MIRA INFORM REPORT

 

 

Report No. :

329407

Report Date :

25.06.2015

 

IDENTIFICATION DETAILS

 

Name :

TERUMO CORPORATION

 

 

Registered Office :

2-44-1 Hatagaya Shinjukuku Tokyo 151-0072

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

Dec., 19540

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Medical Products and Equipment, Health Foods, Other.

 

 

No. of Employees :

19,934

 

 

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 11,248.0 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

 

TERUMO CORPORATION

 

REGD NAME:               Terumo KK

 

MAIN OFFICE:              2-44-1 Hatagaya Shinjukuku Tokyo 151-0072 JAPAN

                                                Tel: 03-3374-8111     Fax: 03-3374-8399

 

                                                *.. The is its Tokyo Office     -

 

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of medical products & equipment, health foods, other

 

 

BRANCHES

 

26 locations nationwide

 

 

OVERSEAS

 

Europe (13), Asia (19), China (13), North & South Americas (12) (USA 8)

 

 

FACTORIES

 

Shizuoka (2), Yamanashi

 

 

CHIEF EXEC

 

YUTARO SHINTAKU, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 489,506 M

PAYMENTSREGULAR   CAPITAL           Yen 38,716 M

TREND UP                    WORTH            Yen 573,523 M

STARTED         1921                 EMPLOYES      19,934

 

 

COMMENT

 

MFR OF MEDICAL SUPPLIES & EQUIPMENT

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 11,248.0 MILLION, 30 DAYS NORMAL TERMS

 

 

         Unit: In Million Yen

Forecast figures for the 31/10/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is comprehensive mfr of medical equipment, including dispensable supplies such as syringes. Also involved in such pharmaceuticals as infusion solutions. Has strength in catheter systems and other cardiovascular-related products. Active in overseas production mainly in Asia, having 19 overseas production basis.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 489,506 million, a 4.7% up from Yen 467,359 million in the previous term.  In the mainstay cardiac & vascular business, sales fared extremely well overseas, and profit margin improved under the Yen depreciation.  The recurring profit was posted at Yen 70,730 million and the net profit at Yen 38,470 million, respectively, compared with Yen 63,802 million recurring profit and Yen 34,096 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 67,000 million and the net profit at Yen 39,500 million, respectively, on a 6.2% rise in turnover, to Yen 520,000 million.  Sales will do well in overseas, leading the earnings growth.  Demand for cardiac & vascular products will recover in Japan, without the revision of official prices.      

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,248.0 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　      Dec 1950

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:                     840 million shares

Issued:                189,880,260 shares

Sum:                   Yen 38,716 million

 

Major shareholders (%): Master Trust Bank of Japan T (8.6), Japan Trustee Services T (5.5), Dai-ichi Life Ins (5.3), Meiji Yasuda Life Ins (3.6), Tokio Marine & Nichido Fire Ins (2.8), Mizuho Bank (2.8), State Street Bank & Trust 505223 (2.5), Olympus Corp (2.4), Mitsubishi UFJ Trust & Banking (2.0), Terumo Life Science Foundation (1.9); foreign owners (29.5)

 

No. of shareholders: 27,556

 

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

 

Managements: Koji Nakao, ch; Yutaro Shintaku, pres; Hiroshi Matsumura, v pres; Takayoshi Mimura, s/mgn dir; Akira Oguma, s/mgn dir; Shinjiro Sato, mgn dir; Hideo Arase, dir; Kumiko Shoji, dir; Toshiaki Takagi, dir; David Perez, dir; Tadao Kakizoe, dir; Mari Matsunaga, dir; Ikuo Mori

 

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

 

Related companies: Terumo BCT, Terumo Clinical Supply, other (Ttl 82 consolidated subsidiaries).

 

 

OPERATION

           

Activities: Manufactures medical supplies & equipment: hospital products (35%), cardiac & vascular products (45%), blood management (20%)

Overseas Sales Ratio (60%)

           

Clients: [Mfrs, wholesalers] Terumo Europe, Terumo Medical Corp, Terumo BCT Holdings           Corp, Alfresa Corp, other 

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Japan Polypropylene Corp, Sankyo Seimitsu Inc, NT Sales, Fuji-Milk Group,  Japan Precision Instruments Inc, other

 

Payment record: Regular

 

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

 

Bank References:

            Mizuho Bank (H/O)

            MUFG (Shinjuku-dori)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

489,506

467,359

　

  Cost of Sales

233,480

225,348

　

      GROSS PROFIT

256,025

242,011

　

  Selling & Adm Costs

188,569

176,722

　

      OPERATING PROFIT

67,456

65,288

　

  Non-Operating P/L

3,274

-1,486

　

      RECURRING PROFIT

70,730

63,802

　

      NET PROFIT

38,470

34,096

BALANCE SHEET

　

　

  Cash

　

129,679

95,618

　

  Receivables

104,944

101,520

　

  Inventory

101,471

93,964

　

  Securities, Marketable

50,000

　

　

  Other Current Assets

26,364

19,883

　

      TOTAL CURRENT ASSETS

412,458

310,985

　

  Property & Equipment

178,496

157,755

　

  Intangibles

331,990

304,756

　

  Investments, Other Fixed Assets

69,129

59,318

　

      TOTAL ASSETS

992,073

832,814

　

  Payables

38,484

38,147

　

  Short-Term Bank Loans

364

260

　

　

　

　

　

  Other Current Liabs

91,099

122,529

　

      TOTAL CURRENT LIABS

129,947

160,936

　

  Debentures

40,000

40,000

　

  Long-Term Bank Loans

79,141

76,769

　

  Reserve for Retirement Allw

7,020

3,124

　

  Other Debts

　

162,442

55,739

　

      TOTAL LIABILITIES

418,550

336,568

　

      MINORITY INTERESTS

　

　

Common stock

38,716

38,716

　

Additional paid-in capital

52,103

52,103

　

Retained earnings

383,317

353,600

　

Evaluation p/l on investments/securities

16,910

11,269

　

Others

85,512

40,581

　

Treasury stock, at cost

(3,035)

(24)

　

      TOTAL S/HOLDERS` EQUITY

573,523

496,245

　

      TOTAL EQUITIES

992,073

832,814

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

73,110

96,259

　

Cash Flows from Investment Activities

-40,421

-52,744

　

Cash Flows from Financing Activities

44,121

-31,785

　

Cash, Bank Deposits at the Term End

　

176,662

92,498

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

573,523

496,245

　

Current Ratio (%)

317.40

193.24

　

Net Worth Ratio (%)

57.81

59.59

　

Recurring Profit Ratio (%)

14.45

13.65

　

Net Profit Ratio (%)

7.86

7.30

　

　

Return On Equity (%)

6.71

6.87

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.66

UK Pound

1

Rs.100.50

Euro

1

Rs.71.31

 

INFORMATION DETAILS

 

Analysis Done by :

SAN 

 

 

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.