MIRA INFORM REPORT

 

 

Report Date :

18.10.2007

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU MECHATRONICS CORPORATION (ITCM)

 

 

Registered Office :

Nihombashi Core Bldg 5F, 2-8-4 Nihombashi-Horidomecho Chuoku Tokyo 103-0012

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Jun 1979

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Import, export, wholesale of machine tools, automatic control units, precision machine tools, 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

 

Maximum Credit Limit :

Yen 406.1 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

name

 

ITOCHU MECHATRONICS CORPORATION (ITCM)

 

 

REGD NAME

 

Itochu Mechatronics KK

 

 

MAIN OFFICE

 

Nihombashi Core Bldg 5F, 2-8-4 Nihombashi-Horidomecho Chuoku Tokyo 103-0012 JAPAN

Tel        : 03-5640-0721   

Fax       : 03-5640-0741

URL      : http://www.itcm.co.jp

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

 

*..The given address is its Osaka Branch at: 3-6-14 Minamihonmachi Chuoku Osaka, as given.

                       

 

ACTIVITIES

 

Import, export, wholesale of machine tools, automatic control units, precision machine tools, others

 

 

BRANCHES

 

Osaka, Nagoya, Hamamatsu, Hiroshima

 

 

OVERSEAS

 

Malaysia, Hamburg; Thailand (subsidiary)

 

 

OFFICERS

 

TOSHINORI OSE, PRES                                    Toshiyuki Matsui, mgn dir

Masaki Hane, dir                                                Masato Maehashi, dir

Fumio Sano, dir                                                 Koji Nakatani, dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 21,622 M

PAYMENTS      REGULAR                     CAPITAL           Yen 300 M

TREND             STEADY                       WORTH            Yen 3,071 M

STARTED         1979                             EMPLOYES      90

 

 

COMMENT

 

TRADING HOUSE SPECIALIZING IN PRECISION MACHINE TOOLS, OWNED BY ITOCHU CORP.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 406.1 MILLION, 30 DAYS NORMAL TERMS. 

 

 

HIGHLIGHTS

           

The subject company was established on the basis of a section of machinery division separated from Itochu Corp, one of big 5 general trading firms, Tokyo (See REGISTRATION).  This is a trading house specializing in NC machine tools, automatic control units, FA-related hardware & software, other.  Goods are widely imported and exported (See OPERATION).  Domestic clients include major heavy machinery mfrs, automakers, others, nationwide.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2007 fiscal term amounted to Yen 21,622 million, a 9% up from Yen 19,844 million in the previous term.  Exports increased.  Also helped by weaker Yen against foreign currencies, that pushed sales in Yen terms.  The net profit, on the other hand, decreased to Yen 475 million from Yen 605 million a year ago.  This is reportedly referred to the rising costs of materials & operations.

 

For the current term ending Mar 2008 the net profit is projected at Yen 480 million, on a 4% rise in turnover, to Yen 22,500 million.  Precision machine tools will continue expanding sales.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 406.1 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Jun 1979

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    2.4 million shares

Issued:                          600,000 shares

Sum:                            Yen 300 million

Major shareholders (%): Itochu Corp*(86), Itochu Techno Science (14)

No. of shareholders:       2

 

*.. Major general trading house of Japan, Tokyo, founded 1949, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 202,241 million, sales Yen 11,579,059 million, operating profit Yen 264,621 million, recurring profit Yen 300,230 million, net profit Yen 177,059 million, total assets Yen             5,271,512 million, net worth Yen 896,195 million, employees 45,690, pres Eizo Kobayashi

 

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

 

OPERATION

 

Activities: Imports, exports and wholesales machine tools, automatic control units, precision cutting tools, other industrial equipment & systems (--100%).

 

(Handling Items):

           

Domestic products: lathe turning machines, machining center, measuring instruments, robots, grinding machines, metal molds, die-casting machines, molding machines, forge rolling machines, cleaning machines, coating machines, wheel making machines, auto-assembly systems, FA systems & facilities, others;

 

Importing products: Precision dies (for electronics, semiconductors), crank shaft turning machines, crank shaft connecting rods (for cars, trans), aircraft panel riveting machines, piping systems (for steel mills), 3D measuring instruments, helium gas liquefying systems, tool    pre-setters, cutting tools, injection molding machines, other.

