MIRA INFORM REPORT

Report No. :	317889
Report Date :	24.04.2015

IDENTIFICATION DETAILS

Name :	CALBEE INC
Registered Office :	Marunouchi Trust Tower Main, 22nd floor, 1-8-3 Marunouch Chiyodaku, Tokyo 100-0005
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	April 1949
Com. Reg. No.:	0100-01-133757
Legal Form :	Not Available
Line of Business :	Production and Sale of Snacks and Other Food Products.
No. of Employees :	3,341

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 6,961.8 Million
Status :	Satisfactory
Payment Behaviour :	No Complaints
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 & Address

ENGLISH COMPANY NAME	CALBEE INC
Japanese company name	CALBEE KK (Kabushiki kaisha)
Registered Office
1. Street Number and District	Marunouchi Trust Tower Main, 22nd floor, 1-8-3 Marunouch Chiyodaku
2. City and Perefecture	Tokyo
3. ZIP Code	100-0005
4. Country	JAPAN
TEL	03-5220-6222
FAX	Information not available
URL	www.calbee.co.jp/
Email Address	thru the URL
Activities (Services & Products)	Production and sale of snacks and other food products.
SUMMARY OF REPORT
Annual Sales (MM YEN)	199,941
Capital Amount (MM YEN)	11,946
Net Worth (MM YEN)	104,466
FINANCES	FAIR
TREND	UP
EMPLOYEES	3,341
CREDIT LIMIT PROPOSED(MM YEN)	6,961.8
OTHER INFORMATION FOLLOWS:
Year Started	1949
Month and Year Registered	Apr. 1949
Regd No.	0100-01-133757
Major Shareholders
1	FRITO-LAYGLOBALINVESTMENTSB.V. (20%)
2	General incorporated association Mikinokai (17%)
3	Other
Number of Shareholders	12,988
Authorized Shares	176,000,000
Issued Shares	133,629,800
Executives
PRESIDENT	SHUJI ITO
Chairman	Akira Matsumoto
Director (outside)	Yuzaburo Mogi
Director (outside)	Koji Kioka
Director (outside)	Kazuo Ichijo
Main Banks
1	Muzuho Bank (Akabane)
2	MUFG (Ueno)
Relations	Satisfactory
Clients
1	Yamaboshiya Co., Ltd.
2	Mitsubishi Shokuhin Co., Ltd.
3	Takayama Co., Ltd.
4	Other
Suppliers
1	Riken Vitamin Co., Ltd.
2	Dai Nippon Printing Co., Ltd.
3	Fuji Oil Co., Ltd.
4	Other
Branches
1	Utsunomiya
2	Sapporo
3	Nagoya
4	Osaka
5	Other (total 45)
Factories
1	Chitose
2	Shin-Utsunomiya
3	Other (total 14 including affiliated factories)
Overseas
1	U.S.A.
2	Thailand
3	Other
HIGHLIGHT and COMMENT	The subject company was founded in 1949 and its headquarters is located in Tokyo. It is a major Japanese snack food maker and is engaged in the production and sale of snacks and other food products. It offeres potato chips, vegitable snacks, shrimp crackers, cereals, and potato, flour, and corn-baed snacks. It is also involved in the production and sale of breads, and confectionary as well as frozen dough products, other. Its snacks are hugely popular in Asia, and are well known in the States. In 2009, Calbee agreed with Pepsico group to form business and capital tie-up. Frito-Lay Japan (Pepsico Group Company) became a subsidiary of Calbee after the announcement of new buisnes and capital relationship.
FINANCIAL information	Financials fully disclosed
	The sales volume for March/2014 fiscal term amounted to Yen 199,941 million, a 11 % up from Yen 179,411 million in the previous term. The recurring profit was posted at Yen 20,782 million and the net profit at Yen 12,086 million, respectively, compared with Yen 17,127 million recurring profit and Yen 9,440 million net profit, respectively, a year ago. For the term that ended March 2015 the recurring profit was projected at Yen 22,500 million and the net profit at Yen 13,300 million, respectively, on a 7% rise in turnover, to Yen 213,000 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 6,961.8 million, on 30 days normal terms.
PLEASE ATTACH THE FINANCIALS BELOW.
Note: Forecast (or estimated) figures for the 31/03/2015 fiscal term
Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
31/03/2011	155,529	10,570	4,253	(%)	72,924
31/03/2012	163,268	12,486	7,096	4.98	80,417
31/03/2013	179,411	17,127	9,440	9.89	92,685
31/03/2014	199,941	20,782	12,086	11.44	104,466
31/03/2015	213,000	22,500	13,300	6.53	117,766
				*..Unit: Million Yen
FINANCES: (Consolidated in million yen)
		Terms Ending:	31/03/2014	31/03/2013
INCOME STATEMENT
	Annual Sales		199,941	179,411
	Cost of Sales		112,731	100,889
	GROSS PROFIT		87,210	78,522
	Selling & Adm Costs		67,492	62,731
	OPERATING PROFIT		19,718	15,791
	Non-Operating P/L		1,064	1,336
	RECURRING PROFIT		20,782	17,127
	NET PROFIT		12,086	9,440
BALANCE SHEET
	Cash		18,783	17,342
	Receivables		17,392	19,787
	Inventory		6,522	5,661
	Securities, Marketable		29,997	13,999
	Other Current Assets		6,140	5,981
	TOTAL CURRENT ASSETS		78,834	62,770
	Property & Equipment		50,166	49,453
	Intangibles		4,613	5,297
	Investments, Other Fixed Assets		7,353	7,273
	TOTAL ASSETS		140,966	124,793
	Payables		7,897	6,671
	Short-Term Bank Loans		0	0
	Other Current Liabs		20,776	19,797
	TOTAL CURRENT LIABS		28,673	26,468
	Debentures		0	0
	Long-Term Bank Loans		0	7
	Reserve for Retirement Allw		6,725	4,500
	Other Debts		1,102	1,133
	TOTAL LIABILITIES		36,500	32,108
	MINORITY INTERESTS
	Common stock		11,946	11,586
	Additional paid-in capital		11,514	11,154
	Retained earnings		74,259	64,215
	Evaluation p/l on investments/securities
	Others		7,009	5,730
	Treasury stock, at cost		(262)	0
	TOTAL S/HOLDERS` EQUITY		104,466	92,685
	TOTAL EQUITIES		140,966	124,793
CONSOLIDATED CASH FLOWS
		Terms ending:	31/03/2014	31/03/2013
	Cash Flows from Operating Activities		23,478	17,328
	Cash Flows from Investment Activities		-17,041	-12,999
	Cash Flows from Financing Activities		-383	607
	Cash, Bank Deposits at the Term End		31,592	25,331
ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013
		Net Worth (S/Holders' Equity)	104,466	92,685
		Current Ratio (%)	274.94	237.15
		Net Worth Ratio (%)	74.11	74.27
		Recurring Profit Ratio (%)	10.39	9.55
		Net Profit Ratio (%)	6.04	5.26
		Return On Equity (%)	11.57	10.19

