MIRA INFORM REPORT

 

 

Report Date :

16.04.2007

 

IDENTIFICATION DETAILS

 

Name :

FUJI HEAVY INDUSTIES LTD

 

 

Registered Office :

1-7-2 Nishishinjuku Shinjukuku Tokyo 160-8316

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

Jul 1953

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Automobile maker

 

 

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 32374.7 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

name

 

FUJI HEAVY INDUSTIES LTD

 

 

REGD NAME

 

Fuji Jyukogyo KK

 

 

MAIN OFFICE

 

1-7-2 Nishishinjuku Shinjukuku Tokyo 160-8316 JAPAN

Tel: 03-3347-2111

Fax: 03-3347-2338

URL: http://www.fhi.co.jp/

E-Mail address: info@fhi.co.jp

 

 

ACTIVITIES

 

Automobile maker

 

 

BRANCHES

 

Tokyo, Ohmiya

 

 

OVERSEAS

 

USA (8), Canada, Taiwan, Belgium, Germany (2), Netherlands, China (3), Singapore (--subsidiaries & affiliates)

 

 

FACTORY(IES)

 

Gunma (3), Isezaki, Saitama, Utsunomiya, Handa (Aichi), Tochigi

 

 

CHIEF EXEC

 

IKUO MORI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,476,368 M

PAYMENTS      REGULAR                     CAPITAL           Yen 153,795 M

TREND             STEADY                       WORTH            Yen 465,522 M

STARTED         1953                             EMPLOYES      26,115

 

 

COMMENT

 

AUTOMOBILE MFR. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 32,374.7 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

 

This is a car maker including minicars & 4WD cars, known for “Subaru” brand”.  Also makes aircraft & helicopters.  Aircraft division inherits tradition of prewar Nakajima Aircraft.  Broke away from General Motors following GM’s release of entire stake in it, and now affiliated with Toyota Motor.  

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 1,476,368 million, a 2.1% up from Yen 1,446,491 million in the previous term.  Sales of automobiles decreased due to termination of production at Subaru of Indiana Automotive Inc, but offset by robust demand overseas of non-automotive sales of aerospace products.  Weaker Yen also contributed.  By divisions, automotive was up 0.7% to Yen 1,332,800 million, with overseas sales increased 4.2% to 341,000 units.  Industrial div was up by 11.5% to Yen 52,600 million.  The recurring profit was posted at Yen 46,788 million and the net profit at Yen 15,611 million, respectively, compared with Yen 43,572 million recurring profit and Yen 18,238 million net profit, respectively, a year ago.

           

For the term just ended Mar 2007 the recurring profit was projected at Yen 42,000 million    and the net profit at Yen 30,000 million, on a 1.6% rise in turnover, to Yen 1,500,000 million.  Consigned production for Toyota Motor in N America should have contributed toward the term-end.  By integrating 39 domestic con sales into 33 subs.  Marketing horizontally-opposed diesel engines             in Europe with eye on 100,000-unit sales in 2008.

 

(Apr/Dec/2006 results): sales Yen 1,058,733 million (up 1.9%), operating profit Yen 35,753 million (down 4.8%), recurring profit Yen 30,188 million (down 3.2%), net profit Yen 24,699 million (up92.5%).  (% compared with the same period the previous year).  For automotive div, sales were     lower due t weaker passenger cars sales, although sales volume for minicars increased thanks to         new “Stella” introduced in Japan market.  For non-automobile division, sales for aerospace div greatly improved. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 32,374.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Jul 1953

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    1,500 million shares

Issued:                          782,865,873 shares

Sum:                            Yen 153,795 million

Major shareholders (%): Toyota Motor (8.6), Company’s Treasury Stock (8.4), Japan Trustee Services Bank T

                                    (5.4), Master Trusty Bank of Japan T (5.0), Chase Manhattan Bank (London) (4.3), 

                                    Depositary Nominees Inc (3.3), Northern Trust (AVFC) American (3.0), Nippon Life Ins

