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Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
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Name : |
KDDI CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
June 1984 |
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Com. Reg. No.: |
0111-01-031552 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is a Telecommunications Service Provider, Telephone Service,
Internet Service, Intranet Service, and Data Center Services. |
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No. of Employees : |
27073 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
KDDI CORPORATION
KDDI KK
Garden Air Tower 25F,
3-10-10 Iidabashi Chiyodaku Tokyo 102-8460 JAPAN
Tel:
03-3347-0077
Fax: 03-3347-7000
E-Mail address: info@kddi.com
ACTIVITIES: Telecommunications
business
BRANCH(ES):
OVERSEAS: USA
(3), Asia (3), Europe (3), Oceania (1), South Africa
CHIEF EXEC: TADASHI
TANAKA, PRES & CEIO
Yen Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 4,333,628 M
PAYMENTS SATISFACTORY CAPITAL Yen
141,851 M
TREND STEADY WORTH Yen
2,916,989 M
STARTED 1984 EMPLOYES 27,073
COMMENT: TELECOMMUNICATIONS SERVICE PROVIDER.
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 |
3,434,545 |
440,676 |
255,122 |
(%) |
2,171,839 |
|
(Consolidated) |
31/03/2012 |
3,572,098 |
451,178 |
238,604 |
4.00 |
2,128,624 |
|
|
31/03/2013 |
3,662,288 |
514,421 |
241,469 |
2.52 |
2,323,363 |
|
|
31/03/2014 |
4,333,628 |
662,887 |
322,038 |
18.33 |
2,916,989 |
|
|
31/03/2015 |
4,600,000 |
735,000 |
424,000 |
6.15 |
.. |
Unit: In Million
Yen
Forecast (or
estimated) figures for 31/03/2014 fiscal term
This is the comprehensive communications service provider of fixed and
mobile phone service, with mobile phone (branded as “au”) business as mainline. Second ranked in the mobile phone market in
Japan after NTT DoCoMo. Affiliate of
Kyocera Corp. Merged with KDD and IDO in
Oct 2000. Emphasis placed more on
expansion of the IP networks and broad-band business. Make J. COM its consolidated subsidiary. The company will address service disruptions
that occurred frequently from early 2013 under the direct control of the
president. It aims for double-digit
growth of operating profit each year by the March 2016 term. Payout ratio will be targeted at 30%-plus.
The sales volume for Mar/2014 fiscal term amounted to Yen 4,333,628
million, an 18.3% up from Yen 3,662,288 million in the previous term. “J-Com” made a contribution. Revenues in the mobile communications services
rose, backed by the growth in demand for LTE smartphones. The fixed telephone service business became
profitable, aided by discount combined with smartphones. The recurring profit was posted at Yen
662,887 million and the net profit at Yen 322,038 million, respectively,
compared with Yen 514,421 million recurring profit and Yen 241,469 million net
profit, respectively, a year ago.
For the current term ending Mar 2015 the recurring profit is projected
at Yen 735,000 million and the net profit at Yen 424,000 million, on a 6.1%
rise in turnover, to Yen 4,600,000 million.
The mobile communications service will continue expanding. Net profits will reach a new high consecutively.
The financial situation is considered FAIR and good for ORDINARY business engagements.
Date Registered: Jun 1984
Regd No.:
0111-01-031552
(Tokyo-Shinjukuku)
Legal Status: Limited Company (Kabushiki
Kaisha)
Authorized:
700 million shares
Issued: 448,481,800
shares
Sum: Yen
141,851 million
Major shareholders (%): Kyocera Corp (12.7), Toyota Motor (11.0), Company’s Treasury Stock (6.9), Master Trust Bank of Japan T (5.3), Japan Trust Bank of Japan T (4.2), State Street Bank & Trust (2.9), State Street Bank & Trust 505223 (1.6), Chase London SL Omnibus Acct (1.4), State Street Bank & Trust 505225 (1.0), Mellon Bank Mellon Omnibus US P (0.8); foreign owners (38.0).
