MIRA INFORM REPORT

 

 

Report Date :

26.08.2014 

 

IDENTIFICATION DETAILS

 

Name :

TOMY CO LTD

 

 

Registered Office :

7-9-10 Tateishi Katsushikaku Tokyo 124-8511

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

January 1953

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures toys: mini-capsule toys, stuffed animals, video content, game software, candy-toy (candy & confectionery), babies’ & kind’s apparel, video games, electronics

 

 

No. of Employees

2,056

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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

 

TOMY CO LTD

 

REGD NAME:    KK Takara Tomy

MAIN OFFICE:  7-9-10 Tateishi Katsushikaku Tokyo 124-8511 JAPAN

Tel: 03-5654-1288     Fax: 03-5698-2463

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Toymaker

 

 

BRANCHES

 

Aoto (Tokyo), Ichikawa

 

 

OVERSEAS   

 

Europe (3), USA (2), China (2), Hong Kong (2), Thailand, Korea (--subsidiaries)

 

 

FACTORIE)

 

At the caption address, Aoto (Tokyo);

China, Vietnam, Thailand, Hong Kong, other (--subsidiaries)

 

 

CHIEF EXEC 

 

KANTARO TOMIYAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 　         A/SALES          Yen 154,804 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 3,459 M

TREND SLOW              　         WORTH            Yen 30,666 M

STARTED         1953                 　         EMPLOYES      2,056

 

 

COMMENT

 

TOY MAKER. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established by Eichiro Tomiyama for making toys.  Kantaro Tomiyama is the founder’ s grandson.  This is one of nation’s leading toymakers.  Produces babies’ toys such as railway toys, minicars, boys’ toys, including game software, and girls’ toys including dolls, stuffed animals, other.  Specializes in planning and marketing, with production assigned to domestic and overseas subsidiaries.  Merged 2nd-ranked toy maker, Takara Co Ltd, in Mar 2006, and renamed as captioned. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 154,804 million, a 13.4% down from Yen 178,745 million in the previous term.  Business scale contracted following the sale of the home-use game wholesaling subsidiary.  Mainline toy sales were benefited from large-scale events.  Trading cards also grew.  The recurring profit was posted at Yen 3,300 million and the net profit at Yen 232 million, respectively, compared with Yen 2,622 million recurring profit and Yen 7,173 million net losses, respectively, a year ago.

 

(Apr/Jun/2014 results): Sales Yen 31,858 million (down 12.7%), operating loss Yen 597 million (previously Yen 104 million profit), recurring loss Yen 824 million (previously Yen 91 million profit) net loss Yen 1,978 million (previously Yen 1,036 million loss).  (% and figures compared with the corresponding period a year ago). 

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 3,500 million and the net profit at Yen 1,000 million, on a 3.4% up in turnover, to Yen 160,000 million.  Operating profits will rise steadily on the strength of ongoing business improvements in Europe and the US.  Sales of Pokemon-related toys and launches of Japan-based Battle Borg will shore up sales in Europe and the US.  The company plans to broaden the lineup of low-price products for ASEAN.

 

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

 

 

REGISTRATION

           

Date Registered:　Jan 1953

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         384 shares

Issued:                96,290,850 shares

Sum:                   Yen 3,459 million

 

Major shareholders (%): Marunouchi Capital No.1 Inv (15.0), Tomy Insurance (4.7), TPG Richmont l LP (4.6), Tsukasa Fudosan (3.0), Master Trust Bank of Japan T (2.8), Kantaro Tomiyama (2.8), Japan Trustee Service T (2.7), Company’s Treasury Stock (2.2), Fumie Tomiyama (1.5), JTSB (SMBC) (0.9; foreign owners (11.4)

 

No. of shareholders: 86,298

 

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

 

