MIRA INFORM REPORT
|
Report No. : |
317753 |
|
Report Date : |
22.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
NITTO DENKO CORPORATION |
|
|
|
|
Registered Office : |
Grand Front Osaka Tower A 33F, 4-20 Ohfuka-cho Kitaku Osaka 530-0011 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
October 1918 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufactures industrial tapes (37%), optoronics (38%), medical
supplies & membranes (5%) |
|
|
|
|
No. of Employees : |
26,614 |
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 30,315.1 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
NITTO DENKO
CORPORATION
REGD
NAME
Nitto Denko KK
MAIN
OFFICE
Grand Front Osaka Tower A 33F, 4-20 Ohfuka-cho Kitaku Osaka 530-0011
Japan
Tel: 06-7632-2101 Fax:
06-7632-2102 -
*.. Kanto Plant is its Fukaya Mfg Factory
URL: http://www.nitto.com/jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg of industrial tapes, optoronics,
medical supplies & membranes
BRANCHES: Osaka, Fukaya, Shinagawa, Sendai, other
(Tto13)
OVERSEAS: Worldwide with mfg yards
FACTORIES: Osaki, Fukaya, Toyohashi, Kameari, Ibaraki,
Onomichi
CHIEF EXEC: HIDEO TAKASAKI, PRES
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 749,835 M
PAYMENTS REGULAR CAPITAL Yen 26,783 M
TREND UP WORTH Yen
527,299 M
STARTED 1918 EMPLOYES 26,614
COMMENT: MFR OF INDUSTRIAL TAPES, OTHER FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 30,315.1 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million
Yen
Forecast figures
for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is a comprehensive material producer that attained rapid growth
with industrial tapes as driving force.
IC sealing resins grown into one of major profit-earners. Substantial growth in electronic materials,
including LCD polarizing films and flexible printed circuit board. Aggressive in overseas production.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 749,835
million, an 11.7% up from Yen 671,253 million in the previous term. The recurring profit was posted at Yen 71658
million and the net profit at Yen 51,018 million, respectively, compared with
Yen 87,187 million recurring profit and Yen 43,696 million net profit,
respectively, a year ago.
(Apr/Dec/2014 results): Sales Yen 623,614 million (up 10.5%), operating
profit Yen 82,365 million (up 46.7%), recurring profit Yen 81,693 million (up
49.4%), net profit Yen 56,922 million (up 48.6%). (% as compared with the
corresponding period a year ago).
For the term that ended Mar 2015 the recurring profit was projected at
Yen 87,000 million and the net profit at Yen 64,000 million, respectively, on a
7.4% rise in turnover, to Yen 805,000 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 30,315.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct 1918
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 400 million shares
Issued:
173,758,428 shares
Sum: Yen 26,783 million
Major shareholders
(%):
Master Trust Bank of Japan T (9.4), Japan Trustee Services T (8.2), Company’s
Treasury Stock (5.0), BNP Paribas Securities (2.0), Trust & Custody
Services Inv T (1.5), Chase London AL Omnibus Acct (1.4), CBNY Scout
International Fund (1.3), Nippon Life Ins (1.3), Sompo Japan Nipponkoa Ins
(1.3), CBNY for Depositary Share Holders (1.2); foreign owners (35.9)
No. of
shareholders: 44,146
