MIRA INFORM REPORT

 

 

Report Date :

20.09.2013

 

IDENTIFICATION DETAILS

 

Name :

KDDI CORP

 

 

Registered Office :

Garden Air Tower 25F, 3-10-10 Iidabashi Chiyodaku Tokyo 102-8460

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

June, 1984

 

 

Com. Reg. No.:

0111-01-031552

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Telecommunications business

 

 

No. of Employees :

20,238

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. 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. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan 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 and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 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 2012. The new government will continue a longstanding debate 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

 

KDDI CORP

 

 

REGD NAME 

 

KDDI KK

 

 

MAIN OFFICE

 

Garden Air Tower 25F, 3-10-10 Iidabashi Chiyodaku Tokyo 102-8460 JAPAN

Tel: 03-3347-0077     Fax: 03-3347-7000

 

*.. The is its subsidiary’s one of addresses

 

URL:                 http://www.kddi.com/

E-Mail address: info@kddi.com

 

 

ACTIVITIES

 

Telecommunications business

 

 

BRANCH(ES)

 

Sapporo, Sendai, Saitama, Yokohama, Kanazawa, Nagoya, Osaka, Hiroshima,    Fukuoka, other (Tot168).

 

 

OVERSEAS

 

USA (3), Asia (3), Europe (3), Oceania (1), South Africa

 

 

CHIEF EXEC 

 

TADASHI TANAKA, PRES & CEIO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 3,662,288 M

PAYMENTSREGULAR   CAPITAL           Yen 141,851 M

TREND STEADY           WORTH            Yen 2,323,363 M

STARTED         1984                 EMPLOYES      20,238

 

 

COMMENT           

 

TELECOMMUNICATIONS SERVICE PROVIDER. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

This is the comprehensive communications service provider of fixed and mobile phone service, with mobile phone (branded as “au”) business as mainline.  Second ranked in the mobile phone market in Japan after NTT DoCoMo.  Affiliate of Kyocera Corp.  Merged with KDD and IDO in Oct 2000.  Emphasis placed more on expansion of the IP networks and broad-band business.  Make J. COM its consolidated subsidiary.  The company will address service disruptions that occurred frequently from early 2013 under the direct control of the president.  It aims for double-digit growth of operating profit each year by the March 2016 term.  Payout ratio will be targeted at 30%-plus.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 3,662,288 million, a 2.5% up from Yen 3,572,098 million in the previous term.  In the mobile phone service business, voice revenues dipped, but data revenues increased.  Sales in the optical fiber communications service business rose.  Operating profits advanced.  The recurring profit was posted at Yen 514421 million and the net profit at Yen 241,469 million, respectively, compared with Yen 451,178 million recurring profit and Yen 238,604 million net profit, respectively, a year ago. 

 

(Apr/Jun/2013 results): Sales Yen 1,002,423 million (up 16.3%), operating profit Yen 178,652 million (up 89.6%), recurring profit Yen 181,919 million (up 101.7%), net profit Yen 68,174 million (up 32.9%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 620,000 million and the net profit at Yen 295,000 million, on a 13.0% rise in turnover, to Yen 4,140,000 million.  J.COM, which generated Yen 60 billion operating profit on Yen 360 billion sales, will make a contribution.   Sales in the mobile communications business are likely to increase for the first time in five terms, led by data revenues.  The number of customers in the fixed telephone service will increase, backed by discount combined with smartphones.  Operating profit will upsurge. 

 

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

 

 

REGISTRATION

 

Date Registered:                       Jun 1984

Regd No.:                     0111-01-031552 (Tokyo-Shinjukuku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  700 million shares

Issued:                         448,481,800 shares

Sum:                            Yen 141,851 million

           

Major shareholders (%): Company’s Treasury Stock (14.7), Kyocera Corp (12.7), Toyota Motor (11.0), Master Trust Bank of Japan T (4.9), Japan Trust Bank of Japan T (4.1),            State Street Bank & Trust 505223 (1.5), Mellon Bank Mellon Omnibus US P (1.0), CBNY for Depositary Share Holders (0.9), State Street Bank & Trust 505225 (0.8); foreign owners (30.7).

