MIRA
INFORM REPORT
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Report Date : |
15.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
YAMAHA CORPORATION |
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Registered Office : |
10-1 Nakazawacho Hamamatsu Shizuoka-Pref 430-8650 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
October 1897 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Musical Instruments |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 18,458.5 Million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name & address
YAMAHA CORPORATION
REGD NAME: Yamaha KK
MAIN OFFICE: 10-1 Nakazawacho
Hamamatsu Shizuoka-Pref 430-8650 JAPAN
Tel:
053-460-2071 Fax: 053-464-8555
E-Mail address: info@yamaha.co.jp
ACTIVITIES
Mfg of musical instruments
BRANCH(ES)
Tokyo (2), Sendai, Sapporo, Nagoya, Osaka (2), Fukuoka,
other (Tot 11)
OVERSEAS
USA (8), Canada, Mexico, Germany (3), UK (4), France, Sweden, Spain, Russia, China (6), Taiwan, Korea, Singapore, Malaysia (2), Indonesia (6), Thailand, UAE, Australia
FACTORY(IES)
At the caption address, Tenryu, Kakegawa (--Shizuoka), Toyooka, Saitama
CHIEF EXEC
MITSURU UMEMURA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 550361 M
PAYMENTS REGULAR CAPITAL Yen 28,534 M
TREND STEADY WORTH Yen 351,398 M
STARTED 1897 EMPLOYES 19,911
COMMENT
MFR OF MUSICAL INSTRUMENTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 18,458.5 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company is the world’s largest mfr of musical instruments, including piano and leader of Yamaha group. Boasts large market share in portable sound-source chips based on proprietary technology for electronic instruments. Downsizing home furnishings such as furniture, integrated kitchen systems, etc. Also produces LSIs and top-ranked mfr of sound generator LSIs for mobile phones. Re-focusing on music business, operating music classes. Emphasis put more on Chinese market where the firm has 6 offices including mfr of guitar & piano. Yamaha’s piano output in China will increase 40% to 25,000 units, with a sale target of 30,000 units by fiscal 2009, nearly double the current level. Domestically 27 subsidiary factories and 56 offices overseas.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 550,361 million, a 3% up from Yen 534,084 million in the previous term. Pianos fared well in China & Asian markets but downsized in USA. Portable keyboards rose in overseas markets. By divisions, Musical Instruments up 3.8% to Yen 325,989 million.; AV & IT Division down 4.1% to Yen 72,823 million, due to decreased sales of information equipment; Electronic equipment & electronics metals Div down 60.9% to Yen 54,809 million, affected by decreased demand for LSIs for portable phones. The recurring profit was posted at Yen 42,626 million and the net profit at Yen 27,866 million, respectively, compared with Yen 35,244 million recurring profit and Yen 28,123 million net profit, respectively, a year ago.
(Apr/Dec/2007 results): Sales Yen 428,903 million (up 3.0%), operating profit Yen 35,517 million (up 32.1%), recurring profit Yen 35,322 million (down 8.2%), net profit Yen 42,176 million (up 41.0%). (% compared with the corresponding period a year ago).
For the current term ending Mar 2008 the recurring profit was projected at Yen 33,000 million and the net profit at Yen 39,000 million, on a 0.7% rise in turnover, to Yen 554,000 million. Sound-generator LSI for mobile phones continued decrease. But sales mainstay musical instruments in Europe, USA and Canada grew, more than offsetting domestic slump. Operating profits expanded, as resort business turned profitable thanks to sale of loss-making facilities..
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 18,458.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Oct 1897
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 700 million shares
Issued: 206,524,626 shares
Sum: Yen 28,534 million
Major shareholders (%)
Master Trust Bank of Japan T (8.0), State Street Bank & Trust (7.6), Mitsui Sumitomo Ins (4.3), Mizuho Bank (4.2), Shizuoka Bank (4.0), Chase Manhattan Bank (London) (3.7), Sumitomo Life Ins (3.5), Japan Trustee Services T (3.3), Nippon Life ins (3.1), Mizuho Corporate Bank (2.7); foreign owners (37.1).
No. of shareholders: 13,480
Listed on the S/Exchange (s) of
Tokyo
Managements
Shuji Ito, ch; Mitsuru Umemura, pres; Hiroshi Kato, s/mgn dir; Tsuneo Kuroe, mgn dir; Hiroo Okabe, mgn dir; Taiji Yawata, dir; Genki Takahashi, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Yamaha Living Tech, Yamaha America, other.
