MIRA
INFORM REPORT
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Report Date : |
15.04.2013 |
IDENTIFICATION DETAILS
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Name : |
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(NTT) |
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Registered Office : |
2-3-1 Ohtemachi Chiyodaku Tokyo 100-8116 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
April 1985 |
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Legal Form : |
Limited Company |
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Line of Business : |
Common carrier, telecommunications, overseas telephone services |
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No. of Employees : |
237,000 |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2012) |
Current Rating (30.06.2012) |
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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 |
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.
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Source : CIA |
Company name
NIPPON TELEGRAPH AND TELEPHONE CORPORATION (NTT)
REGD NAME
Nihon Denshin
Denwa KK
MAIN OFFICE
2-3-1 Ohtemachi
Chiyodaku Tokyo 100-8116 JAPAN
Tel:
03-3500-8111
*.. The is its subsidiary
URL: http://www.ntt.co.jp
E-Mail address: (thru
the URL)
ACTIVITIES
Common
carrier, telecommunications, overseas telephone services
BRANCHES
Nationwide
(50-60)
OVERSEAS
USA
(5), Europe (6), China (3), S/E Asia (12), India (5), other (Tot over 150
locations)
CHIEF EXEC
HIROO
UNOURA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 10,507,362 M
PAYMENTS REGULAR CAPITAL Yen
937,950 M
TREND UP WORTH Yen 7,882,587 M
STARTED 1985 EMPLOYES 237,000
COMMENT
JAPAN’S LARGEST COMMON CARRIER
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
%20-%20217996%2015-Apr-2013_files/image002.gif)
Unit: In Million Yen
Forecast figures for the 31/03/2013
fiscal term.
HIGHLIGHTS
This is the Japan’s largest common carrier. Converted from public to a private company in
1985. Leading shareholder is still
government. Expanding into public
telecommunications & overseas telephone services via subsidiaries (7 in
total). Maintains over half of the
market shares in mobile phone and long-distance call. Stressing the fiber optic business. In the optical fiber communications service
business, the company will cultivate demand from enterprise. It established its R&D base in North
America to rapidly develop security and cloud products.
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal term amounted to Yen 10,507,362
million, a 2.0% up from Yen 10,305,003 million in the previous term. Global revenues expanded. Mobile business expanded: no of smartphones
sold 8.82 million (3.5 times from the previous term), no of XI services sold
2.30 million (88 times from the previous term).
No. of Hikari TV subscribers exceeded 2 million. The recurring profit was posted at Yen
1,239,330 million and the net profit at Yen 467,701 million, respectively,
compared with Yen 1,175,797 million recurring profit and Yen 509,629 million
net profit, respectively, a year ago.
(Apr/Dec/2012 results): Sales Yen 7,921,720 million (up 1.8%), operating
profit Yen 993,237 million (down 1.6%), recurring profit Yen 985,688 million
(down 2.5), net profit Yen 447,326 million (up 24.5%). (% compared with the corresponding period a
year ago).
For the term that ended Mar 2013 the recurring profit was projected at
Yen 1,170,000 million and the net profit at Yen 530,000 million, on a 2.9% rise
in turnover, to Yen 10,810,000 million.
Sales in the optical fiber communications service business showed down
under stiffer competition. Sales in the
DOCOMO phone business recovered, thanks to the growth in demand for
LTE-compatible smartphone & const reduction. Final results are yet to be released.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date
Registered: Apr 1985
Legal
Status: Limited Company (Kabushiki Kaisha
Authorized: 6,192,920,900 million shares
Issued:
1,323,197,235
Sum: Yen 937,950 million
Major shareholders
(%):
Minister of Finance (32.5), Company’s Treasury Stock (7.6), Japan Trustee
Services T (4.3), Master Trust Bank of Japan T (3.0), Japan Trustee Services T9
(1.3), SSBT OD05 Omnibus Acct Treaty Cl (1.2), Moxley & Co (1.2), Chase
London Sl Omnibus Acct (1.1), Employees’ S/Holding Assn (0.8), State Street
Bank & Trust 505224 (0.7)
No. of
shareholders: 902,468
Listed on the
S/Exchange (s) of: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York, London
Managements: Satoshi Miura,
ch; Hiroo Unoura, pres; Yasuyoshi Katayama, v pres; Hiroki Watanabe, v pres;
Hiromichi Shinohara, mgn dir; Yoshikiyo Sakai, dir; Mitsuyoshi Kobayashi, dir;
Akira Shimada, dir, Hiroshi Tsujigami, dir; Tsunehisa Okuno, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: NTT East, NTT
West, NTT Communications, NTT DOCOMO Inc, NTT Data Inc, Dimension Data Holding
PLC (Johannesburg).
