MIRA
INFORM REPORT
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Report Date : |
04.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
TDK CORPORATION |
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Registered Office : |
1-13-1 Nihombashi Chuoku Tokyo 103-8272 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
December 1935 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electronic Parts and Devices |
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 40,565.6 Million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name & address
TDK CORPORATION
REGD NAME: TDK KK
MAIN OFFICE: 1-13-1 Nihombashi Chuoku Tokyo 103-8272 JAPAN
Tel:
03-3278-5111 Fax: 03-5201-7110
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of electronic parts & devices
BRANCH(ES)
Osaka, Sendai, Yokohama, Nagoya, Matsumoto, Hiroshima,
Fukuoka
OVERSEAS
Europe (13), USA (26), China (14), Hong Kong, Thailand,
Malaysia, other
FACTORY(IES)
Akita (5), Chiba, Yamanashi, Shizuoka, Oita
OVERSEAS
Korea, China (4), Taiwan, Hong Kong, Thailand, USA (4),
Germany, Hungary
CHIEF EXEC
TAKEHIRO KAMIGAMA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES GOOD A/SALES Yen 866,285 M
PAYMENTS REGULAR CAPITAL Yen 32,641 M
TREND STEADY WORTH Yen 716,577 M
STARTED 1935 EMPLOYES 60,212
COMMENT
MFR OF
ELECTRONIC PARTS & DEVICES.
FINANCIAL SITUATION COSIDERED
GOOD TO EXCELLENT AND RESPONSIBLE FOR
ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 40,565.6 MILLION, 30 DAYS
NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
This is major mfr of electronic parts such as ferrite cores. Tops in the world as maker of magnetic tapes & ferrites. Also makes floppy disks. Magnetic heads are the major profit earner. Strength lies in components for cellular phones, personal computers and flat panel TVs in Japan & other Asian markets. Operation consists of two major divisions: Electronic Materials & Parts with four sections: electronics materials, electronics devices, recording media, other electronic components; and Recording Media Products. Operates many subsidiaries & offices worldwide.
(Recent news from Nikkei dated 31/07/2008):
TDK will purchase Europe’s leading electronic parts mfr, Epcos AG, Germany, for an estimated Yen 150-200 billion. By this acquisition, TDK will turn Epcos into a subsidiary as early as this autumn. This purchase will bump up TDK’s annual sales to about Yen 1.1 trillion, close to domestic leader Kyocera Corp’s Yen 1.29 trillion in sales.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 866,285 million, a 0.5% up from Yen 862,025 million in the previous term. Demand for electronics devices remained strong. By divisions, Electronics Materials & Parts up 7.8% to Yen 758,821 million. Recording Media Products down sharply 53.3% to Yen 48,170 million from the previous Yen 103,204 million.
In Aug 2007, the firm sold TDK-brand magnetic tapes, optical discs & flash memory products to Minnesota-based Imation Corp, thus sales declined in this sector. The recurring profit was posted at Yen 91,505 million and the net profit at Yen 71,461 million, respectively, compared with Yen 88,665 million recurring profit and Yen 70,175 million net profit, respectively, a year ago. Profits grew 1.9% supported by strong demand for electronics devices. The profits include extraordinary income from the sale TDK-brand magnetic tapes, etc to Imation Corp.
(Apr/June/2008 results): Sales Yen 190,023 million (down 7.8%), operating profit Yen 5,393 million (down 66.6%), recurring profit Yen 5,577 million (down 72.4%), net profit Yen 4,446 million (down 72.3%). (% compared with the corresponding period a year ago). Sales/profits declined as hurt by a falloff in prices for electronics devices & the Yen’s strength. By these results the firm revised downward the earnings outlook for the full year made in Apr, as follows.
For the current term ending Mar 2009 the recurring profit is projected at Yen 73,500 million and the net profit at Yen 55,500 million (lowered from Yen 65,000 million), respectively, on a 0.5% fall in turnover, to Yen 862,000 million (compared with Yen 880,000 million previously foreseen). Weak prices for electronics devices may continue. Yen’s strength may continue to erode exports profits.
The financial situation is considered GOOD to EXCELLENT and responsible for ORDINARYbusiness engagements. Max credit limit is estimated at Yen 40,565.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1935
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 480 million shares
Issued: 129,590,659 shares
Sum: Yen 32,641 million
Major shareholders (%)
Japan Trustee Services T (10.1), Master Trust Bank of Japan T (9.6), Matsushita Electric Ind (4.8), Deutsche Securities (4.2), Societe Generale Sec (NP) (1.8), State Street Bank & Trust (1.7), BNP Paribas Securities (Japan) (1.7), Nats Cumco (1.7), Trust & Custody Services, Inv T (1.7), Nippon Life Ins (1.6); foreign owners (39.2).
