MIRA INFORM REPORT
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Report No. : |
339063 |
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Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
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Name : |
SUNTORY BEVERAGE & FOOD LTD |
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Registered Office : |
Tokyo Square Garden 9/10 F, 3-1-1 Kyobashi Chuoku Tokyo 104-0031 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
January 2009 |
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Com. Reg. No.: |
0104-01-080079 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Subject is manufactures & produces beverage &
foods. |
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No. of Employee : |
19,375 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 21,895.4 MILLION |
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Status : |
Good |
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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
SUNTORY BEVERAGE & FOOD LTD
REGD NAME: Suntory
Shokuhin International KK
MAIN OFFICE: Tokyo
Square Garden 9/10 F, 3-1-1 Kyobashi Chuoku Tokyo 104-0031 JAPAN
Tel: 03-3275-7310
Fax: 03-3275-5115 -
URL: http://www.suntory.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
non-alcoholic beverage, foods
BRANCHES
Nil
OVERSEAS
Europe,
Asia, Oceania, Americas, other
FACTORIES
(subsidiaries)
CHIEF
EXEC
NOBUHIRO
TORII, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,257,280 M
PAYMENTSREGULAR CAPITAL Yen
168,384 M
TREND UP WORTH Yen
635,624 M
STARTED 2009 EMPLOYES 19,375
COMMENT
MFR OF NON-ALCOHOLIC BEVERAGES,
FOODS, OTHER
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT
LIMIT: YEN 21,895.4 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/12/2015
fiscal term.
HIGHLIGHTS
This is the world-class producer of non-alcoholic beverages such
as plastic bottles for tea and mineral water, canned coffee, etc, ranking 2nd
in Japan. Main subsidiary of Suntory
Holdings (non-listed). Has strength in
overseas operation, profit earner, through M&As of local well-known
beverage makers, acquiring the Orangina Schweppes Group of France in 2009 and
the beverage business of GlaxoSmithKline Inc of the UK in 2013.
FINANCIAL
INFORMATION
The sales volume for Dec/2014 fiscal term amounted to Yen
1,257,280 million, a 12.1% up from Yen 1,121,361 million in the previous
term. The recurring profit was posted at
Yen 82,272 million and the net profit at Yen 36,239 million, respectively,
compared with Yen 67,257 million recurring profit and Yen 31,196 million net
profit, respectively, a year ago.
(Jan/Jun/2015 results): Sales Yen 622,342 million (up 4.1%),
operating profit Yen 37,995 million (up 9.2%), recurring profit Yen 35,849
million (up 8.5%), net profit Yen 18,773 million (up 26.4%). (% as compared with the corresponding period
a year ago).
For the current term ending Dec 2015 the recurring profit is
projected at Yen 88,000 million and the net profit at Yen 42,000 million,
respectively, on a 3.4% rise in turnover, to Yen 1,300,000 million. Domestic business will show an improved
profit margin thanks to expanded sales of lucrative canned coffee and specified
health drinks.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 21,895.4 million, on 30
days normal terms.
REGISTRATION
Date Registered: Jan 2009
Regd No.: 0104-01-080079
(Tokyo-Chuoku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized: 480 million shares
Issued:
309 million
Sum: Yen 168,384
million
Major shareholders (%): Suntory Holdings (59.4), GIC
Private Ltd (3.1), HSBC Abu Dhabi Inv Authority (2.2), State Street Bank &
Trust OM02 (1.6), Japan Trustee Service T (1.4), BBH Mathews Asia Dividend Fund
(1.3), Master Trust Bank of Japan T (1.2), CBNY for Depository Share Holders
(0.9), JP Morgan Chase Bank 385632 (0.8), Mellon Bank Mellon Omnibus US P
(0.6); foreign owners (25.3)
No. of shareholders: 63,373
Listed on the S/Exchange (s) of:
Tokyo
Managements: Nobuhiro Torii, pres; Yoshihiko
Kakimi, v pres; Saburo Kozato, v pres; Nobuhiro Kurihara, s/mgn dir; Masahito
Tsuchida,dir; Yasuhiko Kamata, mgn dir; Shin’ichiro Hizuka, dir; Yukari Inoue,
dir; Seiiichiro Hattori, dir; Masahiko Uehara, dir; Masahiko Uehara, dir;
Haruyasu Ueda, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Suntory Foods, Suntory Beverage Service, Suntory Products, other.
OPERATION
Activities: Manufactures & produces beverage
& foods (100%)
Overseas Sales Ratio (43%)
Clients: [Mfrs, wholesalers] Suntory Foods,
Takanashi Hambai, other
No. of
accounts: 800
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Suntory Business Expert, Suntory Holdings, other
Payment record:
Regular
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
MUFG
(Osaka)
SMBC
(H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2014 |
31/12/2013 |
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INCOME STATEMENT |
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Annual Sales |
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1,257,280 |
1,121,361 |
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Cost of Sales |
574,203 |
502,730 |
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GROSS PROFIT |
683,077 |
618,630 |
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Selling & Adm Costs |
597,127 |
545,915 |
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OPERATING PROFIT |
85,949 |
72,715 |
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Non-Operating P/L |
-3,677 |
-5,458 |
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RECURRING PROFIT |
82,272 |
67,257 |
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NET PROFIT |
36,239 |
31,196 |
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BALANCE SHEET |
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Cash |
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105,520 |
45,869 |
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Receivables |
152,476 |
126,116 |
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Inventory |
74,886 |
67,654 |
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Securities, Marketable |
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Other Current Assets |
53,564 |
43,682 |
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TOTAL CURRENT ASSETS |
386,446 |
283,321 |
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Property & Equipment |
339,100 |
312,820 |
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Intangibles |
623,458 |
622,649 |
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Investments, Other Fixed Assets |
40,092 |
37,911 |
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TOTAL ASSETS |
1,389,096 |
1,256,701 |
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Payables |
111,612 |
99,794 |
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Short-Term Bank Loans |
54,688 |
156,772 |
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Other Current Liabs |
188,350 |
190,070 |
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TOTAL CURRENT LIABS |
354,650 |
446,636 |
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Debentures |
40,000 |
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Long-Term Bank Loans |
264,399 |
129,346 |
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Reserve for Retirement Allw |
10,474 |
6,320 |
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Other Debts |
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83,948 |
81,431 |
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TOTAL LIABILITIES |
753,471 |
663,733 |
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MINORITY INTERESTS |
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Capital, Paid-Up |
168,384 |
168,384 |
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Surplus |
467,240 |
424,584 |
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SHAREHOLDERS' EQUITY |
635,624 |
592,968 |
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TOTAL EQUITIES |
1,389,096 |
1,256,701 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2014 |
31/12/2013 |
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Cash
Flows from Operating Activities |
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108,638 |
114,081 |
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Cash
Flows from Investment Activities |
-67,482 |
-290,613 |
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Cash
Flows from Financing Activities |
13,670 |
190,409 |
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Cash,
Bank Deposits at the Term End |
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105,505 |
45,850 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2014 |
31/12/2013 |
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Net
Worth (S/Holders' Equity) |
635,624 |
592,968 |
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Current
Ratio (%) |
108.97 |
63.43 |
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Net
Worth Ratio (%) |
45.76 |
47.18 |
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Recurring
Profit Ratio (%) |
6.54 |
6.00 |
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Net
Profit Ratio (%) |
2.88 |
2.78 |
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Return
On Equity (%) |
5.70 |
5.26 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.40 |
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|
1 |
Rs.101.19 |
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Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
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 |
-- |
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.