Managements: Kantaro Tomiyama, pres; Harold George May, v res; Kazuhiro Kojima, mgn dir; Takashi Kozu, mgn dir; Akishiro Oku, dir; Akio Ishida, dir; Kakuei Miyagi, dir; Takashi Yamamoto, dir; Jun Tsusaka, dir; Yoichi Tamagawa, dir

 

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

 

Related companies: T-Arts Co, Tomy Marketing Co, Takara Tomy Arts, Tomy UK, Toys

Union, other

           

 

OPERATION

           

Activities: Manufactures toys: mini-capsule toys, stuffed animals, video content, game software, candy-toy (candy & confectionery), babies’ & kind’s apparel, video games, electronics (robots), other (--100%)

 

(Sales): Japan (69%), North America, Europe & Oceania (27%), Asia (4%)

           

 

Clients: [Mfrs, wholesalers] U-Ace, HASBRO SA, Star Corporation, HASBRO SA, SONOKONG Co, Takara Tomy Marketing, Union Toy Marketing, Happinet Co, Moririn Co, HASBRO Far East, other

No. of accounts: 1,000 – 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Tomy Hong Kong, Mitsui & Co, Tomy Thailand, Tokyo Unique Co, SSD Co, Wizard of the Coast, Nintendo Co, Hashimoto Co, Dream Vision Ltd, Shogakukan-Shueisha Productions, other

 

Payment record: No complaints

 

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

 

Bank References:

                        Mizuho Trust Bank (H/O)

                        Mizuho Bank (Katsushika)

                        Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

154,804

178,745

　

  Cost of Sales

101,661

123,585

　

      GROSS PROFIT

53,142

55,160

　

  Selling & Adm Costs

49,807

52,613

　

      OPERATING PROFIT

3,335

2,547

　

  Non-Operating P/L

-35

375

　

      RECURRING PROFIT

3,300

2,922

　

      NET PROFIT

232

-7,173

BALANCE SHEET

 

 

　

　

  Cash

　

46,775

33,764

　

  Receivables

 

18,271

23,892

　

  Inventory

 

18,221

20,341

　

  Securities, Marketable

　

64

　

  Other Current Assets

7,328

8,081

　

      TOTAL CURRENT ASSETS

90,595

86,142

　

  Property & Equipment

16,764

17,172

　

  Intangibles

 

43,473

42,382

　

  Investments, Other Fixed Assets

5,635

7,036

　

      TOTAL ASSETS

156,467

152,732

　

  Payables

 

8,224

10,655

　

  Short-Term Bank Loans

7,336

6,971

　

　

 

　

　

　

  Other Current Liabs

25,606

21,750

　

      TOTAL CURRENT LIABS

41,166

39,376

　

  Debentures

 

10,000

　

　

  Long-Term Bank Loans

37,719

41,534

　

  Reserve for Retirement Allw

3,084

2,982

　

  Other Debts

　

13,590

19,147

　

      TOTAL LIABILITIES

105,559

103,039

　

      MINORITY INTERESTS

 

　

　

Common stock

3,459

3,459

　

Additional paid-in capital

6,743

6,744

　

Retained earnings

35,320

35,840

　

Evaluation p/l on investments/securities

433

529

　

Others

 

6,275

4,442

　

Treasury stock, at cost

(1,323)

(1,322)

　

      TOTAL S/HOLDERS` EQUITY

50,907

49,692

　

      TOTAL EQUITIES

156,467

152,732

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

12,429

8,701

　

Cash Flows from Investment Activities

-1,015

-3,414

　

Cash Flows from Financing Activities

1,735

-8,494

　

Cash, Bank Deposits at the Term End

　

46,325

32,583

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

50,907

49,692

　

 

Current Ratio (%)

220.07

218.77

　

 

Net Worth Ratio (%)

32.54

32.54

　

 

Recurring Profit Ratio (%)

2.13

1.63

　

 

Net Profit Ratio (%)

0.15

-4.01

　

　

Return On Equity (%)

0.46

-14.43

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.42

UK Pound

1

Rs.100.11

Euro

1

Rs.79.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.