MIRA INFORM REPORT

 

 

Report No. :

321711

Report Date :

11.05.2015

 

IDENTIFICATION DETAILS

 

Name :

NOMURA REAL ESTATE HOLDINGS INC

 

 

Registered Office :

Shinjuku Nomura Bldg, 1-26-2 Nishi-Shinjuku Shinjukuku Tokyo 160-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

January 2004

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Holding Company of Nomura Group firms: Housing (58%), leading (18%), asset management (3%), house brokerage (5%), property & facility management (12%), others (4%)

 

 

No. of Employees :

5,963

 

 

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

 

Maximum Credit Limit :

Yen 11,366.9 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 – 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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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

 

NOMURA REAL ESTATE HOLDINGS INC

 

 

REGD NAME

 

Nomura Fudosan Holdings KK

 

 

MAIN OFFICE

 

Shinjuku Nomura Bldg, 1-26-2 Nishi-Shinjuku Shinjukuku Tokyo 160-0023 Japan

Tel: 03-3348-8878          -

 

URL:                 http://www.nomura-re-hd.co.jp

E-Mail address: (thru the URL)

 

ACTIVITIES:     Holding Company of Nomura Group firms

BRANCHES:     Nil

 

CHIEF EXEC:   KAMEZO NAKAI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 567,159 M

PAYMENTSREGULAR               CAPITAL           Yen 116,024 M

TREND UP                                WORTH            Yen 461,031 M

STARTED         2004                             EMPLOYES      5,963

 

COMMENT:      HOLDING COMPANY OF NOMURA GROUP FIRMS FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 11,366.9 MILLION, 30 DAYS NORMAL TERMS

 

 

 

 

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is Holding Company, with Nomura Real Estate as core operating firm.  Sells condominiums under “PROUD” brand name.  Engaged in development of office buildings, real estate operation and variety of real estate investment products.  Highly competitive in asset management led by profit-generating.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 567,159 million, a 6.6% up from Yen 532,016 million in the previous term.  The recurring profit was posted at Yen 63,681 million and the net profit at Yen 38,441 million, respectively, compared with Yen 64,058 million recurring profit and Yen 26,844 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 64,000 million and the net profit at Yen 38,000 million, respectively, on a 3.1% rise in turnover, to Yen 585,000 million.  Leasing income will improve, backed by the recovery of a tenant to the Toshiba Building.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 11,366.9 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　          Jan 2004

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              450 million shares

Issued:                         116,024,000 shares

Sum:                            Yen 116,024 million

 

Major shareholders (%): Nomura Land & Building (33.9), Master Trust Bank of Japan T (3.5), Japan Trustee Services T9 (1.7), Employees’ S/Holding Assn (1.5), State Street Bank West (1.4), others; foreign owners (34.5)

 

No. of shareholders: 48,192

 

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

 

Managements: Kamezo Nakai, pres; Eiji Kutsukake, v pres; Seiichi Miyazaki, rep dir; Toshiaki Seki, rep dir; Seishi Miyajima, dir; Takashi Kaku, dir; Tadashi Nakajima, dir; Norio Ambe, dir; Juntaro Kimura, dir

 

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

 

Related companies: Nomura Real Estate, Nomura Real Estate Investment, other.

 

 

OPERATION

           

Activities: Holding Company of Nomura Group firms: Housing (58%), leading (18%), asset management (3%), house brokerage (5%), property & facility management (12%), others (4%)

           

Clients: [Mfrs, wholesalers] Nomura Real Estate, Mitsui Sumitomo Trust Bank, Nomura    Real Estate Partners, Nomura Amenity Service, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Bank (Shinjuku)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

567,159

532,016

　

  Cost of Sales

405,107

372,680

　

      GROSS PROFIT

162,051

159,335

　

  Selling & Adm Costs

90,157

85,027

　

      OPERATING PROFIT

74,307

74,308

　

  Non-Operating P/L

-10,626

-10,250

　

      RECURRING PROFIT

63,681

64,058

　

      NET PROFIT

38,441

26,844

BALANCE SHEET

　

　

  Cash

　

47,420

45,484

　

  Receivables

15,029

14,770

　

  Inventory

429,304

310,940

　

  Securities, Marketable

3,000

22,500

　

  Other Current Assets

54,547

103,284

　

      TOTAL CURRENT ASSETS

549,300

496,978

　

  Property & Equipment

730,076

716,093

　

  Intangibles

10,277

9,382

　

  Investments, Other Fixed Assets

79,573

91,434

　

      TOTAL ASSETS

1,369,226

1,313,887

　

  Payables

48,662

37,629

　

  Short-Term Bank Loans

151,800

152,683

　

　

　

　

　

  Other Current Liabs

104,726

97,742

　

      TOTAL CURRENT LIABS

305,188

288,054

　

  Debentures

30,000

23,000

　

  Long-Term Bank Loans

431,900

431,900

　

  Reserve for Retirement Allw

11,078

14,901

　

  Other Debts

　

130,029

137,335

　

      TOTAL LIABILITIES

908,195

895,190

　

      MINORITY INTERESTS

　

　

Common stock

116,188

116,024

　

Additional paid-in capital

93,518

93,353

　

Retained earnings

170,069

138,971

　

Evaluation p/l on investments/securities

5,069

(689)

　

Others

76,189

71,040

　

Treasury stock, at cost

(2)

(2)

　

      TOTAL S/HOLDERS` EQUITY

461,031

418,697

　

      TOTAL EQUITIES

1,369,226

1,313,887

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

23,837

83,535

　

Cash Flows from Investment Activities

-32,476

-20,191

　

Cash Flows from Financing Activities

-8,983

-57,858

　

Cash, Bank Deposits at the Term End

　

50,418

67,982

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

461,031

418,697

　

Current Ratio (%)

179.99

172.53

　

Net Worth Ratio (%)

33.67

31.87

　

Recurring Profit Ratio (%)

11.23

12.04

　

Net Profit Ratio (%)

6.78

5.05

　

　

Return On Equity (%)

8.34

6.41

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.05

UK Pound

1

Rs.99.04

Euro

1

Rs.71.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 

               

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.