MIRA INFORM REPORT

 

 

Report Date :

15.05.2014

 

IDENTIFICATION DETAILS

 

Name :

TOPPAN PRINTING CO LTD

 

 

Registered Office :

1-5-1, Taito, Taito-ku, Tokyo 110-8560

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

June 1908

 

 

Com. Reg. No.:

0105-01-016231 (Tokyo-Taitoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is a Printing house which has been diversified into seven Business areas such as  Securities & Cards, Commercial Printing, Publications Printing, Packaging, Industrial Materials, Electronics & Semiconductor Solutions

 

 

No of Employees :

48,478

 

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 – 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

 

TOPPAN PRINTING CO LTD

 

 

REGD NAME

 

Toppan Insatsu KK

 

 

Registered OFFICE

 

1-5-1, Taito, Taito-ku, Tokyo 110-8560, Japan

Tel:       (03) 3835-5111

 

 

Head Office

 

1 Kanda-Izumicho Chiyodaku Tokyo 101-0024 JAPAN

Tel: 03-3835-5111

 

*.. The is its Osaka Office

 

URL:                 http.//.www.toppan.co.jp

E-Mail address:            (thru the URL)

 

 

ACTIVITIES  

 

Subject is a Printing house which has been diversified into seven Business areas such as Securities & Cards, Commercial Printing, Publications Printing, Packaging, Industrial Materials, Electronics & Semiconductor Solutions

 

 

BRANCHES

 

Sapporo, Sendai, Niigata, Chitose, Osaka, Fukuoka, Hiroshima, other (Tot 14)

 

 

OVERSEAS   

 

USA (4), UK, Greece, China (9), Hong Kong, Taiwan (4), Thailand, India, Indonesia, Singapore (2)

 

 

FACTORIES

 

Sapporo, Niigata, Chitose, Sendai, Sagamihara, Fukuoka, other

 

 

CHIEF EXEC

 

SHINGO KANEKO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 1,532,042 M

PAYMENTS      No Complaints          CAPITAL           Yen 104,986 M

TREND             STEADY                       WORTH            Yen 913,107 M

STARTED                     1908                             EMPLOYES      48,478

 

 

COMMENT

 

PRINTING HOUSE. 

 

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

1,556,457

44,522

12,153

(%)

864,016

(Consolidated)

31/03/2012

1,510,414

30,850

3,068

-2.96

866,218

 

31/03/2013

1,502,307

36,966

18,562

-0.54

888,422

 

31/03/2014

1,532,042

37,717

20,621

1.98

913,107

 

31/03/2015

1,560,000

40,000

20,000

1.82

..

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is one of the 2 largest printing companies, known for steady management.  Promoting computerized printing.  Printing out into diverse fields, such as electronic precision components like photo masks, IC lead frames, PCBs, etc.  Has major consolidated subsidiaries listed on the Tokyo Stock Exchange.  The company will reinforce sales of IC cards and packaging materials for foods and daily goods in Europe and the USA.  It will also start issuing services of non-contact IC credit cards for smartphones. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 1,532,042 million, a 2.0% up from Yen 1,502,307 million in the previous term.  Printing business, including magazines, slumped.  But business on consignment grew.  Sales of LCD filters also recovered.  The recurring profit was posted at Yen 37,717 million and the net profit at Yen 20,621 million, respectively, compared with Yen 38,966 million recurring profit and Yen 18,562 million net profit, respectively, a year ago. 

           

For the current term ending Mar/2015 the recurring profit is projected at Yen 40,000 million and the net profit at Yen 20,000 million, on a 1.8% rise in turnover, to Yen 1,560,000 million.  Printing of magazines & fliers will struggle, but IC cards and business on consignment will expand.  Sales of LCD filters will also rise steadily.  Operating profit will post consecutive growth.     