           

No. of shareholders: 58,754

 

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

 

Managements: Tadashi Onodera, ch; Tadashi Tanaka, pres; Hirofumi Morozumi, v pres; Makoto Takahashi, s/mgn dir; Yoshiharu Shimatani, s/mgn dir; Yuzo Ishikawa, s/mgn dir; Masahiro Inoue, mgn dir; Hideo Yuasa, mgn dir; Tsutomu Fukuzaki, mgn dir; Hidehiko Tajima, mgn dir

           

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

 

Related companies: KDDI Network & Solutions, Okinawa Cellular Phone Co, JCN, Chubu Telecommunication, other

 

           

OPERATION

           

Activities: Telecommunications service provider: telephone service, Internet service,  Intranet service, data center services, domestic & overseas: personal (75%), value (3%),  business (16%), global (5%), others (1%).

           

Clients: Business firms, individual users, other

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

Suppliers: Mfrs, wholesalers.

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Corporate Bank (H/O)

Relations: Satisfactory

 

 

FINACIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

3,662,288

3,572,098

 

  Cost of Sales

1,840,571

1,844,791

 

      GROSS PROFIT

1,821,717

1,727,307

 

  Selling & Adm Costs

79,486

71,697

 

      OPERATING PROFIT

512,669

477,647

 

  Non-Operating P/L

1,752

-26,469

 

      RECURRING PROFIT

514,421

451,178

　

      NET PROFIT

241,469

238,604

BALANCE SHEET

 

 

 

 

  Cash

　

96,952

100,037

 

  Receivables

 

971,244

760,890

 

  Inventory

 

56,942

65,232

 

  Securities, Marketable

231

80,188

 

  Other Current Assets

125,500

130,535

 

      TOTAL CURRENT ASSETS

1,250,869

1,136,882

 

  Property & Equipment

1,667,538

1,747,955

 

  Intangibles

 

210,260

218,361

 

  Investments, Other Fixed Assets

956,332

900,811

 

      TOTAL ASSETS

4,084,999

4,004,009

 

  Payables

 

82,753

90,661

 

  Short-Term Bank Loans

88,256

1,486

 

　

 

　

　

 

  Other Current Liabs

706,186

748,503

 

      TOTAL CURRENT LIABS

877,195

840,650

 

  Debentures

 

259,997

349,991

 

  Long-Term Bank Loans

244,727

301,286

 

  Reserve for Retirement Allw

13,509

18,743

 

  Other Debts

　

366,207

364,714

 

      TOTAL LIABILITIES

1,761,635

1,875,384

 

      MINORITY INTERESTS

 

 

 

Common stock

141,851

141,851

 

Additional paid-in capital

367,144

367,104

 

Retained earnings

2,055,586

1,879,087

 

Evaluation p/l on investments/securities

38,882

36,442

 

Others

 

65,901

50,303

 

Treasury stock, at cost

(346,001)

(346,163)

 

      TOTAL S/HOLDERS` EQUITY

2,323,363

2,128,624

　

      TOTAL EQUITIES

4,084,999

4,004,409

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

523,908

725,886

 

Cash Flows from Investment Activities

-472,992

-484,507

 

Cash Flows from Financing Activities

-140,249

-225,931

　

Cash, Bank Deposits at the Term End

　

87,288

174,191

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

2,323,363

2,128,624

 

 

Current Ratio (%)

142.60

135.24

 

 

Net Worth Ratio (%)

56.88

53.16

 

 

Recurring Profit Ratio (%)

14.05

12.63

 

 

Net Profit Ratio (%)

6.59

6.68

 

 

Return On Equity (%)

10.39

11.21

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.75

UK Pound

1

Rs.99.56

Euro

1

Rs.83.54

 

 

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.