MIRA INFORM REPORT
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Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
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Name : |
FUJITSU LTD |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
June, 1935 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturing of Computers, Semiconductors; Solutions (System
Platform) |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 97,572.0 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
Name
FUJITSU
LTD
REGD NAME
Fujitsu KK
MAIN OFFICE
Tel: 03-6252-2220
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of computers, semiconductors; solutions (system
platform), other
BRANCHES
Domestic 104 (Nationwide)
OVERSEAS
115 locations, including subsidiaries, worldwide
FACTORY(IES)
Kanagawa (6), Saitama, Tochigi (2), Nagano, Shizuoka, Hyogo
CHIEF EXEC
KUNIAKI NOZOE, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 5,330,865 M
PAYMENTS REGULAR CAPITAL Yen 324,625 M
TREND STEADY WORTH Yen 1,130,176 M
STARTED 1935 EMPLOYES 167,374
COMMENT
COMPUTER MFR & IT-BASED BUINESS SOLUTIONS PROVIDER.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 97,572.0 MILLION, 30 DAYS
NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company is the largest computer mfr in Japan & world top class player, and leading provider of IT-based business solutions. Also major producer of semiconductors & communications equipment. Top-ranked in software services in Japan. Substantially high percentage of sales is generated by products for public sector facilities/services. Has PC JV with Siemens (Germany), expiring in Oct 2009, and extension of which is likely. Tie-ups with rivals on semiconductors, burdened by heavy investment cost, possibly during current term.
According to World Semiconductor Statistics (WSTS), semiconductor shipments will increase 2.5% to US$261.9 billion this year. But 2009 shipments will likely slide 2.2% to US$256.1 billion, according to WSTS) after survey of 66 semiconductor-related companies around the world. The WSTS sees Japanese chip market shrinking 8.5% to roughly Yen 5.26 trillion this year and 2.6% in 2009. Japanese chipmakers controlled about 50% of global semiconductor market in the 1980s, but its aggregate market share now stands at around 20%. Bracing for a tough time ahead, Fujitsu Ltd spun off its chip division in March, Oki Electric Industry Co also separated its chip division and sold it to Rohm Co.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 5,330,865 million, a 4.5% up from Yen 5,100,163 million in the previous term. This is primarily attributable to sharply higher sales of solutions/SE, servers, PCs and mobile phones as well as the success of cost control initiatives throughout Fujitsu group, the firm says. By divisions, Technology Solutions up 3.6% to Yen 3,272,200 million, sales outside Japan rising 9.4% on higher services sales, boosted in part by acquisitions; Ubiquitous Product Solutions up 6.3% to Yen 1,188,900 million on higher sales of PCs and mobile phones; Device Solutions up 4.5% to Yen 796,700 million, driven by higher sales of 90nm advanced LSI devices. The recurring profit was posted at Yen 162,824 million and the net profit at Yen 48,107 million, respectively, compared with Yen 147,288 million recurring profit and Yen 102,415 million net profit, respectively, a year ago. The net profit decline is referred to one-time losses totaling Yen 72,700 million from a decline in market value of securities holdings.
(Apr/Sept/2008 results): Sales Yen 2,453,782 million (down 2.4%), operating profit Yen 38,542 million (down 9.3%), net profit Yen 4,633 million (down 21%). (% compared with the corresponding period a year ago). Declining prices amid supply glut bogged down the results. By divisions, Technology Solutions up 1.2% to Yen 1,524,900 million, driven by higher sales of system integration services, mobile phones base stations, etc. Ubiquitous Product Solutions down 9.3% to Yen 521,400 million, on lower sales of PCs and mobile phones. Device Solutions down 11.8% to Yen 350,900 million, on weak sales of standard logic devices and 90nm logic devices.
