MIRA INFORM REPORT

 

 

Report No. :

343872

Report Date :

03.10.2015

 

IDENTIFICATION DETAILS

 

Name :

TOYOTA MOTOR CORPORATION

 

 

Registered Office :

1 Toyota-Cho Toyota-City Aichi-Pref 471-0826

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015 (Consolidated)

 

 

Date of Incorporation :

August 1937

 

 

Com. Reg. No.:

1803-01-018771 (Aichi-Toyota)     

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufacturing of Automobiles.

 

 

No. of Employees :

349,131

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Excellent

 

 

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 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.

 

Source : CIA

 

 

Company name

 

TOYOTA MOTOR CORPORATION

 

 

REGD NAME

 

TOYOTA JIDOSHA KK

 

 

MAIN OFFICE

 

1 Toyota-cho Toyota-City Aichi-Pref 471-0826 JAPAN

Tel: 0565-28-2121     Fax: 0565-23-5708     -

 

 

URL

 

http://www.toyota.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of automobiles

 

 

BRANCHES

 

Tokyo, Nagoya, other (Tot 24)

 

 

OVERSEAS

 

North America (11), Latin America (4), Europe (8), Africa (3), Asia (24), Oceania    (1), Mid East (1)

 

 

FACTORIES

 

Domestic (Tot 16), Overseas (Tot 51)

 

CHIEF EXEC

 

AKIO TOYODA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                                         A/SALES          Yen 27,234,521 M

PAYMENTSREGULAR                           CAPITAL           Yen 397,050 M

TREND UP                                            WORTH            Yen 17,647,329 M

STARTED         1937                                         EMPLOYES      349,131

 

 

COMMENT

 

AUTOMAKER

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Unit: In Million Yen

 

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

 

 

HIGHLIGHTS

 

This is the top-class of the world’s automaker.  Achieved the annual gross sales of 10 million units for the first time in the world.  The company far outranks other Japanese companies in terms of profit scale, and has a firm financial position.  Markets the TOYOTA and LEXUS brands.  Has automakers Daihatsu Motor and Hino Motors under its umbrella.  Investing in Fuji Heavy Industries and has an alliance with Mazda Motor.  Commands close to a 50% market share in registered domestic vehicles, while that including light cars is over 40% (as the Group). Operates domestic production bases in Tokai, Kyushu and Tohoku (as above stated), in addition to overseas bases worldwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 27,234,521 million, a 6.0% up from Yen 25,691,911 million in the previous term.  The recurring profit was posted at Yen 2,892,828 million and the net profit at Yen 2,173,338 million, respectively, compared with Yen 2,441,080 million recurring profit and Yen 1,823,119 million net profit, respectively, a year ago.

 

(Apr/Jun/2015 results): Sales Yen 6,987,648 million (up 9.3%), operating profit Yen 756,001 million (up 9.1%), recurring profit Yen 845,259 million (up 9.5%), net profit Yen 646,394 million (up 10.0%).  (% as compared with the corresponding period a year ago)

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 2,980,000 million and the net profit at Yen 2,250,000 million, respectively, on a 2.1% rise in turnover, to Yen 27,800,000 million.  Sales in the North America market will continue to increase.  Sales in ASEAN will rise.  The weaker Yen will make a full contribution to earnings.

 

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

 

 

REGISTRATION

           

        Date Registered:　           Aug 1937

        Regd No.:                         1803-01-018771 (Aichi-Toyota)     

Legal Status:                Limited Company (Kabushiki Kaisha

Authorized:                              10,000 million shares

Issued:                         3,417,997,492 shares

Sum:                            Yen 397,050 million

 

Major shareholders (%): Japan Trustee Services Bank (10.2), Company’s Treasury Stock (7.9), Toyota Industries (6.5), Master Trust Bank of Japan (4.7), State Street Bank & Trust (3.7), Nippon Life Ins (3.5), BONY Mellon for Depositary RH (2.4), Denso Corp (2.4), Trust & Custody Services Bank (1.9), JP Morgan Chase Bank (1.9); foreign owners (31.1)

 

No. of shareholders: 469,914

 

