MIRA INFORM REPORT

 

 

Report Date :

05.07.2014

 

IDENTIFICATION DETAILS

 

Name :

TAKEDA PHARMACEUTICAL CO LTD

 

 

Registered Office :

4-1-1 Doshomachi Chuoku Osaka 540-8645

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Jan., 1925

 

 

Com. Reg. No.:

1200-01-077461 (Osaka-Chuoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Pharmaceuticals

 

 

No of Employees :

31,507

 

 

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 :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

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 & ADDRESS

 

TAKEDA PHARMACEUTICAL CO LTD

 

REGD NAME:               Takeda Yakuhin Kogyo KK

MAIN OFFICE:              4-1-1 Doshomachi Chuoku Osaka 540-8645 JAPAN

Tel: 06-6204-2111    Fax: 06-6204-2880

 

URL:                 http://www.takeda.com/

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of pharmaceuticals

 

 

BRANCHES

 

Tokyo, Sapporo, Sendai, Yokohama, Nagoya, Kobe, Kyoto, Takamatsu, Fukuoka, Hiroshima, Fukuoka, other (Tot 165)

 

OVERSEAS

 

USA (7), Canada, France, Italy, Germany, Austria, Switz, Spain, Portugal, Ireland, Netherlands, Sweden, Turkey, China, Taiwan, Thailand, Philippines, Indonesia, Singapore, Mexico (--subsidiaries), other (Tot 144 subsidiaries, and 18 equity-method affiliates, a total of 161 companies. Company has operations in approx 70 countries & territories)

 

 

R&D CENTERS

 

Osaka, Fujisawa, USA (3), UK (2), Singapore

 

 

FACTORIES

 

Osaka, Hikari; Italy, Ireland, China, Indonesia, USA, India, other

 


 

CHIEF EXEC

 

CHRISTOPHE WEBER, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 1,691,685 M

PAYMENTS      REGULAR         CAPITAL           Yen 63,562 M

TREND             STEADY           WORTH            Yen 2,540,635 M

STARTED         1925                 EMPLOYES      31,507

 

 

COMMENT

 

PHARMACEUTICAL MFR. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

1,419,386

371,572

247,868

(%)

2,136,656

(Consolidated)

31/03/2012

1,508,932

270,330

124,162

6.31

2,071,866

31/03/2013

1,557,005

133,068

148,583

3.19

2,338,286

31/03/2014

1,691,685

158,851

106,658

8.65

2,540,635

31/03/2015

1,725,000

140,000

85,000

1.97

..

Unit: Million Yen

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

 

 

HIGHLIGHTS

 

This is a top-ranked time-honored pharmaceutical mfr, dating back to 1781 when Chobei Takeda set up a small firm, on his own, for selling Japanese & Chinese herbal medicine.   In 1871, formed a cooperative union for purchasing and importing Western medicines.  In 1985, started import of Western medicines.  In 1895, began direct imports from England, US, Germany, Spain, other.  In 1896, launched pharmaceutical mfg business.  In 1907, obtained exclusive sales rights in Japan for products from German company Bayer.   And in 1925 incorporated as Chobei Takeda & Co Ltd.  The name changed as captioned in 1943.  The subject steadily expanded its pharmaceutical business and even began exports to US, Russia and China.  Has strength in drugs for lifestyle-related illness such as high blood pressure and diabetes.  Leads others in genome research.  In untapped markets, such as emerging countries, expanding own sales network, while planning marketing of generic products.  By the fiscal 2017, the company will raise operating profit (excluding costs including goodwill amortization) level by added Yen 200 billion through sale of new products and slashing costs.  New COO, Christophe Weber, hired in from UK pharmaceutical firm took up the post in Apr 2014 and is to be next CEO.  It will step up efforts to penetrate emerging markets. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 1,691,685 million, an 8.6% up from Yen 1,557,005 million in the previous term.  Sales of prescription drugs advanced powered by weaker Yen and growth in emerging countries.  The recurring profit was posted at Yen 158,851 million and the net profit at Yen 198,558 million, respectively, compared with Yen 133,068 million recurring profit and Yen 150,595 million net profit, respectively, a year ago.  With no tax refund, the net profit declined.

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 140,000 million and the net profit at Yen 85,000 million, on a 2.0% rise in turnover, to Yen 1,725,000 million.  Growth in emerging countries will continue.  Effects on domestic drug price revision will be absorbed by growing diabetes and hypertensive drug sales. 