CALBEE #317889
FINANCES: (CONSOLIDATED IN MILLION YEN)
		Terms Ending:	31/03/2014	31/03/2013	IND/03/2014
INCOME STATEMENT
	Annual Sales		199,941	179,411		←記入開始位置
	Cost of Sales		112,731	100,889
	GROSS PROFIT		87,210	78,522	0
	Selling & Adm Costs		67,492	62,731
	OPERATING PROFIT		19,718	15,791	0
	Non-Operating P/L		1,064	1,336
	RECURRING PROFIT		20,782	17,127	0
	NET PROFIT		12,086	9,440
BALANCE SHEET
	Cash		18,783	17,342
	Receivables		17,392	19,787
	Inventory		6,522	5,661
	Securities, Marketable		29,997	13,999
	Other Current Assets		6,140	5,981	0
	TOTAL CURRENT ASSETS		78,834	62,770
	Property & Equipment		50,166	49,453
	Intangibles		4,613	5,297
	Investments, Other Fixed Assets		7,353	7,273	0
	TOTAL ASSETS		140,966	124,793
	Payables		7,897	6,671
	Short-Term Bank Loans		0	0
	Other Current Liabs		20,776	19,797	0
	TOTAL CURRENT LIABS		28,673	26,468
	Debentures		0	0
	Long-Term Bank Loans		0	7
	Reserve for Retirement Allw		6,725	4,500
	Other Debts		1,102	1,133	0
	TOTAL LIABILITIES		36,500	32,108
	MINORITY INTERESTS				..
	Common stock		11,946	11,586
	Additional paid-in capital		11,514	11,154
	Retained earnings		74,259	64,215
	Evaluation p/l on investments/securities
	Others		7,009	5,730	0
	Treasury stock, at cost		(262)	0
	TOTAL S/HOLDERS` EQUITY		104,466	92,685
	TOTAL EQUITIES		140,966	124,793	0
CONSOLIDATED CASH FLOWS
		Terms ending:	31/03/2014	31/03/2013	31/03/2012
	Cash Flows from Operating Activities		23,478	17,328
	Cash Flows from Investment Activities		-17,041	-12,999
	Cash Flows from Financing Activities		-383	607
	Cash, Bank Deposits at the Term End		31,592	25,331
ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013	IND/03/2014
		Net Worth (S/Holders' Equity)	104,466	92,685	0
		Current Ratio (%)	274.94	237.15	#DIV/0!
		Net Worth Ratio (%)	74.11	74.27	#DIV/0!
		Recurring Profit Ratio (%)	10.39	9.55	#DIV/0!
		Net Profit Ratio (%)	6.04	5.26	#DIV/0!
		Return On Equity (%)	11.57	10.19	#DIV/0!
Notes: Audited by CPA. IND/xx/yyyy.. Non-consolidated figures for (xx month)/(yyyy year) term.
		Current Sales	199,941
		Credit Limit	6,961.8

CALBEE #317889
BUSINESS	TERMS ENDING	ANNUAL SALES*	R.PROFIT*	N.PROFIT*	S.GROWTH	NET WORTH*
Results:	31/03/2011	155,529	10,570	4,253	(%)	72,924
(Consolidated)	31/03/2012	163,268	12,486	7,096	4.98	80,417
	31/03/2013	179,411	17,127	9,440	9.89	92,685
	31/03/2014	199,941	20,782	12,086	11.44	104,466
	31/03/2015	213,000	22,500	13,300	6.53	117,766
	Forecast (or estimated) figures for 31/03/2015 term.				*..Unit: Million Yen

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.19
UK Pound	1	Rs.94.94
Euro	1	Rs.67.66

INFORMATION DETAILS

Analysis Done by :	RAS
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%)

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