MIRA INFORM REPORT

 

 

Report Date :

14th march, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

KYOCERA MITA CORPORATION

 

 

Registered Office :

1-2-28 Tamatsukuri Chuoku Osaka 540-8585, Japan

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

July 1948

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures multi-functional office machines & equipment: Fax machines, copy machines (colored, black & white), scanners, other peripherals, printer ink, papers, machine-related software, others, their parts, accessories, components, others.

 

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

Company Name

 

KYOCERA MITA CORPORATION

 

 

REGD NAME

 

Kyocera Mita KK

 

 

MAIN OFFICE

 

1-2-28 Tamatsukuri Chuoku Osaka 540-8585 JAPAN

Tel                    : 06-6764-3555

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

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

 

 

ACTIVITIES

 

Mfg of copying machines, Fax machines, printers, other peripherals

 

 

BRANCHES

 

Tokyo (2), including Kyocera Mita Japan Corp, wholly owned dealership

 

 

FACTORY(IES

 

Hirakata (Osaka), Wataraigun (Mie)

 

 

OVERSEAS

 

Kyocera Mita America Inc (USA), Kyocera Mita Europe BV (Netherlands), Kyocera Mita Australia Pty Ltd (Australia) (-- Dealership);

Kyocera Mita Office Equipment (Dongguan) Ltd (China), Kyocera Mita South Caroline Inc (USA) (-- factories);

Kyocera Mita Industrial (H.K.) (distribution center)

 

 

OFFICER(S)

 

KOJI SEKI, PRES                                  Tetsuo Okada, v pres

Katsumi Komada, v pres             Shunji Inoue, dir

Yoshihiro Tagawa, dir                             Takashi Kadomori, dir

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 159,728 M

PAYMENTS      REGULAR                     CAPITAL           Yen 12,000 M

TREND             STEADY                       WORTH            Yen 77,284 M

STARTED         1948                             EMPLOYES      2,290*

*.. Group-wise 12,160

 

 

COMMENT

 

MFR SPECIALIZING IN MULTI-FUNCTIONAL COPYING MACHINES & FAX MACHINES, WHOLLY OWNED BY KYOCERA CORP.

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

 

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

 

 

HIGHLIGHTS

 

The subject company was established originally as Mita Kogyo KK, a copy machine maker, but went under and sought for court protection under the Corporate Rehabilitation Law.  After rehabilitation was approved in Jan 2000, Kyocera Corp (see REGISTRATION) took over the firm in Apr 2000 and renamed as captioned.  Simultaneously the parent separated its printer mfg division and transferred to the subject firm.  This paved the way for the subject to launch into the area of multi-functional office equipment with printers & copying machines put together.  Now this is a comprehensive mfr of OA equipment: multi-functional Fax machines, copy machines, printers, scanners (--digital & analog), their related software, their parts, accessories, supplies, etc.  Nearly 90% of the products are exported.  Domestically the goods are distributed by a wholly owned subsidiary dealership, Kyocera Mita Japan Corp, Tokyo, having about 80 distribution and service centers nationwide, from Hokkaido to Okinawa.  Overseas subsidiaries: agent dealers 25; factories 2; distribution center 1.  In Dec 2001, founded a subsidiary mfr in China, Kyocera Mita Office equipment (Dongguan) Ltd.  Oct 2003, tied up with a major distributor of communications equipment in Germany.  The firm’s sales (document information equipment sector) account for 21.1% of the total group sales (consolidated financials)

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar 2006 fiscal term amounted to Yen 159,728 million, a 5.3% down from Yen 168,629 million in the previous term.  This is referred to the fierce price competition, especially in low-speed products.  Operating profits decreased due primarily to higher product development costs for color printers and solutions-equipped digital MFPs (high-speed multifunction product), and increased capital investment in information technology infrastructure for strengthening supply chain management, according to the firm  As a result, the recurring profit was posted at Yen 23,039 million, down from Yen 34,926 million, and the net profit at Yen 7,089 million, down from Yen 20,408 million, respectively, a year ago.  The firm wrote off Yen 8,711 million in extraordinary losses including Yen 91 million in assets disposal losses.  Accumulated depreciation costs are reported at Yen 40,511 million at the term’s end.

 

For the current term ending Mar 2007 the recurring profit is projected at Yen 23,500 million and net profit at Yen 20,000 million, respectively, on a 3.3% rise in turnover, to Yen 165,000 million.  Due to introduction of new products developed in 2006, such as color printers and color MFPs with new function, sales of color machines are expected to increase.  Newly-developed “WiseColor” MFP controller platform to meet a variety of needs for IT infrastructure will contribute to sales growth.  Business targeted at major emerging markets such as China, India, Russia and Brazil.  However, profitability will deteriorate, according to the firm, due to rising costs of R&D, materials, etc, due to skyrocketing fuel and other prices for mfg color equipment.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,578.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered : Jul 1948

Legal Status                  : Limited Company (Kabushiki Kaisha)

Authorized                     : 2,292 million shares

Issued                           : 573 million shares

Sum                             : Yen 12,000 million

 

 

Major shareholders (%)

 

Kyocera Corp*(100)

*.. Major comprehensive ceramics mfr, Kyoto, founded 1959, listed Tokyo & Osaka S/E’s, capital Yen 115,703 million, turnover Yen 1,181,489 million, recurring profit Yen 121,388 million, net profit Yen 69,696 million, total assets Yen 1,931,522 million, net worth Yen 1,289,077 million, employees 61,468, pres Makoto Kawamura

 

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

 

 

OPERATION

 

Activities: Manufactures multi-functional office machines & equipment: Fax machines, copy machines (colored, black & white), scanners, other peripherals (--70%), printer ink, papers, machine-related software, others (--23%), their parts, accessories, components, others (--7%). (Export 89%).

 

 

Clients

 

 [Wholesalers, mfrs] Kyocera Mita Japan (subsidiary dealership), Kyocera Mita      Europe, Kyocera Mita America Inc, Kyocera Mita Deutschland, other.

 

Exports to USA, Europe, S/E Asian countries.

 

 

No. of accounts

 

2,000

 

 

Domestic areas of activities

 

Nationwide

 

 

Suppliers

 

[Mfrs, wholesalers] Fujitsu Device, Fujitsu Ltd, Nisca Co, Max Co, Fuji Electric       Ind, Nitto Kogyo, IBM Japan, Ohms Co, Rising Corp, Mitsubishi Chemical, Fujikura Kagaku,          other.

 

Imports from subsidiary makers and subcontracted mfrs in USA, Europe, China, other S/E Asian countries.

 

 

Payment record

 

Regular

 

 

Location

 

Business area in Osaka.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

SMBC Bank (Osaka)

Bank of Tokyo-Mitsubishi UFJ (Tamatsukuri)

Relations: Satisfactory

 

 

FINANCES

 

(Non-Consolidated in million yen)

 

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

159,728

168,629

 

  Cost of Sales

108,151

111,563

 

      GROSS PROFIT

51,578

57,065

 

  Selling & Adm Costs

31,684

26,896

 

      OPERATING PROFIT

19,894

30,170

 

  Non-Operating P/L

3,145

4,756

 

      RECURRING PROFIT

23,039

34,926

　

      NET PROFIT

7,089

20,408

BALANCE SHEET

 

 

 

 

  Cash

　

4,857

5,515

 

  Receivables

 

75,807

82,731

 

  Inventory

 

7,162

9,606

 

  Securities, Marketable

　

　

 

  Other Current Assets

14,581

11,208

 

      TOTAL CURRENT ASSETS

102,407

109,060

 

  Property & Equipment

15,032

15,711

 

  Intangibles

 

7,343

4,713

 

  Investments, Other Fixed Assets

27,347

30,506

 

      TOTAL ASSETS

152,129

159,990

 

  Payables

 

25,944

20,377

 

  Short-Term Bank Loans

　

3,150

 

　

 

　

　

 

  Other Current Liabs

25,467

30,317

 

      TOTAL CURRENT LIABS

51,411

53,844

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

16,379

19,599

 

  Reserve for Retirement Allw

7,018

7,143

 

  Other Debts

　

36

23

 

      TOTAL LIABILITIES

74,844

80,609

 

      MINORITY INTERESTS

 

 

 

Common stock

12,000

12,000

 

Additional paid-in capital

22,919

22,919

 

Retained earnings

42,366

44,462

 

Evaluation p/l on investments/securities

　

　

 

Others

 

(1)

(1)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

77,284

79,380

　

      TOTAL EQUITIES

152,129

159,990

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

77,284

79,380

 

 

Current Ratio (%)

199.19

202.55

 

 

Net Worth Ratio (%)

50.80

49.62

 

 

Recurring Profit Ratio (%)

14.42

20.71

 

 

Net Profit Ratio (%)

4.44

12.10

 

 

Return On Equity (%)

9.17

25.71

 

 

 

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