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MIRA INFORM REPORT

 

 

Report No. :

332880

Report Date :

18.07.2015

 

IDENTIFICATION DETAILS

 

Name :

TAKEDA PHARMACEUTICAL CO LTD

 

 

Registered Office :

4-1-1 Doshomachi Chuoku Osaka　540-8645

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 1925

 

 

Com. Reg. No.:

1200-01-077461

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufactures pharmaceuticals (ethical drugs), health-care foods

 

 

No. of Employee :

31,328

 

 

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 :

Slow but correct

 

 

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

 

TAKEDA PHARMACEUTICAL CO LTD

 

 

REGD NAME

 

Takeda Yakuhin Kogyo KK

 

 

MAIN OFFICE

 

4-1-1 Doshomachi Chuoku Osaka　540-8645 JAPAN

Tel: 06-6204-2111     Fax: 06-6204-2880

 

 

URL

 

http://www.takeda.com/

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of pharmaceuticals

 

 

BRANCHES

 

Tokyo, Sapporo, Sendai, Yokohama, Nagoya, Kobe, Kyoto, Takamatsu, Fukuoka,

Hiroshima, Fukuoka, other (Tot 165)

 

 

OVERSEAS

 

USA (7), Canada, France, Italy, Germany, Austria, Switz, Spain, Portugal, Ireland,

Netherlands, Sweden, Turkey, China, Taiwan, Thailand, Philippines, Indonesia,

Singapore, Mexico (--subsidiaries), other (Tot 144 subsidiaries, and 18 equity-method affiliates, a total of 161 companies. Company has operations in approx 70 countries & territories)

 

R&D CENTERS

 

Osaka, Fujisawa, USA (3), UK (2), Singapore

 

 

FACTORIES

 

Osaka, Hikari; Italy, Ireland, China, Indonesia, USA, India, other

 

 

CHIEF EXEC

 

CHRISTOPHE WEBER, PRES

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,777,824 M

PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 64,044 M

TREND STEADY                       WORTH            Yen 2,206,176 M

STARTED         1925                             EMPLOYES      31,328

 

 

COMMENT

 

PHARMACEUTICAL MFR. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Unit: Million Yen

Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

 

This is a top-ranked time-honored pharmaceutical mfr, dating back to 1781 when Chobei Takeda set up a small firm, on his own, for selling Japanese & Chinese herbal medicine.   In 1871, formed a cooperative union for purchasing and importing Western medicines.  In 1985, started import of Western medicines.  In 1895, began direct imports from England, US, Germany, Spain, other.  In 1896, launched pharmaceutical mfg business.  In 1907, obtained exclusive sales rights in Japan for products from German company Bayer.   And in 1925 incorporated as Chobei Takeda & Co Ltd.  The name changed as captioned in 1943.  The subject steadily expanded its pharmaceutical business and even began exports to US, Russia and China.  Has strength in drugs for lifestyle-related illness such as high blood pressure and diabetes.  Leads others in genome research.  In untapped markets, such as emerging countries, expanding own sales network, while planning marketing of generic products.  The company purchased a US venture Millennium Pharmaceuticals in 2008, and has accelerated R&D of curatives for cancers.  Also purchased Switzerland’s Nycomed and obtained sales networks in Brazil, Russia and other emerging countries.  By the fiscal 2017, the company will raise operating profit (excluding costs including goodwill amortization) level by added Yen 200 billion through sale of new products and slashing costs.  CEO, Christophe Weber, was hired in from UK pharmaceutical firm took up the post in Apr 2014.  It will step up efforts to penetrate emerging markets. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 1,777,824 million, a 5.1% up from Yen 1,691,685 million in the previous term.  Sales of drugs receded in Japan, but grew in overseas.  The operations plunged into the deficit to post Yen 145,437 million recurring loss and Yen 143,034 million net losses, respectively, compared with Yen 158,851 million recurring profit and Yen 109,558 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 115,000 million and the net profit at Yen 68,000 million, on a 2.4% rise in turnover, to Yen 1,820,000 million.  Sales will remain brisk in overseas, mainly the US.  In Japan, sales of new products will cover the impact of penetration of generics.   

