|
Report Date : |
29.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
MORINAGA & OO LTD |
|
|
|
|
Registered Office : |
5-33-1 Shiba Minatoku Tokyo 108-8403 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
February 1910 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturing of
confectioneries, foodstuffs, desserts, welder |
|
|
|
|
No. of Employees : |
2,576 |
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 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 exceeds 225% 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 |
MORINAGA & OO LTD
REGD NAME: Morinaga Seika KK
MAIN OFFICE: 5-33-1 Shiba Minatoku Tokyo 108-8403 JAPAN
Tel: 03-3456-0117 -
URL: http://www.morinaga.co.jp
E-Mail address: (thru the URL)
Mfg of confectioneries,
foodstuffs, desserts, welder, other
Sapporo, Sendai, Utsunomiya,
Nagoya, Osaka, Hiroshima, Fukuoka
China, Taiwan, Singapore, USA,
Europe
Own factories and subsidiaries
TOORU ARAI, PRES
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 152,885 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 18,612 M
TREND UP WORTH Yen 52,981 M
STARTED 1910 EMPLOYES 2,576
MFR OF CONFECTIONERIES &
FOODS
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 |
160,878
|
5,973 |
3,466 |
(%) |
52,585 |
|
(Consolidated) |
31/03/2011 |
157,336
|
6,880 |
2,449 |
-2.20 |
51,845 |
|
31/03/2012 |
147,190
|
3,140 |
1,081 |
-6.45 |
52,773 |
|
|
31/03/2013 |
152,885
|
2,973 |
1,419 |
3.87 |
52,981 |
|
|
31/03/2014 |
164,900
|
4,400 |
8,200 |
7.86 |
.. |
Unit: In Million
Yen
Forecast figures for the 31/03/2014 fiscal term.
This is the major general
confectioner, with long corporate history dating back to 1899. Manufactures confectioneries, foodstuffs,
frozen desserts, and health foods (See OPERATION). About 50% of mainline foods accounted for by
long-selling products such as “Choco Balls”, “Milk Caramel” and Jelly
products. Other operations include real
estate business and restaurants. Known
for “Angel” trade mark. The firm
established a HI-CHES production subsidiary in the US in Dec 2013, and will
shift to production in the US in the Mar 2016 term, away from reliance on
imports from Taiwan. It aims to cut
costs and expand sales network.
The sales volume for Mar/2013 fiscal
term amounted to Yen 152,885 million, a 3.9% up from Yen 147,190 million in the
previous term. The recurring profit was
posted at Yen 2,973 million and the net profit at Yen 1,419 million,
respectively, compared with Yen 3,140 million recurring profit and Yen 1,081
million net profit, respectively, a year ago.
(Apr/Dec/2013 results): sales Yen
123,906 million (up 7.2%), operating profit Yen 3,447 million (up 69.9%),
recurring profit Yen 3,824 million (up 71.4%), net profit Yen 7,860 million (up
633.6%). (% compared with the
corresponding period a year ago).
For the current term ending Mar
2014 the recurring profit is projected at Yen 4,400 million and the net profit
at Yen 8,200 million, on a 7.9% rise in turnover, to Yen 164,900 million. Sales of frozen desserts soared in the first
half, thanks to the extremely hot summer.
Mainline confectionery sales volume is rising, backed by the start of
Pringles sales.
The financial situation is
considered FAIR and good for ORDINARY business engagements.
Date Registered: Feb 1910
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 1,000 million shares
Issued:
270,748,848 shares
Sum: Yen 18,612 million
Major shareholders (%):
Customers’ S/Holding Assn (7.1), Mizuho Bank (4.7), MUFG (4.4), Company’s
Treasury Stock (3.9), Mitsubishi UFJ Trust Banks (2.4), Japan Trustee Services
T (2.4), Meiji Yasuda Life Ins (2.2), Tokio Marine & Nichido Fire Ins
(2.1), Master Trust Bank of Japan T (2.0), Group Employees’ S/Holding Assn
(1.9); foreign owners (6.0)
No. of shareholders:
30,479
Listed on the S/Exchange (s) of: Tokyo
Managements: Gota
Morinaga, ch; Tooru Arai, pres; Junichi Sato, s/mgn dir; Osamu Nod, s/mgn dir;
Toshio Shirakawa, mgn dir; Eijiro Oota, dir; Takashi Hirakue, dir; Tatsuhiko
Ito, dir
Nothing detrimental is known as to
the commercial morality of executives..
