MIRA INFORM REPORT

 

 

Report Date :

16.12.2014

 

IDENTIFICATION DETAILS

 

Name :

MARUHA NICHIRO CORP.

 

 

Registered Office :

Toyosu Front, 3-2-20, Toyosu, Koto-ku, Tokyo 135-8608

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

31.03.1943

 

 

Com. Reg. No.:

0106-01-040697

 

 

Legal Form :

Listed

 

 

Line of Business :

Manufacturer of Food Products.

 

 

No of Employees :

2,098

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

MARUHA NICHIRO CORP.

 

OUTLINE

========

Country:                                    Japan

Company name:                        MARUHA NICHIRO CORP.

Name in local language:             MARUHA NICHIRO K.K. 

Office address:                         Toyosu Front, 3-2-20, Toyosu, Koto-ku, Tokyo 135-8608

Office tel:                                             03-6833-0826

Website:                                   www.maruha-nichiro.co.jp

Business type:                          Manufacturer

Industry:                                               Food Products

Established:                              March 31, 1943

Capital:                                                 Jp. 20,000,000,000 yen

Employees:                              2,098

Corporate formation:                 Listed

Corporation No.:                       0106-01-040697 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

=====================

Paid in Capital :                         Jp. 20,000,000,000 yen

Number of authorized shares :   119,600,000 shares

Number of outstanding shares : 50,193,631 shares

Number of shareholders :                      72,517

 

Major shareholders                                                        No of shares (%)

---------------------------------------------------------------------------------------------------------------------

Daitoh Trading Co., Ltd.                                                            5,181,900 (10.32)

Master Trust Bank of Japan, Ltd.                                    1,880,500 ( 3.75)

Norinchukin Bank                                                            1,864,200 ( 3.71)

Mizuho Bank, Ltd.                                                          1,598,600 ( 3.18)

Japan Trustee Services Bank, Ltd.(trust unit)                   1,444,800 ( 2.88)

Tokio Marine & Nichido Fire Insurance Co., Ltd.              1,157,100 ( 2.31)

Toyo Seikan Group Holdings, Ltd.                                     880,300 ( 1.75)

Nippon Life Insurance Co.                                                 778,900 ( 1.55)

Yamaguchi Bank, Ltd.                                                       635,800 ( 1.27)

Japan Trustee Services Bank, Ltd.(trust unit #1)                475,700 ( 0.95)

---------------------------------------------------------------------------------------------------------------------

TOTAL                                                                          15,898,100 (31.67)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

===========================================

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Manufacturing               Marine products

 

 

COMPANY MANAGEMENT

======================

President                                  Mr. Shigeru Ito (*)

Nationality:                                Japan

 

Chairman                                  Mr. Michio Sakai

Nationality:                                Japan

 

Senior Managing Director          Mr. Junichiro Yoneoka (*)

Nationality:                                Japan

 

 

Senior Managing Director          Mr. Sadaaki Yokote (*)

Nationality:                                Japan

 

Senior Managing Director          Mr. Jun Watanabe

Nationality:                    Japan

 

Senior Managing Director          Mr. Naoki Oshikubo

Nationality:                                Japan

 

Managing Director                     Mr. Hiroshi Imamura

Nationality:                                Japan

 

Managing Director                     Mr. Masayuki Nakajima

Nationality:                                Japan

 

Managing Director                     Mr. Nobutaka Okamoto

Nationality:                                Japan

 

Managing Director                     Mr. Masato Tajima

Nationality:                                Japan

 

Director            　                     Mr. Tomohiro Mitamura

Nationality:                                Japan

 

Director                                                Mr. Hiroshi Okazaki

Nationality:                                Japan

 

Director                                                Mr. Osamu Awayama

Nationality:                                Japan

 

Director                                    Mr. Sadahiko Hanzawa

Nationality                                 Japan

 

Director                                    Mr. Hideo Kikuchi

Nationality                                 Japan

 

Director                                    Mr. Ken Ikemi

Nationality                                 Japan

 

Director                                    Mr. Yoshiro Nakabe

Nationality                                 Japan

           

Director                                    Mr. Kita Iimura

Nationality                                 Japan

 

Auditor                                                 Mr. Toshiyuki Nagai

Nationality:                                Japan

 

Auditor                                                 Mr. Yu Kawamura

Nationality:                                Japan

 

Auditor                                                 Mr. Hiroyuki Shimizu

Nationality:                                Japan

 

Auditor                                                 Mr. Hideo Miyabe

Nationality:                                Japan

 

Auditor                                                 Mr. Yoshihito Kaneyama

Nationality:                                Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

      (*) = representative director

 

