT
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Report Date : |
14.03.2012 |
IDENTIFICATION DETAILS
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Name : |
DIC CORPORATION |
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Registered Office : |
DIC Bldg, 3-7-20 Nihombashi Chuoku
Tokyo103-8233 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
March 1937 |
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Com. Reg. No.: |
0100-01-112151 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of printing ink, synthetic resins, peroxides |
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No. of Employees
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21,003 |
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 9,566.1 Million |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
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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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Japan |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
DIC CORPORATION
REGD NAME
DIC KK
MAIN OFFICE
DIC Bldg, 3-7-20
Nihombashi Chuoku Tokyo103-8233 JAPAN
Tel:
03-3272-4511 Fax: 03-3278-8558
E-Mail address: info@dic.co.jp
ACTIVITIES
Mfg of
printing ink, synthetic resins, peroxides
BRANCHES
Osaka,
Nagoya, Sapporo, Shizuoka, Fukuoka, other (Total 21)
OVERSEAS
USA,
Europe, Africa, Asia, Oceania, Central/South America
FACTORIES
Tokyo,
Kashima, Suita, Chiba, Sakai, Yokkaichi, Fukuoka, other (Tot 11)
CHIEF EXEC
KAZUO
SUGIE, PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 778,964 M
PAYMENTS REGULAR CAPITAL Yen 91,154 M
TREND UP WORTH Yen 130,379 M
STARTED 1937 EMPLOYES 21,003
COMMENT
MFR OF PRINTING INK.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 9,566.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2012 fiscal term
HIGHLIGHTS
This is the comprehensive mfr of chemicals, with inks and synthetic
resins as mainlines. Engaged in diverse
products of fine chemicals. Renamed as
captioned in Apr 2008 from the former, Dainippon Ink & Chemicals Co
Ltd. Top-ranked in color chemicals. Advancing overseas with purchases of graphic
arts div of Sun Chemical (US) in 1986.
World’s largest ink mfr.
Promoting biotech business centering on functional ingredients, data
storage and biodegradable products. The
firm will turn an Indian plant into a production base for inks for the US, Europe
and Asia, thereby lowering prime cost.
It is fostering ink-jet inks and functional pigments.
(Recent news from
the Nikkei):
Dated 17/12/2011: DIC Corp has
purchased New Zealand’s Pacific Inks at an estimated cost of nearly Yen 1
billion. The acquired company produces
mainly water-based ink for such wrapping and packing materials as
cardboard. Water-soluble ink is more
environmentally friendly than oil-based ink, which is commonly used in Asia. DIC anticipates that the purchase will
contribute Yen 2.5 million annually to its overall sales by fiscal 2015.
Dated 25/02/2012: DIC plans to
expand Chinese production capacity for packaging material inks by 80% this
year. By December, the company will
erect a new building at a plant in Nantong, Jiangsu Province, that makes
pigments and printing ink for paper.
Equipment will be installed there that can turn out 20,000 tons of ink
annually for use on packaging films for foods and beverages. The expansion will cost Yuan 107 million, or
around Yen 1.37 billion. According to
DIC, the Chinese packaging materials ink market is projected to expand to
350,000 tons in 2020, up 75% from 2011.
The company aims to capture 20% of this market.
FINANCIAL INFORMATION
The sales volume for Mar/2011 fiscal term amounted to Yen 778,964
million, a 2.8% up from Yen 757,849 million in the previous term. Economic conditions continued to improve
gradually in Japan, notwithstanding the impact of the Great East Japan
Earthquake from mid=March forward, and in overseas markets. This is attributable mainly to booming demand
in Asia, particularly in China, which countered falling demand for printing
inks in developed countries and the appreciation of the Yen. Sales rose in all segments. By Divisions, Printing Inks up 5% to Yen97,500
million; New Graphic Arts up 18.1% to Yen 110,100 million; Synthetic Resins up
7.3% to Yen 151,000 million; Chemical Solutions Materials up 7% to Yen 151,000
million. The recurring profit was posted
at Yen 31,701 million and the net profit at Yen 15,761 million, respectively,
compared with Yen 19,081 million recurring profit and Yen 2,540 million net
profit, respectively, a year ago.
(Apr/Dec/2011 results): Sales Yen 561,449 million (down 4.5%), operating
profit Yen 27,008 million (down 15.8%), recurring profit Yen 24,088 million
(down 15.6%), net profit Yen 15,890 million (down 4.5%). (% compared with the corresponding period a
year ago). The printing ink segment
incurred sales & profits declines.
Ink sales associated with publishing slumped as more companies cut back
on advertising. The synthetic-resins
division felt the effects of a decline in demand for materials used in chips
& electronic parts, particularly in Asia.
The chemical solution materials business slumped amid lackluster demand
for optical materials used in liquid crystals.
The neo-graphic arts materials segment logged sales and profit gains,
however, thanks to demand for liquid crystals newly adopted by a South Korean
mfr. The Yen’s strength against the
Dollar also hit earnings.
For the current term ending Mar 2012 the recurring profit is projected
at Yen 30,000 million and the net profit at Yen 17,000 million, on a 5.0% fall
in turnover, to Yen 740,000 million.