Activities:
Manufactures confectioneries, foodstuffs, frozen desserts and health products
(92%), food wholesale & restaurants (6%), real estates & services (2%).
(Products)
Confectioneries (54.2%): caramel, biscuits, chocolate, etc
Foodstuffs 99%):
cocoa, cake mix, etc
Frozen desserts (18.4%):
ice cream, etc
Health products (15.2%):
jelly drinks, etc
Clients: [Mfrs,
wholesalers], Mitsubishi Shokuhin Marubeni Corp, Nippon Access Inc, Confex Co,
other
No. of accounts: 500
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers]
Akitaya Honten, Kellogg’s Japan, Toppan Printing, Fuji Oil Co, other
Payment record: No
complaints
Location: Business
area in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References:
MUFG
(H/O)
Mizuho
Bank (Shiba)
Relations:
Satisfactory
(In Million Yen)
|
FINANCES:
(Consolidated
in million yen) |
||||
|
|
|
Terms
Ending: |
31/03/2013 |
31/03/2012 |
|
INCOME
STATEMENT |
||||
|
Annual Sales |
|
152,885
|
147,190
|
|
|
Cost of Sales |
78,386 |
76,128 |
||
|
GROSS PROFIT |
74,499 |
71,062 |
||
|
Selling & Adm Costs |
71,803 |
68,248 |
||
|
OPERATING PROFIT |
2,695 |
2,813 |
||
|
Non-Operating P/L |
278 |
327 |
||
|
RECURRING PROFIT |
2,973 |
3,140 |
||
|
|
NET PROFIT |
1,419 |
1,081 |
|
|
BALANCE
SHEET |
||||
|
Cash |
|
10,377 |
8,302 |
|
|
Receivables |
20,176 |
19,100 |
||
|
Inventory |
12,751 |
11,278 |
||
|
Securities, Marketable |
|
|
||
|
Other Current Assets |
7,071 |
6,864 |
||
|
TOTAL CURRENT ASSETS |
50,375 |
45,544 |
||
|
Property & Equipment |
75,543 |
66,149 |
||
|
Intangibles |
1,491 |
1,626 |
||
|
Investments, Other Fixed Assets |
13,745 |
15,526 |
||
|
TOTAL ASSETS |
141,154
|
128,845
|
||
|
Payables |
17,121 |
15,719 |
||
|
Short-Term Bank Loans |
4,763 |
21,088 |
||
|
|
|
|
||
|
Other Current Liabs |
24,736 |
19,419 |
||
|
TOTAL CURRENT LIABS |
46,620 |
56,226 |
||
|
Debentures |
10,000 |
|
||
|
Long-Term Bank Loans |
15,137 |
3,003 |
||
|
Reserve for Retirement Allw |
6,176 |
6,371 |
||
|
Other Debts |
|
10,240 |
10,472 |
|
|
TOTAL LIABILITIES |
88,173 |
76,072 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
18,612 |
18,612 |
||
|
Additional
paid-in capital |
17,186 |
17,186 |
||
|
Retained
earnings |
15,840 |
15,986 |
||
|
Evaluation
p/l on investments/securities |
3,633 |
3,620 |
||
|
Others |
232 |
(168) |
||
|
Treasury
stock, at cost |
(2,522) |
(2,463) |
||
|
TOTAL S/HOLDERS` EQUITY |
52,981 |
52,773 |
||
|
|
TOTAL EQUITIES |
141,154
|
128,845
|
|
|
CONSOLIDATED
CASH FLOWS |
||||
|
Terms
ending: |
31/03/2013 |
31/03/2012 |
||
|
Cash Flows
from Operating Activities |
|
5,565 |
4,879 |
|
|
Cash
Flows from Investment Activities |
-5,681 |
-7,817 |
||
|
Cash
Flows from Financing Activities |
3,645 |
-1,845 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
9,377 |
4,802 |
|
ANALYTICAL
RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
||
|
Net
Worth (S/Holders' Equity) |
52,981 |
52,773 |
||
|
Current
Ratio (%) |
108.05 |
81.00 |
||
|
Net
Worth Ratio (%) |
37.53 |
40.96 |
||
|
Recurring
Profit Ratio (%) |
1.94 |
2.13 |
||
|
Net
Profit Ratio (%) |
0.93 |
0.73 |
||
|
Return
On Equity (%) |
2.68 |
2.05 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
|
1 |
Rs.99.85 |
|
Euro |
1 |
Rs.82.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.