MIRA INFORM REPORT

Report Date :

18.09.2014

IDENTIFICATION DETAILS

Name :	NESTLE JAPAN LTD

Registered Office :	Nestle House, 7-1-15 Gokodori Chuoku Kobe 651-0087

Country :	Japan

Financials (as on) :	31.12.2013

Date of Incorporation :	June 1933

Legal Form :	Limited Company

Line of Business :	· Import, wholesale of coffers, instant coffees, confectionery · Manufacturing of pet foods

No. of Employees	2,400

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

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 – June 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

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 and address

NESTLE JAPAN LTD

REGD NAME: Nestle Japan KK

MAIN OFFICE: Nestle House, 7-1-15 Gokodori Chuoku Kobe 651-0087 JAPAN

Tel: 078-230-7000 Fax: 078-230-7100

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

E-Mail address: info@nestle.co.jp

ACTIVITIES

Import, wholesale of coffers, instant coffees, confectionery,; mfg of pet foods

BRANCHES

Tokyo, Sapporo, Sendai, Nagoya, Osaka, Hiroshima, other (Tot 24)

OVERSEAS

Switz (the parent)

FACTORIEs

Himeji, Shizuoka, Ibaraki

OFFICERS

KOZO TAKAOKA, PRES

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 170,871 M

PAYMENTSREGULAR CAPITAL Yen 20,000 M

TREND UP WORTH Yen 32,831 M

STARTED 1933 EMPLOYES 2,400

COMMENT

TRADING FIRM SPECIALIZING IN COFFEE & CONFECTIONERY, OWNED BY SWISS CAPITAL.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY

BUSINESS ENGAGEMENTS.

HIGHLIGHTS

The subject company was established originally in 1913 as Japan Office by Nestle SA, Switz, and was incorporated in 1933. This is a trading firm for import and wholesale of coffees, instant coffers, beverage, canned coffee, confectionery, other. Also manufactures pet foods at its own factories in Japan. Clients include food makers, wholesalers, other

FINANCIAL INFORMATION

The sales volume for Dec/2013 fiscal term amounted to Yen 170,871 million, disclosed in details, after Dec/2009 fiscal term. The recurring profit was posted at Yen 10,983 million and the net profit at Yen 6,807 million, respectively.

For the current term ending Dec 2014 the recurring profit is projected at Yen 11,500 million and the net profit at Yen 7,000 million, respectively, on a 3% rise in turnover, to Yen 176,000 million.

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

REGISTRATION

Date Registered: Jun 1933

Regd No.: ^

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 160 million shares

Issued: 40 million shares

Sum: Yen 20,000 million

Major shareholders (%): Nestle SA (Switz) (100)

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

OPERATION

Activities: Imports and wholesales coffees, coffee beans, canned coffee, confectionery (chocolate, candy, sugar cakes), beverages, other; manufactures pet foods, other (--100%)

Clients: [Mfrs, wholesalers] Neos Corp, Japan Beverage East, Itochu Corp, Nippon Access Inc, Mitsubishi Foods, Toho Food Service, Kato Sangyo Co, other

No. of accounts: 500

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Itochu Corp, Mitsubishi Corp, Toyota Tsusho Corp, Sojitz Corp, Kamaya Kagaku Kogyo Co, other

Payment record: Regular

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

Bank References:

MUFG (Kobe)

SMBC (Kobe)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:	31/12/2014	31/12/2013
Annual Sales	176,000	170,871
Recur. Profit	11,500	10,983
Net Profit	7,000	6,807
Total Assets		120,974
Current Assets		86,129
Current Liabs		69,862
Net Worth		32,831
Capital, Paid-Up		20,000
Div.P.Share(¥)		0.00
*<Analytical Data>*	(%)	(%)
S.Growth Rate	3.00	- - -
Current Ratio	..	123.28
N.Worth Ratio	..	27.14
R.Profit/Sales	6.53	6.43
N.Profit/Sales	3.98	3.98
Return On Equity	..	20.73

Notes: Financials are fully disclosed until the 31/12/2013 fiscal term from the 31/12/2009 term.

Forecast (or estimated) figures for the 31/12/2014 fiscal term.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.95
UK Pound	1	Rs.99.32
Euro	1	Rs.78.96

INFORMATION DETAILS

Analysis Done by :	SUM

Report Prepared by :	NIS

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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