*Key Personnel*

=============

Mr. Shigeru Ito

President & representative director

Born on November 11, 1949

Home address:4-7-1-1418, Minatomirai, Nishi-ku, Yokohama city, Kanagawa pref. 220-0012

 

 

FINANCIALS

==========

Currency: (local currency – Jp. yen)

--------------------------------------------------------------------------------

 Year |         Sales          |       Net Income      

--------------------------------------------------------------------------------

(non-consolidated)

 

2007

261,580,000,000

3,683,000,000

2008

260,750,000,000

loss 1,706,000,000

2009

199,239,000,000

366,000,000

2010

174,907,000,000

742,000,000

2011

177,790,000,000

1,859,000,000

2012

233,998,000,000

762,000,000

 

 

(consolidated)

 

2013

229,494,000,000

2,920,000,000

2014

264,449,000,000

3,730,000,000

 

 

FINANCIAL DESCRIPTION

=====================

*Book Closing*

=============

March 31st

 

*Financials*

==========

Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                                      

03/31/2012

03/31/2013

03/31/2014

 

(non-consolidated)

(consolidated)

(consolidated)

Current assets                           

62,934

82,406

101,924

    Cash & deposits                     

53

2,273

1,781

    Accounts receivable                

16,422

22,334

27,685

    Inventory                       

39,543

53,425

67,810

    Others                            

6,952

4,374

4,648

Fixed assets                           

49,651

42,047

49,611

    Tangible fixed assets                

10,628

22,634

24,649

    Intangible fixed assets             

636

4,264

5,097

    Investment & others                 

38,386

42,047

19,864

Total Assets                          

112,585

124,453

151,536

　

　

 

 

Current liabilities                       

62,968

56,636

68,006

    Account payable                

5,036

6,988

8,028

    Short-term loans                  

28,618

39,310

48,807

    Others                           

29,314

10,337

11,169

Fixed liabilities                      

23,823

44,401

52,036

    Long-term loans                 

18,608

37,801

44,264

    Others                              

5,215

6,600

7,772

Shareholders' equity                    

25,726

29,615

33,345

    Paid in capital                  

15,000

15,000

5,000

    Legal reserve                     

7,466

6,729

16,729

    Retained earnings                

3,260

7,885

11,615

Valuation & adjustment               

66

-6,654

-2,897

Minority Interest

-

454

1,044

Total Net Assets                     

25,793

23,415

31,492

Total Liabilities & Net Assets       

112,585

124,453

151,536

 

 

Income Statement

 

 

 

Unit: millions of JP yen

 

 

 

                                     

03/31/2012

03/31/2013

03/31/2014

 

(non-consolidated)

(consolidated)

(consolidated)

Sales                                  

183,779

229,494

264,449

Cost of goods sold                         

162,191

201,761

234,074

Gross profit                           

21,588

27,732

30,375

Selling, general & admin. exp.         

15,883

22,810

24,919

Operating profit                        

5,704

4,921

5,456

Non operating income                     

1,121

2,079

2,817

Non operating expenses                 

1,878

1,871

1,648

Ordinary profit(loss)                 

4,947

5,128

6,625

Special profit                          

89

62

424

Special loss                            

1,625

426

843

Pretax profit(loss)                     

3,410

4,765

6,206

Taxes & adjustment(return)              

1,899

1,802

2,532

Minority Interest

-

42

-55

Net profit(loss)                        

1,509

2,920

3,730

 

 

 

 

 

*Latest Financials *

================

On November 4, 2014, the subject released the following business results and forecast:

As of September 30, 2014 (2Q 2015 term)

Unit: millions of JPY

Year term 

Sales  

Operating profit

Ordinary profit 

Net profit

2Q 2015       

416,631

6,531

6,826

5,976

FY 2015(F)    

850,000

11,000

10,000

5,000

 

 

Current assets;

287,483

Fixed assets;

219,366

Total assets;

506,850

Current liabilities;

258,513

Fixed liabilities;

152,518

Shareholders’ equity;

77,329

  Retained earnings;

16,729

Total net assets;

95,817

Total liabilities and net assets;

506,850

 

 

*Bank Details*

============

Bank Name:      Mizuho Bank, Ltd.

Branch:             Head office

 

Bank Name:      Norinchukin Bank

Branch:             Head office

 

Bank Name:      Mitsubishi UFJ Trust & Banking Corp.

Branch:             Head office

 

Bank Name:      Sumitomo Mitsui Trust Bank, Ltd.

Branch:             Head office

 

 

*Credit Opinion*

=============

The latest status of the subject is the single corporation since it merged the former parent, Maruha Nichiro Holdings, Inc. Listed on the TSE(#1333).

A strong distribution channels have been firmly established through its long time business activities. Now putting a focus on aqua farming of tuna and shrimp home and abroad.