 

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

 

 

REGISTRATION

           

       Date Registered:　  Jan 1925

      Regd No.:                  1200-01-077461 (Osaka-Chuoku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         3,500 million shares

Issued:                789,920,595 shares

Sum:                   Yen 64,044 million

           

Major shareholders (%): Nippon Life Ins (6.4), Master Trust Bank of Japan T (3.9), Japan Trustee Services T (3.3), JP Morgan Chase Bank 385147 (2.4), Takeda Science Foundation (2.2), Barclays Securities Japan (1.8), JP Morgan Chase Bank 385147 (1.6), State Street Bank West Treaty (1.4), State Street Bank &Trust 505225 (1.2), Bank of New York Mellon SANV10 (1.2); foreign owners (32.4)

           

No. of shareholders: 260,348

 

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

 

Managements: Yasuchika Hasegawa, ch; Christophe Weber, pres; Shinji Honda, s/mgn dir; Andrew Plump, mgn dir; Masato Iwasaki, dir; Fumio Yabuto, dir; Yorihiko Kojima, dir; Masahiro Sakane, dir

 

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

 

Related companies: Takeda America Holdings Inc, Takeda Europe Holdings Inc,

Nihon Pharmaceutical Co, other

 

 

OPERATION

           

Activities: Manufactures pharmaceuticals (Ethical Drugs) (91%), Health-care foods (4%), others (6%).

Overseas Sales Ratio (60%)

 

     (Sales by Region as of Fiscal 2013): Japan (43.4%), North America (22.1%), South                                  America (4.8%), Europe (22.1%), Russia/CIS (5.3%), Asia (5.0%), others (1.7%)

 

(Products by therapeutic category): For: allergy, cardiovascular, central nervous system, diabetes, gastrointestinal, gout, infection, inflammation, interleukin, osteoporosis, urology & gynecology, vaccine, vitamin, other.

           

Clients: [Pharmaceutical mfrs, wholesalers] Mediceo Corp, Alfresa Corp, Astem Co, Vital Net Inc, Nakakita Co, Nabelin Co, Miyazaki Onsendo Shoten Corp, Tomita Pharmaceutical, Toshichi Co, other

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Pfizer Japan Inc, Asuka Pharmaceutical Co, Senju Pharmaceutical Co, Biofermin Pharmaceutical Co, Nihon Pharmaceutical Co, other.

 

Payment record: Slow but correct

 

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

 

Bank References:

                        SMBC (Osaka)

                        Mizuho 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

　

1,777,824

1,691,685

　

  Cost of Sales

520,990

490,263

　

      GROSS PROFIT

1,256,834

1,201,422

　

  Selling & Adm Costs

1,386,088

1,062,148

　

      OPERATING PROFIT

-129,254

139,274

　

  Non-Operating P/L

-116,183

19,577

　

      RECURRING PROFIT

-245,437

158,851

　

      NET PROFIT

-143,034

109,558

BALANCE SHEET

　

　

  Cash

　

652,148

666,048

　

  Receivables

444,681

430,620

　

  Inventory

262,354

254,329

　

  Securities, Marketable

　

　

　

  Other Current Assets

160,889

241,539

　

      TOTAL CURRENT ASSETS

1,520,072

1,592,536

　

  Property & Equipment

526,162

542,253

　

  Intangibles

939,381

1,135,597

　

  Investments, Other Fixed Assets

1,310,577

1,298,758

　

      TOTAL ASSETS

4,296,192

4,569,144

　

  Payables

99,965

155,404

　

  Short-Term Bank Loans

170,782

184,900

　

　

　

　

　

  Other Current Liabs

740,231

462,450

　

      TOTAL CURRENT LIABS

1,010,978

802,754

　

  Debentures

629,416

704,580

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

91,686

76,497

　

  Other Debts

　

357,936

444,678

　

      TOTAL LIABILITIES

2,090,016

2,028,509

　

      MINORITY INTERESTS

　

　

Common stock

64,044

63,562

　

Additional paid-in capital

59,575

39,866

　

Retained earnings

(18,203)

(621)

　

Evaluation p/l on investments/securities

430,305

466,624

　

Others

1,688,658

1,971,825

　

Treasury stock, at cost

(18,203)

(621)

　

      TOTAL S/HOLDERS` EQUITY

2,206,176

2,540,635

　

      TOTAL EQUITIES

4,296,192

4,569,144

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

182,517

118,720

　

Cash Flows from Investment Activities

91,347

-154,057

　

Cash Flows from Financing Activities

-300,998

96,502

　

Cash, Bank Deposits at the Term End

　

655,243

666,048

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

2,206,176

2,540,635

　

Current Ratio (%)

150.36

198.38

　

Net Worth Ratio (%)

51.35

55.60

　

Recurring Profit Ratio (%)

-13.81

9.39

　

Net Profit Ratio (%)

-8.05

6.48

　

　

Return On Equity (%)

-6.48

4.31

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.49

UK Pound

1

Rs.99.43

Euro

1

Rs.69.14

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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.