Listed on the
S/Exchange (s) of: Tokyo
Managements: Yukio Nagira,
ch; Hideo Takasaki, pres; Yoichiro Sakuma, mgn dir; Toshihiko Omote, mgn dir;
Tohru Takeuchi, dir; Yoichiro Furuse, dir; Koji Mizukoshi, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Nitto Optical
Korea, Nitto Optical Taiwan, other
OPERATION
Activities: Manufactures
industrial tapes (37%), optoronics (38%), medical supplies & membranes (5%)
Overseas Sales
Ratio (74%)
Clients: [Mfrs,
wholesalers] Nitto Optical Korea, Nitto Optical Taiwan, Nitto Optical Shanghai,
other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Mitsui & Co, Kuraray, Zeon Corp, Konica Minolta, NP Trading Co,
Dainippon Printing, CBC, other
Payment record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
MUFG (Osaka)
Mizuho Bank (Osaka)
Relations: Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
|
|||
|
|
Annual Sales |
|
749,835 |
671,253 |
|
|
Cost of Sales |
539,051 |
480,014 |
|
|
|
GROSS PROFIT |
210,784 |
191,239 |
|
|
|
Selling & Adm Costs |
138,529 |
122,757 |
|
|
|
OPERATING PROFIT |
72,254 |
68,482 |
|
|
|
Non-Operating P/L |
-596 |
-1,300 |
|
|
|
RECURRING PROFIT |
71,658 |
67,182 |
|
|
|
NET PROFIT |
51,018 |
43,696 |
|
|
BALANCE SHEET |
|
|||
|
|
Cash |
|
208,816 |
217,095 |
|
|
Receivables |
167,939 |
160,786 |
|
|
|
Inventory |
80,321 |
83,570 |
|
|
|
Securities, Marketable |
|
|
|
|
|
Other Current Assets |
27,392 |
21,571 |
|
|
|
TOTAL CURRENT ASSETS |
484,468 |
483,022 |
|
|
|
Property & Equipment |
247,835 |
213,391 |
|
|
|
Intangibles |
18,347 |
13,963 |
|
|
|
Investments, Other Fixed Assets |
30,702 |
30,573 |
|
|
|
TOTAL ASSETS |
781,352 |
740,949 |
|
|
|
Payables |
86,651 |
88,101 |
|
|
|
Short-Term Bank Loans |
6,694 |
11,137 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
119,096 |
76,445 |
|
|
|
TOTAL CURRENT LIABS |
212,441 |
175,683 |
|
|
|
Debentures |
|
50,000 |
|
|
|
Long-Term Bank Loans |
3,510 |
987 |
|
|
|
Reserve for Retirement Allw |
33,723 |
19,757 |
|
|
|
Other Debts |
|
4,378 |
3,417 |
|
|
TOTAL LIABILITIES |
254,052 |
249,844 |
|
|
|
MINORITY INTERESTS |
|
||
|
|
Common stock |
26,783 |
26,783 |
|
|
|
Additional paid-in capital |
56,164 |
56,170 |
|
|
|
Retained earnings |
471,831 |
439,650 |
|
|
|
Evaluation p/l on
investments/securities |
2,533 |
1,901 |
|
|
|
Others |
1,734 |
(994) |
|
|
|
Treasury stock, at cost |
(31,746) |
(32,405) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
527,299 |
491,105 |
|
|
|
TOTAL EQUITIES |
781,352 |
740,949 |
|
|
CONSOLIDATED CASH FLOWS |
|
|||
|
|
Terms ending: |
31/03/2014 |
31/03/2013 |
|
|
|
Cash Flows from Operating Activities |
|
78,286 |
68,152 |
|
|
Cash Flows from Investment
Activities |
-15,735 |
-56,269 |
|
|
|
Cash Flows from Financing Activities |
-18,131 |
-14,822 |
|
|
|
Cash, Bank Deposits at the Term End |
|
203,446 |
152,275 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
|
Net Worth (S/Holders' Equity) |
527,299 |
491,105 |
|
|
|
Current Ratio (%) |
228.05 |
274.94 |
|
|
|
Net Worth Ratio (%) |
67.49 |
66.28 |
|
|
|
Recurring Profit Ratio (%) |
9.56 |
10.01 |
|
|
|
Net Profit Ratio (%) |
6.80 |
6.51 |
|
|
|
|
Return On Equity (%) |
9.68 |
8.90 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.92 |
|
|
1 |
Rs.93.57 |
|
Euro |
1 |
Rs.67.34 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.