MIRA INFORM REPORT

Report Date :

04.10.2014

IDENTIFICATION DETAILS

Name :	JANSSEN KOREA LTD.

Registered Office :	92, Hangang-daero, Yongsan-gu, Seoul, Korea 25th Fl., LS Yongsan Tower 140-702

Country :	South Korea

Financials (as on) :	31.12.2013

Date of Incorporation :	26.05.1983

Com. Reg. No.:	120-81-11440

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Finished Medicaments

No. of Employees :	465

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
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)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SOUTH KOREA - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP.

Source : CIA

Basic Information

Basic

Company Name	JANSSEN KOREA LTD.
Registered Address	92, Hangang-daero, Yongsan-gu, Seoul, Korea
Building	25th Fl., LS Yongsan Tower
Zip Code	140-702
Tel	+82-2-2094-4500
Fax	+82-2-2094-4570
E-mail	webmaster@janssenkorea.com
Website	www.janssenkorea.com
Trading Address	25th Fl., LS Yongsan Tower, 92, Hangang-daero, Yongsan-gu, Seoul, Korea (Old Address System : 25th Fl., LS Yongsan Tower, 191, Hangangno 2-ga, Yongsan-gu, Seoul, Korea)
Tel	+82-2-2094-4500
Fax	+82-2-2094-4570
Other Address-Factory	Hyangnam Pharmaceutical Industries Complex, 905, Sangsin-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Korea
Tel	+82-31-353-5191
Fax	+82-31-353-5192
Other Address-Nambu Branch	5FL., Sungji Bldg., 1007-45, Sadang-dong, Dongjak-gu, Seoul, Korea
Tel	+82-2-563-1403
Fax
Other Address-Bukbu Branch	Rm.306, Daemyung Tower, 100-1, Yongdu-dong, Dongdaemun-gu, Seoul, Korea
Tel	+82-2-922-8827~8
Fax
Other Address-Suwon Branch	28-2, Jeongja-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea
Tel	+82-31-245-7191~3
Fax
Type	Export/Import
Industry	Manufacture of Finished Medicaments
Main Business	Anodynia, Antipyretic, Digestant, Carcinostatis Substance, Medicine
Established (mm/dd/yyyy)	05/26/1983

The Subject owns the premises of factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Antihistamines or H1 blockers(51161600)
Sell	Cough and cold and antiallergy products(51161800)
Sell	Non narcotic analgesics and antipyretics(51142000)
Sell	Antiulcer and related gastrointestinal GI drugs(51171900)
Sell	Central nervous system drugs(51140000)
Sell	Antidepressants(51141600)
Sell	Non narcotic analgesics and antipyretics(51142000)
Sell	Antidiarrheals(51171700)

CEO’s

Name	Kim Yoon-Seob
Address	Suite 132-1103, 38, Mokdongseo-ro, Yangcheon-gu, Seoul, Korea
Date of Birth	07/20/1948
Title	Co-President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

5,334,000,000

Employees

465

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank-Yeoksam Dong Branch

Korea Exchange Bank

Citibank, Korea

Corporate Registered No.

110111-0350457

Business Registered No.

120-81-11440

Permit & Licenses

04/16/1999 ISO 14001

Int’l Trade No.: 437745

Shareholder Position

Name	Shares	%
JOHNSON & JOHNSON(USA)	746,760	70.00
YUHAN CORPORATION(110111-0014409)	320,040	30.00
TOTAL	1,066,800	100.00

Company History

05/26/1983 Incorporated as the present name, as a JV between YUHAN CORPORATION(110111-0014409) and JOHNSON & JOHNSON(USA)

03/27/1985 Registered as a Foreign Direct Investment Corporation

05/01/2008 Moved to the present HQ address from 12FL., Sungwon Bldg., 141, Samseong-dong, Gangnam-gu, Seoul, Korea