                                    (2.0), Suzuki Motor (1.7), Mizuho Corporate Bank (1.5), foreign owners (24.9)

No. of shareholders:       46,367

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

Managements:               Ikuo Mori, pres; Takao Tsuchiya, v pres; Hiroshi, v pres; Shunsuke Takagi, dir; Hiroyuki

                                    Oikawa, dir; Norihisa Matsuo, dir; Kazunari Okuhara, dir; Kyoji Takenaka, dir 

           

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

 

 

Related companies

 

Subaru of America, Fuji Robin Ind Ichitan, Fuji Machinery Co, other (Tot 68 as of Mar/06)

           

 

OPERATION

           

Activities: Manufactures automobiles (90%), industrial machinery (4%), aerospace (&%). 

 

Overseas sales ratio 59.1%: N America 41.8%; Europe 8.7%; other 8.6%

 

Clients: [Mfrs, wholesalers] Subaru of America Inc, Subaru of Indiana Automotive, Fuji Robin, other

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Unicia Automotive. NOK, Fujikura Ltd, Denso Corp, NHK Spring Co, other.

 

Payment record: Regular

 

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

 

 

 

 

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

SMBC (Shinjuku-Nishiguchi)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,476,368

1,446,491

 

  Cost of Sales

1,125,293

1,107,718

 

      GROSS PROFIT

351,075

338,773

 

  Selling & Adm Costs

292,736

296,756

 

      OPERATING PROFIT

58,339

42,017

 

  Non-Operating P/L

-11,571

1,555

 

      RECURRING PROFIT

46,768

43,572

　

      NET PROFIT

15,611

18,238

BALANCE SHEET

 

 

 

 

  Cash

　

65,524

40,742

 

  Receivables

 

104,972

116,278

 

  Inventory

 

216,396

175,087

 

  Securities, Marketable

37,444

87,003

 

  Other Current Assets

194,847

229,960

 

      TOTAL CURRENT ASSETS

619,183

649,070

 

  Property & Equipment

555,973

543,726

 

  Intangibles

 

38,211

43,211

 

  Investments, Other Fixed Assets

135,033

121,452

 

      TOTAL ASSETS

1,348,400

1,357,459

 

  Payables

 

211,412

190,790

 

  Short-Term Bank Loans

195,507

220,295

 

　

 

　

　

 

  Other Current Liabs

221,194

199,226

 

      TOTAL CURRENT LIABS

628,113

610,311

 

  Debentures

 

80,000

100,000

 

  Long-Term Bank Loans

70,072

59,095

 

  Reserve for Retirement Allw

53,293

60,152

 

  Other Debts

　

49,136

53,285

 

      TOTAL LIABILITIES

880,614

882,843

 

      MINORITY INTERESTS

2,264

3,467

 

Common stock

153,795

153,795

 

Additional paid-in capital

160,071

160,071

 

Retained earnings

189,996

178,002

 

Evaluation p/l on investments/securities

21,145

16,945

 

Others

 

(17,940)

(35,433)

 

Treasury stock, at cost

(41,545)

(2,231)

 

      TOTAL S/HOLDERS` EQUITY

465,522

471,149

　

      TOTAL EQUITIES

1,348,400

1,357,459

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

137,485

57,327

 

Cash Flows from Investment Activities

-75,775

-89,761

 

Cash Flows from Financing Activities

-88,885

26,199

　

Cash, Bank Deposits at the Term End

　

112,366

131,685

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

465,522

471,149

 

 

Current Ratio (%)

98.58

106.35

 

 

Net Worth Ratio (%)

34.52

34.71

 

 

Recurring Profit Ratio (%)

3.17

3.01

 

 

Net Profit Ratio (%)

1.06

1.26

 

 

Return On Equity (%)

3.35

3.87

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions