MIRA INFORM REPORT

 

 

Report No. :

332818

Report Date :

17.07.2015

 

IDENTIFICATION DETAILS

 

Name :

PANASONIC CORPORATION

 

 

Registered Office :

1006 Kadoma Kadoma City Osaka-Pref 571-0050

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Dec., 1935

 

 

Com. Reg. No.:

1200-01-158218 (Osaka-Kadoma)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of AV, Other Home Electric Appliances.

 

 

No. of Employees :

254,084

 

 

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 Limits :

Yen ^143,003.5 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company Name and address

 

PANASONIC CORPORATION

 

REGD NAME:               Panasonic KK

 

MAIN OFFICE:              1006 Kadoma Kadoma City Osaka-Pref 571-0050 JAPAN

 

                                                Tel: 06-6908-1121     Fax: 06-6901-7130     -

 

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

 

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

Mfg of AV, other home electric appliances

 

 

BRANCHES

 

Sapporo, Sendai, Tokyo, Osaka, Fukuoka, other (Tot 100)

 

 

OVERSEAS

 

Worldwide

 

 

FACTORIES  

 

At the caption address, Kobe, Kusatsu, Hikone, Takatsuki, Niigata, other

 

 

CHIEF EXEC

 

KAZUHIRO TSUGA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 7,715,037 M

PAYMENTSREGULAR   CAPITAL                       Yen 258,740 M

TREND STEADY           WORTH                        Yen 1,992,552 M

STARTED         1935                 EMPLOYES                  254,084

 

 

COMMENT

 

MFR OF HOME ELECTRIC APPLIANCES 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN ^143,003.5 MILLION, 30 DAYS NORMAL TERMS

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the largest comprehensive mfr of AV and other home electric appliances. Under its auspices, controls 2 core operating subsidiaries: Panasonic Electric Works, major housing materials & equipment maker, and Sanyo Electric excelling in field of energy. Around 50% of consolidated sales generated by overseas business. The company is targeting operating profit at Yen 350 billion and operating profit ratio at 50% in the March 2016 term under the new medium-term business plan.  Achievement of those targets depends on shift away from in-house products and profit emergence in the TV and semiconductor businesses.  It aims to expand sales of products for enterprise.  The company will buy a leading wiring device maker in Turkey, and will vigorously spend capital in growing fields. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 7,715,037 million, a 0.3% down from Yen 7,736,541 million in the previous term.  The recurring profit was posted at Yen 182,456 million and the net profit at Yen 179,485 million, respectively, compared with Yen 206,225 million recurring profit and Yen 120,442 net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 300,000 million and the net profit at Yen 180,000 million, on a 3.7% rise in turnover, to Yen 8,000,000 million.  Sales of focused businesses, namely car-mounted equipment, housing equipment, and services for corporations, will grow.

 

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen ^143,003.5 million, on 30 days normal terms.

 

 

REGISTRATION

           

     Date Registered:      Dec 1935

     Regd No:                 1200-01-158218 (Osaka-Kadoma)

Legal Status:    Limited Company (Kabushiki Kaisha)

     Authorized:               4,950 million shares

Issued:             2,453,053,497 shares

Sum:                 Yen 258,740 million

 

Major shareholders (%): Company’s Treasury Stock (5.7), Japan Trustee Services T (5.7), Master Trust Bank of Japan T (4.8), State Street Bank & Trust (3.3), Nippon Life Ins (2.8), Employees’ S/Holding Assn (1.8), Sumitomo Life Ins (1.5), Bank of New York Mellon SANV 10 (1.3), Matsushita Real Estate (1.1), other; foreign owners (32.9)

 

No. of shareholders: 412,080

 

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

 

Managements: Shusaku Nagase, ch; Kazuhiro Tsuga, pres; Yoshihiko Yamada, v pres; Ikusaburo Kashima, s/mgn dir; Yoshiiku Miyata, s/mgn dir; Kazunori Takami, s/mgn dir; Hideaki Kawai, s/mgn dir; Yoshiyuki Miyabe, s/mgn dir; Takashi Toyama, mgn dir

 

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

 

Related companies: Sanyo Electric, Panasonic Electric Works, other.

 

 

OPERATION

           

Activities: Manufactures AP (22%), Echo solutions (20%), AVC (14%), ATS (34%), others (9%)

Overseas Sales Ratio (52%)

 

(Mfg Items):

Digital AV: projector, digital cameras, cameras, dual camera, ventilator, air purifier, portable power supply, telephones, network cameras

Car AV & Navigation System

Home Appliances & Batteries

Beauty & Healthcare: hair dryer, hair iron, facial ionic steamer, eyelash curler, epilator, compact toothbrush, oxygen concentrator, massage chairs, hygiene toilet seat, blood pressure meter, other

           

Clients: [Mfrs, wholesalers] Sekisui House, Kansai Kikai Hambai, Hitachi Hi-Technologies, Panasonic Consumer Marketing, Toyota Motor, Panasonic North America, Panasonic Europe, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Hi-Technologies, Sanyo Electric, other

 

Payment record: Regular

 

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

 

Bank References:

            SMBC (Osaka H/O)

            Resona Bank (Osaka)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

7,715,037

7,736,541

　

  Cost of Sales

5,527,213

5,638,869

　

      GROSS PROFIT

2,187,824

2,097,672

　

  Selling & Adm Costs

1,805,911

1,792,558

　

      OPERATING PROFIT

381,913

305,114

　

  Non-Operating P/L

-199,457

-98,889

　

      RECURRING PROFIT

182,456

206,225

　

      NET PROFIT

196,366

121,645

BALANCE SHEET

　

　

  Cash

　

1,280,408

592,467

　

  Receivables

937,986

958,451

　

  Inventory

762,670

750,681

　

  Securities, Marketable

　

　

　

  Other Current Assets

431,676

352,393

　

      TOTAL CURRENT ASSETS

3,412,740

2,653,992

　

  Property & Equipment

1,374,831

1,425,449

　

  Intangibles

　

　

　

  Investments, Other Fixed Assets

1,169,376

1,133,553

　

      TOTAL ASSETS

5,956,947

5,212,994

　

  Payables

746,335

736,652

　

  Short-Term Bank Loans

260,531

84,738

　

　

　

　

　

  Other Current Liabs

1,725,934

1,616,469

　

      TOTAL CURRENT LIABS

2,732,800

2,437,859

　

  Debentures

　

　

　

  Long-Term Bank Loans

712,385

557,374

　

  Reserve for Retirement Allw

　

　

　

  Other Debts

　

519,210

631,323

　

      TOTAL LIABILITIES

3,964,395

3,626,556

　

      MINORITY INTERESTS

　

　

Common stock

258,740

258,740

　

Additional paid-in capital

984,111

1,109,501

　

Retained earnings

1,021,241

878,740

　

Evaluation p/l on investments/securities

(193,251)

(451,699)

　

Others

169,264

38,288

　

Treasury stock, at cost

(247,548)

(247,132)

　

      TOTAL S/HOLDERS` EQUITY

1,992,557

1,586,438

　

      TOTAL EQUITIES

5,956,947

5,212,994

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

491,463

581,950

　

Cash Flows from Investment Activities

-138,008

12,128

　

Cash Flows from Financing Activities

257,615

-532,315

　

Cash, Bank Deposits at the Term End

　

1,280,408

592,457

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

1,992,557

1,586,438

　

Current Ratio (%)

124.88

108.87

　

Net Worth Ratio (%)

33.45

30.43

　

Recurring Profit Ratio (%)

2.36

2.67

　

Net Profit Ratio (%)

2.55

1.57

　

　

Return On Equity (%)

9.85

7.67

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.50

UK Pound

1

Rs.99.17

Euro

1

Rs.69.39

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.