Detailed Information

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
Co-President & CEO	Mr.	Kim Yoon-Seob	Male	Korean	03/31/2009
Co-President & CEO	M/S.	Kim Ok-Yeon	Female	Korean	07/25/2012
Director	Mr.	Kim Hyung-Jin	Male	Korean	07/25/2012
Director	Mr.	Lee Jung-Hee	Male	Korean	03/31/2009
Director	Mr.	Jung Won-Young	Male	Korean	03/26/2013
Auditor	Mr.	Hwang Ju-Myung	Male	Korean	03/08/1993
Auditor	Mr.	Jin Ki-Seob	Male	Korean	03/30/2012
Supervisor	Mr.	Ha Yong-Jung	Male	Korean	07/01/2011

Financials

Year / Unit : KRW	Sales	Assets	Net Income
2013	191,939,677,935	109,531,254,405	833,905,681
2012	218,614,960,582	118,898,918,551	2,557,535,594
2011	231,978,387,182	130,693,277,231	24,897,436,342
2010	210,294,820,297	97,264,385,013	18,414,783,217
2009	203,148,864,816	93,105,308,866	21,641,811,233
2008	208,298,548,525	88,416,390,819	20,905,468,930
2007	190,067,192,178	85,986,170,930	19,493,694,916
2006	171,189,929,312	83,756,664,969	14,608,804,353
2005	153,718,737,387	86,204,046,262	7,164,224,447

Financial Description

Authorized Capital(KRW)	9,600,000,000
Paid-Up Capital(KRW)	5,334,000,000
Total Issued Shares	1,066,800

Balance Sheet
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Total Assets	109,531,254,405	118,898,918,551	130,693,277,231
Current Assets	84,170,106,225	96,126,936,322	110,418,142,972
-Quick Assets	58,259,091,450	72,032,881,069	80,671,690,209
-Inventories	25,911,014,775	24,094,055,253	29,746,452,763
Fixed Assets	25,361,148,180	22,771,982,229	20,275,134,259
-Investment	169,657,000	170,697,000	176,097,000
-Tangibles	20,610,216,468	19,399,743,743	15,524,861,951
-Intangibles	1,381,580,220	739,286,615	809,764,416
-Others	3,199,694,492	2,462,254,871	3,764,410,892
Total Liabilities	77,829,386,423	83,330,956,250	79,001,781,402
Current Liabilities	73,256,424,417	79,913,554,989	76,085,192,595
Fixed Liabilities	4,572,962,006	3,417,401,261	2,916,588,807
Capital Stock	5,334,000,000	5,334,000,000	5,334,000,000
Capital Surplus
Profit Surplus	26,367,867,982	30,233,962,301	46,357,495,829
Capital Adjustment
Total Equity	31,701,867,982	35,567,962,301	51,691,495,829
Liab. & Shareholder’s Equity	109,531,254,405	118,898,918,551	130,693,277,231

Current Liabilities	73,256,424,417	79,913,554,989	76,085,192,595
Trade Payables	185,217,346	224,457,953	1,226,416,355
Trade Payables to Related Companies	3,482,156,970	12,438,615,523	12,722,572,388
Short-Term Borrowings	46,000,000,000	48,000,000,000	35,200,000,000
Account Payables	5,602,951,887	1,832,180,917	1,894,494,787
Account Payables to Related Companies	2,537,063,579	780,797,510	763,467,601
Withholdings	410,241,708	333,406,302	509,242,905
VAT Withhold	859,678,226	1,519,374,698	2,060,913,953
Accrued Expenses	11,695,972,499	13,208,289,212	14,099,854,990
Accrued Income Tax			6,880,610,165
Provision for Refund	2,238,365,000	1,563,000,000	653,186,577
Guarantee Deposit Withhold	13,432,874	13,432,874	74,432,874
Advance Receipts	231,344,328	-
Fixed Liabilities	4,572,962,006	3,417,401,261	2,916,588,807
Provision for Severance & Retirement	17,934,302,035	14,448,757,200	16,104,585,900
Long-Term Account Payables	1,976,466,791	2,626,169,403	2,900,625,923