Listed on the S/Exchange (s) of: Tokyo, Nagoya, Fukuoka, Sapporo, New York, London

 

Managements: Takeshi Uchiyamada, ch; Akio Toyoda, pres; Nobuyori Kodaira, v pres; Mitsuhisa Kato, v pres; Seiichi Sudo, v pres; Takahiko Ijichi, v pres; Didier Leroy, v pres; Shigeki Terashi, v pres; Shigeru Hayakawa, dir; Ikuo Uno, dir; Haruhiko Kato, dir; Mark T Hogan, dir

 

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

 

Related companies: Daihatsu Motor, Hino Motor, Toyota USA Auto Sales, other.

 

 

OPERATION

           

Activities: Manufactures automobiles (92%), financing (6%), others (2%)

Overseas Sales Ratio (78%)

           

Clients: [Mfrs, wholesalers] Toyota USA Auto Sales, Toyota Motor Europe, Toyota Motor          

Asia Pacific, other

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Denso Corp, Toyota Auto Body, Aisin AW Co, Aisin Seiki,            Seino Transportation Co, Toyota Ind Corp, Toyoda Gosei Co, other

 

Payment record: Regular

 

Location: Business area in Toyota City, Aichi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        MUFG (Nagoya)

                        SMBC (Nagoya-Sakae)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

27,234,521

25,691,911

　

  Cost of Sales

20,916,362

19,988,245

　

      GROSS PROFIT

6,318,159

5,703,666

　

  Selling & Adm Costs

3,567,595

3,411,554

　

      OPERATING PROFIT

2,750,564

2,292,112

　

  Non-Operating P/L

142,284

148,968

　

      RECURRING PROFIT

2,892,848

2,441,080

　

      NET PROFIT

2,173,338

1,823,119

BALANCE SHEET

　

　

  Cash

　

2,284,557

2,041,170

　

  Receivables

2,108,660

2,036,232

　

  Inventory

2,137,618

1,894,704

　

  Securities, Marketable

2,782,099

2,046,877

　

  Other Current Assets

8,623,463

7,698,723

　

      TOTAL CURRENT ASSETS

17,936,397

15,717,706

　

  Property & Equipment

9,295,719

7,641,298

　

  Intangibles

11,295,183

9,976,175

　

  Investments, Other Fixed Assets

9,202,531

8,102,294

　

      TOTAL ASSETS

47,729,830

41,437,473

　

  Payables

2,410,588

2,213,218

　

  Short-Term Bank Loans

5,048,188

4,830,820

　

　

　

　

　

  Other Current Liabs

8,972,720

7,636,647

　

      TOTAL CURRENT LIABS

16,431,496

14,680,685

　

  Debentures

　

　

　

  Long-Term Bank Loans

10,014,395

8,546,910

　

  Reserve for Retirement Allw

880,293

767,618

　

  Other Debts

　

2,756,317

2,223,273

　

      TOTAL LIABILITIES

30,082,501

26,218,486

　

      MINORITY INTERESTS

　

　

Common stock

397,050

397,050

　

Additional paid-in capital

547,054

51,308

　

Retained earnings

15,591,947

14,116,295

　

Evaluation p/l on investments/securities

1,477,545

528,161

　

Others

859,198

1,249,839

　

Treasury stock, at cost

(1,225,465)

(1,123,666)

　

      TOTAL S/HOLDERS` EQUITY

17,647,329

15,218,987

　

      TOTAL EQUITIES

47,729,830

41,437,473

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

3,785,753

3,646,035

　

Cash Flows from Investment Activities

-3,813,490

-4,336,248

　

Cash Flows from Financing Activities

306,045

919,480

　

Cash, Bank Deposits at the Term End

　

2,284,557

2,041,170

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

17,647,329

15,218,987

　

Current Ratio (%)

109.16

107.06

　

Net Worth Ratio (%)

36.97

36.73

　

Recurring Profit Ratio (%)

10.62

9.50

　

Net Profit Ratio (%)

7.98

7.10

　

　

Return On Equity (%)

12.32

11.98

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.55

UK Pound

1

Rs.99.17

Euro

1

Rs.73.08

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.