 

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

 

 

REGISTRATION

           

Date Registered: Jun 1908

Regd No.:         0105-01-016231 (Tokyo-Taitoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         2,700 million shares

Issued:                699,412,481 shares

Sum:                   Yen 104,986 million

 

Major shareholders (%): Company's Treasury Stock (7.8), Master Trust Bank of Japan (5.1), Nippon Life Ins (4.6), Japan Trustee Services T (3.6), Dai-ichi Life Ins (3.2), Employees’ S/Holding Assn (2.4), MUFG (2.2), SMBC (2.2), Kodansha Ltd (1.9), Toyo Ink SC Holdings (1.5); foreign owners (19.8)

 

No. of shareholders: 32,810

 

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

 

Managements: Naoki Adachi, ch; Shingo Kaneko, pres; Jitsumei Takamiyagi, v pres; Yo shiro Furuya, s/mgn dir; Mitsuru Ominato, s/mn dir; Yoshiyuki Nagayama, s/mgn dir; Yuichi Kumamoto, mgn dir; Yukio Maeda, mgn dir; Shin’ichi Ohkubo, mgn dir; Atsushi Ito, mgn dir; Hidetaka Kakitani, mgn dir

 

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

 

Related companies: Toppan Formes, Tosho Insatsu, Toppan Cosmo, other

           

 


OPERATION

           

Activities: Printing house: diversified into seven areas of business: securities & cards, commercial printing, publications printing, packaging, industrial materials, electronics, and semiconductor solutions (--100%)

 

(Sales breakdown by divisions): Information & network (59%), lifestyle & communications (25%), electronics (16%)

 

Overseas Sales Ratio (15%)     

 

Clients: [Mfrs, business firms] Sharp Inc, Japan Display, Dentsu Management Services Inc, Mizuho Factors Ltd, AMBC, Hisamitsu Pharmaceutical Co Inc, Recruit, other

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, ink makers, wholesalers] Toppan Graphic Communications, Toyo Ink Mfg, International Pulp & Paper, Toppan Plastic, Shinsei Pulp & Paper Co, other

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (Nihombashi)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

1,532,042

1,502,307

 

  Cost of Sales

1,280,003

1,253,964

 

      GROSS PROFIT

252,038

248,343

 

  Selling & Adm Costs

216,316

216,250

 

      OPERATING PROFIT

35,721

32,092

 

  Non-Operating P/L

1,996

4,874

 

      RECURRING PROFIT

37,717

36,966

 

      NET PROFIT

20,621

18,562

BALANCE SHEET

 

 

 

 

  Cash

 

182,373

166,613

 

  Receivables

 

398,105

410,241

 

  Inventory

 

87,915

91,661

 

  Securities, Marketable

134,133

100,434

 

  Other Current Assets

34,155

31,696

 

      TOTAL CURRENT ASSETS

836,681

800,645

 

  Property & Equipment

553,291

552,510

 

  Intangibles

 

22,855

20,169

 

  Investments, Other Fixed Assets

299,524

259,741

 

      TOTAL ASSETS

1,712,351

1,633,065

 

  Payables

 

276,595

265,997

 

  Short-Term Bank Loans

15,537

12,959

 

 

 

 

 

 

  Other Current Liabs

128,020

174,165

 

      TOTAL CURRENT LIABS

420,152

453,121

 

  Debentures

 

125,338

123,079

 

  Long-Term Bank Loans

93,921

100,371

 

  Reserve for Retirement Allw

0

41,232

 

  Other Debts

 

159,832

26,840

 

      TOTAL LIABILITIES

799,243

744,643

 

      MINORITY INTERESTS

 

 

 

Common stock

104,986

104,986

 

Additional paid-in capital

117,738

117,738

 

Retained earnings

591,157

582,095

 

Evaluation p/l on investments/securities

33,070

24,322

 

Others

 

122,160

115,200

 

Treasury stock, at cost

(56,004)

(55,919)

 

      TOTAL S/HOLDERS` EQUITY

913,107

888,422

 

      TOTAL EQUITIES

1,712,351

1,633,065

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

118,026

103,595

 

Cash Flows from Investment Activities

-108,648

-52,138

 

Cash Flows from Financing Activities

15,012

7,050

 

Cash, Bank Deposits at the Term End

 

287,689

256,057

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

913,107

888,422

 

 

Current Ratio (%)

199.14

176.70

 

 

Net Worth Ratio (%)

53.32

54.40

 

 

Recurring Profit Ratio (%)

2.46

2.46

 

 

Net Profit Ratio (%)

1.35

1.24

 

 

Return On Equity (%)

2.26

2.09

 

           


 

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 :

RAS

 

 

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.