 

(Main importing partners, but not restricted to): Moore Nanotechnology, Linde, Sheffield  (--USA); Peter Wolters, Hegenscheidt-MFD, Boetje Automation, Ex-Cell-O, Burgsmuller, Gildemeister-Devlieg, Burgsmuller (--Germany); Sciemetric (Canada); Lapointe Ltd (UK); Metronor (Norway); Tong Tai (Taiwan), Cheng Hsong (China), other.

           

Clients: [Mfrs] Kawasaki Heavy Ind, Hitachi Ltd, Jatco, Yamaha Marine, Mazda Motor, IHI Shibaura, Otics Corp, Matsushita Electric Ind, Komatsu Electronics Metals, Exedy Corp, Ishikawajima Shibaura Machinery, other.   Goods are also exported

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Imports from USA, Germany, China, Austria, Canada, Taiwan, Switz, Norway, UK, other.

 

Domestically, supplied from Makino J, Mori Seiki Co, Nagase Integrex, OM Ltd, Toyo Advanced Technologies, Makino Milling Machine, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

MUFG (Ohdenmacho)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

       Terms Ending:

31/03/2008

31/03/2007

31/03/2006

31/03/2005

Annual Sales

　

22,500

21,622

19,844

18,038

Recur. Profit

　

　

　

　

　

Net Profit

　

480

475

605

520

Total Assets

　

　

14,892

15,300

　

Current Assets

　

　

12,295

12,262

　

Current Liabs

　

　

11,248

11,297

　

Net Worth

　

　

3,071

3,217

　

Capital, Paid-Up

　

　

300

300

300

Div.P.Share(¥)

　

　

　

500.00

360.00

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

4.06

8.96

10.01

48.35

       Current Ratio

 

..

109.31

108.54

..

       N.Worth Ratio

..

20.62

21.03

..

       R.Profit/Sales

 

..

..

..

..

       N.Profit/Sales

2.13

2.20

3.05

2.88

       Return On Equity

..

15.47

18.81

..

 

Note: Forecast (or estimated) for the 31/03/2008 fiscal term.

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, ITOCHU CORP.

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

11,579,059

10,473,885

 

  Cost of Sales

1,067,038

9,759,511

 

      GROSS PROFIT

908,676

714,374

 

  Selling & Adm Costs

644,055

520,985

 

      OPERATING PROFIT

264,621

193,389

 

  Non-Operating P/L

35,609

23,480

 

      RECURRING PROFIT

300,230

216,869

　

      NET PROFIT

177,059

145,146

BALANCE SHEET

 

 

 

 

  Cash

　

532,856

477,707

 

  Receivables

 

1,421,555

1,211,035

 

  Inventory

 

530,335

458,876

 

  Securities, Marketable

31,161

48,282

 

  Other Current Assets

550,998

483,723

 

      TOTAL CURRENT ASSETS

3,066,905

2,679,623

 

  Property & Equipment

530,045

487,788

 

  Intangibles

 

1,317,826

1,240,256

 

  Investments, Other Fixed Assets

356,736

389,346

 

      TOTAL ASSETS

5,271,512

4,797,013

 

  Payables

 

1,324,619

1,078,192

 

  Short-Term Bank Loans

373,723

382,434

 

　

 

　

　

 

  Other Current Liabs

690,954

669,200

 

      TOTAL CURRENT LIABS

2,389,296

2,129,826

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

1,795,333

1,762,103

 

  Reserve for Retirement Allw

21,748

19,081

 

  Other Debts

　

25,885

29,470

 

      TOTAL LIABILITIES

4,232,262

3,940,480

 

      MINORITY INTERESTS

143,055

129,717

 

Common stock

202,241

202,241

 

Additional paid-in capital

136,842

137,035

 

Retained earnings

477,159

315,928

 

Evaluation p/l on investments/securities

122,736

97,689

 

Others

 

(40,873)

(24,800)

 

Treasury stock, at cost

(1,910)

(1,277)

 

      TOTAL S/HOLDERS` EQUITY

896,195

726,816

　

      TOTAL EQUITIES

5,271,512

4,797,013

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

235,917

185,147

 

Cash Flows from Investment Activities

-83,394

-79,871

 

Cash Flows from Financing Activities

-100,920

-85,193

　

Cash, Bank Deposits at the Term End

　

532,856

477,707

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

896,195

726,816

 

 

Current Ratio (%)

128.36

125.81

 

 

Net Worth Ratio (%)

17.00

15.15

 

 

Recurring Profit Ratio (%)

2.59

2.07

 

 

Net Profit Ratio (%)

1.53

1.39

 

 

Return On Equity (%)

19.76

19.97

 

 

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.

 

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