MIRA INFORM REPORT

 

 

Report Date :

25.02.2014

 

IDENTIFICATION DETAILS

 

Name :

TOKYO ELECTRIC POWER CO INC

 

 

Registered Office :

1-1-3 Uchi-Saiwaicho Chiyodaku Tokyo 1008560

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1951

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engaged in electric power generation & supply which includes thermal, hydroelectric, nuclear, renewable energies, fuels, power supply, network & fuels

 

 

No. of Employees

47,254

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct  

 

 

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. 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

 

TOKYO ELECTRIC POWER CO INC

 

 

REGD NAME

 

Tokyo Denryoku KK

 

 

MAIN OFFICE

 

1-1-3 Uchi-Saiwaicho Chiyodaku Tokyo 1008560 JAPAN

Tel: 03-6373-1111          -

 

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

E-Mail address:            (thru the URL)

 

ACTIVITIES

 

Electric power generation & supply

 

BRANCHES   

 

Nationwide (25 locations)

 

 

OVERSEAS

 

USA, UK

 

 

FACTORIES

 

Aomori, Fukushima (6), Niigata (2), Ibaraki (2), Chiba (6), Tokyo (4), Nagano (2), Kanagawa (6) (--electric power plant)

 

CHIEF EXEC 

 

NAOMI HIROSE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES                    FAIR                                         A/SALES          Yen 5,976,239 M

PAYMENTS      Slow but Correct               CAPITAL           Yen 1,400,975 M

TREND             UP                                            WORTH            Yen 1,137812 M

STARTED                     1951                                         EMPLOYES      47,254

 

 

COMMENT    

 

ELECTRIC POWER COMPANY 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

5,016,257

204,340

133,775

(%)

2,516,478

(Consolidated)

31/03/2011

5,368,536

317,696

-1,247,348

7.02

1,602,478

 

31/03/2012

5,349,445

-400,405

-781,641

-0.36

812,476

 

31/03/2013

5,976,239

-326,955

-685,292

11.72

1,137,812

 

31/03/2014

6,500,000

10,000

400,000

8.76

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the world largest-class electric power company, serving Kanto (East Japan) area including Tokyo.  But financial position deteriorating due to huge compensations and nuclear reactor decommission expenses resultant of accident as Fukushima Daiichi Nuclear Power Station.  Received public fund and put under government control.  The company has received its special comprehensive business plan, but there are no prospects at Fukushima Daiichi would be decommissioned.  .

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 5,976,239 million, a 12% up from Yen 5,349,445 million in the previous term.   The operations continued in the deficit to post Yen 326,955 million recurring loss and Yen 685,292 million net losses, respectively, compared with Yen 400,405 million recurring loss and Yen 781,641 million net losses, respectively, a year ago. 

 

(Apr/Sept/2013 results): Sales Yen 3,216,126 million (up 11.8%), operating profit Yen 167,223 million (previously Yen 104,589 million loss), recurring profit Yen 141,163 million (previously Yen 186,266 million loss), net profit Yen 616,195 million (previously Yen 299,483 million loss).  (% & figures compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 400,000 million, on an 8.8% rise in turnover, to Yen 6,500,000 million.  Operation of all N-power plants remains stopped.  Rate hikes are contributing for the full term.  Increase on coal-fired thermal power generation is covering higher fuel cost with the weaker Yen.  Labor and repair costs deferment will yield ordinary account surplus.  Net profit will expand with a subsidy from NDF (Non-deliverable Forward). 

