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MIRA INFORM REPORT
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Report No. : |
491267 |
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Report Date : |
10.02.2018 |
IDENTIFICATION DETAILS
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Name : |
AJINOMOTO CO INC |
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Registered Office : |
1-15-1 Kyobashi Chuoku Tokyo 104-8315 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Dec., 1925 |
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Com. Reg. No.: |
0100-01-034740 (Tokyo-Chuoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Foods, Amino Acid, Pharmaceuticals. |
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No. of Employees : |
3,482 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
AJINOMOTO CO INC
REGD NAME: Ajinomoto
KK
MAIN OFFICE: 1-15-1
Kyobashi Chuoku Tokyo 104-8315 JAPAN
Tel:
03-5250-8111 Fax: 03-5250-8378
URL: http://www.ajinomoto.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of foods,
amino acid, pharmaceuticals
BRANCHES
Saitama, Osaka,
Nagoya, Hiroshima, other (Tot 15)
OVERSEAS
Offices &
subsidiaries in 28 overseas countries
FACTORIES
Kawasaki,
Yokkaichi, Saga; overseas subsidiaries
CHIEF
EXEC
TAKAAKI NISHII, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,091,414 M
PAYMENTS REGULAR CAPITAL Yen 79,863 M
TREND SLOW WORTH Yen 616,315 M
STARTED 1925 EMPLOYES 3,482
COMMENT
MFR OF FOODS, AMINO ACID, PHARMACEUTICALS, OTHER
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is the
largest seasoning mfr known for
monosodium glutamate. Originally set up as iodine maker in 1888 with seaweed as raw materials. Ranks among
world’s leaders in advanced amino
acid application technology. A specialized mfr of foods (seasoning), amino acid and pharmaceuticals. Under the
medium-range business plan, the firm plans to boost the overall sales to Yen
1,366 trillion and operating profit to Yen 87 billion for the Mar 2014 term. It plans to set up M&A to beef up overseas sales and R&D works. Overseas sales
will focus on the launching of low-priced seasonings. Concentrating management
resources on the biotech business.
FINANCIAL
INFORMATION
The sales volume
for Mar/2017 fiscal term amounted to Yen 1,091,404 million, a 7.97% fall from
Yen 1,185,980 million in the
previous term. The recurring profit was posted at Yen 90,270 million and the net
profit at Yen 52,595 million, respectively, compared with Yen 94,333 million
recurring profit and Yen 64,592 million net profit, respectively, a year ago.
For the current
term ending Mar 2018 the recurring profit is projected at Yen 95,000 million
and the net profit at Yen 57,000 million, on an 8.76% rise in turnover, to Yen
1,187,000 million. F
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Dec 1925
Regd
No.: 0100-01-034740
(Tokyo-Chuoku)
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 1,000 million
shares
Issued: 700,032,654shares
Sum: Yen 79,863 million
Major shareholders
(%):
Master Trust Bank of Japan T (8.2), Japan Trustee Services T (5.4), Dai-ichi
Life Ins (4.5), Nippon Life Ins (4.4), MUFG (3.5), Sompo Japan Nipponkoa Ins
(2.3), Meiji Yasuda Life Ins (2.2), Mitsubishi UFJ Trust & Banking (2.0),
Mizuho Bank (1.7), State Street Bank West Tr. 505234 (1.5); foreign owners
(27.2)
No.
of shareholders: 89,027
Listed
on the S/Exchange (s) of: Tokyo
Managements: Masatoshi Ito,
ch; Takaaki Nishii, pres; Etsuhiro Takato, s/mgn dir; Hiroshi Fukushi, s/mgn
dir; Makoto Murabayashi, s/mgn dir; Takeshi Kimura, mgn dir; Sakie Tachibana,
dir; Yasuo Saito, dir; Takashi Nwa, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related
companies: Knoll Foods, Ajinomoto America, Ajinomoto Frozen Foods, other.
OPERATION
Activities: Manufactures
foods (frozen foods, instant noodles, soup, seasonings, flavored seasonings,
other) (--76%) (domestic 36%, overseas 40%), life support (11%), health care
(8%), other (5%)
Overseas Sales
Ratio (52%)
Clients: [Mfrs,
wholesalers] Mitsubishi Food, Japan Access, Kokubu Group firms, Itochu Foods,
Ryoshoku Ltd, Kato Sangyo Co, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Ajinomoto General Foods, Ajinomoto Frozen Foods, Ajinomoto Medica,
J-Oil Mills, Calpis Co, other
Payment
record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned
and maintained satisfactorily.
Bank
References:
MUFG
(H/O)
Mizuho Bank (Nihombashi)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms
Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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1,187,000 |
1,091,414 |
1,185,980 |
1,006,630 |
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Recur.
Profit |
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95,000 |
90,270 |
94,333 |
82,808 |
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Net
Profit |
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57,000 |
52,595 |
63,592 |
46,495 |
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Total
Assets |
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1,350,135 |
1,263,276 |
1,255,090 |
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Current
Assets |
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573,445 |
625,319 |
607,919 |
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Current
Liabs |
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260,794 |
232,834 |
358,354 |
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Net
Worth |
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616,315 |
624,246 |
669,576 |
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Capital,
Paid-Up |
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79,863 |
79,863 |
79,863 |
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Div.Ttl
in Million (¥) |
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17,252 |
15,918 |
11,864 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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8.76 |
-7.97 |
17.82 |
1.54 |
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Current Ratio |
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.. |
219.88 |
268.57 |
169.64 |
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N.Worth Ratio |
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.. |
45.65 |
49.41 |
53.35 |
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R.Profit/Sales |
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8.00 |
8.27 |
7.95 |
8.23 |
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N.Profit/Sales |
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4.80 |
4.82 |
5.36 |
4.62 |
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Return On Equity |
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.. |
8.53 |
10.19 |
6.94 |
Notes: Forecast (or estimated) figures for the
31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.37 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 78.89 |
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Yen |
1 |
INR 0.59 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.