MIRA INFORM REPORT

 

 

Report No. :

301456

Report Date :

13.01.2015

 

IDENTIFICATION DETAILS

 

Name :

NIPPON MEAT PACKERS INC

 

 

Registered Office :

Itou Bldg, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

May, 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures and Processes of Ham and Sausages Processed Foods, Fresh Meats, Seafood, Dairy Products.

 

 

No. of Employees :

15,330

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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

 

NIPPON MEAT PACKERS INC

 

 

REGD NAME

 

Nippon Ham KK

 

 

MAIN OFFICE

 

Itou Bldg, 3-6-14 Minami-Honmachi Chuoku Osaka 541-0054 JAPAN

Tel: 06-6282-3031          Fax: 06-6232-1056

 

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

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

 

 

ACTIVITIES

 

Meat processor

 

 

BRANCHES

 

Domestically 406 branches/offices; 2 labs

 

 

OVERSEAS

 

32 locations in 12 countries

 

 

FACTORY (IES)      

 

113 factories domestically

 

 

CHIEF EXEC

 

YOSHIKIYO FUJII, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 963,664 M

PAYMENTSUNKNOWN                         CAPITAL           Yen 24,166 M

TREND STEADY                       WORTH            Yen 291,580 M

STARTED         1949                             EMPLOYES      15,330

 

 

COMMENT

 

MEAT PROCESSOR

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                              BUSINESS ENGAGEMENTS.

                       

 

                       

                        Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

           

This is major comprehensive meat processor.  Top-ranked in ham & sausages.  Engaged in meat mfg from cattle & hog raising to ham & sausage processing and marketing. Operates livestock farm in Australia through subsidiary.  Diversified into seafood and dairy products. 

 

Owns professional baseball team.  In June 2006, closed down production of ham/sausages at Osaka-Kita & Wakayama plants and refurbished into distribution center.  Restructuring is being carried out.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 963,664 million, a 3.1% up from Yen 934,678 million in the previous term.  Processed food and meat sales grew but imported been turned unprofitable.  The recurring profit was posted at Yen 2,335 million and the net profit at Yen 952 million, respectively, compared with Yen 22,382 million recurring profit and Yen 11,839 million net profit, respectively, a year ago. Profits decline is referred to restructuring costs & expenses.

 

For the current term ending Mar 2007 the recurring profit is projected at Yen 14,000 million and the net profit at Yen 9,000 million, on a 1.7% rise in turnover, to Yen 980,000 million.  Processed food and meat will continue to grow.  Profits will improve thru disposal of below-cost products.

 

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

 

 

REGISTRATION

 

Date Registered:           May 1949

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                  570 million shares

Issued:                         228,445,360 shares

Sum:                            Yen 24,166 million

 

Major shareholders (%):

Master Trust Bank of Japan T (6.9), Mitsubishi Corp (5.1), Japan Trustee Services  Bank T (4.8), Hyakujushi Bank (4.3), Meiji Yasuda Life Ins (4.2), Norin Chukin Bank (3.9), Nippon Life Ins (3.5), MUFG (3.2), Dai-ichi Life Ins (3.1), Nipponkoa Ins (2.1); foreign owners (21.2)

           

No. of shareholders:     11,321

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Luxemburg, Paris

 

Managements: Yoshikiyo Fujii, pres & CEO; Yosuke Umemoto, v pres; Sumio Munemura, dir; Haruaki Takeda, dir; Keiji Okoso, dir; Hiroshi Kobayashi, dir; Noboru Takesoe, dir; Satoshi Tsuchida, dir; Sachiko Hayakawa, dir

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

 

Related Companies: Nippon Ham Shokuhin, Marine Foods, others (Tot 118 as of Mar/06)

           

 

OPERATION

 

Activities: Manufactures and processes ham & sausages (13.9%), processed foods (19.2%), fresh meats (51.6%), seafood (8.6%), dairy products (2.2%), others (4.5%).

 

Clients: Department stores, chain stores, food processors, butchers, schools, other

No. of accounts: 3,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Toyota Tsusho Corp, other.

 

Payment record: Unknown

 

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

 

Bank References:

            Hyakujushi Bank (Osaka)

            Norin Chukin Bank (Osaka)

            Relations: Satisfactory

 

 

FINANCES

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

963,664

934,678

 

  Cost of Sales

789,461

736,119

 

      GROSS PROFIT

174,203

198,559

 

  Selling & Adm Costs

164,128

171,315

 

      OPERATING PROFIT

10,075

27,244

 

  Non-Operating P/L

-7,740

-4,862

 

      RECURRING PROFIT

2,335

22,382

　

      NET PROFIT

952

11,839

BALANCE SHEET

 

 

 

 

  Cash

　

27,180

66,793

 

  Receivables

 

102,832

97,283

 

  Inventory

 

117,011

95,646

 

  Securities, Marketable

198

1,595

 

  Other Current Assets

23,822

19,496

 

      TOTAL CURRENT ASSETS

271,043

280,813

 

  Property & Equipment

259,727

266,494

 

  Intangibles

 

　

　

 

  Investments, Other Fixed Assets

60,656

63,943

 

      TOTAL ASSETS

591,426

611,250

 

  Payables

 

88,141

91,077

 

  Short-Term Bank Loans

71,823

78,480

 

　

 

　

　

 

  Other Current Liabs

36,949

56,783

 

      TOTAL CURRENT LIABS

196,913

226,340

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

86,663

61,724

 

  Reserve for Retirement Allw

10,743

48,074

 

  Other Debts

　

3,577

3,537

 

      TOTAL LIABILITIES

297,896

339,675

 

      MINORITY INTERESTS

1,950

2,954

 

Common stock

24,166

24,166

 

Additional paid-in capital

50,688

50,553

 

Retained earnings

203,542

206,346

 

Evaluation p/l on investments/securities

　

　

 

Others

 

13,405

(12,250)

 

Treasury stock, at cost

(221)

(194)

 

      TOTAL S/HOLDERS` EQUITY

291,580

268,621

　

      TOTAL EQUITIES

591,426

611,250

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

-21,207

34,880

 

Cash Flows from Investment Activities

-16,661

-23,530

 

Cash Flows from Financing Activities

-1,746

-18,145

　

Cash, Bank Deposits at the Term End

　

27,180

66,793

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

291,580

268,621

 

 

Current Ratio (%)

137.65

124.07

 

 

Net Worth Ratio (%)

49.30

43.95

 

 

Recurring Profit Ratio (%)

0.24

2.39

 

 

Net Profit Ratio (%)

0.10

1.27

 

 

Return On Equity (%)

0.33

4.41

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.16

UK Pound

1

Rs.94.28

Euro

1

Rs.73.73

 

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.