MIRA
INFORM REPORT
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Report Date : |
26th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
DENSO CORPORATION |
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Registered Office : |
1-1 Showacho Kariya City Aichi-Pref 448-8661 Japan |
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Country : |
Japan |
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Financials (as on) : |
31-03-2006 |
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Date of Incorporation : |
Dec 1949 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturing of car electronic &
electrical parts & components |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 126,230 MILLION |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
NAME
DENSO
CORPORATION
REGD NAME
KK
Denso
MAIN OFFICE
1-1
Showacho Kariya City Aichi-Pref 448-8661 JAPAN
Tel:
0566-25-5511
Fax:
0566-25-4509
*.. The
given address is its Daian Plant, one of its 11 mfg plants nationwide.
E-Mail address: info@denso.co.jp (for general affairs)
ACTIVITIES
Mfg of car electronic & electrical parts & components
BRANCHES
Tokyo, Osaka, Hiroshima
OVERSEAS
Americas (40), Europe (33), Asia/Oceania (50) (--subsidiaries
& branches)
FACTORY(IES)
Kariya, Ikeda, Anjo, Nishio, Daian, Toyohashi, Kitakyushu, other
(Tot 12)
CHIEF EXEC
KOICHI FUKAYA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 3,188,330 M
PAYMENTS REGULAR CAPITAL Yen 187,457 M
TREND STEADY WORTH Yen 1,970,388 M
STARTED 1949 EMPLOYES 104,661
COMMENT
MFR OF CAR ELECTRONIC & ELECTRICAL PARTS & COMPONENTS, AFFILIATED
TO TOYOTA MOTOR. FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 126,230 MILLION, NORMAL 30 DAYS TERSM.
Forecast (or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established on the basis of car parts mfg
division separated from Toyota Motor Corp (see REGISTRATION), in order to focus
on mfg of car electronic & electrical parts & components, including
heat exchangers, engine & driving units.
Most influential in Toyota group firms.
Actively engaged in overseas production. Accounts for just over 50% of domestic car air conditioner
market. The firm will invest Yen 30,000
million from fiscal 2006 to fiscal 2010 in order to boost production of car air
conditioners and engine parts in China to meet growing demand. Expanding into non-automobile fields
including bar-code readers, robots and non-contact IC card
readers/writers. For production items,
see OPERATION. Worldwide, the firm
employs approx 106,000 people over 32 countries & regions.
The sales volume for Mar/2006 fiscal term amounted to Yen
3,188,330 million, a 13.9% increase from Yen 2,799,949 million in the previous
term. The recurring profit grew 26% to
Yen 283,054 million from Yen 224,760 million, and the net profit 27.9% to Yen
169,648 million from Yen 132,620 million, respectively, from the previous
term. All figures are record
highs. This is attributed to continued
strong car production by Toyota Motor and other carmakers both at home and
abroad. By regions, sales expanded
11.1% Japan, 19.0% N America, 13.1% Europe, 35.8% Asia/Oceania, respectively. In Japan, particularly sales of car
navigation systems increased. In
Europe, increased production in Hungary and Czech contributed. In Asia/Oceania, Toyota innovative international
multi-purpose vehicles and other Japanese auto makers led to the increased
sales & operating income.
For the current term ending Mar 2006 the recurring profit is
projected at Yen 293,000 million and the net profit at Yen 173,000 million,
respectively, on a 6% rise in turnover, to Yen 3,380,000 million. Automotive parts continuing growth, backed
by increased production by Toyota Motor.
Product changeover costs in N America decreasing. Capacity utilization in Europe improving. Net profit will hit all-time high. Weaker Yen against foreign currencies will
uplift sales in Yen terms.
The financial situation is considered FAIR to EXCELLENT and good
for ORDINARY business engagements. Max
credit limit is estimated at Yen 126,230 million, on normal 30 days terms.
REGISTRATION
Date Registered: Dec
1949
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,426,342,000 shares
Issued: 884,068,713 shares
Sum: Yen 187,457 million
Major shareholders (%): Toyota Motor*(22.9), Toyota Ind (7.8),
Treasury Stock (6.5), Master Trust Bank of Japan T (6.2), Robert Bosch (5.3),
Japan Trustee Services Bank T (4.6), Nippon Life Ins (2.6), Mitsui Sumitomo Ins
(1.8), Employees’ S/Holding Assn (1.5), State Street Bank & Trust (1.1);
foreign owners (24.8)
No. of shareholders: 39,130 (Note: all figures are as of the
30/09/2005).
*.. Toyota Motor Corp, top-ranked carmaker in terms of sales
units, based in Toyota City, Aichi-Pref, founded 1937, capital 397,050 million,
turnover Yen 10,191,838 million (up 10.6%), recurring profit Yen 1,104,781
million (up 29.0%), net profit Yen 765,961 million (up 44.7%), total assets Yen
9,909,010 million, net worth Yen 6,686,895 million, employees 278,622, pres
Katsuaki Watanabe.
