MIRA INFORM REPORT

 

 

Report No. :

317042

Report Date :

20.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ASAHI GROUP HOLDINGS LTD

 

 

Registered Office :

1-23-1 Azumabashi Sumidaku Tokyo 130-8602

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

September 1949

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures Alcoholic Beverages (53%), Beverages (26%), Foods (6%), Overseas (13%), Others (2%)

 

 

No. of Employees :

21,177

 

 

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

 

Maximum Credit Limit :

Yen 41,410.4 Million

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

ASAHI GROUP HOLDINGS LTD

 

 

REGD NAME

 

Asahi Group Holdings KK

 

 

MAIN OFFICE

 

1-23-1 Azumabashi Sumidaku Tokyo 130-8602 JAPAN

Tel: 03-5608-5111          -

 

URL:                 http://www.asahigroup-holdings.com

E-Mail address: (thru the URL)

 

ACTIVITIES:     Brewing of beer

BRANCHES:     Ibaraki, other (Tot 4)

OVERSEAS:     China, Korea, Taiwan, Thailand, Australia, USA, Europe, other

FACTORIES:    (subsidiaries)

 

CHIEF EXEC:   NAOKI IZUMIYA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 1,785,478 M

PAYMENTSREGULAR   CAPITAL           Yen 182,531 M

TREND UP                    WORTH             Yen 895,510 M

STARTED         1949                 EMPLOYES      21,177

 

COMMENT:      BEER BREWER  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 41,410.4 MILLION, 30 DAYS NORMAL TERMS

 

 

 

 

 

 

Unit: In Million Yen

Forecast figures for the 31/12/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest beer brewer in terms of domestic market share, including low-malt beer.  Noted for dramatic turnaround in business performance after release of “Super Dry” in 1987.  Comprehensive maker of alcoholic beverages and soft drinks.  Top shareholder in Kagome Co.  Acquired Calpis Co in 2012.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 1,785,478 million, a 4.2% up from Yen 1,714,237 million in the previous term.  The recurring profit was posted at Yen 133,168 million and the net profit at Yen 69,118 million, respectively, compared with Yen 123,612 million recurring profit and Yen 61,749 million net profit, respectively, a year ago.

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 139,000 million and the net profit at Yen 75,000 million, respectively, on a 3.6% rise in turnover, to Yen 1,850,000 million.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 41,410.4 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          Sept 1949

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              972,305,309 shares

Issued:                         483,585,862 shares

Sum:                            Yen 182,531 million

 

Major shareholders (%): Trust Bank of Japan T (5.9), Company’s Treasury Stock (4.3), Japan Trustee Services T (4.1), Asahi Kasei (3.8), Dai-Ichi Life Ins (3.4), Fukoku Life Ins (3.3), SMBC (1.8), Sumitomo Mitsui Trust Bank (1.6), Bank of New York Mellon SANV10 (1.3), Chase Manhattan GTS Escrow (1.1); foreign owners (28.7)

 

No. of shareholders: 92,603

 

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

 

Managements: Naoki Izumiya, pres; Katsuyuki Kawatsura, v pres; Shiro Ikeda, mgn dir; Yoshihide Okuda, mgn dir; Akiyoshi Koji, dir

 

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

 

Related companies: Asahi Pretec, Japan Waste, other.

 

 

OPERATION

           

Activities: Manufactures alcoholic beverages (53%), beverages (26%), foods (6%), overseas (13%), others (2%)

 

Overseas Sales Ratio (11%)

           

Payment record: Regular

 

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

 

Bank References:

SMBC (Tokyo)

Mizuho Bank (H/O)

Relations: Satisfactory

 

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2014

31/12/2013

INCOME STATEMENT

　

　

  Annual Sales

　

1,785,478

1,714,237

　

  Cost of Sales

1,073,439

1,082,853

　

      GROSS PROFIT

712,039

681,383

　

  Selling & Adm Costs

583,733

563,916

　

      OPERATING PROFIT

128,305

117,467

　

  Non-Operating P/L

4,863

6,145

　

      RECURRING PROFIT

133,168

123,612

　

      NET PROFIT

69,118

61,749

BALANCE SHEET

　

　

  Cash

　

65,064

42,200

　

  Receivables

353,704

316,106

　

  Inventory

124,548

118,302

　

  Securities, Marketable

　

　

　

  Other Current Assets

60,526

358,282

　

      TOTAL CURRENT ASSETS

603,842

834,890

　

  Property & Equipment

605,415

584,219

　

  Intangibles

295,790

290,025

　

  Investments, Other Fixed Assets

431,562

82,421

　

      TOTAL ASSETS

1,936,609

1,791,555

　

  Payables

130,402

118,650

　

  Short-Term Bank Loans

173,938

128,971

　

　

　

　

　

  Other Current Liabs

453,034

418,460

　

      TOTAL CURRENT LIABS

757,374

666,081

　

  Debentures

113,000

148,937

　

  Long-Term Bank Loans

40,846

33,450

　

  Reserve for Retirement Allw

26,525

22,581

　

  Other Debts

　

102,354

93,025

　

      TOTAL LIABILITIES

1,040,099

964,074

　

      MINORITY INTERESTS

　

　

Common stock

182,531

182,531

　

Additional paid-in capital

143,339

152,537

　

Retained earnings

477,427

428,661

　

Evaluation p/l on investments/securities

28,850

20,981

　

Others

122,539

82,803

　

Treasury stock, at cost

(58,176)

(40,032)

　

      TOTAL S/HOLDERS` EQUITY

896,510

827,481

　

      TOTAL EQUITIES

1,936,609

1,791,555

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/12/2014

31/12/2013

　

Cash Flows from Operating Activities

　

146,783

157,252

　

Cash Flows from Investment Activities

-92,183

-85,704

　

Cash Flows from Financing Activities

-35,842

-84,938

　

Cash, Bank Deposits at the Term End

　

62,235

41,116

ANALYTICAL RATIOS            Terms ending:

31/12/2014

31/12/2013

　

Net Worth (S/Holders' Equity)

896,510

827,481

　

Current Ratio (%)

79.73

125.34

　

Net Worth Ratio (%)

46.29

46.19

　

Recurring Profit Ratio (%)

7.46

7.21

　

Net Profit Ratio (%)

3.87

3.60

　

　

Return On Equity (%)

7.71

7.46


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.35

UK Pound

1

Rs.93.10

Euro

1

Rs.67.13

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.