MIRA INFORM REPORT

 

 

Report No. :

313800

Report Date :

27.03.2015

 

IDENTIFICATION DETAILS

 

Name :

KONAMI CORPORATION

 

 

Registered Office :

9-7-2 Akasaka Minatoku Tokyo 107-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Year of Establishment :

1969

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject engaged in the planning, execution, handling subsidiaries and management for the entire group.

 

 

No. of Employee :

105

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

KONAMI CORPORATION

 

REGD NAME:   Konami KK

MAIN OFFICE:  9-7-2 Akasaka Minatoku Tokyo 107-0052 JAPAN

                                    Tel: 03-5770-0573     Fax: 03-5412-3300    

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

 A holding company engaged in the planning, execution, handling subsidiaries and management

for the entire group.

 

 

BRANCHES

 

Zama(Kanagawa), Kobe, Ichinomiya(Aichi), other

 

 

OVERSEAS

 

U.S.A., England, Germany, Hong Kong, Australia, China, other

 

 

FACTORIES

 

Kobe

 

 

CHIEF EXEC

 

TAKUYA KOZUKI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES      FAIR                             A/SALES          Yen 217,595 M

                        PAYMENTS      SLOW BUT CORRECT   CAPITAL           Yen 47,398 M

                        TREND             UP                                WORTH            Yen 225,792 M

                        STARTED         1973                             EMPLOYES      105

 

 

COMMENT

 

A HOLDING COMPANY ENGAGED IN THE PLANING, EXECUTION, HANDLING SUBSIDARIES AND MANAGEMENT FOR THE ENTIRE GROUP.

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                               

 

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

31/03/2011

257,988

19,082

12,934

(%)

198,407

31/03/2012

265,758

40,026

23,012

3.01

215,720

31/03/2013

225,995

21,915

13,174

-14.96

225,999

31/03/2014

217,595

9,228

3,834

-3.72

225,792

31/03/2015

220,000

11,000

4,570

1.11

230,362

 

                        Unit: In Million Yen

Forecast figures for the 2015  fiscal term.

 

 

HIGHLIGHTS

 

The subject company was founded in 1969 as a jukebox rental and repair business in Toyonaka, Osaka by Kagemasa Kozuki, who is the current chairman. It became an incorporated company in 1973. It is currently headquartered in Tokyo. In 2006, it became a holding company of Konami Group. Its group companies mainly provides four segments:  1. Digital Entertainment segment which produces, operates and distributes contents for mobile sites and application stores, produces online games and builds computer systems related to online games, etc. 2. Health & Fitness segment which operates health & fitness clubs(owns apprx. 200 fitness clubs) as well as involved in health-related items. 3. Gaming & Systems segment which develops and sells content, hardware and casino management systems, etc. 4. Pachinko & Pachinko Slot Machines which produces and manufactures and pachinko machines and pachinko slot machines. It also provides real estate management service.

 

 

FINANCIAL INFORMATION

 

The sales volume for March/2014 fiscal term amounted to Yen 217,595 million, a 3.7% down from Yen 225,995 million in the previous term.  The recurring profit was posted at Yen 9,228 million and the net profit at Yen 3,834 million, respectively, compared with Yen 21,915 million recurring profit and Yen 13,174 million net profit, respectively, a year ago.

 

For the current term ending March 2015 the recurring profit is projected at Yen 11,000 million and the net profit at Yen 4,570 million, respectively, on a 1.1% rise in turnover, to Yen 220,000 million.  Final results are yet to be released.

