MIRA INFORM REPORT

 

 

Report Date :

16.04.2013

 

IDENTIFICATION DETAILS

 

Name :

LOTTE HOLDINGS CO LTD 

 

 

Registered Office :

Lotte Honsha Bldg, 3-20-1 Nishishinjuku Shinjukuku Tokyo 160-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.01.2013

 

 

Date of Incorporation :

June 1948

 

 

Com. Reg. No.:

0111-01-023020 (Tokyo-Shinjukuku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Holding Company of 18 domestic firms & 13 overseas

manufacturer of chewing gum,  candy, chocolates, biscuits, ice cream; sports, restaurants, other

 

 

No. of Employees :

20

 

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

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No  Complaints

 

 

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)

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

 

LOTTE HOLDINGS CO LTD

 

 

REGD NAME

 

KK Lotte Holdings

 

 

MAIN OFFICE

 

Lotte Honsha Bldg, 3-20-1 Nishishinjuku Shinjukuku Tokyo 160-0023 JAPAN

           

     Tel: 03-5388-5604     Fax: 03-3375-1293

 

URL:                 www.lotte.co.jp   

E-mail:             info@lotte.co.jp             

 

 

ACTIVITIES

 

Holding Company of 18 domestic firms & 13 overseas; mfg of chewing gum,  candy, chocolates, biscuits, ice cream; sports, restaurants, other

 

 

BRANCHES

 

Sapporo, Sendai, Utsunomiya, Nagoya, Osaka, Hiroshima, Fukuoka

 

 

OVERSEAS

 

Lotte USA Inc, Lotte China foods Co, Thai Lotte Co, PT Lotte Indonesia,

Lotte Vietnam Co, Lotte Taiwan Co, Lotte Hotel Korea (--subsidiaries)

 

 

FACTORIEs  

 

Shinjuku, Urawa, Sayama, Toda, Sayama (Tot 6)

 

OFFICER(S)  

 

TAKAYUKI TSUKUDA, PRES     Takeo Shigemitsu, ch

Hiroyuki Shigemitsu, v ch                       Akio Shigemitsu, v pres

Akira Nakai, dir                                      Satoshi Isobe, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 2,468 M

PAYMENTSNo  Complaints  CAPITAL           Yen 217 M

TREND SLOW                           WORTH            Yen 244,395 M

STARTED         1948                             EMPLOYES      20

                                   

           

COMMENT

 

CONGLOMERATE HOLDING COMPANY OF LOTTE GROUP FIRMS 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

          

HIGHLIGHTS

           

The subject company was established by Takeo Shigemitsu in 1948 in order to mfr chewing gum, as Lotte Co Ltd.  Has since developed into mfg chocolates, ice cream, candies, biscuits, cakes, other.  In Mar 2007, under Industrial Activity Rehabilitation Law became a holding company, Lotte Holdings Co Ltd.  This is a diversified conglomerate Lotte Holdings, with interests in retail, sports and restaurants, is known as one of Japan’s leading confectioners.  Its Lotte Co Ltd makes a wide array of candies & other treats, including gum, chocolate and cookies.  Lotte also owns fast-food chain, Lotteria, which has locations in Japan, South Korea and Taiwan.  It also owns several retail chains including Korea’s Lotte Shopping.  Additionally Lotte owns the Chiba Lotte Marines professional baseball club.  Other business interests include soft drinks and ice cream mfg, leisure and entertainment ventures, magazine publishing and real estate.  Operates a grand hotel in Korea.  By the transferring into a holding company, all mfg divisions were shifted to subsidiaries: 18 domestic and 13 overseas.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2012 fiscal term amounted to Yen 2,468 million, a 21% down from Yen 3,129 million in the previous term.  No new large investments in interest ventures were made during the term.  The recurring profit was posted at Yen 869 million and the net profit at Yen 68 million, respectively, compared with Yen 1,024 million recurring profit and Yen 857 million net profit, respectively, a year ago.  Lotte Co Ltd reported for Mar/2012 fiscal term: sales Yen 124,105 million, recurring profit Yen19,930 million, net profit Yen 10,019 million, respectively.

 

For the term that that ended Mar 2013 the recurring profit was projected at Yen 900 million and the net profit at Yen 75 million, respectively, on a 3% rise in turnover, to Yen 2,550 million.  Final results are yet to be released.  .

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:       Jun 1948

Regd No.:                   0111-01-023020 (Tokyo-Shinjukuku)

Legal Status:        Limited Company (Kabushiki Kaisha)

Authorized:          17 million shares

Issued:                 4,340,000 shares

Sum:                    Yen 217 million

 

Major shareholders (%): Kojunsha (28), other

No. of shareholders: 160

 

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

 

 

OPERATION

 

Activities: Holding Company of 18 domestic subsidiaries & 13 overseas firms; mfg chewing gum, chocolates, biscuits, ice cream; operates fast-food restaurants, operates a hotel in Korea, owns professional baseball club, real estate management, other (--100%).

 

 

Clients: [Mfrs, wholesalers] Lotte Shoji Co, Lotte Bussan, Lotte Reito, Ginza Cozy Corner, Mary Chocolate, Wedel (Poland) (--all subsidiaries), other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: Mfrs, wholesalers, other

 

Payment record: No Complaints 

 

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

 

Bank References:

MUFG (Shinjuku)

Mizuho Bank (Shinjuku-Chuo)

Relations: Satisfactory

 

 

FINANCES

(Non-consolidated In Million Yen)

 

       Terms Ending:

31/01/2013

31/01/2012

31/01/2011

31/01/2010

Annual Sales

 

2,550

2,468

3,129

1,951

Recur. Profit

 

900

869

1,024

792

Net Profit

 

75

68

857

571

Total Assets

 

 

312,357

311,541

281,706

Current Assets

 

 

2,188

1,881

1,954

Current Liabs

 

 

38,898

18,136

18,114

Net Worth

 

 

244,395

244,352

243,521

Capital, Paid-Up

 

 

217

217

217

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

3.32

-21.12

60.38

43.88

    Current Ratio

 

..

5.62

10.37

10.79

    N.Worth Ratio

..

78.24

78.43

86.45

    R.Profit/Sales

 

35.29

35.21

32.73

40.59

    N.Profit/Sales

2.94

2.76

27.39

29.27

    Return On Equity

..

0.03

0.35

0.23

 

Notes: Forecast (or estimated) figures for the 31/03/2013 fiscal term. 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.83.70

Euro

1

Rs.71.42

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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%)

 

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