MIRA INFORM REPORT

 

 

Report No. :

317237

Report Date :

20.04.2015

 

IDENTIFICATION DETAILS

 

Name :

SHIONOGI & CO LTD

 

 

Registered Office :

3-1-8 Doshomachi Chuoku Osaka 541-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

June, 1919

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactured of Pharmaceuticals.

 

 

No. of Employees :

6,190

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

Yen 5,250.3 Million

 

 

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 – 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 and address

 

SHIONOGI & CO LTD

 

REGD NAME:               Shionogi Seiyaku KK

 

MAIN OFFICE:              3-1-8 Doshomachi Chuoku Osaka 541-0045 JAPAN

                                                Tel: 06-6202-2161     Fax: 06-6229-9596     -

 

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

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of pharmaceuticals

 

 

BRANCHES

 

Tokyo, Nagoya, Fukuoka, Sapporo, other (Tot 11)

 

 

OVERSEAS

 

China, Taiwan

 

 

FACTORIES

 

Osaka, Iwate

 

 

CHIEF EXEC

 

ISAO TESHIROGI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 289,717 M

PAYMENTSREGULAR   CAPITAL                       Yen 21,279 M

TREND UP                    WORTH                        Yen 472,412 M

STARTED         1919                 EMPLOYES                  6,190

 

 

COMMENT

 

MFR OF PHARMACEUTICALS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,250.3 MILLION, 30 DAYS NORMAL TERMS

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

282,350

45,176

20,026

(%)

328,096

(Consolidated)

31/03/2012

267,275

46,093

27,101

-5.34

347,198

 

31/03/2013

282,903

58,922

66,727

5.85

423,633

 

31/03/2014

289,717

63,906

41,831

2.41

472,412

 

31/03/2015

273,000

58,000

30,000

-5.77

..

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the major pharmaceutical mfr with anti-hyperlipidemia as mainline in world, and highly reliant of antibiotic drugs. Founded in 1978 as wholesaler of Japanese & Chinese herbal medicines in Osaka. Accelerating overseas business mainly in the US and China.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 289,717 million, a 2.4% up from Yen 282,903 million in the previous term. The recurring profit was posted at Yen 63,906 million and the net profit at Yen 41,831 million, respectively, compared with Yen 58,922 million recurring profit and Yen 66,727 million net profit, respectively, a year ago.

 

(Apr/Dec/2014 results): Sales Yen 200,269 million (down 8.2%), operating profit Yen 38,066 million (down 26.1%), recurring profit Yen 51,722 million (up 3.5%), net profit Yen 26,261 million (down 27.4%).  (% as compared with the corresponding period a year ago)

 

For the term that ended Mar 2015 the recurring profit was projected at Yen 58,000 million and the net profit at Yen 30,000 million, respectively, on a 5.6% fall in turnover, to Yen 273,500 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,250.3 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:                    Jun 1919

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              1,000 million shares

Issued:                         351,136,165 shares

Sum:                            Yen 21,279 million

 

Major shareholders (%): Master Trust Bank of Japan T (7.3), Sumitomo Life Ins (5.2), JP Morgan Chase Bank 385147 (4.9), Japan Trustee Services T (4.6), Company’s Treasury Stock (4.6), other; foreign owners (38.4)

 

No. of shareholders: 24,327

 

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

 

Managements: Motozo Shiono, ch; Isao Teshirogi, pres; Akio Nomura, dir; Teppei Mogi, dir; Katsuhiko Machida, dir

 

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

 

Related companies: Shionogi Pharma Chemical, Shionogi Inc, other.

 

 

OPERATION

           

Activities: Manufactures pharmaceuticals and related areas (99%), others (1%

Overseas Sales Ratio (34%)

           

Clients: [Mfrs, wholesalers] Suzuken, Toho Pharma, Alfresa, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Eli Lilly Export, Kaneka Corp, other

 

Payment record: Regular

 

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

           

Bank References:

            SMBC (Osaka)

            Resona Bank (Tokyo)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

  Annual Sales

 

289,717

282,903

 

  Cost of Sales

77,993

78,574

 

      GROSS PROFIT

211,724

204,329

 

  Selling & Adm Costs

148,167

144,764

 

      OPERATING PROFIT

63,556

59,565

 

  Non-Operating P/L

350

-643

 

      RECURRING PROFIT

63,906

58,922

 

      NET PROFIT

41,831

66,727

BALANCE SHEET

 

 

  Cash

 

34,238

21,575

 

  Receivables

64,290

67,908

 

  Inventory

48,369

49,326

 

  Securities, Marketable

80,100

84,432

 

  Other Current Assets

26,133

43,604

 

      TOTAL CURRENT ASSETS

253,130

266,845

 

  Property & Equipment

78,976

78,473

 

  Intangibles

72,824

70,464

 

  Investments, Other Fixed Assets

179,873

159,100

 

      TOTAL ASSETS

584,803

574,882

 

  Payables

9,627

10,734

 

  Short-Term Bank Loans

 

7,500

 

 

 

 

 

  Other Current Liabs

69,042

79,973

 

      TOTAL CURRENT LIABS

78,669

98,207

 

  Debentures

 

20,000

 

  Long-Term Bank Loans

10,034

10,027

 

  Reserve for Retirement Allw

9,967

8,995

 

  Other Debts

 

13,720

14,020

 

      TOTAL LIABILITIES

112,390

151,249

 

      MINORITY INTERESTS

 

 

Common stock

21,279

21,279

 

Additional paid-in capital

20,227

20,227

 

Retained earnings

434,103

407,007

 

Evaluation p/l on investments/securities

25,289

16,055

 

Others

(8,730)

(21,194)

 

Treasury stock, at cost

(19,756)

(19,741)

 

      TOTAL S/HOLDERS` EQUITY

472,412

423,633

 

      TOTAL EQUITIES

584,803

574,882

CONSOLIDATED CASH FLOWS

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

79,498

59,278

 

Cash Flows from Investment Activities

-20,040

-19,959

 

Cash Flows from Financing Activities

-53,798

-37,887

 

Cash, Bank Deposits at the Term End

 

108,338

101,543

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

Net Worth (S/Holders' Equity)

472,412

423,633

 

Current Ratio (%)

321.77

271.72

 

Net Worth Ratio (%)

80.78

73.69

 

Recurring Profit Ratio (%)

22.06

20.83

 

Net Profit Ratio (%)

14.44

23.59

 

 

Return On Equity (%)

8.85

15.75

 

 

           


 

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 :

KAR

 

 

Report Prepared by :

NIT

 

               

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.