MIRA INFORM REPORT

 

 

Report Date :

11.08.2011

 

IDENTIFICATION DETAILS

 

Name :

NIDEC CORPORATION

 

 

Registered Office :

338 Kuze Tonoshirocho Minamiku Kyoto 601-8205

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

July, 1973

 

 

Com. Reg. No.:

(Kyoto-Minamiku) 002387

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures precision motors

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 410,506 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31st, 2010

 

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

NIDEC CORPORATION

REGD NAME:   Nihon Densan KK

MAIN OFFICE:  338 Kuze Tonoshirocho Minamiku Kyoto 601-8205 JAPAN

Tel: 075-922-1111    

Fax: 075-316-2563

 

*.. The given address is Tokyo Branch Office (Laboratory)

 

URL:http://www.nidec.co.jp

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of precision motors

 

 

BRANCHES

 

Tokyo (3), Osaka, Kyoto, Shiga, Nagano, Nagoya, Fukuoka

 

 

OVERSEAS

 

USA (14), Singapore, Vietnam, China, Taiwan, Germany, Netherlands

 

 

FACTORIES  

 

Kyoto, Shiga, Tokyo

 

 

OVERSEAS   

 

Thailand (8), China (4), Vietnam (4), Singapore, Philippines, Malaysia

 

 

CHIEF EXEC 

 

SHIGENOBU NAGAMORI, PRES

 

Yen Amount:    In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES        FAIR                 　A/SALES       Yen 688,530 M

PAYMENTS      REGULAR         　CAPITAL        Yen 66,551 M

TREND             STEADY           　WORTH         Yen 410,506 M

STARTED         1973                 　EMPLOYES   105,873

 

 

COMMENT    

 

MFR OF PRECISION MOTORS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 23,462.8 MILLION, 30 DAYS NORMAL TERMS

 

 

                       

Forecast figures for the 31/03/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the specialized mfr of precision motors, boasting world’s largest share in small motors for HDDs.  Also small motors used in other electronic products including CDs-ROM.  Pioneer and strong in DC brushless motors.  Supplies to IBM, Fujitsu Ltd, other.  Operates overseas mfg plants: Thailand (8), China (4), Vietnam (4), other.  The firm started up its new plant for car-mounted motors and R&D building in Dalian, China, in May 2011, to meet stronger demand in China.  It will start construction of its plant in India in autumn 2011 at the earliest. 

 

 

 

 

 

 

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 688,530 million, a 17% up from Yen 586,029 million in the previous term.  Economic expansions in newly emerging nations continue to drive global economic growth.  By Divisions, Precision Small Motors down 3% to Yen 321,490 million, as sales of the products for HDDs decreased approx 4%; General Motors up 87% to Yen 137,251 million, due mainly to the contributions of the recently consolidated subsidiaries, including Nidec Motor Corporation; Machinery up 61% to Yen 77,329 million, primarily due to increasing demand in China; Electronics & Optical Components up 11% to Yen 12,100 million, due mainly to increased sales of electronic components, including circuit components & sensors.  The recurring profit was posted at Yen 79,525 million and the net profit at Yen 52,333 million, respectively, compared with Yen 75,183 million recurring profit and Yen 51,961 million net profit, respectively, a year ago.　. 

           

(Apr/Jun/2011 results): Sales Yen 179,073 million (up 6.1%), operating profit Yen 19,222 million (down 29.1%), recurring profit Yen 17,571 million (down 16.7%), net profit Yen 12,210 million (down 11.4%).  (% compared with the corresponding period a year ago)     

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 81,000 million and the net profit at Yen 52,500 million, on a 5% rise in turnover, to Yen 720,000 million.  Sales and operating profit are likely to drop by Yen 55 billion and Yen 20 billion, respectively, in the first half, affected by lower plant utilization at customers after the Tohoku Earthquake.  Sales will grow sluggishly for the full term, despite recovery of demand for motors for automobiles and industrial equipment in the second half, as well as boosted overseas production.  No foreign exchange losses are assumed.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 23,462.8 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　         Jul 1973

Regd No.:                      (Kyoto-Minamiku) 002387

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    480 million shares

Issued:                          145,075,080shares

Sum:                            Yen 66,551 million

 

 

Major shareholders (%)

 

Shigenobu Nagamori (8.2), Japan Trustee Services T (6.5), Master Trust Bank of Japan T (5.7), Company’s Treasury Stock (4.5), Bank of Kyoto (4.0), SN Kosan (3.7), Dai-ichi Life Ins (3.0), MUFG (2.4), Nippon Life Ins (2.3), Meiji Yasuda Life Ins (2.1); foreign owners (24.5)

