MIRA
INFORM REPORT
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Report Date : |
19.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SONY CORPORATION |
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Registered Office : |
1-7-1 Konan Minatoku Tokyo 101-8980 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
May 1946 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Consumer Electronics, Audio
Visual Equipment |
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 144,692.8 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name & address
SONY CORPORATION
REGD NAME: Sony KK
MAIN OFFICE: 1-7-1 Konan Minatoku Tokyo 101-8980 JAPAN
Tel:
03-03-6748-2111 Fax: 03-5443-2148
URL: http://www.sony.co.jp/; sony.net (Global network)
E-Mail address:info@sony.co.jp
ACTIVITIES
Mfg of consumer electronics, audio visual equipment
BRANCH(ES)
Tokyo (2), Atsugi, Fujisawa, Tagashiro
OVERSEAS
China (6), USA, UK, other, worldwide
CHIEF EXEC
HOWARD STRINGER, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 8,871,414 M
PAYMENTS REGULAR CAPITAL Yen 630,576 M
TREND STEADY WORTH Yen 3,465,089 M
STARTED 1946 EMPLOYES 180,500
COMMENT
MFR OF
CONSUMER ELECTRONICS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 144,692.8 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was established by Futoshi Ibuka for wholesaling communication equipment. Incorporated in 1946, gradually shifted the mainstay to consumer electronics. Business originated in USA where the products were well known and marketed, and returned to Japan for its quality of goods. (We call it products returning from abroad, like students returning from abroad speaking perfect English). Manufactures home electronics, and audio video equipment. Known for strong brandname. Rapidly developing game business, diversifying into movies, music, finance such as insurance.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 8,871,414 million, a 6.9% up from Yen 8,295,695 million in the previous term. This is thanks to the sharp recovery in electronics segment, up 9%; digital cameras up 40% and LCD TV’s up 70%. Sales were strong in USA, Europe and emerging economies in particular. As a result group net profit climbed 190% to Yen 369,400 million The recurring profit was posted at Yen 466,317 million and the net profit at Yen 369,435 million, respectively, compared with Yen 102,037 million recurring profit and Yen 126,328 million net profit, respectively, a year ago.
For the current term ending Mar the recurring profit is projected at Yen 440.000 million and the net profit at Yen 290,000 million, on a 1.5% rise in turnover, to Yen 9,000,000 million. Operations in flat-panel TVs and video games are expected to turn profitable, but are likely to be more than offset by appreciation of the Yen, taking roughly Yen 65,000 million from the profits. Profits improvement includes its shares of profits from equity-method affiliates in it groups operating profits starting form Mar/2009 term.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 144,692.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1946
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 3,600 million shares
Issued: 1,004,443,364 shares
Sum: Yen 626,907 million
Major shareholders (%)
Moxley & Co (39.9), Japan Trustee Services T (5.5), State Street Bank & Trust (5.0), Master Trust Bank of Japan (4.8), Japan Trustee Services T4 (1.2), Sumitomo Trust Bank (1.0), Omnibus China Treaty (0.9), MUFG (0.8), JP Morgan Chase Bank (0.8); foreign owners (50.5) .
No. of shareholders: 590,221
Listed on the S/Exchange (s) of
Tokyo, Osaka, New York, London
Managements
Howard Stringer, ch & CEO; Ryoji Chibachi, pres & CEO; Katsumi Ihara, v pres; Yutaka Nakagawa, s/mgn dir; Nobuyuki Oneda, s/mgn dir; Kenji Kimura, s/mgn dir; Kenji Kimura, s/mgn dir; Nicole Seligman, s/mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Sony Financial HLD, Sony America, other
OPERATION
Activities:
Manufactures consumer electronics, audio & video equipment, others:
(Sales Breakdown by Divisions):.
Electronics Div (65%): home audio, portable audio, video cameras, digital still cameras, DVD video, players/recorders, digital broadcasting receiving systems, LCD TVs, projection TVs, CRT-based TVs, others;
Games (12%):
Pictures (12%);
Financing (8%): insurance, other;
Others (4%): semiconductor, electronic components, other
Overseas Sales Ratio (76%): USA 25%; Europe 26%; Others 25%
Clients
[Mfrs, wholesalers] Sony Electronics Inc, Sony Marketing, Sony UK Ltd, Sony Electronics Singapore, Toshiba Devise Corp, other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Sony EMCS, Sony Semiconductor Kyushu, Sony Energy Device, Sony Chemical & Information Device, Sony EMCS Sdn Bhd, other..
Payment record: Regular
Location
Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Gotanda)
MUFG (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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8,871,414 |
8,295,695 |
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Cost of Sales |
6,290,022 |
5,889,601 |
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GROSS PROFIT |
2,581,392 |
2,406,094 |
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Selling & Adm Costs |
1,537,335 |
1,606,008 |
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OPERATING PROFIT |
374,482 |
71,750 |
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Non-Operating P/L |
91,835 |
30,287 |
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RECURRING PROFIT |
466,317 |
102,037 |
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NET PROFIT |
369,435 |
126,328 |
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BALANCE SHEET |
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Cash |
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1,086,431 |
799,899 |
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Receivables |
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1,183,620 |
1,490,452 |
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Inventory |
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1,021,595 |
940,875 |
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Securities, Marketable |
427,709 |
493,315 |
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Other Current Assets |
1,290,308 |
822,182 |
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TOTAL CURRENT ASSETS |
5,009,663 |
4,546,723 |
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Property & Equipment |
1,243,349 |
1,421,531 |
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Intangibles |
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263,490 |
233,255 |
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Investments, Other Fixed Assets |
6,036,237 |
5,514,853 |
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TOTAL ASSETS |
12,552,739 |
11,716,362 |
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Payables |
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920,920 |
1,179,694 |
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Short-Term Bank Loans |
63,224 |
52,291 |
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Other Current Liabs |
3,039,223 |
2,319,367 |
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TOTAL CURRENT LIABS |
4,023,367 |
3,551,352 |
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Debentures |
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Long-Term Bank Loans |
729,059 |
1,001,005 |
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Reserve for Retirement Allw |
231,237 |
173,474 |
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Other Debts |
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3,827,138 |
3,580,857 |
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TOTAL LIABILITIES |
8,810,801 |
8,306,688 |
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MINORITY INTERESTS |
276,849 |
38,970 |
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Common
stock |
630,576 |
626,907 |
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Additional
paid-in capital |
1,151,447 |
1,143,423 |
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Retained
earnings |
2,059,361 |
1,719,506 |
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Evaluation
p/l on investments/securities |
70,929 |
86,096 |
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Others |
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(442,456) |
(201,589) |
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Treasury
stock, at cost |
(4,768) |
(3,639) |
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TOTAL S/HOLDERS` EQUITY |
3,465,089 |
3,370,704 |
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TOTAL EQUITIES |
12,552,739 |
11,716,362 |
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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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757,684 |
561,028 |
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Cash
Flows from Investment Activities |
-910,442 |
-715,430 |
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Cash
Flows from Financing Activities |
505,518 |
247,903 |
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Cash,
Bank Deposits at the Term End |
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1,086,431 |
799,899 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
3,465,089 |
3,370,704 |
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Current
Ratio (%) |
124.51 |
128.03 |
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Net
Worth Ratio (%) |
27.60 |
28.77 |
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Recurring
Profit Ratio (%) |
5.26 |
1.23 |
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Net
Profit Ratio (%) |
4.16 |
1.52 |
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Return
On Equity (%) |
10.66 |
3.75 |
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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.42.71 |
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UK Pound |
1 |
Rs.85.11 |
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Euro |
1 |
Rs.67.73 |
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%)