 

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

 

 

REGISTRATION

           

            Date Registered:　March 1973

            Legal Status:       Limited Company (Kabushiki Kaisha)

            Authorized:       450 million shares

            Issued:                143.5 million shares

            Sum:                   Yen 47,398 million

 

           Major shareholders (%): Kozuki Foundation(12), Kozuki Holding(11.3), The Master Trust Bank Of Japan(10.5), Japan Trustee Service Bank(6.5), Kozuki Capital Corp(5.1), SMBC(2.9), Bnp Paribas(2.5), other

 

No. of shareholders: 50,424

 

            Listed on the S/Exchange (s) of: Tokyo, the 1st section

 

Managements: Takuya Kozuki, pres; Kagemasa Kozuki, ch; Kimihiko Higashio, dir; Fumiaki Tanaka, dir; Satoshi Sakamoto, dir; Tomokazu Godai, dir; Akira Genma, dir(outside); Kaori Yamaguchi, dir(outside)

 

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

 

            Related companies: Konami Digital Entertainment, Konami Sports & Life, KE, Konami     Manufacturing & Service, Konami Real Estate, other

 

 

OPERATION

           

Activities:  A holding company engaged in the planning, execution, handling subsidiaries and management for the entire group.　Principal business units of Konami group are, Degital Entertainment, Health and Fitness, Game and Systems, and Pachislot and Pachinko Machines.

 

Degital Entertainment: It produces a wide range of products including Mobile Games, Computer & Video Games, Arcade Games and Cards to provide enjoyment to customers worldwide.

 

Health & Fitness: It operates health and fitness clubs in addition to designing, manufacturing and selling fitness machines as well as health products.

 

Gaming & Systems: It designs, manufactures, sells and services gaming machines and casino management systems in the globally expanding gaming market.

 

Pachishot & Pachinko Machines: It handles all business aspects related to pachislot and pachinko machines from research, design, and production to sales.

 

Clients: [Mfrs, wholesalers] Konami group companies

            No. of accounts: Unavailable

            Domestic areas of activities: Tokyo

            Suppliers: [Mfrs, wholesalers] N/A

 

            Payment record: Slow but correct

 

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

 

            Bank References:

                        SMBC (H/O)

                        MUFG (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

217,595

225,995

　

  Cost of Sales

61,352

64,152

　

      GROSS PROFIT

156,243

161,843

　

  Selling & Adm Costs

148,547

139,968

　

      OPERATING PROFIT

7,696

21,875

　

  Non-Operating P/L

1,532

40

　

      RECURRING PROFIT

9,228

21,915

　

      NET PROFIT

3,834

13,174

BALANCE SHEET

　

　

  Cash

　

50,024

63,669

　

  Receivables

29,069

33,066

　

  Inventory

30,229

26,349

　

  Securities, Marketable

　

　

　

  Other Current Assets

30,336

30,399

　

      TOTAL CURRENT ASSETS

139,658

153,483

　

  Property & Equipment

80,213

62,651

　

  Intangibles

100,380

106,814

　

  Investments, Other Fixed Assets

0

0

　

      TOTAL ASSETS

320,251

322,948

　

  Payables

17,522

19,971

　

  Short-Term Bank Loans

6,458

4,681

　

　

　

　

　

  Other Current Liabs

21,348

34,860

　

      TOTAL CURRENT LIABS

45,328

59,512

　

  Debentures

　

　

　

  Long-Term Bank Loans

15,000

0

　

  Reserve for Retirement Allw

1,424

1,531

　

  Other Debts

32,707

35,906

　

      TOTAL LIABILITIES

94,459

96,949

　

      MINORITY INTERESTS

　

　

Common stock

47,399

47,399

　

Additional paid-in capital

74,459

74,459

　

Retained earnings

111,820

113,808

　

Evaluation p/l on investments/securities

　

　

　

Others

3,378

1,583

　

Treasury stock, at cost

(11,264)

(11,250)

　

      TOTAL S/HOLDERS` EQUITY

225,792

225,999

　

      TOTAL EQUITIES

320,251

322,948

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

9,027

10,236

　

Cash Flows from Investment Activities

-26,734

-11,575

　

Cash Flows from Financing Activities

3,448

-12,377

　

Cash, Bank Deposits at the Term End

　

50,024

63,669

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

225,792

225,999

　

Current Ratio (%)

308.11

257.90

　

Net Worth Ratio (%)

70.50

69.98

　

Recurring Profit Ratio (%)

4.24

9.70

　

Net Profit Ratio (%)

1.76

5.83

　

　

Return On Equity (%)

1.70

5.83

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.67

UK Pound

1

Rs.93.26

Euro

1

Rs.68.85

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.