Income Statement
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Sales	191,939,677,935	218,614,960,582	231,978,387,182
Cost of Sold Goods	121,928,249,141	138,786,040,384	123,716,523,582
Gross Profit	70,011,428,794	79,828,920,198	108,261,863,600
Selling & Admin. Expenses	65,394,026,946	72,431,699,039	71,208,271,290
Operating Income	4,617,401,848	7,397,221,159	37,053,592,310
Non-Operating Income	2,044,917,160	2,920,765,861	2,058,778,184
Non-Operating Expenses	4,621,128,658	3,983,282,127	4,404,255,424
Income Before Taxes	2,041,190,350	6,334,704,893	34,708,115,070
Income Taxes Expenses	1,207,284,669	3,777,169,299	9,810,678,728
Net Income	833,905,681	2,557,535,594	24,897,436,342

Cash Flows
Unit : Korean Won	As of 12/31/2013	As of 12/31/2012	As of 12/31/2011
Cash Flows from Operating	13,450,621,598	16,426,388,444	5,243,458,823
-Net Income	833,905,681	2,557,535,594	24,897,436,342
-Exp. without Cash Outflow	9,689,785,746	10,418,153,863	7,216,824,558
-Revenue without Cash Inflows	-62,704,333	-113,343,685	-54,149,150
-Changes in Asset/ & Liability	2,989,634,504	3,564,042,672	-26,816,652,927
Cash Flows from Investing	-4,856,447,940	-6,342,133,000	-5,041,425,236
-Cash Inflow from Investing	11,187,081	56,900,000	195,698,707
-Cash Outflows for Investing	-4,867,635,021	-6,399,033,000	-5,237,123,943
Cash Flows from Financing	-6,700,000,000	-5,200,000,000	-100,000,000
-Cash Inflows from Financing	46,000,000,000	48,000,000,000	35,200,000,000
-Cash Outflows from Financing	-52,700,000,000	-53,200,000,000	-35,300,000,000
Increase/Decrease in Cash	1,894,173,658	4,884,255,444	102,033,587
Cash at the Beginning of Year	17,427,457,002	12,543,201,558	12,441,167,971
Cash at the End of Year	19,321,630,660	17,427,457,002	12,543,201,558

Products, Technologies, Services Description

Main Products & Services

Anodynia, Antipyretic, Digestant, Carcinostatis Substance, Medicine

Trade Partners & Competitors

Competitors

DONGA PHARMACEUTICAL CO., LTD.(110111-0017990)

252, YONGDU-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-920-8114 FAX:+82-2-924-2662

GREEN CROSS CORPORATION(110111-0109854)

303, BOJEONG-DONG, GIHEUNG-GU, YONGIN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-260-9300 FAX:+82-31-260-9413

HANMI PHARM CO.,LTD.(134811-0003187)

893-5, HAJEO-RI, PALTAN-MYEON, HWASEONG-SI, GYEONGGI-DO, KOREA

TEL:+82-31-356-3311 FAX:+82-31-356-5151

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates

BERNA BIOTECH KOREA. CORP.(110111-1597389)

JOHNSON AND JOHNSON MEDICAL KOREA LIMITED(110111-0601850)

JOHNSON & JOHNSON KOREA LTD.(110111-0350639)

JOHNSON & JOHNSON SALES KOREA LTD(110114-0067212)

JANSSEN BELGIUM

JANSSEN IRELAND

CILAG GMBH INT'L

NCS ASIS PACIFIC

JAN-CIL SOURCING SINGAPORE

J&J (CHINA) INVESTMENT LTD

XIAN JANSSEN PHARMACEUTIC

JAN-CIL TAIWAN

GLOBAL MOBILITY CHARGES

JAN-CIL AUSTRALIA

Corporate Ownership

JOHNSON & JOHNSON(USA)

Sales by Region (Activity & Markets)

Sales/ Unit :Mil KRW	2013	2012	2011
Export
Domestic
Total

The Subject deals with the companies in USA, Singapore and Taiwan.

News Clipping

Not Available

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.100.06
Euro	1	Rs.77.95

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	SDA

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%)

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