No. of shareholders: 58,471
Listed on the S/Exchange (s) of: Tokyo
Managements: Tadashi Onodera, ch; Tadashi Tanaka, pres; Hirofumi Morozumi, v pres; Makoto Takahashi, s/mgn dir; Yoshiharu Shimatani, s/mgn dir; Yuzo Ishikawa, s/mgn dir; Masahiro Inoue, mgn dir; Hideo Yuasa, mgn dir; Tsutomu Fukuzaki, mgn dir; Hidehiko Tajima, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: KDDI Network & Solutions, Okinawa Cellular Phone Co, JCN, Chubu Telecommunication, other
Activities: Telecommunications service provider: telephone service, Internet service, Intranet service, data center services, domestic & overseas: personal (76%), value (4%), Business (14%), global (5%), others (1%).
Clients: Business firms, individual users, other
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: Mfrs, wholesalers.
Payment record: No Complaints
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank (H/O)
Relations: Satisfactory
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FINANCES:
(Consolidated
in million yen) |
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|||
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
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Annual Sales |
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4,333,628 |
3,662,288 |
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Cost of Sales |
1,826,481 |
1,840,571 |
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GROSS PROFIT |
2,507,147 |
1,921,717 |
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Selling & Adm Costs |
1,843,902 |
79,486 |
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OPERATING PROFIT |
663,245 |
512,669 |
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Non-Operating P/L |
-358 |
1,752 |
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RECURRING PROFIT |
662,887 |
514,421 |
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NET PROFIT |
322,038 |
241,469 |
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BALANCE
SHEET |
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Cash |
|
222,050 |
96,952 |
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Receivables |
|
1,094,919 |
971,244 |
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Inventory |
|
86,060 |
56,942 |
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Securities, Marketable |
273 |
231 |
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Other Current Assets |
142,297 |
125,500 |
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TOTAL CURRENT ASSETS |
1,545,599 |
1,250,869 |
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Property & Equipment |
1,764,732 |
1,667,538 |
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Intangibles |
|
197,918 |
210,260 |
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Investments, Other Fixed Assets |
1,437,507 |
956,332 |
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TOTAL ASSETS |
4,945,756 |
4,084,999 |
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Payables |
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Short-Term Bank Loans |
233,466 |
176,436 |
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Other Current Liabs |
1,795,301 |
1,585,199 |
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TOTAL CURRENT LIABS |
2,028,767 |
1,761,635 |
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Debentures |
|
204,998 |
259,997 |
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Long-Term Bank Loans |
518,697 |
244,727 |
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Reserve for Retirement Allw |
17,339 |
13,509 |
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Other Debts |
|
(741,034) |
(518,233) |
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TOTAL LIABILITIES |
2,028,767 |
1,761,635 |
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MINORITY INTERESTS |
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Common
stock |
141,851 |
141,851 |
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Additional
paid-in capital |
385,942 |
367,144 |
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Retained
earnings |
2,291,730 |
2,055,586 |
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Evaluation
p/l on investments/securities |
45,731 |
38,882 |
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Others |
|
213,556 |
65,901 |
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Treasury
stock, at cost |
(161,821) |
(346,001) |
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TOTAL S/HOLDERS` EQUITY |
2,916,989 |
2,323,363 |
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TOTAL EQUITIES |
4,945,756 |
4,084,999 |
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CONSOLIDATED
CASH FLOWS |
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||
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Terms
ending: |
31/03/2014 |
31/03/2013 |
|
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Cash
Flows from Operating Activities |
|
772,207 |
523,908 |
|
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Cash
Flows from Investment Activities |
-546,257 |
-472,992 |
|
|
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Cash
Flows from Financing Activities |
-105,643 |
-140,249 |
|
|
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Cash,
Bank Deposits at the Term End |
|
212,530 |
87,288 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
|
Net
Worth (S/Holders' Equity) |
2,916,989 |
2,323,363 |
|
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Current
Ratio (%) |
76.18 |
71.01 |
|
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Net
Worth Ratio (%) |
58.98 |
56.88 |
|
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Recurring
Profit Ratio (%) |
15.30 |
14.05 |
|
|
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Net
Profit Ratio (%) |
7.43 |
6.59 |
|
|
|
Return
On Equity (%) |
11.04 |
10.39 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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.