MIRA INFORM REPORT

 

 

Report No. :

302998

Report Date :

29.01.2015

 

IDENTIFICATION DETAILS

 

Name :

KONICA MINOLTA INC

 

 

Registered Office :

2-7-2 Marunouchi Chiyodaku Tokyo 100-7015

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

Dec., 1936

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Business Machines.

 

 

No. of Employees :

40,401

 

 

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

 

 

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 – 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 and address

 

KONICA MINOLTA INC

 

REGD NAME:               Konica Minolta KK

 

MAIN OFFICE:              2-7-2 Marunouchi Chiyodaku Tokyo 100-7015 JAPAN

                                                Tel: 03-6250-2111          -

URL:                             http://www.konicaminolta.jp

E-Mail address:            (Thru the URL)

 

 

ACTIVITIES

 

Mfg of business machines

 

 

BRANCHES

 

Tokyo, Osaka, other

 

 

OVERSEAS

 

Asia, Americas, Europe, Mid East, other

 

 

FACTORIES

14 factories; China, USA, France

 

 

CHIEF EXEC

 

SHOEI YAMANA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 943,759 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 37,519 M

TREND UP                                WORTH                        Yen 480,055 M

STARTED         1936                             EMPLOYES                 40,401

 

 

COMMENT

 

MFR OF BUSINESS MACHINES 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

 

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is a holding company formed thru business combination between Konica and Minolta. Pulled out of camera and photo businesses in 2006. Midsize maker of business machines. Also involved in digital radiography (DR) and TAC film used on the surfaces of LCDs. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 943,759 million, a 16.1% up from Yen 813,073 million in the previous term.  Sales of multifunction color copiers grew through expanded sales channels in Europe via M&A in the preceding term, with higher earnings value thanks to the weaker Yen.  The recurring profit was posted at Yen 54,621 million and the net profit at Yen 21,861 million, respectively, compared with Yen 38,901 million recurring profit and Yen 15,124 million net profit, respectively, a year ago.

 

(Apr/Sept/2014 results): Sales Yen 478,594 million (up 6.2%), operating profit Yen 29,173 million (Up 20.7%), recurring profit Yen 28,669 million (up 33.4%), net profit Yen 14,682 million (up 164.2%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 61,000 million and the net profit at Yen 30,000 million, respectively, on a 7% rise in turnover, to Yen 1,010,000 million.  Multifunction copier sales will be steady, offsetting a slump in LCD materials.

 

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

 

 

REGISTRATION

           

Date Registered:　          Dec 1936

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              1,200 million shares

Issued:                         531,664,337 shares

Sum:                            Yen 37,519 million

 

Major shareholders (%): Japan Trustee Services T (5.6), Master Trust Bank of Japan T (5.4), Company’s Treasury Stock (3.1), MUFG (2.6), JP Morgan Chase Bank 385167 (2.2), JTSB (SMBC) (2.2), Nippon Life Ins (2.1), Nomura (BOTMU) (2.0), Sajap (2.0), Daido Life Ins (1.7); foreign owners (44.8)

 

No. of shareholders: 18,677

 

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

 

Managements: Shoei Yamana, pres; Takashi Sugiyama, s/mgn dir; Ken Osuga, mgn dir; Seiji Hatano, mgn dir; Masatoshi Matsuzaki, dir; Shoji Kondo, dir; Hirokazu Yoshikawa, dir; Takashi Enomoto, dir; Kazuaki Kama, dir; Akio Kitani, dir

 

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

 

Related companies: Konica Minolta Business Technologies, other.

 

 

OPERATION

 

Activities: Manufactures business machines: information equipment (77%), industrial business (12%), healthcare products (9%), others (2%)

Overseas Sales Ratio (77%)

           

Clients: [Mfrs, wholesalers] Konica Minolta Business Solutions, Konica Minolta   Healthcare, Kinko’s Japan, other

Exports to overseas subsidiaries & partners

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Konica Minolta Supplies, Konica Minolta Opt Products, Konica Minolta Techno  Products, other

 

Payment record: No Complaints

 

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

 

Bank References:

            MUFG (Nihombashi)

            SMBC (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

943,759

813,073

　

  Cost of Sales

492,269

437,487

　

      GROSS PROFIT

451,490

373,585

　

  Selling & Adm Costs

393,346

334,926

　

      OPERATING PROFIT

58,144

38,659

　

  Non-Operating P/L

-3,523

242

　

      RECURRING PROFIT

54,621

38,901

　

      NET PROFIT

21,861

15,124

BALANCE SHEET

　

　

  Cash

　

95,490

93,413

　

  Receivables

220,120

194,038

　

  Inventory

115,275

112,479

　

  Securities, Marketable

92,999

120,501

　

  Other Current Assets

65,447

59,162

　

      TOTAL CURRENT ASSETS

589,331

579,593

　

  Property & Equipment

173,362

179,903

　

  Intangibles

111,362

110,937

　

  Investments, Other Fixed Assets

92,005

70,120

　

      TOTAL ASSETS

966,060

940,553

　

  Payables

96,240

86,424

　

  Short-Term Bank Loans

37,078

67,398

　

　

　

　

　

  Other Current Liabs

151,902

828,849

　

      TOTAL CURRENT LIABS

285,220

982,671

　

  Debentures

70,000

70,000

　

  Long-Term Bank Loans

62,042

63,507

　

  Reserve for Retirement Allw

53,563

43,754

　

  Other Debts

　

15,180

(685,796)

　

      TOTAL LIABILITIES

486,005

474,136

　

      MINORITY INTERESTS

　

　

Common stock

37,519

37,519

　

Additional paid-in capital

204,140

204,140

　

Retained earnings

242,460

229,713

　

Evaluation p/l on investments/securities

5,086

3,345

　

Others

8,172

(6,753)

　

Treasury stock, at cost

(17,322)

(1,548)

　

      TOTAL S/HOLDERS` EQUITY

480,055

466,416

　

      TOTAL EQUITIES

966,060

940,553

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

89,945

66,467

　

Cash Flows from Investment Activities

-55,776

-63,442

　

Cash Flows from Financing Activities

-61,954

-24,596

　

Cash, Bank Deposits at the Term End

　

188,489

213,914

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

480,055

466,416

　

Current Ratio (%)

206.62

58.98

　

Net Worth Ratio (%)

49.69

49.59

　

Recurring Profit Ratio (%)

5.79

4.78

　

Net Profit Ratio (%)

2.32

1.86

　

　

Return On Equity (%)

4.55

3.24

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.93.18

Euro

1

Rs.69.82

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.