OPERATION
Activities: Manufactures musical instruments, others:
(Sales Breakdown by
Divisions):
Musical Instruments (59%): pianos, portable keyboards, electones, wind/string & percussion instruments, digital musical instruments, acoustics & soundproofing, other;
AV & IT (13%): mixers, processors, speakers, PA systems, Add-On effects, power amps, interface, other;
Electronic Equipment & Electronics Metals (10%): mobile audio LSIs, sound generator LSIs, graphics LSIs, communication LSIs, audio system LSIs, thermoelectric coolers, micro lens arrays, other;
Furniture & Household Goods (8%); integrated kitchen systems, bath units;
Recreation (3%): resort hotel operation, other;
Others (6%): operates music classes, English language class, other.
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Clients
[Mfrs, wholesalers] Toyota Tsusho Corp, Kaga Electronics, Kanematsu Corp,
Hakuto Co, Daiichi Kosho, Calsonic Kansei Corp, Alpen Co, Denso Corp, Jeugia, other
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Toshiba Devise, Tokyo Electro Devise, Endo Mfg, Ryosan Co, Renesas Technology Sales, Matsuzaki Chemical, Elna Co, other..
Payment record
Regular
Location
Business area in Hamamatsu, Shizuoka-Pref. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Corporate( Bank (Hamamatsu)
Shizuoka Bank (Hamamatsu)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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550,361 |
534,084 |
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Cost of Sales |
352,382 |
341,817 |
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GROSS PROFIT |
197,980 |
192,267 |
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Selling & Adm Costs |
170,295 |
168,132 |
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OPERATING PROFIT |
27,685 |
24,135 |
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Non-Operating P/L |
14,941 |
11,109 |
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RECURRING PROFIT |
42,626 |
35,244 |
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NET PROFIT |
27,866 |
28,123 |
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BALANCE SHEET |
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Cash |
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46,702 |
36,429 |
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Receivables |
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78,669 |
72,613 |
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Inventory |
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82,214 |
77,943 |
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Securities, Marketable |
419 |
520 |
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Other Current Assets |
23,029 |
21,876 |
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TOTAL CURRENT ASSETS |
231,033 |
209,381 |
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Property & Equipment |
149,872 |
150,990 |
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Intangibles |
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2,951 |
3,545 |
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Investments, Other Fixed Assets |
175,175 |
156,061 |
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TOTAL ASSETS |
559,031 |
519,977 |
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Payables |
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43,165 |
37,153 |
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Short-Term Bank Loans |
15,118 |
17,147 |
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Other Current Liabs |
78,373 |
62,747 |
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TOTAL CURRENT LIABS |
136,656 |
117,047 |
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Debentures |
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Long-Term Bank Loans |
6,132 |
6,195 |
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Reserve for Retirement Allw |
27,140 |
28,869 |
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Other Debts |
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37,705 |
47,388 |
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TOTAL LIABILITIES |
207,633 |
199,499 |
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MINORITY INTERESTS |
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4,472 |
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Common
stock |
28,534 |
28,534 |
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Additional
paid-in capital |
40,054 |
40,054 |
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Retained
earnings |
260,555 |
236,913 |
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Evaluation
p/l on investments/securities |
13,718 |
15,470 |
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Others |
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8,876 |
(4,664) |
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Treasury
stock, at cost |
(339) |
(302) |
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TOTAL S/HOLDERS` EQUITY |
351,398 |
316,005 |
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TOTAL EQUITIES |
559,031 |
519,977 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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39,732 |
25,510 |
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Cash
Flows from Investment Activities |
-22,427 |
-18,104 |
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Cash
Flows from Financing Activities |
-8,246 |
-25,834 |
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Cash,
Bank Deposits at the Term End |
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45,926 |
35,434 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
351,398 |
316,005 |
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Current
Ratio (%) |
169.06 |
178.89 |
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Net
Worth Ratio (%) |
62.86 |
60.77 |
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Recurring
Profit Ratio (%) |
7.75 |
6.60 |
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Net
Profit Ratio (%) |
5.06 |
5.27 |
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Return
On Equity (%) |
7.93 |
8.90 |
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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. |
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%)