 

Special remarks:

On December 30, 2013 it was revealed that a pesticide, “Malathion” was detected from the frozen products, manufactured at “AQLI Foods Corp.,” one of the subsidiaries of former Maruha Nichiro Holdings, Inc.　AQLI Foods belonged to “Maruha Nichiro Foods, Inc.” group, not the subject at the time of incident.

On January 9, 2014 the company officially announced the facts and to recall all of the products shipped from AQLI Foods.

On January 25, 2014 one of the contract workers was arrested on charges of interference in business by mixing the pesticide in the products. Following this incident, the top management announced that three of executives, responsible for food safety of the products, would resign at the end of March, 2014.

At the end of January the management team of Maruha Nichiro Holdings said at the a press conference that the whole company predicted a drop of the operating profit by 23 percent from the recently projected figure. And it was implicated that AQLI Corp. would be unable to make a recovery by itself as a single business entity.

Since the incident was made public, the press has mentioned only the name of “Maruha Nichiro” instead of “AQLI” in their news reports, most of consumers have become nervous about the products of Maruha Nichiro.

Now, this issue is no longer reported as the performance is picking up.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

========================================

*Main Business*

=============

A wide range of marine products

- Raw fish and marine products

- Processed fish and other products

- Aqua farming

 

 

ORGANIZATION STRUCTURE

=========================

*Address*

=========

Registered address is the same as the operational address.

 

*Company History*

=================

Date                 Development

-----------------------------------------------------

March 31, 1943 :            Incorporated under the name of Nishi-Taiyo Fishery Controlled Company.

Dec. 1945:        Changed the company name to ' Taiyo Gyogyo(Fishery) Co., Ltd.'

Dec. 1946:        Started whaling in Antarctic Ocean.

1977:                Deep sea fishery hit the peak and started declining.

Sep. 1, 1993:    Changed the company name to ' Maruha Co., Ltd. '

Apr. 2004:         Became a subsidiary of Maruha Group Headquarters, the holding company.

Jun. 2007:         Admonition given to the subject by the authority on suspicion of violation of                    Subcontractor Law.

Oct. 2007:         Maruha Nichiro Holdings Inc. was formed up as the management integration was concluded with Nichiro Co., Ltd.

Jan. 2008:         Recall carried out for poisoned frozen dumpling imported from China via JT Foods Co., Ltd.

Apr. 1, 2008:     Subject was reorganized as an expert of marine products, and changed the current name of ' Maruha Nichiro Seafoods, Inc.'

Mar. 31, 2010:   Paid in capital was increased from 15,000 to 18,678 million yen, and then decreased to 15,000 million yen on the same day.

Feb. 1, 2011:     Moved the head office to the current address.

Apr. 1, 2014      Merged Maruha Nichiro Holdings Inc., Maruha Nichiro Foods, Inc., Maruha

Nichiro Meat & Products, Inc., Aqli Foods Corp. and Maruha Nichiro

Management, Inc.

Changed the company name to the current “Maruha Nichiro Corp.”.

Listed on the Tokyo Stock Exchange.

 

 

*Domestic Business facilities*

=======================

Seven domestic business offices:

Sapporo, Sendai, Tokyo, Nagoya, Osaka, Hiroshima and Fukuoka cities.

 

 

*Overseas Business Facilities*

=======================

Ten overseas representative offices:

Halifax, Canada

Amsterdam, The Netherlands

Las Parmas, Spain

Agadir, Morocco

San Tiago, Chile

Dalian, China

Qingdao, China

Rizhao, China

Shanghai, China

Bangkok, Thailand

 

 

TRADE REFERENCES

================

*Suppliers*

==========

Maruha Nichiro Kitanippon, Inc.

Westward Seafoods, Inc.

Hayashikane Sangyo Co., Ltd.

Nichiro Chikusan Co., Ltd.

KF Foods Ltd.

 

 

*Customers*

==========

Mitsui Foods Co., Ltd.

Nippon Access Inc.

Daito Gyorui Co., Ltd.

Mitsui Foods Co., Ltd.

Kokubu & Co., Ltd.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

================================================

Company name:            DAITO GYORUI CO., LTD.

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            TAIYO A&F CO., LTD.

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            YAYOI SUNFOODS CO., LTD.

Country:                        Japan

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            MARUHA CAPITAL INVESTMENT, INC.

Country:                        U.S.A.

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            WESTWARD SEAFOODS, INC.

Country:                        U.S.A.

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

 

RELATED PARTIES DESCRIPTION

===========================

*Subsidiaries, Joint-ventures & Affiliates*

================================

As of September 30, 2014, the subject owns and controls 108 subsidiaries and 60 affiliates worldwide.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.65

UK Pound

1

Rs.98.53

Euro

1

Rs.78.02

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 

 

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.