|
Report Date : |
23.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
DAIICHI SANKYO CO LTD |
|
|
|
|
Registered Office : |
3-5-1 Nihonbashi-Honcho Chuoku Tokyo 103-8426 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
September, 2005 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha |
|
|
|
|
Line of Business : |
Manufacturing of pharmaceuticals (prescription drugs) |
|
|
|
|
No. of Employees : |
32,402 |
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 |
DAIICHI SANKYO CO
LTD
REGD NAME: Daiichi Sankyo KK
MAIN OFFICE: 3-5-1 Nihonbashi-Honcho
Chuoku Tokyo 103-8426 JAPAN
Tel:
03-6225-1111
*.. The (incomplete) is its
URL: http://www.daiichisankyo.co.jp
E-Mail address: (thru the URL)
Mfg of pharmaceuticals (prescription drugs)
Sapporo, Sendai, Chiba, Saitama, Yokohama, Nagoya, Osaka, other (Tot 8)
USA (3), Europe (15), China (5), Mexico, Brazil, Venezuela, India, Hong
Kong
Akita, Fukushima, Gunma, Kanagawa, Osaka, other (Tot 8) (--subsidiaries)
JOJI NAKAYAMA, PRES
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 997,852 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
50,000 M
TREND UP WORTH Yen 915,745 M
STARTED 2005 EMPLOYES 32,402
MFR OF PHARMACEUTICALS
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 |
952,105 |
103,114 |
41,852 |
(%) |
889,508 |
|
(Consolidated) |
31/03/2011 |
967,365 |
131,762 |
70,121 |
1.60 |
887,702 |
|
|
31/03/2012 |
938,677 |
76,217 |
10,383 |
-2.97 |
832,749 |
|
|
31/03/2013 |
997,852 |
99,147 |
66,621 |
6.30 |
915,745 |
|
|
31/03/2014 |
1,110,000 |
90,000 |
65,000 |
11.24 |
.. |
Unit: In Million
Yen
Forecast figures
for the 31/03/2014 fiscal term.
This is a third-ranked prescription drug mfr, with Sankyo & Daiichi
Pharmaceuticals merged in Apr 2007.
Strong in circulatory and anti-infection drugs. Diversifying to generic drugs thru
acquisition of Indian drug maker Ranbaxy Laboratories. Emphasis placed on cancer-related lines. The company is seeking approval for an
anti-coagulant in Japan, the US and Europe during the term, backed by
relatively good results of clinical trials on the efficiency in venous thromboembolism
treatment. The results related to the
efficiency in prevention of thromboembolism accompanying atrial fibrillation
were available in Nov 2013..
The sales volume for Mar/2013 fiscal term amounted to Yen 997,852
million, a 6.3% up from Yen 938,677 million in the previous term. Domestic sales of original drugs rose despite
NHI price cuts. India subsidiary was
benefitted from monopolistic sales of generics for the US. The recurring profit was posted at Yen 99,147
million and the net profit at Yen 66,621 million, respectively, compared with
Yen 76,217 million recurring profit and Yen 10,383 million net profit,
respectively, a year ago.
(Apr/Sept/2013 results): Sales Yen 516,413 million (up 6.7%), operating
profit Yen 65,666 million (down 2.5%), recurring profit Yen 47,011 million
(down 5.7%), net profit Yen 20,832 million (up 26.6%). (% as compared with the corresponding period
a year ago).
For the current term ending Mar 2014 the recurring profit is projected
at Yen 90,000 million and the net profit at Yen 65,000 million, on an 11.2%
rise in turnover, to Yen 1,110,000 million.
Sales value will be boosted thanks to the weaker Yen. Sales volume will be weak due to excess
dealer inventories in Japan and delayed approval for an India subsidiary’s
antihypertensive generic drug in the US.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Sept 2005
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 2.8
million shares
Issued: 709,011,343 shares
Sum: Yen 50,000 million
Major shareholders (%): Master Trust Bank of Japan T (6.3), Japan
Trustee Services T (5.4), Nippon Life Ins (5.3), SSBT OD05 Omnibus Acct Treaty
Cl (2.4), JP Morgan Chase Bank 385147 (1.9), SMBC (1.8), Group Employees’
S/Holding Assn (1.4), Mizuho Bank (1.4), ECSB (Mizuho Bank) (1.1), Tokio Marine
& Nichido Fire Ins (1.1); foreign owners (28.7)
No. of shareholders: 118,229
Listed on the S/Exchange (s) of: Tokyo
Managements: Takashi Shoda, ch; Joji Nakayama, pres; Takeshi Ogita, dir;
Kazunori Hirokawa, dir; Yuki Satoh, dir; Manabu Sakai, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Daiichi Sankyo Healthcase, Daiichi Sankyo Inc, other
Activities: Manufactures pharmaceutical drugs: Daiichi Sankyo Group
(81%), Ranbaxy Group (19%).
