MIRA
INFORM REPORT
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Report Date : |
04.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEC TOKIN CORPORATION |
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Registered Office : |
6-7-1 Kohriyama Taihakuku Sendai 982-8510 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
April 1938 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Magnetic Materials: Batteries, Capacitors,
Other |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 820.2 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
NEC TOKIN
CORPORATION
REGD NAME: NEC Tokin KK
TOKYO HQ: Chiyoda First Bldg, 3-8-1 Nishi-Kanda
Chiyodaku Tokyo 101-8362 JAPAN
Tel:
03-3515-9111 Fax: 03-3515-9115
REGISTERED/HQ: 6-7-1 Kohriyama
Taihakuku Sendai 982-8510
Tel:
022-308-0014 Fax: 022-308-1158
URL: http://www.nec-tokin.com/
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of magnetic materials: batteries, capacitors, other
BRANCH(ES)
Sendai, Tokyo, Nagano, Kanazawa, Nagoya, Kyoto, Osaka,
Fukuoka
OVERSEAS
USA (3), China (4), Seoul, Hong Kong, Europe (4), Taiwan,
Singapore, Thailand, Philippines,
Malaysia, other
FACTORY(IES)
At the caption address, Iwate, Miyagi, Tochigi, Toyama,
Kanagawa, Hyogo; China
CHIEF EXEC
MASAKAZU OKABE, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 120,011 M
PAYMENTS REGULAR CAPITAL Yen 12,990 M
TREND SLOW WORTH Yen 10,338 M
STARTED 1938 EMPLOYES 19,444
COMMENT
MFR OF ELECTRONIC MATERIALS,
MEMBER OF NEC GROUP.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 820.2 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was
established as Tohoku Metal Industries Ltd for mfg electronic materials;
changed the name to Tokin Corp in 1988; in 2002 the subject was integrated with
NEC’s electronic components business to become NEC Tokin Corporation. Specializes in mfg magnetic materials, such
as batteries, capacitors, others.
Developing optoelectronics-related devices. Also produces magnetic cards, including
telephone cards. Has production bases
in S/E Asia, China, other. Has three
pillar divisions: Energy devices, Network devices and Functional devices.
In 2007, established
automobile-use lithium-ion battery firm jointly with Nissan Motor & NEC,
starting volume production by Mar 2010 term.
The JV will spend Yen 12 billion on mass production of lithium-ion
batteries used in Nissan’s hybrid & electric vehicles over the next three
years, as reported. The firm will
supply all products to this JV. Further
the firm will install new automobile-use lithium-ion battery electrode
production lines at Sagamihara Plant (Kanagawa-Pref) at Yen 11 billion costs,
scheduling startup for 2009.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 120,011 million, an 11.7%
down from Yen 135,864 million in the previous term. The demand for capacitors & EMC devices, the firm’s main
products, declined in PC & digital consumer electronics markets since the
last year end. This caused the sales
decline across the boards. The decline
is also referred to the withdrawal of one of its subsidiaries from the
consolidated subsidiary. By divisions,
Energy Device down 9.2% to Yen 62,778 million; Network Device down 5.6% to Yen
17,018 million and Functional Device down 17.5% to Yen 40,214 million, due to
sharp decline of demand from PC & digital electronics markets, the main
market of this division. By the sharp
sales decline, the firm plunged into the red to register Yen 1,778 million
recurring loss and Yen 12,785 million net losses, respectively, compared with
Yen 5,323 million recurring profit and Yen 1,873 million net losses,
respectively, a year ago. The net
losses include Yen 3,800 million extraordinary losses resulting from restructuring
of batteries business, causing partial disposal of inventory & fixed
assets.
(Apr/Jun/2008
results): Sales Yen 29,271 million (down 6.3%), recurring profit Yen 479
million (down 46.7%), net losses Yen 565 million. (% compared with the corresponding period a year ago). Network/functional devices were down due to
weak demand from related industries. Foreign exchange losses due to Yen’s strength
explain the recurring profit decline.
The net losses are
referred to the extraordinary losses of Yen 726 million coming from the
adoption of new accounting rule for
inventory valuation method.
For
the current term ending Mar 2009 the operations are expected to come back to profitability with recurring profit
projected at Yen 2,000 million and the net profit at Yen 500 million, respectively, on a 5% rise in
turnover, to Yen 126,000 million.
Batteries will recover, helped by expanding
business to digital camera & game machine markets. Capacitors for PCs will grow in 2nd
half. Profits will improve with
consolidation of plants in China showing results. Cultivating demand for
slumping IC tags from public sector, in addition of existing distribution &
retail industries.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 820.2 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Apr 1938
Legal
Status:
Limited Company (Kabushiki Kaisha)
Authorized: 200
million shares
Issued: 113,516,066 shares
Sum: Yen 12,990 million
Major shareholders (%)
NEC
Corp*(39.9), JTSB (NEC) (11.1), UBS (London) IPB Segregated Clients (1.5),
Nikko City Trust (1.5), Master Trust Bank of Japan T (1.0), Sumitomo Electric
Ind (0.9), Fukoku Life Ins (0.7), JTSB (NEC Infrontia) (0.6), Japan Trustee
Services T (0.6), Trust & Custody Services (0.6); foreign owners (4.0) .