(Figures as of the 31/03/2006 fiscal term; percentages in
parenthesis compared with the previous term)
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements: Hiromu Okabe, ch; Akihiko Saito, v ch; Koichi Fukaya,
pres & CEO; Takao Inukai, v pres; Norio Omori, v pres; Kazuo Matsumoto, v
pres; Shinro Iwatsuki, s/mgn dir; Oyuki Ogawa, s/mgn dir; Michio Fukuzaki, s/mgn
dir; Masatoshi Ano, s/mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Asmo Co, Denso Wave Inc, Anden Corp, GAC, Denso
America Inc, other (Tot 179: Japan 16, Americas 34, Europe 31, Asia/Oceanic, etc
48).
OPERATION
Activities: Manufactures car electronic & electrical parts
& components: power train control systems, electronic & electric
systems, thermal systems, ITS products, small motors (car navigation systems,
electronic toll collection systems) (--96%), new business-related and others
(4%).
(Production
items by plants)
Ikeda Plant: radiators, oil coolers, inter
coolers;
Anjo Plant: starters, alternators, hybrid
vehicle components;
Nishio Plant: air conditioners, radiators,
fuel injection systems for diesel, electric fuel injection components;
Takatana Plant: instrument clusters, displays,
car navigational systems, sensors:
Daian Plant: ignition devices,
safety-related equipment, oxygen sensors, other accessories;
Kota Plant: integrated circuits,
electronic control components;
Toyohashi Plant: air conditioners, natural
refrigerant (CO2) heat pump hot water supply systems;
Agui Plant: machinery, tools, robots;
Zenmyo Plant: electronic diesel injection
systems;
Hiroshima Plant: radiators, electric fans,
integrated air fuel modules, heater units;
Denso Research Institute:
semiconductors, information & communications systems, human machine
interface technologies.
(Sales
by regions: Japan 54%, Americas 22%, Europe 13%), Asia/Oceania/others 11%)
Clients: [Carmakers] Toyota Motor, Honda Motor, Suzuki Motor,
other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Toyota Ind, Toyota Tsusho, Toyota
Boshoku Corp, other.
Payment record: Regular
Location: Light industrial area in Toyota City, Aichi-Pref. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (Nagoya)
SMBC (Nagoya)
Relations: Satisfactory
FINANCES
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(Consolidated in million yen) |
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual
Sales |
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3,188,330 |
2,799,949 |
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Cost of
Sales |
2,622,998 |
2,309,713 |
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GROSS PROFIT |
565,332 |
490,236 |
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Selling
& Adm Costs |
298,773 |
276,341 |
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OPERATING PROFIT |
266,559 |
213,895 |
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Non-Operating P/L |
16,485 |
10,865 |
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RECURRING PROFIT |
283,054 |
224,760 |
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NET
PROFIT |
169,648 |
132,620 |
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BALANCE SHEET |
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Cash |
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180,446 |
156,625 |
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Receivables |
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592,374 |
519,708 |
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Inventory |
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267,571 |
248,821 |
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Securities,
Marketable |
207,263 |
131,099 |
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Other
Current Assets |
152,939 |
111,462 |
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TOTAL CURRENT ASSETS |
1,400,593 |
1,167,715 |
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Property
& Equipment |
974,975 |
852,821 |
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Intangibles |
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12,076 |
12,257 |
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Investments, Other Fixed Assets |
1,024,331 |
748,189 |
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TOTAL ASSETS |
3,411,975 |
2,780,982 |
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Payables |
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446,057 |
383,160 |
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Short-Term Bank Loans |
95,781 |
64,057 |
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Other
Current Liabs |
330,016 |
276,433 |
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TOTAL CURRENT LIABS |
871,854 |
723,650 |
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Debentures |
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100,000 |
100,000 |
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Long-Term Bank Loans |
70,304 |
41,641 |
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Reserve
for Retirement Allw |
166,998 |
151,842 |
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Other
Debts |
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136,516 |
44,969 |
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TOTAL LIABILITIES |
1,345,672 |
1,062,102 |
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MINORITY INTERESTS |
95,915 |
75,698 |
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Common stock |
187,457 |
187,457 |
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Additional paid-in capital |
266,182 |
266,051 |
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Retained earnings |
1,329,974 |
1,191,370 |
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Evaluation p/l on investments/securities |
319,186 |
173,730 |
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Others |
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(14,562) |
(55,608) |
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Treasury stock, at cost |
(117,849) |
(119,818) |
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TOTAL S/HOLDERS` EQUITY |
1,970,388 |
1,643,182 |
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TOTAL EQUITIES |
3,411,975 |
2,780,982 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash Flows from Operating Activities |
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368,575 |
273,296 |
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Cash Flows from Investment Activities |
-318,934 |
-268,782 |
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Cash Flows from Financing Activities |
25,460 |
-20,097 |
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Cash, Bank Deposits at the Term End |
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313,611 |
231,846 |
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ANALYTICAL RATIOS
Terms ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
1,970,388 |
1,643,182 |
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Current Ratio (%) |
160.65 |
161.36 |
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Net Worth Ratio (%) |
57.75 |
59.09 |
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Recurring Profit Ratio (%) |
8.88 |
8.03 |
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Net Profit Ratio (%) |
5.32 |
4.74 |
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Return On Equity (%) |
8.61 |
8.07 |
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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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |