MIRA
INFORM REPORT
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Report Date : |
30.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
CANON INC |
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Registered Office : |
3-30-2 Shimomaruko Ohtaku Tokyo 146-8501 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Apr 1937 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of OA equipment & cameras |
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 115378.1 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
CANON INC
REGD NAME
Canon KK
MAIN OFFICE
3-30-2 Shimomaruko Ohtaku Tokyo 146-8501 JAPAN
Tel : 03-3758-2111
Fax : 03-5482-5135
URL : http://www.canon.jp/
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of OA equipment & cameras
BRANCHES
Kanagawa (5), Tochigi (2), other
OVERSEAS
USA (3), Americas (9), Europe (28), East Asia (10), S/E Asia
(7), Oceania (2)
FACTORY(IES)
Tamagawa, Kawasaki, Hiratsuka, Atsugi, Utsunomiya, Toride,
other (Tot 13)
CHIEF EXEC
FUJIO MITARAI, CH & CEO
TSUNEJI UCHIDA, PRES & COO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES GOOD A/SALES Yen 4,156,759 M
PAYMENTS REGULAR CAPITAL Yen
174,603 M
TREND STEADY WORTH Yen
2,986,606 M
STARTED 1937 EMPLOYES 18,499
COMMENT
MFR OF
O/A EQUIPMENT & CAMERAS. FINANCIAL
SITUATION CONSIDERED GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 115,378.1 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/12/2007 fiscal term
HIGHLIGHTS
Top-ranked mfr of PC printers & cameras, with LBP (laser beam printers) accounting for 60% of market share. Strength placed on multimedia equipment such as digital cameras, printer, copiers and scanners. Top-class mfr of copiers & inkjet printers. Advancing to large display SEDs (surface conduction electron-emitter display). Now all-embracing producer of visual image, LCDs, etc. Leads others in multi-internalization. Known as high cash flow management. In display business, tied up with Toshiba Corp.
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 4,156,759 million, up 10.7% from Yen 3,754,191 million in the previous term, aided by brisk demand for new copiers and printers, making its first tally above Yen 4 trillion. This reflects solid sales of digital cameras and color network digital MFD’s, and laser beam printers, along with the positive effect of the weaker Yen. Overseas operations are significant generating 78% of total net sales. Digital camera sales reached 21.1 million units, a gain of 25%. Such strong performers offset its lackluster sales of LCD mfg devices. By divisions, business machines Div up 7.5% to Yen 2,691,100 million; sales of color MFDs rose sharply, owing to the launch of new models; cameras up 18.5% to Yen 1,041,900 million supported by rapid growth in emerging markets; optical & other products climbed 13.7% to Yen 423,800 million, recording higher revenues in all segments. The recurring profit was posted at Yen 719,143 million and the net profit at Yen 455,325 million, respectively, compared with Yen 612,004 million recurring profit and Yen 384,096 million net profit, respectively, a year ago.
For the current term ending Dec 2007 the recurring profit is
projected at Yen 780,000 million and the net profit at 497,000 million,
respectively, on a 7% rise in turnover, to Yen 4,460,000 million. Mainstay office equipment, such as copiers
and laser printers will continue in robust demand. Amid strong global demand, sales of digital cameras are expected
to surge 14% to 24 million units.
The financial situation is considered FAIR TO GOOD (even to
EXCELLENT) and responsible for ORDINARY business engagements. Max credit limit is estimate at Yen
115,378.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr
1937
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 3,000
million shares
Issued: 1,333,445,830
shares
Sum: Yen
174,603 million
Major shareholders (%): Dai-ichi Life Ins (6.9), Japan Trustee Services Bank T (6.2), Master Trusty Bank of Japan
T (5.5), Moxley & Co (5.1), State Street Bank & Trust 505103 (2.6), Mizuho Corporate
Bank (2.1), Nomura Securities Co (2.0), PNP Paribas Securities (1.5); foreign owners
(46.9)
No. of shareholders: 113,726 (as of Dec/06)
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Sapporo, Fukuoka, Frankfurt, and New York
Managements: Fujio Mitarai, ch & CEO*; Tsuneji Uchida, pres & CEO*; Toshizo Tanaka, v pres;
Nobuyoshi Tanaka, s/mgn dir; Junji Ichikawa, s/mgn dir; Hajime Tsuruoka, s/mgn dir;
Akiyoshi Moroe, mgn dir; Kunio Watanabe, mgn dir; Yoroku Adachi, mgn dir, Yasuo
Mitsuhashi,
mgn dir
*.. With Fujio Mitarai elected as Chairman of Japan Federation
of Economic Organizations, the most influential Japanese business lobby, both
assumed the posts in May 06.
Nothing detrimental is known as to the commercial morality
of executives.
Related companies: Canon Marketing Japan, Canon Chemicals,
Canon Electronics, Canon Finetech, Canon Software, other (Tot 219 as of Dec/06)
OPERATION
Activities: Manufactures business machines, cameras, optical
& other O/A equipment & products (sales breakdown by divisions):
Business Machines Div (65%):
Office imaging products (31%): digital multifunctional devices, copying machines, laser facsimiles; Computer peripherals (31%): laser beam printers, inkjet printers, inkjet multifunctional devices, inkjet facsimiles, image scanners;
Business Information products (3%): computers, document scanners, microfilm equipment, handy terminals, calculators, electronic dictionaries;
Cameras Div (25%): digital cameras, film cameras, digital video cameras, interchangeable lenses, LCD projectors;
Optical Equipment Div, others (10%): semiconductor production equipment, ophthalmic instruments, mirror projection mask aligners for LCDs, Broadcast-use TV lenses, X-Ray equipment, medical image recording equipment, others.
Overseas sales ratio (77.6%): Americas (30.9%),
Europe (31.6%), Asia, others (15.1%).
Clients: [Electronics mfrs, wholesalers] Canon Sales, Canon Copier Sales, Canon USA, Canon Europe, Canon Singapore, Canon China, Canon Australia, Canon Canada, Canon Latin America, Canon Semiconductor Equipment Taiwan, Canon Virginia (-- subsidiaries), Hitachi Ltd, Sony Corp, Sanyo Electric, other.
No. of accounts: 5,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Canon Finetech, Canon Chemicals,
Oita Canon, Nagahama Canon, Canon Electronics, Canon Precision, Oita Canon Materials,
Canon Hi-Tech, Canon Dalian (-- subsidiaries), NEC, Matsushita Electric Ind,
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 (H/O)
Relations: Satisfactory
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FINANCES (Consolidated
in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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4,156,759 |
3,754,191 |
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Cost of Sales |
2,096,279 |
1,935,148 |
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GROSS PROFIT |
2,060,480 |
1,819,043 |
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Selling & Adm Costs |
1,353,447 |
1,236,000 |
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OPERATING PROFIT |
ING
PROFIT |
707,033 |
583,043 |
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Non-Operating P/L |
12,110 |
28,961 |
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RECURRING PROFIT |
719,143 |
612,004 |
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NET PROFIT |
455,325 |
384,096 |
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BALANCE SHEET |
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Cash |
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1,155,626 |
1,004,953 |
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Receivables |
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761,947 |
689,427 |
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Inventory |
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539,057 |
510,195 |
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Securities, Marketable |
10,445 |
172 |
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Other Current Assets |
315,274 |
253,822 |
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TOTAL CURRENT ASSETS |
2,782,349 |
2,458,569 |
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Property & Equipment |
1,266,425 |
1,148,821 |
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Intangibles |
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Investments, Other Fixed Assets |
473,141 |
436,163 |
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TOTAL ASSETS |
4,521,915 |
4,043,553 |
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Payables |
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Short-Term Bank Loans |
15,362 |
5,059 |
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Other Current Liabs |
1,147,945 |
1,073,569 |
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TOTAL CURRENT LIABS |
1,163,307 |
1,078,628 |
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Debentures |
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Long-Term Bank Loans |
15,789 |
27,082 |
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Reserve for Retirement Allw |
83,876 |
80,430 |
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Other Debts |
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55,536 |
52,395 |
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TOTAL LIABILITIES |
1,318,508 |
1,238,535 |
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MINORITY INTERESTS |
216,801 |
200,336 |
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Common
stock |
174,603 |
174,438 |
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Additional
paid-in capital |
403,510 |
403,216 |
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Retained
earnings |
2,411,647 |
2,060,620 |
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Evaluation
p/l on investments/securities |
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Others |
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2,718 |
(28,182) |
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Treasury
stock, at cost |
(5,872) |
(5,410) |
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TOTAL S/HOLDERS` EQUITY |
2,986,606 |
2,604,682 |
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TOTAL EQUITIES |
4,521,915 |
4,043,553 |
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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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695,241 |
605,678 |
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Cash
Flows from Investment Activities |
-460,805 |
-401,141 |
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Cash
Flows from Financing Activities |
-107,487 |
-93,939 |
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Cash,
Bank Deposits at the Term End |
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1,155,626 |
1,004,953 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net Worth
(S/Holders' Equity) |
2,986,606 |
2,604,682 |
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Current
Ratio (%) |
239.18 |
227.93 |
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Net
Worth Ratio (%) |
66.05 |
64.42 |
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Recurring
Profit Ratio (%) |
17.30 |
16.30 |
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Net
Profit Ratio (%) |
10.95 |
10.23 |
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Return
On Equity (%) |
15.25 |
14.75 |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)