For the current term ending Mar 2009 the recurring profit is projected at Yen 150,000 million and the net profit at Yen 60,000 million, on a 5.3% fall in turnover, to Yen 5,050,000 million. Fujitsu lowered its prior outlook from the previous estimates of: Sales Yen 5,350,000 million, recurring profit Yen 185,000 million, net profit Yen 100,000 million. Market conditions for mobile phones, PCs, hard disk drives, logic LSI devices and electronic components have rapidly deteriorated, which increasing uncertainty about sales in the latter half of the year. In addition, due to recent appreciation of Yen, the company has revised its average foreign currency exchange rates.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 97,572.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun
1935
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 5,000 million shares
Issued: 2,070,018,213 shares
Sum: Yen 324,625 million
Major shareholders (%)
State Street Bank & Trust
(6.5), Master Trust Bank of Japan T (4.9), Fuji Electric Holdings (4.5), Japan
Trustee Services T (4.2), TCSB (Fuji Electric Systems) (2.5), Asahi Life Ins
(1.9), State Street Bank & Trust (1.8), Mizuho Corporate Bank (1.5), TCSB
(Fuji Electric FAC & S) (1.4), Employees’ S/Holding Assn (1.1); foreign
owners (38.2)
No. of shareholders
173,296
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya, Frankfurt,
London, Switz
Managements
Michiyoshi Mazuka, ch; Kuniaki
Nozoe, pres; Chiaki Itoh, v pres; Koichi Hironishi, v pres; Tatsuo Tomita, v
pres; Hiroshi Ooura, dir; Ikujiro Nonaka, dir; Haruo Itoh, dir; Haruki Okada,
dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Fujitsu Business System, Fujitsu Frontech, other.
OPERATION
Activities: Manufactures computers, peripherals,
system platform, other:
(Sales Breakdown by Divisions):
Technology Solutions (59%): system platforms (system
products, network products);
Ubiquitous Products (20%): PCs/mobile phones, hard disk
drivers, others;
Device Solutions (14%): LSI devices, electronic
components, others;
Other Operations (7%);
Overseas Sales Ratio (36.1%): Europe 15.8%, Americas 9.8%,
Asia/China, other 10.5%
Clients
Business firms, government
agencies, local municipalities, consumers, other
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers
Mfrs, wholesalers, other
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Uchisaiwaicho)
SMBC (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
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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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5,330,865 |
5,100,163 |
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Cost of Sales |
3,959,561 |
3,781,647 |
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GROSS PROFIT |
1,371,304 |
1,318,516 |
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Selling & Adm Costs |
1,166,315 |
1,136,428 |
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OPERATING PROFIT |
204,989 |
182,088 |
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Non-Operating P/L |
-42,165 |
-34,800 |
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RECURRING PROFIT |
162,824 |
147,288 |
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NET PROFIT |
48,107 |
102,415 |
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BALANCE SHEET |
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Cash |
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276,759 |
444,951 |
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Receivables |
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1,017,916 |
1,054,048 |
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Inventory |
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383,106 |
412,387 |
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Securities, Marketable |
272,649 |
4,474 |
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Other Current Assets |
219,507 |
216,163 |
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TOTAL CURRENT ASSETS |
2,169,937 |
2,132,023 |
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Property & Equipment |
839,764 |
842,489 |
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Intangibles |
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219,555 |
234,940 |
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Investments, Other Fixed Assets |
592,707 |
734,272 |
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TOTAL ASSETS |
3,821,963 |
3,943,724 |
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Payables |
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772,164 |
824,825 |
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Short-Term Bank Loans |
50,687 |
76,250 |
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Other Current Liabs |
788,489 |
906,490 |
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TOTAL CURRENT LIABS |
1,611,340 |
1,807,565 |
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Debentures |
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680,000 |
680,000 |
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Long-Term Bank Loans |
47,109 |
39,567 |
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Reserve for Retirement Allw |
155,578 |
198,309 |
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Other Debts |
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197,760 |
57,564 |
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TOTAL LIABILITIES |
2,691,787 |
2,783,005 |
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MINORITY INTERESTS |
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Common
stock |
324,625 |
324,625 |
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Additional
paid-in capital |
249,038 |
498,029 |
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Retained
earnings |
338,903 |
54,319 |
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Evaluation
p/l on investments/securities |
89,879 |
122,770 |
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Others |
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128,600 |
162,945 |
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Treasury
stock, at cost |
(869) |
(1,969) |
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TOTAL S/HOLDERS` EQUITY |
1,130,176 |
1,160,719 |
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TOTAL EQUITIES |
3,821,963 |
3,943,724 |
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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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322,072 |
408,765 |
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Cash Flows
from Investment Activities |
-283,926 |
-151,083 |
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Cash
Flows from Financing Activities |
62,325 |
-234,953 |
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Cash,
Bank Deposits at the Term End |
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547,844 |
448,705 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
1,130,176 |
1,160,719 |
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Current
Ratio (%) |
134.67 |
117.95 |
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Net
Worth Ratio (%) |
29.57 |
29.43 |
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Recurring
Profit Ratio (%) |
3.05 |
2.89 |
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Net
Profit Ratio (%) |
0.90 |
2.01 |
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Return
On Equity (%) |
4.26 |
8.82 |
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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.49.74 |
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UK Pound |
1 |
Rs.74.37 |
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Euro |
1 |
Rs.62.78 |
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%)