Overseas Sales Ratio (49%)
Clients: [Mfrs, wholesalers] Alfresa Corp, Toho Pharmaceutical Co,
Daiichi Sankyo Inc, Medipal Holdings Corp, Suzuken Co, other
No. of accounts: 500
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Daiichi Sankyo Pro Pharma, UCB Japan,
Lead Chemical Co, Japan Vaccine Sales, other
Payment record: No complaints
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: (Consolidated
in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2013 |
31/03/2012 |
|
INCOME
STATEMENT |
|
|
||
|
|
Annual Sales |
|
997,852 |
938,677 |
|
|
Cost of Sales |
313,657 |
268,609 |
|
|
|
GROSS PROFIT |
684,195 |
670,067 |
|
|
|
Selling & Adm Costs |
583,678 |
571,865 |
|
|
|
OPERATING PROFIT |
100,516 |
98,202 |
|
|
|
Non-Operating P/L |
-1,369 |
-21,985 |
|
|
|
RECURRING PROFIT |
99,147 |
76,217 |
|
|
|
NET PROFIT |
66,621 |
10,383 |
|
|
BALANCE
SHEET |
|
|
|
|
|
|
Cash |
|
160,956 |
128,926 |
|
|
Receivables |
|
238,495 |
228,505 |
|
|
Inventory |
|
174,430 |
169,659 |
|
|
Securities, Marketable |
211,346 |
191,336 |
|
|
|
Other Current Assets |
158,416 |
143,104 |
|
|
|
TOTAL CURRENT ASSETS |
943,643 |
861,530 |
|
|
|
Property & Equipment |
303,434 |
261,242 |
|
|
|
Intangibles |
|
223,455 |
233,288 |
|
|
Investments, Other Fixed Assets |
173,539 |
162,419 |
|
|
|
TOTAL ASSETS |
1,644,071 |
1,518,479 |
|
|
|
Payables |
|
59,798 |
61,824 |
|
|
Short-Term Bank Loans |
66,073 |
71,079 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
310,240 |
262,062 |
|
|
|
TOTAL CURRENT LIABS |
436,111 |
394,965 |
|
|
|
Debentures |
|
107,900 |
100,000 |
|
|
Long-Term Bank Loans |
93,017 |
104,000 |
|
|
|
Reserve for Retirement Allw |
13,877 |
10,060 |
|
|
|
Other Debts |
|
77,421 |
76,704 |
|
|
TOTAL LIABILITIES |
728,326 |
685,729 |
|
|
|
MINORITY INTERESTS |
|
|
|
|
|
Common stock |
50,000 |
50,000 |
|
|
|
Additional paid-in capital |
105,194 |
105,194 |
|
|
|
Retained earnings |
766,740 |
742,409 |
|
|
|
Evaluation p/l on
investments/securities |
34,211 |
22,308 |
|
|
|
Others |
|
(25,940) |
(72,604) |
|
|
Treasury stock, at cost |
(14,460) |
(14,558) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
915,745 |
832,749 |
|
|
|
TOTAL EQUITIES |
1,644,071 |
1,518,479 |
|
|
CONSOLIDATED
CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2013 |
|
|
|
Cash Flows from Operating Activities |
|
129,247 |
|
|
|
Cash Flows from Investment
Activities |
-109,281 |
|
|
|
|
Cash Flows from Financing Activities |
-57,330 |
|
|
|
|
Cash, Bank Deposits at the Term End |
|
190,919 |
|
|
ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
|
|
Net Worth (S/Holders' Equity) |
915,745 |
832,749 |
|
|
|
Current Ratio (%) |
216.38 |
218.13 |
|
|
|
Net Worth Ratio (%) |
55.70 |
54.84 |
|
|
|
Recurring Profit Ratio (%) |
9.94 |
8.12 |
|
|
|
Net Profit Ratio (%) |
6.68 |
1.11 |
|
|
|
Return On Equity (%) |
7.28 |
1.25 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
|
1 |
Rs.101.98 |
|
Euro |
1 |
Rs.83.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.