 

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

 

 

REGISTRATION

 

Date Registered: May 1951

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       14,100 million shares

Issued:                3,547,017,531 shares

Sum:                   Yen 1,400,975 million

 

Major shareholders (%): Nuclear Damage Liability FF (49.8), Employees’ S/Holding Assn (1.4), Credit Suisse Sec USA LLC (1.3), Tokyo Metropolitan Government (1.3), SMBC (1.1), Master Trust Bank of Japan T (0.9), Nippon Life Ins (0.8), Mizuho Bank (0.7), Japan Trustee Services T (0.5), Japan Trustee Services TT (0.4); foreign owners (10.4)

 

No. of shareholders: 645,800

 

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

 

Managements: Kazuhiko Shimokobe, ch; Naomi Hirose, pres; Hiroshi Yamaguchi, v pres; Yoshiyuki Ishizaki, v pres; Toshihiro Sano, mgn dir; Tsunemasa Niitsuma, mgn dir; Yuji Masuda, mgn dir; Katsuyuki Sumiyoshi, mgn dir; Motomi Iki, mgn dir

 

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

 

Related companies: Tepco Facilities, Tokyo Hatsuden, Tepco Ind, other.

 

 

OPERATION

           

Activities: Electric power generation & supplies (95%), others (5%)

 

(Energy & Resources): thermal, hydroelectric, nuclear, renewable energies, fuels, power supply, network & fuels

           

Clients: Consumers/ users

            No. of accounts: 28.9 million, not including special demand

            Domestic areas of activities: East Japan, including Tokyo

 

Suppliers: Mfrs, wholesalers, construction industries, other

 

Payment record: Slow but Correct  

 

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

 

Bank References:

SMBC (H/O)

Mizuho Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

 

5,976,239

5,349,445

 

  Cost of Sales

5,309,162

5,914,996

 

      GROSS PROFIT

667,077

-565,551

 

  Selling & Adm Costs

889,055

837,734

 

      OPERATING PROFIT

-221,988

-272,513

 

  Non-Operating P/L

-104,967

-127,892

 

      RECURRING PROFIT

-326,955

-400,405

 

      NET PROFIT

-685,292

-781,641

BALANCE SHEET

 

 

 

 

  Cash

 

1,754,977

1,287,418

 

  Receivables

 

475,752

432,925

 

  Inventory

 

227,072

189,527

 

  Securities, Marketable

 

 

 

  Other Current Assets

283,219

376,364

 

      TOTAL CURRENT ASSETS

2,741,020

2,286,234

 

  Property & Equipment

12,248,110

13,250,222

 

  Intangibles

 

 

 

 

  Investments, Other Fixed Assets

2,837,839

3,669,037

 

      TOTAL ASSETS

14,989,130

15,536,456

 

  Payables

 

1,127,182

932,510

 

  Short-Term Bank Loans

11,240

441,765

 

 

 

 

 

 

  Other Current Liabs

903,862

944,688

 

      TOTAL CURRENT LIABS

2,042,284

2,318,963

 

  Debentures

 

3,768,108

3,677,464

 

  Long-Term Bank Loans

3,024,908

3,276,110

 

  Reserve for Retirement Allw

424,198

432,562

 

  Other Debts

 

4,591,819

5,018,880

 

      TOTAL LIABILITIES

13,851,317

14,723,979

 

      MINORITY INTERESTS

 

 

 

Common stock

1,400,975

900,975

 

Additional paid-in capital

743,621

243,631

 

Retained earnings

(972,773)

(287,497)

 

Evaluation p/l on investments/securities

2,452

1,288

 

Others

 

(28,107)

(37,549)

 

Treasury stock, at cost

(8,356)

(8,372)

 

      TOTAL S/HOLDERS` EQUITY

1,137,812

812,476

 

      TOTAL EQUITIES

14,989,130

15,536,456

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

 

260,895

-2,891

 

Cash Flows from Investment Activities

-636,698

-335,101

 

Cash Flows from Financing Activities

632,583

-614,734

 

Cash, Bank Deposits at the Term End

 

1,514,564

1,253,877

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

1,137,812

812,476

 

 

Current Ratio (%)

134.21

98.59

 

 

Net Worth Ratio (%)

7.59

5.23

 

 

Recurring Profit Ratio (%)

-5.47

-7.48

 

 

Net Profit Ratio (%)

-11.47

-14.61

 

 

Return On Equity (%)

-60.23

-96.20

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.12

UK Pound

1

Rs.103.38

Euro

1

Rs.85.32

 

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%)

 

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.