MIRA INFORM REPORT

 

 

Report Date :

14.04.2014

 

IDENTIFICATION DETAILS

 

Name :

FIRST BAKING CO LTD

 

 

Registered Office :

3-6-1 Ogawa-Higashicho Kodaira City Tokyo-Metrop 187-0031

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

May 1947

 

 

Com. Reg. No.:

0127-01-009955

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of bread, confectionary

 

 

No. of Employees

754

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 

 

 

Company name and address

 

FIRST BAKING CO LTD

 

REGD NAME:   Daiichiya Seipan KK

MAIN OFFICE:  3-6-1 Ogawa-Higashicho Kodaira City Tokyo-Metrop 187-0031 JAPAN

Tel: 042-348-0211     Fax: 042-344-7681

 

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

E-Mail address:            info@daiichipan.co.jp

 

 

ACTIVITIES  

 

Mfg of bread, confectionary

 

 

BRANCHES   

 

Nagano, Okayama, Niigata, Nagoya

 

 

OVERSEAS

 

Daiichiya-Love’s Bakery Inc (Hawaii) (subsidiary)

 

 

FACTORIES

 

Kodaira (at the caption address), Yokohama, Takasaki, Osaka

 

 

CHIEF EXEC

 

YOSHIHITO KADOWAKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 24,697 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 3,305 M

TREND SLOW                           WORTH                        Yen 8,257 M

STARTED         1947                             EMPLOYES      754

 

 

COMMENT    

 

BREAD BAKER.  FINANCIAL SITUATION CONSIDERED FAIR AND SHOULD BE GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

27,119

-1,071

-972

(%)

7,731

(Consolidated)

31/12/2011

26,706

-16

35

-1.52

7,784

31/12/2012

24,792

-54

-229

-7.17

7,585

31/12/2013

24,697

486

519

-0.38

8,257

31/12/2014

25,000

300

240

1.23

..

                        Unit: In Million Yen

                        Forecast (or estimated) figures for 31/12/2014 fiscal term

 

 

HIGHLIGHTS

 

The subject company is a medium-sized bakery with operations based centrally in Kanto area.  Character bread products (such as Pocket Monster character bread) are major earnings source and contributing to earnings.  Diversifying into Japanese & Western cakes.   Putting efforts diversifying into Japanese and Western cakes.  Expanding sales routes thru such outlets as supermarkets.  Pushing ahead with restructuring plan under leadership of Toyota Tsusho Corp.  The company anticipates increased sales effects on Pokemon Bread from the launch of the latest Pokemon software in October 2013.  It appointed a new ex-Toyota Tsusho president, the first outside the founding family, and will move forward with realignment and collaborations. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term amounted to Yen 24,697 million, a 0.4% down from Yen 24,792 million in the previous term.  The recurring profit was posted at Yen 486 million and the net profit at Yen 519 million, respectively, compared with Yen 54 million recurring loss and Yen 229 million net losses, respectively, a year ago.

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 300 million and the net profit at Yen 240 million, respectively, on a 1.2% rise in turnover, to Yen 25,000 million.  Sales of Pokemon Bread are assumed to continue growing.  Reinforced sales of high-priced PB products at convenience stores will contribute to earnings.

 

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

 

 

REGISTRATION

 

Date Registered:       May 1947

Regd No.:                   0127-01-009955 (Tokyo-Kodaira)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         132 million shares

Issued:                89,299,000 shares

Sum:                   Yen 3,305 million

           

Major shareholders (%):Toyota Tsusho (33.4), Masahide Hosokai (9.6), Takashi Hosokai (8.1), Mizuho Bank (3.4), Showa Sangyo (2.1), Nippon Flour Mills (2.0), Nomura Securities Co (1.3), Nipponkoa Ins (1.3), Sumitomo Mitsui Trust Bank (1.3), Musashi Securities (1.1); foreign owners (1.3)

 

No. of shareholders: 3,871

 

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

 

Managements: Masahide Hosokai, ch; Yoshihito Kadowaki, pres; Masahide Hosokai, mgn dir; Shinichi Hatayama, dir; Yoshiki Miura, dir; Satoshi Tomii, dir; Hideo Komuro, dir

 

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

 

Related companies: Fresh House, Three Stars Confectionery, Bakery Petit, other (Tot 5)

           

 

OPERATION

 

Activities: Manufactures bread (76%), Japanese & Western cakes, cookies (--15%), cooked rice, others (8%).

 

Clients: [Consumers, supermarkets, chain stores] Aeon Co, Sunkus & Associates, Ito-Yokado, Lotteria, Daiei Inc, Big-A Co, 99-Plus Co, JR East Japan Retail Net, Sugi Holdings, other.

No. of accounts: 1,000 (including direct-run stores)

Domestic areas of activities: Centered in greater-Tokyo, extending into Osaka area.

 

Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, Genda Shoten, Fresh House, Showa Sangyo, Sunkus & Associates, Okinawa Ham, JR East Japan Kikaku, other. 

 

Payment record: No complaints

 

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

 

Bank References:

 

Mizuho Bank (Kawasaki)

SMBC (Kawasaki)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

Terms Ending:

31/12/2013

31/12/2012

INCOME STATEMENT

  Annual Sales

　

24,697

24,792

  Cost of Sales

17,393

18,057

      GROSS PROFIT

7,303

6,734

  Selling & Adm Costs

6,893

6,936

      OPERATING PROFIT

410

-201

  Non-Operating P/L

76

179

      RECURRING PROFIT

486

-54

　

      NET PROFIT

519

-229

BALANCE SHEET

  Cash

　

2,218

1,491

  Receivables

3,303

3,288

  Inventory

432

390

  Securities, Marketable

　

　

  Other Current Assets

403

239

      TOTAL CURRENT ASSETS

6,356

5,408

  Property & Equipment

8,259

8,578

  Intangibles

87

98

  Investments, Other Fixed Assets

4,470

5,435

      TOTAL ASSETS

19,172

19,519

  Payables

935

929

  Short-Term Bank Loans

4,416

5,400

　

　

　

  Other Current Liabs

1,606

1,434

      TOTAL CURRENT LIABS

6,957

7,763

  Debentures

　

　

  Long-Term Bank Loans

　

　

  Reserve for Retirement Allw

　

　

  Other Debts

　

3,957

4,171

      TOTAL LIABILITIES

10,914

11,934

      MINORITY INTERESTS

Common stock

3,305

3,305

Additional paid-in capital

3,659

3,659

Retained earnings

947

427

Evaluation p/l on investments/securities

253

95

Others

102

107

Treasury stock, at cost

(9)

(8)

      TOTAL S/HOLDERS` EQUITY

8,257

7,585

　

      TOTAL EQUITIES

19,172

19,519

CONSOLIDATED CASH FLOWS

Terms ending:

31/12/2013

31/12/2012

Cash Flows from Operating Activities

　

736

338

Cash Flows from Investment Activities

1,169

-187

Cash Flows from Financing Activities

-1,135

-449

　

Cash, Bank Deposits at the Term End

　

2,179

1,402

ANALYTICAL RATIOS            Terms ending:

31/12/2013

31/12/2012

Net Worth (S/Holders' Equity)

8,257

7,585

Current Ratio (%)

91.36

69.66

Net Worth Ratio (%)

43.07

38.86

Recurring Profit Ratio (%)

1.97

-0.22

Net Profit Ratio (%)

2.10

-0.92

Return On Equity (%)

6.29

-3.02

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.27

UK Pound

1

Rs.101.09

Euro

1

Rs.83.74

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.