Sales of newspaper printing inks are slipping. Sales of electric & electronic materials
are slightly lower than initial goals due to poor demand in the US and
Europe. The higher Yen is reducing the
value of earnings.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 9,566.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1937
Regd No.: 0100-01-112151 (Tokyo-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,500 million shares
Issued: 919,372,048 shares
Sum: Yen 91,154
million
Major shareholders
(%): Japan Trustee Services T (8.4), Master Trust Bank of Japan T (7.7), Nissei
Real Estate (5.7), Japan Trustee Services T9 (5.5), Dainichi Seikan (4.6), Dai-ichi Life Ins (3.8, Nisshin Trading
(3.4), Aioi Nissay Dowa Ins (2.8), Japan Trustee Services T4 (2.3), Nippon Life
Ins (2.0); foreign owners (15.6)
No. of shareholders: 39,492
Listed on the
S/Exchange (s) of: Tokyo
Managements: Koji Oe, ch;
Kazuo Sugie, pres; Kaiji Yamamoto, s/mgn dir; Yoshihisa Kawamura, mgn dir;
Kazuya Shimoizumi, dir; Masayuki Saitoh, dir; Yoshihisa Nakanishi, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Sun Chemical, DIC Graphics, others
OPERATION
Activities: Manufactures inks
& chemicals:
(Sales breakdown
by divisions):
Printing Inks Div
(52%): printing inks, printing supplies;
New Graphic Arts
Div (9%): organic pigments, imaging & reprographic products, liquid crystal
materials;
Synthetic Resins
Div (19%): synthetic resins, additives & chemicals;
Chemical Solutions
Materials Div (19%): special compounds and colorants, materials,
packaging materials, pressure-sensitive adhesive materials, plastic molded
products, engineering plastics, hollow-fiber membranes, color & comfort;
Others (1%);
Overseas Trading
Ratio (58.2%): USA (17.0%); Europe (25.0%), others (16.2%).
Clients: [Printing
houses, chemical mfrs, house builders] Dainippon Printing, Toppan
Printing, Mitsui & Co, Mitsubishi Corp, INAX Tostem, Matsushita
Electric Works, Sekisui House, Cleanup
Corp, other.
No. of accounts: 2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui & Co, Mitsubishi Corp, Mitsubishi Gas & Chemicals,
Tosoh Ltd, Idemitsu Kosan, Asahi Kasei Chemical, OG Corp, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG
(Nihombashi)
Mizuho
Corporate Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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778,964 |
757,849 |
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Cost of Sales |
619,632 |
604,808 |
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GROSS PROFIT |
159,332 |
153,041 |
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Selling & Adm Costs |
122,180 |
125,227 |
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OPERATING PROFIT |
37,152 |
27,814 |
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Non-Operating P/L |
-5,451 |
-8,733 |
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RECURRING PROFIT |
31,701 |
19,081 |
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NET PROFIT |
15,761 |
2,540 |
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BALANCE SHEET |
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Cash |
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22,957 |
29,549 |
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Receivables |
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185,391 |
182,053 |
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Inventory |
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122,251 |
123,919 |
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Securities, Marketable |
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Other Current Assets |
24,199 |
26,237 |
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TOTAL CURRENT ASSETS |
354,798 |
361,758 |
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Property & Equipment |
220,631 |
252,397 |
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Intangibles |
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12,317 |
13,881 |
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Investments, Other Fixed Assets |
116,014 |
121,830 |
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TOTAL ASSETS |
703,760 |
749,866 |
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Payables |
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121,224 |
121,661 |
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Short-Term Bank Loans |
23,951 |
16,447 |
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Other Current Liabs |
119,204 |
132,873 |
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TOTAL CURRENT LIABS |
264,379 |
270,981 |
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Debentures |
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36,000 |
41,000 |
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Long-Term Bank Loans |
222,962 |
258,889 |
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Reserve for Retirement Allw |
22,135 |
29,391 |
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Other Debts |
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27,905 |
26,776 |
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TOTAL LIABILITIES |
573,381 |
627,037 |
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MINORITY INTERESTS |
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Common
stock |
91,154 |
82,423 |
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Additional
paid-in capital |
88,758 |
80,027 |
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Retained
earnings |
39,475 |
27,131 |
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Evaluation
p/l on investments/securities |
(73) |
278 |
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Others |
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(88,278) |
(66,382) |
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Treasury
stock, at cost |
(657) |
(648) |
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TOTAL S/HOLDERS` EQUITY |
130,379 |
122,829 |
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TOTAL EQUITIES |
703,760 |
749,866 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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30,910 |
39,456 |
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Cash
Flows from Investment Activities |
-12,340 |
-12,477 |
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Cash
Flows from Financing Activities |
-26,299 |
-15,985 |
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Cash,
Bank Deposits at the Term End |
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22,884 |
29,549 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
130,379 |
122,829 |
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Current
Ratio (%) |
134.20 |
133.50 |
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Net Worth
Ratio (%) |
18.53 |
16.38 |
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Recurring
Profit Ratio (%) |
4.07 |
2.52 |
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Net
Profit Ratio (%) |
2.02 |
0.34 |
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Return
On Equity (%) |
12.09 |
2.07 |
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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.49.85 |
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UK Pound |
1 |
Rs.77.97 |
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Euro |
1 |
Rs.65.62 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.