 

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

 

 

REGISTRATION

           

Date Registered:     Jan 1925

Regd No.:                     1200-01-077461 (Osaka-Chuoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  3,500 million shares

Issued:                         789,680,695 shares

Sum:                            Yen 63,562 million

           

Major shareholders (%): Nippon Life Ins (6.8), Japan Trustee Services T (4.1), Master Trust Bank of Japan T (3.8), Takeda Science Foundation (2.2), Barclays Securities Japan (1.9), State Street Bank & Trust 505225 (1.3), Bank of New York Treaty Jasdec (1.1), State Street Bank West Treaty (1.0), SMBC (0.9), SSBT OD05 Omnibus Acct Treaty (0.9); foreign owners (26.4)

           

No. of shareholders: 284,495

 

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

 

Managements: Yasuchika Hasegawa, ch & CEO; Christophe Weber, pres & COO; Shinji Honda, s/mgn dir; Tadataka Yamada, dir; Masato Iwasaki, dir; Francois Roger, dir

 

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

 

Related companies: Takeda America Holdings Inc, Takeda Europe Holdings Inc, Nihon Pharmaceutical Co, other

           

 

OPERATION

           

Activities: Manufactures pharmaceuticals (Ethical Drugs) (90%), Health-care foods (4%), others (6%).

Overseas Sales Ratio (53%)

 

(Products by therapeutic category): For: allergy, cardiovascular, central nervous system, diabetes, gastrointestinal, gout, infection, inflammation, interleukin, osteoporosis, urology & gynecology, vaccine, vitamin, other.

           

Clients: [Pharmaceutical mfrs, wholesalers] Mediceo Corp, Alfresa Corp, Astem Co, Vital Net Inc, Nakakita Co, other

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Pfizer Japan Inc, Asuka Pharmaceutical Co, Senju Pharmaceutical Co, Biofermin Pharmaceutical Co, Nihon Pharmaceutical Co, other.

 

Payment record: Regular

 

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

 

Bank References:

                        SMBC (Osaka)

                        MUFG (Osaka-Chuo)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

1,691,685

1,557,005

  Cost of Sales

490,263

463,845

      GROSS PROFIT

1,201,422

1,093,159

  Selling & Adm Costs

1,062,148

1,028,165

      OPERATING PROFIT

139,274

64,994

  Non-Operating P/L

19,577

68,074

      RECURRING PROFIT

158,851

133,068

 

      NET PROFIT

106,658

148,583

BALANCE SHEET

  Cash

 

666,048

545,580

  Receivables

430,620

374,977

  Inventory

254,329

229,258

  Securities, Marketable

 

 

  Other Current Assets

241,539

81,590

      TOTAL CURRENT ASSETS

1,592,536

1,231,405

  Property & Equipment

542,253

546,811

  Intangibles

1,135,597

1,095,806

  Investments, Other Fixed Assets

1,298,758

1,178,534

      TOTAL ASSETS

4,569,144

4,052,556

  Payables

110,129

96,419

  Short-Term Bank Loans

155,404

1,945

 

 

 

  Other Current Liabs

537,221

535,483

      TOTAL CURRENT LIABS

802,754

633,847

  Debentures

704,680

582,623

  Long-Term Bank Loans

 

 

  Reserve for Retirement Allw

76,497

66,641

  Other Debts

 

444,578

431,159

      TOTAL LIABILITIES

2,028,509

1,714,270

      MINORITY INTERESTS

Common stock

63,562

63,562

Additional paid-in capital

39,866

40,257

Retained earnings

1,901,307

1,927,795

Evaluation p/l on investments/securities

466,624

243,097

Others

69,897

64,162

Treasury stock, at cost

(621)

(587)

      TOTAL S/HOLDERS` EQUITY

2,540,635

2,338,286

 

      TOTAL EQUITIES

4,569,144

4,052,556

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

148,335

332,579

Cash Flows from Investment Activities

-158,611

-131,077

Cash Flows from Financing Activities

101,441

-152,202

 

Cash, Bank Deposits at the Term End

 

666,048

545,580

ANALYTICAL RATIOS            Terms ending:

31/03/2014

 

Net Worth (S/Holders' Equity)

2,540,635

2,338,286

Current Ratio (%)

198.38

194.27

Net Worth Ratio (%)

55.60

57.70

Recurring Profit Ratio (%)

9.39

8.55

Net Profit Ratio (%)

6.30

9.54

Return On Equity (%)

4.20

6.35

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.79

UK Pound

1

Rs.102.66

Euro

1

Rs.81.32

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

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.