 

 

No. of shareholders

 

43,178

Listed on the S/Exchange (s) of

 

Tokyo, Osaka, New York

 

 

Managements

 

Shigenobu Nagamori, pres; Hiroshi Obe, v pres; Kenji Sawamura, v pres; Juntaro Fujii, v pres; Tadaaki Hamada, s/mgn dir; Takao Yoshimatsu, mgn dir; Tetsuo Inoue, mgn dir; Katsuzo Wakabayashi, dir; Masakazu Iwakura, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

Related companies

 

Nidec Sankyo, Nidec Copal Electronics, Nidec Tosoku, other.

 

 

OPERATION

           

Activities: Manufactures precision motors:

 

(Sales Breakdown by Divisions):

 

Small Precision Motors (47%): spindle motors & pivot assemblies for HDDs, small brushless DC motors, small brushless DC motors (standard type), midsize brushless DC motors, fan motors;

General Motors (20%): motors for automobiles, home electronic appliances and industrial equipment;

Machinery (11%): industrial robots, card readers, circuit board testers, high-speed pressing machines, chip mounters, measuring equipment, power transmission equipment, factory automation system;

Electronic & Optical Components (17%): camera shutters, camera lens units, switches, trimmer potentiometers, actuator units, processing, precision plastic mold products;

Others (5%): pivot assemblies, auto parts, logistics, musical products, other;

Overseas Sales Ratio (74%)

           

Clients: [Mfrs, wholesalers] Nidec Hong Kong, Nidec Philippines, Western Digital (Malaysia) Sdn Bhd, Nidec Thailand, Nidec Singapore, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Nidec Thailand, Nidec Philippines, Nidec Dalian, Nidec Vietnam, other

 

 

Payment record

 

Regular

 

Location

 

Business area in Kyoto. Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

Bank of Kyoto (H/O)

MUFG (Kyoto-Chuo)

Relations: Satisfactory

 

 

FINANCES

 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

688,530

586,029

 

  Cost of Sales

513,170

435,035

 

      GROSS PROFIT

175,360

150,994

 

  Selling & Adm Costs

84,833

66,482

 

      OPERATING PROFIT

90,527

78,512

 

  Non-Operating P/L

-11,002

-3,329

 

      RECURRING PROFIT

79,525

75,183

　

      NET PROFIT

52,333

51,961

BALANCE SHEET

 

 

 

 

  Cash

　

94,321

123,309

 

  Receivables

 

154,091

151,430

 

  Inventory

 

86,185

65,746

 

  Securities, Marketable

　

　

 

  Other Current Assets

38,500

34,398

 

      TOTAL CURRENT ASSETS

373,097

374,883

 

  Property & Equipment

234,409

201,397

 

  Intangibles

 

82,107

72,231

 

  Investments, Other Fixed Assets

58,592

44,280

 

      TOTAL ASSETS

748,205

692,791

 

  Payables

 

112,759

109,143

 

  Short-Term Bank Loans

52,018

115,467

 

　

 

　

　

 

  Other Current Liabs

42,058

37,655

 

      TOTAL CURRENT LIABS

206,835

262,265

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

101,819

1,745

 

  Reserve for Retirement Allw

12,824

15,542

 

  Other Debts

　

16,221

11,708

 

      TOTAL LIABILITIES

337,699

291,260

 

      MINORITY INTERESTS

 

 

 

Common stock

66,551

66,551

 

Additional paid-in capital

66,960

69,000

 

Retained earnings

298,445

257,255

 

Evaluation p/l on investments/securities

1,066

1,747

 

Others

 

9,769

31,045

 

Treasury stock, at cost

(32,285)

(24,067)

 

      TOTAL S/HOLDERS` EQUITY

410,506

401,531

　

      TOTAL EQUITIES

748,205

692,791

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

83,084

90,080

 

Cash Flows from Investment Activities

-108,942

-40,514

 

Cash Flows from Financing Activities

3,764

-122,779

　

Cash, Bank Deposits at the Term End

　

94,321

123,309

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

410,506

401,531

 

 

Current Ratio (%)

180.38

142.94

 

 

Net Worth Ratio (%)

54.87

57.96

 

 

Recurring Profit Ratio (%)

11.55

12.83

 

 

Net Profit Ratio (%)

7.60

8.87

 

 

Return On Equity (%)

12.75

12.94

 

           

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.20

UK Pound

1

Rs.73.51

Euro

1

Rs.64.76

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.