MIRA INFORM REPORT

 

 

Report Date :

14.05.2014

 

IDENTIFICATION DETAILS

 

Name :

SOFTBANK MOBILE CORPORATION 

 

 

Registered Office :

Tokyo Shiodome Bldg, 1-9-1 Higashishimbashi Minatoku Tokyo 105-7317

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1986

 

 

Com. Reg. No.:

(Tokyo-Minatoku) 052465

 

 

Legal Form :

Limited Company

 

 

Line of Business :

·         Provider of Mobile Phone Service for domestic/international call & messaging services, global roaming services & in-flight mobile phone services

sale of mobile handsets, digital photo frames, mobile data communication, smartphones & prepaid handsets

 

 

No of Employees :

7,400

 

 

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

 

SOFTBANK MOBILE CORPORATION

 

 

REGD NAME

 

Softbank Mobile KK

 

 

MAIN OFFICE

 

Tokyo Shiodome Bldg, 1-9-1 Higashishimbashi Minatoku Tokyo 105-7317 JAPAN 

           

Tel: 03-6889-6666    

 

URL:     http://www.mb-softbank.jp/mb/

E-mail:             pr@softbank.co.jp           

 

 

ACTIVITIES

 

·         Provider of Mobile Phone Service for domestic/international call & messaging services, global roaming services & in-flight mobile phone services

sale of mobile handsets, digital photo frames, mobile data communication, smartphones & prepaid handsets

 

 

BRANCHES

 

Sapporo, Sendai, Nagoya, Osaka, Kanazawa, Hiroshima, Takamatsu, Fukuoka

 

 

OFFICER(S)

 

MASAYOSHI SON, PRES          Ken Miyauchi, v pres

Jun’ichi Miyagawa, dir    Kazuhiko Fujiwara, dir

Shuichi Kukita, dir                      Yasuyuki Imai, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 2,375,415 M

PAYMENTSREGULAR   CAPITAL           Yen 177,251 M

TREND STEADY           WORTH            Yen 1,494,437 M

STARTED         1986                 EMPLOYES      7,400

                                               

 

COMMENT

 

MOBILE PHONE SERVICE PROVIDER 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a mobile phone service division separated from Softbank Corp, at the caption address.  This is a mobile phone service provider for domestic overseas communications.  The number of mobile phone subscribers stands at 32,480,000 as at Mar 2013, 24.7% share of the Japan market.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 2,315,415 million, a 7% up from Yen 2,173,150 million in the previous term.  This is the result of strong growth in the number of mobile phone subscribers.  The recurring profit was posted at Yen 463,668 million and the net profit at Yen 291,093 million, respectively, compared with Yen 383,231 million recurring profit and Yen 432,117 million net profit, respectively, a year ago. 

 

For the term that ended Mar 2014 the recurring profit was projected at Yen 500,000 million and the net profit at Yen 330,000 million, on a 10% rise in turnover, to Yen 2,550,000 million.  The number of subscribers continued increasing.  Final results are yet to be released.

 

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

 

 

REGISTRATION

 

Date Registered:  Dec 1986

Regd No.:        (Tokyo-Minatoku) 052465

Legal Status:    Limited Company (Kabushiki Kaisha)

Authorized:       11,444,229 shares

Issued:              5,427,893 shares

Sum:                 Yen 177,251 million

 

Major shareholders (%): BB Mobile (Softbank Corp*) (100)

 

* Softbank Corp, holding company of Softbank group firms & Yahoo Inc, founded 1981, capital Yen 222,202 million, listed Tokyo S/E, sales Yen 6,666,651 million, operating profit Yen 1,085,362 million, recurring profit Yen 932,367 million, net profit Yen 586,149 million, total assets Yen 16,684,997 million, net worth Yen 2,858,670 million, employees 24,598, pres Masayoshi Son, concurrently.

           

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

 

 

OPERATION

 

Activities: Mobile phone service provider: for domestic/international call & messaging services, global roaming services, in-flight mobile phone services; sale of mobile handsets, digital photo frames, mobile data communication, smartphones, prepaid handsets, other (--100%)..

 

Clients: Users, consumers, other           

No. of accounts: 32,480,000 subscribers as of end/Mar/2013

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sharp Corp, Apple Japan, Panasonic Mobile Communications, E Access, HTC Corporation, SoftBank Corp, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (H/O)

Relations: Satisfactory

 

 


FINANCES

(In Million Yen)

 

       Terms Ending:

31/03/2014

31/03/2013

31/03/2012

31/03/2011

Annual Sales

 

2,550,000

2,315,415

2,173,150

1,972,947

Recur. Profit

 

500,000

463,668

383,231

336,360

Net Profit

 

330,000

291,093

432,117

174,488

Total Assets

 

 

2,169,208

3,023,492

3,490,420

Current Assets

 

 

997,215

814,208

1,053,680

Current Liabs

 

 

1,191,694

940,697

895,173

Net Worth

 

 

1,434,437

1,668,132

1,235,987

Capital, Paid-Up

 

 

177,251

177,251

177,251

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

10.13

6.55

10.15

14.35

    Current Ratio

 

..

83.68

86.55

117.71

    N.Worth Ratio

..

66.13

55.17

35.41

    R.Profit/Sales

 

19.61

20.03

17.63

17.05

    N.Profit/Sales

12.94

12.57

19.88

8.84

    Return On Equity

..

20.29

25.90

14.12

 

Notes: Forecast (or estimated) figures for the 31/03/2014 fiscal term.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.88

UK Pound

1

Rs.100.98

Euro

1

Rs.82.40

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.