No. of
shareholders: 9,837
* NEC
Corp, nation’s representative high-tech powerhouse, Tokyo, founded 1899, listed
Tokyo, Osaka, Nagoya, Fukuoka, Sapporo S/E’s, NASDAQ, capital Yen 337,940,
turnover Yen 4,617,153 million, operating profit Yen 158,765 million, recurring
profit Yen 112,240 million, net
profit Yen 22,681 million, total assets Yen 3,526,795 million, net worth Yen 1,004,221 million, employees
152,922, pres Kaoru Yano
Listed on the S/Exchange (s) of: Tokyo
Managements
Masakazu
Okabe, pres; Kunihiko Matsumoto, v pres; Hiroshi Nagahara, s/mgn dir; Hideo
Oka, s/mgn dir; Yoshihiko Saiki, s/mgn dir; Akihiko Isobe, s/mgn dir; Sukenobu
Imai, s/mgn dir; Yoshimi Kubo, s/mgn dir; Shigenori Oyama, s/mgn dir; Masahiko
Yamamoto, s/mgn dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies
NEC
Tokin Shanghai Co, NEC Tokin Electronics (Xiamen) Corp, NEC Tokin Electronics (Wujiang)
Corp, other.
OPERATION
Activities: Manufactures electronic materials, magnetic materials;
(Sales Breakdown by
Divisions).
Energy Devices Division (52.3%): tantalum capacitors, proadlizer, lithium-ion rechargeable batteries, others;
Network Devices Division (14.2%): miniature relays, transmitting communication devices, IC cards, IC tags, others;
Functional Devices Division (33.5%): magnetic devices, piezoelectric devices, sensors, others.
Overseas Sales Ratio (48.1%): Asia 40.2%; N America 3.7%; other regions 4.2%.
Clients
[Electronics mfrs, wholesalers] Matsushita Electric Ind, Canon Inc, Sony Corp, NEC, Hitachi Ltd, Toyota Motor, Nissan Motor, Nintendo Co, Mitsubishi Electric, Fujitsu Ltd, Toshiba Corp, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] NEC Tokin Electronics Thailand, NEC Tokin Electronics Vietnam, NEC Tokin Electronics Xiamen, NEC Tokin Electronics Thailand, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
SMBC (Tokyo)
77 Bank (H/O)
Relations: Satisfactory
FINACIALS
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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120,011 |
135,864 |
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Cost of Sales |
100,758 |
110,745 |
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GROSS PROFIT |
19,252 |
25,118 |
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Selling & Adm Costs |
18,677 |
20,345 |
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OPERATING PROFIT |
575 |
4,772 |
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Non-Operating P/L |
-2,353 |
551 |
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RECURRING PROFIT |
-1,778 |
5,323 |
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NET PROFIT |
-12,785 |
-1,873 |
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BALANCE SHEET |
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Cash |
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12,836 |
4,684 |
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Receivables |
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12,954 |
23,698 |
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Inventory |
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22,870 |
22,152 |
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Securities, Marketable |
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Other Current Assets |
4,212 |
6,471 |
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TOTAL CURRENT ASSETS |
52,872 |
57,005 |
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Property & Equipment |
48,144 |
52,384 |
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Intangibles |
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1,999 |
2,201 |
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Investments, Other Fixed Assets |
2,821 |
6,945 |
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TOTAL ASSETS |
105,836 |
118,535 |
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Payables |
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14,912 |
20,926 |
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Short-Term Bank Loans |
28,517 |
18,523 |
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Other Current Liabs |
9,536 |
13,841 |
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TOTAL CURRENT LIABS |
52,965 |
53,290 |
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Debentures |
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15,000 |
15,000 |
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Long-Term Bank Loans |
20,223 |
18,589 |
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Reserve for Retirement Allw |
5,221 |
5,010 |
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Other Debts |
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2,089 |
1,286 |
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TOTAL LIABILITIES |
95,498 |
93,175 |
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MINORITY INTERESTS |
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Common
stock |
12,990 |
12,990 |
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Additional
paid-in capital |
11,063 |
11,064 |
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Retained
earnings |
(12,965) |
(180) |
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Evaluation
p/l on investments/securities |
80 |
275 |
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Others |
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(761) |
1,278 |
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Treasury
stock, at cost |
(69) |
(67) |
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TOTAL S/HOLDERS` EQUITY |
10,338 |
25,360 |
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TOTAL EQUITIES |
105,836 |
118,535 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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2,712 |
14,937 |
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Cash
Flows from Investment Activities |
-7,803 |
-11,736 |
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Cash
Flows from Financing Activities |
13,852 |
-5,439 |
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Cash,
Bank Deposits at the Term End |
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12,814 |
4,682 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
10,338 |
25,360 |
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Current
Ratio (%) |
99.82 |
106.97 |
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Net
Worth Ratio (%) |
9.77 |
21.39 |
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Recurring
Profit Ratio (%) |
-1.48 |
3.92 |
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Net Profit
Ratio (%) |
-10.65 |
-1.38 |
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Return
On Equity (%) |
-123.67 |
-7.39 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.37 |
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UK Pound |
1 |
Rs.84.00 |
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Euro |
1 |
Rs.65.96 |
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%)