MIRA INFORM REPORT

 

 

Report Date :

21.09.2007

 

IDENTIFICATION DETAILS

 

Name :

RYOBI LTD

 

 

Registered Office :

762 Mesakicho Fuchu City Hiroshima-Pref

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Dec 1943

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of die castings, printing press, power tools

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 5128.3 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name

 

RYOBI LTD

 

 

REGD NAME

 

Ryobi KK

 

 

MAIN OFFICE

 

762 Mesakicho Fuchu City Hiroshima-Pref JAPAN

Tel        : 0847-41-1111

Fax       : 0847-43-6111

URL      : http://www.ryobi-group.co.p/

E-Mail address: (thru the URL to each division)

 

:.. Tokyo Office at: Toranomon Central Bldg 4F, 1-7-1 Nishishimbashi Minatoku Tokyo, as given

(Tel: 033927-5541; Fax: 03-3927-2906)

 

 

ACTIVITIES

 

Mfg of die castings, printing press, power tools

 

 

BRANCH(ES)

 

Tokyo (2), Osaka, Sapporo, Sendai, Hamamatsu, Nagoya, Toyama, Fukuoka

 

 

OVERSEAS

 

Ryobi Die Casting (USA) Inc; Ryobi Aluminum (UK) Ltd; Ryobi Die Casting Dalian Co Ltd.

 

 

FACTORY(IES)

 

Hiroshima (3), Shizuoka

 

 

CHIEF EXEC

 

SUSUMUU YOSHIKAWA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 204,671 M

PAYMENTS      REGULAR                     CAPITAL           Yen 18,472 M

TREND             STEADY                       WORTH            Yen 75,757 M

STARTED         1943                             EMPLOYES      5,625

 

 

COMMENT

 

LARGEST MFR OF DIE CASTINGS.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,128.3 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

This is the largest mfr of die castings mainly for automakers.  Originally set up in 1943 as   die cast airplane parts maker for Mitsubishi Electric’s Hiroshima plant.  After 1960, expanded into finished products using die cast pasts: power tools, printing machining and fishing tackle.  Printing machines are now major income source.  Established new plant in Mexico to boost output of die castings bound for US, aiming to startup in Oct 2008.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 204,671 million, a 19.5% hike from Yen 171,232 million in the previous term.  Die castings for automakers in Japan and US were robust, up 21.3% to Yen 138,622 million.  Materials cost-ups were compensated by the steep sales growth.  Printing presses exports fared well into Europe, USA and Asia, up 23.3% to Yen 39,829 million.  Power tools were also in good demand, up 6.6% to Yen 26,219 million.  The recurring profit was posted at Yen 16,406 million and the net profit at Yen 9,877 million, respectively, compared with Yen 13,407 million recurring profit and Yen 8,635 million net profit, respectively, a year ago. 

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 14,500 million and the net profit at Yen 8,200 million, on a 5% rise in turnover, to Yen 215,000 million.  Die castings and printers continue growth.  Housing appliances, including electrical power tools, also will rise.  Profits may shrink affected by increased depreciation on system reform.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,128.3 million, on 30 days normal terms.

 

 

 

REGISTRATION

 

Date Registered:            Dec 1943

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    500 million shares

Issued:                          171,230,715 shares

Sum:                            Yen 18,472 million

Major shareholders (%): Japan Trustee Services T (7.1), Meiji Yasuda Life Ins(5.4), Dai-ichi Life Ins (4.7), Nippon

                                    Life Ins (4.5), MUFG (3.8), Master Trust Bank of Japan T (3.1), Urakami Foundation

                                    (3.0), Employees S/Holding Assn (2.8), Sumitomo Trust (2.0), Company’s Treasury Stock

                                    (2.0); foreign owners (19.8) .

No. of shareholders:       9,219

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

Managements:               Hiroshi Urakami, ch & CEO; Susumu Yoshikawa, pres & COO; Takao Tanaka, dir;

                                    Takashi Yokoyama, dir; Mikio Kamura, dir; Shiro Muroya, dir; Koji Ishii, dir; Akira

                                    Urakami, dir; Kenjiro Suzuki, dir

           

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

 

           

OPERATION

           

Activities: Manufactures die castings, printing press, power tools, other:

 

(Sales breakdown by divisions):

 

Die Castings (68%): die casting products, including cylinder blocks & transmission cases, aluminum castings;

Printing Machines (19%): offset printing presses & peripherals;

Housing Appliances (13%): electrical power tools, door closers, air-conditioning Controllers, lawn & gardening equipment, hinges, architecture’s hardware, other;

Overseas sales ratio (30.9%: N America 14.2%, Europe 10.7%, others 6.0%.

 

Clients: [Automakers, other makers] Honda Motor, Suzuki Motor, Jatco, Ryobi Hambai, Mitsubishi Motors, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Ryobi Mirasaka, Ryobi Mitsugi, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (Marunouchi)

SMBC (Tokyo-Chuo)

 

Relations: Satisfactory

 

 

FINANCES

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

204,671

171,232

 

  Cost of Sales

164,519

135,088

 

      GROSS PROFIT

40,151

36,143

 

  Selling & Adm Costs

23,798

22,929

 

      OPERATING PROFIT

16,353

13,214

 

  Non-Operating P/L

53

193

 

      RECURRING PROFIT

16,406

13,407

　

      NET PROFIT

9,877

8,635

BALANCE SHEET

 

 

 

 

  Cash

　

17,004

17,894

 

  Receivables

 

47,130

42,691

 

  Inventory

 

38,398

31,919

 

  Securities, Marketable

2,908

604

 

  Other Current Assets

5,134

3,783

 

      TOTAL CURRENT ASSETS

110,574

96,891

 

  Property & Equipment

73,028

60,306

 

  Intangibles

 

1,990

1,827

 

  Investments, Other Fixed Assets

16,936

18,840

 

      TOTAL ASSETS

202,528

177,864

 

  Payables

 

49,956

35,818

 

  Short-Term Bank Loans

24,114

26,425

 

　

 

　

　

 

  Other Current Liabs

24,987

21,345

 

      TOTAL CURRENT LIABS

99,057

83,588

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

14,217

13,397

 

  Reserve for Retirement Allw

6,549

6,906

 

  Other Debts

　

6,948

6,276

 

      TOTAL LIABILITIES

126,771

110,167

 

      MINORITY INTERESTS

 

940

 

Common stock

18,472

18,472

 

Additional paid-in capital

23,750

23,680

 

Retained earnings

34,043

25,885

 

Evaluation p/l on investments/securities

5,144

6,228

 

Others

 

(4,921)

(6,743)

 

Treasury stock, at cost

(731)

(766)

 

      TOTAL S/HOLDERS` EQUITY

75,757

66,756

　

      TOTAL EQUITIES

202,528

177,864

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

22,119

15,165

 

Cash Flows from Investment Activities

-17,702

-7,968

 

Cash Flows from Financing Activities

-3,120

-6,483

　

Cash, Bank Deposits at the Term End

　

17,611

16,097

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

75,757

66,756

 

 

Current Ratio (%)

111.63

115.91

 

 

Net Worth Ratio (%)

37.41

37.53

 

 

Recurring Profit Ratio (%)

8.02

7.83

 

 

Net Profit Ratio (%)

4.83

5.04

 

 

Return On Equity (%)

13.04

12.94

 

 

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