MIRA INFORM REPORT
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Report No. : |
333200 |
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Report Date : |
27.07.2015 |
IDENTIFICATION DETAILS
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Name : |
KONICA MINOLTA INC |
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Registered Office : |
2-7-2 Marunouchi Chiyodaku Tokyo 100-7015 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Dec., 1936 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of
Business Machines. |
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No. of Employees : |
41,598 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
Yen 22,141.6 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 first-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.
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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 (49 countries overseas)
FACTORIES
14 factories
(domestic); China, USA, France
CHIEF
EXEC
SHOEI YAMANA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,011,774 M
PAYMENTSREGULAR CAPITAL Yen
37,519 M
TREND UP WORTH Yen
501,684 M
STARTED 1936 EMPLOYES 41,598
COMMENT
MFR OF BUSINESS MACHINES
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 22,141.6 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast
figures for the 31/03/2016 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. Actively deploying M&A in Japan, the US and Europe with an aim to
expand distribution channels for office equipment. Also moving to consumer
retention by enhancing lump-sum contracts for printing services.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 1,011.774 million, a 7.2% up from Yen
943,759 million in the previous term. In
main profit-earner multi-function copiers, sales grew mainly in Asia. Sales of
LCD films also fared well, offsetting decrease in prior investment costs in the
healthcare business. The recurring profit was posted at Yen 59,867 million and the
net profit at Yen 32,706 million, respectively, compared with Yen 54,621
million recurring profit and Yen 21,861 million net profit, respectively, a
year ago.
For the current term ending Mar 2016 the recurring profit is projected
at Yen 77,000 million and the net profit at Yen 50,000 million, respectively,
on a 9% rise in turnover, to Yen 1,100.000 million. Sales of multifunction copiers will continue
to expand in the emerging countries. The
healthcare business will also turn profitable as a division.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is estimated at Yen 22,141.6 million, on
30 days normal terms.
REGISTRATION
Date
Registered: Dec 1936
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized:
1,200 million shares
Issued: 511,664,337 shares
Sum: Yen 37,519 million
Major
shareholders (%): Japan Trustee Services T (5.4), Master Trust Bank of Japan T (4.8),
MUFG (2.7), JP Morgan Chase Bank 385167 (2.3), JTSB (SMBC) (2.3), Nippon Life
Ins (2.1), Nomura (BOTMU) (2.1), JP Morgan Chase Bank 385632 (2.0), Company’s
Treasury Stock (1.9), Daido Life Ins (1.7); foreign owners (45.0)
No.
of shareholders: 26,857
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;
Kunihiro Koshizuka, mgn dir; Masatoshi Matsuzaki, dir; Shoji Kondo, dir;
Takashi Enomoto, dir; Kazuaki Kama, dir; Hiroshi Tomono, dir; Yoshiaki Ando,
dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Konica Minolta Business Technologies, Konica Minolta Supplies, Konica
Minolta Healthcare, other.
OPERATION
Activities: Manufactures business
machines: information equipment (81%), industrial business (11%), healthcare
products (8%)
Overseas
Sales Ratio (80%)
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: Regular
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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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1,011,774 |
943,759 |
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Cost of Sales |
513,982 |
492,269 |
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GROSS PROFIT |
497,791 |
451,490 |
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Selling & Adm Costs |
431,591 |
393,346 |
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OPERATING PROFIT |
66,200 |
58,144 |
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Non-Operating P/L |
-6,333 |
-3,523 |
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RECURRING PROFIT |
59,867 |
54,621 |
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NET PROFIT |
32,706 |
21,861 |
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BALANCE SHEET |
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Cash |
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95,444 |
95,490 |
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Receivables |
226,899 |
220,120 |
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Inventory |
121,067 |
115,275 |
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Securities, Marketable |
82,006 |
92,999 |
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Other Current Assets |
68,855 |
65,447 |
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TOTAL CURRENT ASSETS |
594,271 |
589,331 |
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Property & Equipment |
175,100 |
173,362 |
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Intangibles |
109,852 |
111,362 |
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Investments, Other Fixed Assets |
91,262 |
92,005 |
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TOTAL ASSETS |
970,485 |
966,060 |
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Payables |
98,152 |
96,240 |
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Short-Term Bank Loans |
25,844 |
37,078 |
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Other Current Liabs |
159,408 |
151,902 |
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TOTAL CURRENT LIABS |
283,404 |
285,220 |
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Debentures |
50,000 |
70,000 |
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Long-Term Bank Loans |
58,696 |
62,042 |
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Reserve for Retirement Allw |
61,749 |
53,563 |
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Other Debts |
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14,951 |
15,180 |
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TOTAL LIABILITIES |
468,800 |
486,005 |
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MINORITY INTERESTS |
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Common
stock |
37,519 |
37,519 |
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Additional
paid-in capital |
204,140 |
204,140 |
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Retained
earnings |
238,558 |
242,460 |
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Evaluation
p/l on investments/securities |
8,497 |
5,086 |
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Others |
23,697 |
8,172 |
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Treasury
stock, at cost |
(10,727) |
(17,322) |
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TOTAL S/HOLDERS` EQUITY |
501,684 |
480,055 |
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TOTAL EQUITIES |
970,485 |
966,060 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash Flows
from Operating Activities |
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101,733 |
89,945 |
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Cash
Flows from Investment Activities |
-54,308 |
-55,776 |
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Cash
Flows from Financing Activities |
-61,770 |
-61,954 |
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Cash,
Bank Deposits at the Term End |
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177,450 |
188,489 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
501,684 |
480,055 |
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Current
Ratio (%) |
209.69 |
206.62 |
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Net
Worth Ratio (%) |
51.69 |
49.69 |
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Recurring
Profit Ratio (%) |
5.92 |
5.79 |
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Net
Profit Ratio (%) |
3.23 |
2.32 |
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Return
On Equity (%) |
6.52 |
4.55 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.89 |
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|
1 |
Rs.99.10 |
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Euro |
1 |
Rs.70.12 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.