No. of shareholders: 21,148
Listed on the S/Exchange (s) of: Tokyo, New York, London
Managements
Hajime Sawabe, ch & CEO; Takehiro Kamigama, pres & COO; Seiji Enami, v pres; Shinji Yoko, s/mgn dir; Takeshi Nomura, s/mgn dir; Takaya Ishigaki, s/mgn dir; Minoru Takahashi, s/mgn dir; Raymond Leung, s/mgn dir; Shiro Nomi, s/mgn dir; Shinichi Araya, s/mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Iida TDK, TDK-MCC, other.
OPERATION
Activities: Manufactures electronics materials & parts (94%), recording media products, others (--6%).
(Divisions &
Products):
The Electronics Materials & Parts Div (94%) is broken into four divisions:
Electronics Materials (23%): multilayer ceramic chip capacitors, ferrite cores for coils & transformers, ferrite & rare-earth magnets, other;
Electronics Device (24%): coils (inductors), high-frequency components, EMC components, piezoelectric components, sensors, transformers, DC-DC converters, switching power supplies, DC-AC inverters;
Recording Devices (39%): heads for hard-disk drives, thermal printer heads, optical pickups;
Other Electric Components (8%): organic EL displays, anechoic chambers, mechatronics, other.
Recording Media Products Div (6%): audiotapes, videotapes, CD-Rs, mini Discs (MDs), DVDs, tape-based data storage media for computers, other.
Overseas Sales Ratio (82.4%): Asia 11.1%, Europe 6.8%, Americas 64.5%).
Clients
[Mfrs, wholesalers] Matsushita Electric Ind, Sony Corp, Toshiba Corp, Samson Ltd, Fujitsu Ltd, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfr, wholesalers] Kyocera Corp, Nitto Denko Matecs, Toda Kogyo Corp, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
Resona Bank (Takaracho)
SMBC (Tokyo-Chuo)
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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866,285 |
862,025 |
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Cost of Sales |
635,529 |
622,819 |
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GROSS PROFIT |
230,756 |
239,206 |
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Selling & Adm Costs |
143,581 |
159,616 |
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OPERATING PROFIT |
87,175 |
79,590 |
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Non-Operating P/L |
4,330 |
9,075 |
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RECURRING PROFIT |
91,505 |
88,665 |
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NET PROFIT |
71,461 |
70,175 |
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BALANCE SHEET |
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Cash |
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166,105 |
289,169 |
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Receivables |
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157,118 |
178,314 |
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Inventory |
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88,816 |
89,789 |
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Securities, Marketable |
3,986 |
1,063 |
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Other Current Assets |
46,795 |
57,035 |
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TOTAL CURRENT ASSETS |
462,820 |
615,370 |
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Property & Equipment |
267,149 |
246,703 |
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Intangibles |
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63,322 |
31,005 |
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Investments, Other Fixed Assets |
142,242 |
96,226 |
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TOTAL ASSETS |
935,533 |
989,304 |
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Payables |
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73,410 |
77,616 |
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Short-Term Bank Loans |
8,898 |
3,013 |
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Other Current Liabs |
79,653 |
84,911 |
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TOTAL CURRENT LIABS |
161,961 |
165,540 |
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Debentures |
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Long-Term Bank Loans |
152 |
532 |
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Reserve for Retirement Allw |
33,990 |
32,290 |
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Other Debts |
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19,169 |
14,027 |
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TOTAL LIABILITIES |
215,272 |
212,389 |
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MINORITY INTERESTS |
3,684 |
14,203 |
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Common
stock |
32,641 |
32,641 |
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Additional
paid-in capital |
19,510 |
18,844 |
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Retained
earnings |
63,887 |
63,695 |
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Evaluation
p/l on investments/securities |
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Others |
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607,136 |
653,504 |
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Treasury
stock, at cost |
(6,597) |
(5,972) |
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TOTAL S/HOLDERS` EQUITY |
716,577 |
762,712 |
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TOTAL EQUITIES |
935,533 |
989,304 |
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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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119,413 |
145,483 |
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Cash
Flows from Investment Activities |
-157,747 |
-81,488 |
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Cash
Flows from Financing Activities |
-60,086 |
-15,862 |
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Cash,
Bank Deposits at the Term End |
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166,105 |
289,169 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
716,577 |
762,712 |
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Current
Ratio (%) |
285.76 |
371.73 |
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Net
Worth Ratio (%) |
76.60 |
77.10 |
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Recurring
Profit Ratio (%) |
10.56 |
10.29 |
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Net
Profit Ratio (%) |
8.25 |
8.14 |
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Return
On Equity (%) |
9.97 |
9.20 |
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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.42.40 |
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UK Pound |
1 |
Rs.83.57 |
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Euro |
1 |
Rs.66.02 |
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%)