MIRA INFORM REPORT

 

 

Report Date :

10.11.2014

 

IDENTIFICATION DETAILS

 

Name :

NITTO DENKO CORPORATION

 

 

Registered Office :

Grand Front Osaka Tower A 33F, 4-20 Ohfuka-cho Kitaku Osaka 530-0011

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October 1918

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures industrial tapes (37%), optoronics (38%), medical supplies & membranes (5%)

 

 

No of Employees :

26,614

 

 

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 :

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. 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

 

NITTO DENKO CORPORATION

 

 

REGD NAME

 

Nitto Denko KK

 

 

MAIN OFFICE

 

Grand Front Osaka Tower A 33F, 4-20 Ohfuka-cho Kitaku Osaka 530-0011 Japan

Tel: 06-7632-2101   

Fax: 06-7632-2102     -

 

URL:                 http://www.nitto.com/jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Mfg of industrial tapes, optoronics, medical supplies & membranes

BRANCHES:     Osaka, Fukaya, Shinagawa, Sendai, other (Tto13)

OVERSEAS:     Worldwide with mfg yards

FACTORIES:    Osaki, Fukaya, Toyohashi, Kameari, Ibaraki, Onomichi

 

CHIEF EXEC:   HIDEO TAKASAKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 749,835 M

PAYMENTSREGULAR   CAPITAL           Yen 26,783 M

TREND UP                    WORTH        Yen 527,299 M

STARTED         1918                 EMPLOYES      26,614

 

COMMENT:      MFR OF INDUSTRIAL TAPES, OTHER FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a comprehensive material producer that attained rapid growth with industrial tapes as driving force.  IC sealing resins grown into one of major profit-earners.  Substantial growth in electronic materials, including LCD polarizing films and flexible printed circuit board.  Aggressive in overseas production.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 749,835 million, an 11.7% up from Yen 671,253 million in the previous term.  The recurring profit was posted at Yen 71658 million and the net profit at Yen 51,018 million, respectively, compared with Yen 87,187 million recurring profit and Yen 43,696 million net profit, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 393,516 million (up 7.8%), operating profit Yen 42,576 million (up 26.3%), recurring profit Yen 30,438 million (up 31.2%), net profit Yen 43,489 million (up 32.2%). (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 87,000 million and the net profit at Yen 64,000 million, respectively, on a 7.4% rise in turnover, to Yen 805,000 million.  Sales for industrial-use tapes for automobiles will flourish.  The startup of operations at the plant in Brazil last term will also contribute to earnings.

 

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

 

 

REGISTRATION

           

Date Registered:　Oct 1918

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       400 million shares

Issued:                173,758,428 shares

Sum:                   Yen 26,783 million

 

Major shareholders (%): Master Trust Bank of Japan T (9.4), Japan Trustee Services T (8.2), Company’s Treasury Stock (5.0), BNP Paribas Securities (2.0), Trust & Custody Services Inv T (1.5), Chase London AL Omnibus Acct (1.4), CBNY Scout International Fund (1.3), Nippon Life Ins (1.3), Sompo Japan Nipponkoa Ins (1.3), CBNY for Depositary Share Holders (1.2); foreign owners (35.9)

 

No. of shareholders: 53,502

 

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

 

Managements: Yukio Nagira, ch; Hideo Takasaki, pres; Yoichiro Sakuma, mgn dir; Toshihiko Omote, mgn dir; Tohru Takeuchi, dir; Yoichiro Furuse, dir; Koji Mizukoshi, dir

 

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

 

Related companies: Nitto Optical Korea, Nitto Optical Taiwan, other

 

 

OPERATION

           

Activities: Manufactures industrial tapes (37%), optoronics (38%), medical supplies & membranes (5%)

Overseas Sales Ratio (74%)

           

Clients: [Mfrs, wholesalers] Nitto Optical Korea, Nitto Optical Taiwan, Nitto Optical Shanghai, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui & Co, Kuraray, Zeon Corp, Konica Minolta, NP Trading Co, Dainippon Printing, CBC, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Osaka)

Mizuho Bank (Osaka)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

749,835

671,253

　

  Cost of Sales

539,051

480,014

　

      GROSS PROFIT

210,784

191,239

　

  Selling & Adm Costs

138,529

122,757

　

      OPERATING PROFIT

72,254

68,482

　

  Non-Operating P/L

-596

-1,300

　

      RECURRING PROFIT

71,658

67,182

　

      NET PROFIT

51,018

43,696

BALANCE SHEET

　

　

  Cash

　

208,816

217,095

　

  Receivables

167,939

160,786

　

  Inventory

80,321

83,570

　

  Securities, Marketable

　

　

　

  Other Current Assets

27,392

21,571

　

      TOTAL CURRENT ASSETS

484,468

483,022

　

  Property & Equipment

247,835

213,391

　

  Intangibles

18,347

13,963

　

  Investments, Other Fixed Assets

30,702

30,573

　

      TOTAL ASSETS

781,352

740,949

　

  Payables

86,651

88,101

　

  Short-Term Bank Loans

6,694

11,137

　

　

　

　

　

  Other Current Liabs

119,096

76,445

　

      TOTAL CURRENT LIABS

212,441

175,683

　

  Debentures

　

50,000

　

  Long-Term Bank Loans

3,510

987

　

  Reserve for Retirement Allw

33,723

19,757

　

  Other Debts

　

4,378

3,417

　

      TOTAL LIABILITIES

254,052

249,844

　

      MINORITY INTERESTS

　

　

Common stock

26,783

26,783

　

Additional paid-in capital

56,164

56,170

　

Retained earnings

471,831

439,650

　

Evaluation p/l on investments/securities

2,533

1,901

　

Others

1,734

(994)

　

Treasury stock, at cost

(31,746)

(32,405)

　

      TOTAL S/HOLDERS` EQUITY

527,299

491,105

　

      TOTAL EQUITIES

781,352

740,949

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

78,286

68,152

　

Cash Flows from Investment Activities

-15,735

-56,269

　

Cash Flows from Financing Activities

-18,131

-14,822

　

Cash, Bank Deposits at the Term End

　

203,446

152,275

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

527,299

491,105

　

Current Ratio (%)

228.05

274.94

　

Net Worth Ratio (%)

67.49

66.28

　

Recurring Profit Ratio (%)

9.56

10.01

　

Net Profit Ratio (%)

6.80

6.51

　

　

Return On Equity (%)

9.68

8.90

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.52

UK Pound

1

Rs.97.39

Euro

1

Rs76.15

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

TPT

 

 

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.