MIRA
INFORM REPORT
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Report Date : |
10.09.2014 |
IDENTIFICATION DETAILS
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Name : |
NIPPON EXPRESS CO LTD |
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Registered Office : |
1-9-3 Higashi-Shimbashi Minatoku Tokyo
105-0021 |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
October 1937 |
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Com. Reg. No.: |
0104-01-022860 |
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Legal Form : |
Limited Company |
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Line of Business : |
Subject is engaged in General Transportation Company: Transportation (78%), Purchase Products (20%), Others (2%) |
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No of Employees : |
65,162 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 52,134.7 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
Company Name & address
NIPPON EXPRESS CO LTD
REGD NAME
Nihon Tsuuun KK
MAIN OFFICE
1-9-3
Higashi-Shimbashi Minatoku Tokyo 105-0021 Japan
Tel:
03-6251-1111 -
URL: http://www.nittsu.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: General
transportation (sea/land/air)
BRANCHES: Nationwide
(841 locations)
OVERSEAS: USA,
Singapore, Europe, Australia, Russia China, Korea, other
CHIEF EXEC: KENJI
WATANABE, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,613,327 M
PAYMENTSREGULAR CAPITAL Yen 70,175 M
TREND UP WORTH Yen 518,409 M
STARTED 1937 EMPLOYES 65,162
COMMENT: GENERAL TRANSPORTATION COMPANY FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN
52,134.7 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 3103/2015 fiscal term.
HIGHLIGHTS
This is the Japan’s largest general transportation company. Expanding its business from express service tied with JR freight company into international intermodal transportation, and international air cargo. Top-class 3PL (third party logistics) provider. Ceded door-to-door parcel delivery service to Japan Post. .
FINANCIAL INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 1,613,327 million, a 0.9% down from Yen 1,628,027 million in the previous term. The recurring profit was posted at Yen 41,500 million and the net profit at Yen 23,831 million, respectively, compared with Yen 47,441 million recurring profit and Yen 26,949 million net profit, respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 452,984 million (up 10.8%), operating profit Yen 9,199 million (up 14.5%), recurring profit Yen 12,018 million (up 8.7%), net profit Yen 4,710 million (down 31.3%). (% compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected at Yen 45,000 million and the net profit at Yen 25,000 million, respectively, on a 4.8% rise in turnover, to Yen 1,690,000 million. Profit margin on domestic distribution services will improve. Panasonics logistic subsidiary (annual sales some Yen 40 billion) is joined consolidated subsidiary in the previous term will contribute in the full term.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 52,134.7 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Oct 1937
Regd
No.: 0104-01-022860 (Tokyo-Minatoku)
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized:
3,988 million shares
Issued: 1,062,299,281
shares
Sum: Yen
70,175 million
Major
shareholders (%): Master Trust Bank of Japan T (7.8), Japan Trustee Services T (7.3),
Asahi Life Ins (5.2), Nipponkoa Ins (4.7), TCSB (Mizuho Bank) (3.9), Company’s
Treasury Stock (3.4), Employees’ S/Holding Assn (3.3), MUFG (2.0), Japan
Trustee Services T4 (2.0), Bank of New York Mellon SANV10 (0.9); foreign owners
(23.1)
No.
of shareholders: 53,836
Listed on the S/Exchange (s) of: Tokyo
Managements: Masanori Kawai,
ch; Kenji Watanabe, pres; Jiro Nakamura, v pres; Akira Ohuga, v pres; Mitsuru
Saito, v pres; Takahiro Ideno, dir; Hideo Hanaoka, dir; Takaaki Ishii, dir;
Yasuaki Arai, dir; Hisao Taketsu, dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: Nittsu Shoji Co, Nippon Express USA,
other.
OPERATION
Activities: General
transportation company: transportation (78%), Purchase products (20%), others
(2%)
(Area
of Operations): rail freight forwarding, truck freight forwarding, marine
transportation, coastal shipping, harbor transportation, NVOCC marine
transportation, warehousing, construction, custom-clearance, freight collection
& settlement, air freight forwarding agency, non-life insurance agency,
Packing & packaging, travel agency, real estate leasing, security services,
sale of goods & commodities, other
Clients: [Mfrs,
wholesalers] Nippon Express USA, Epson Sales, JFE Distribution, Sharp Corp, IHI
Transportation Machinery, Lion Distribution Services, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] JR Freight, Nittsu
Shoji, Nittsu Transport, JAL, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Bank
(Tokyo)
MUFG (Tokyo)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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1,613,327 |
1,628,027 |
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Cost of Sales |
1,505,619 |
1,519,353 |
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GROSS PROFIT |
107,707 |
108,674 |
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Selling & Adm Costs |
74,501 |
71,177 |
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OPERATING PROFIT |
33,206 |
37,497 |
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Non-Operating P/L |
8,294 |
9,944 |
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RECURRING PROFIT |
41,500 |
47,441 |
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NET PROFIT |
23,831 |
26,949 |
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BALANCE SHEET |
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Cash |
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188,124 |
187,797 |
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Receivables |
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233,460 |
241,822 |
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Inventory |
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5,514 |
5,119 |
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Securities, Marketable |
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Other Current Assets |
160,579 |
153,474 |
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TOTAL CURRENT ASSETS |
587,677 |
588,212 |
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Property & Equipment |
488,838 |
491,203 |
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Intangibles |
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33,705 |
25,117 |
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Investments, Other Fixed Assets |
137,392 |
126,432 |
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TOTAL ASSETS |
1,247,612 |
1,230,964 |
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Payables |
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128,275 |
135,158 |
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Short-Term Bank Loans |
64,007 |
78,556 |
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Other Current Liabs |
216,556 |
207,887 |
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TOTAL CURRENT LIABS |
408,838 |
421,601 |
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Debentures |
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80,000 |
80,000 |
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Long-Term Bank Loans |
156,038 |
160,541 |
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Reserve for Retirement Allw |
46,914 |
38,870 |
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Other Debts |
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37,413 |
35,747 |
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TOTAL LIABILITIES |
729,203 |
736,759 |
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MINORITY INTERESTS |
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Common
stock |
70,175 |
70,175 |
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Additional
paid-in capital |
26,908 |
26,908 |
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Retained
earnings |
401,902 |
392,305 |
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Evaluation
p/l on investments/securities |
35,358 |
27,756 |
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Others |
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(1,369) |
1,317 |
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Treasury
stock, at cost |
(14,565) |
(24,256) |
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TOTAL S/HOLDERS` EQUITY |
518,409 |
494,205 |
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TOTAL EQUITIES |
1,247,612 |
1,230,964 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows
from Operating Activities |
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82,018 |
97,806 |
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Cash
Flows from Investment Activities |
-50,984 |
-31,563 |
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Cash
Flows from Financing Activities |
-37,080 |
10,129 |
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Cash,
Bank Deposits at the Term End |
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180,503 |
181,614 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
518,409 |
494,205 |
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Current
Ratio (%) |
143.74 |
139.52 |
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Net
Worth Ratio (%) |
41.55 |
40.15 |
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Recurring
Profit Ratio (%) |
2.57 |
2.91 |
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Net
Profit Ratio (%) |
1.48 |
1.66 |
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Return
On Equity (%) |
4.60 |
5.45 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.43 |
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|
1 |
Rs.97.25 |
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Euro |
1 |
Rs.77.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.