OPERATION
Activities: Common carrier:
regional communications (31%), Long-distance & international communications
(15%), Mobile communications (40%), Data communications (11%), others (3%).
Clients: Individuals,
business firms, other
No. of accounts: Unavailable
Domestic areas of
activities: Nationwide
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank
References:
MUFG (Hibiya)
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: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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10,507,362 |
10,305,003 |
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Cost of Sales |
6,302,663 |
6,100,280 |
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GROSS PROFIT |
4,204,699 |
4,204,723 |
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Selling & Adm Costs |
2,981,734 |
2,989,814 |
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OPERATING PROFIT |
1,222,965 |
1,214,909 |
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Non-Operating P/L |
16,364 |
-39,112 |
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RECURRING PROFIT |
1,239,330 |
1,175,797 |
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NET PROFIT |
467,701 |
509,629 |
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BALANCE SHEET |
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Cash |
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1,020,143 |
1,435,143 |
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Receivables |
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2,287,986 |
2,071,011 |
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Inventory |
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329,373 |
314,983 |
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Securities, Marketable |
306,921 |
167,175 |
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Other Current Assets |
767,508 |
781,985 |
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TOTAL CURRENT ASSETS |
4,711,931 |
4,770,297 |
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Property & Equipment |
9,806,356 |
9,900,640 |
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Intangibles |
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4,871,412 |
1,994,659 |
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Investments, Other Fixed Assets |
0 |
3,000,360 |
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TOTAL ASSETS |
19,389,699 |
19,665,956 |
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Payables |
|
1,482,594 |
1,379,279 |
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Short-Term Bank Loans |
83,507 |
341,567 |
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Other Current Liabs |
1,928,152 |
1,968,226 |
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TOTAL CURRENT LIABS |
3,494,253 |
3,689,072 |
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Debentures |
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Long-Term Bank Loans |
3,509,820 |
3,494,198 |
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Reserve for Retirement Allw |
1,534,885 |
1,535,964 |
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Other Debts |
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803,012 |
865,431 |
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TOTAL LIABILITIES |
9,341,970 |
9,584,665 |
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MINORITY INTERESTS |
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Common
stock |
937,950 |
937,950 |
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Additional
paid-in capital |
2,832,165 |
2,834,029 |
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Retained
earnings |
4,888,746 |
5,155,596 |
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Evaluation
p/l on investments/securities |
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Others |
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(357,843) |
(303,708) |
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Treasury
stock, at cost |
(418,431) |
(603,133) |
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TOTAL S/HOLDERS` EQUITY |
7,882,587 |
8,020,734 |
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TOTAL EQUITIES |
19,389,699 |
19,665,956 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash Flows
from Operating Activities |
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2,508,299 |
2,830,872 |
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Cash
Flows from Investment Activities |
-1,971,246 |
-1,052,212 |
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Cash
Flows from Financing Activities |
-948,058 |
-249,578 |
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Cash,
Bank Deposits at the Term End |
|
1,020,143 |
1,435,148 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
7,882,587 |
8,020,734 |
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Current
Ratio (%) |
134.85 |
129.31 |
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Net
Worth Ratio (%) |
40.65 |
40.78 |
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Recurring
Profit Ratio (%) |
11.79 |
11.41 |
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Net
Profit Ratio (%) |
4.45 |
4.95 |
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Return
On Equity (%) |
5.93 |
6.35 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
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UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
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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 |
---- |
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.