MIRA INFORM REPORT

 

 

Report Date :           

11.03.2011

 

IDENTIFICATION DETAILS

 

Name :

RYOBI LTD

 

 

Registered Office :

762 Mesakicho Fuchu City Hiroshima-Pref

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

December 1943

 

 

Com. Reg. No.:

(Hiroshima-Fuchu) 034478

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of die castings, printing press, power tools

 

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 3,521.3 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 31, 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

 

RYOBI LTD

 

 

REGD NAME

 

Ryobi KK

 

 

MAIN OFFICE

 

762 Mesakicho Fuchu City Hiroshima-Pref JAPAN

Tel: 0847-41-1111     Fax: 0847-43-6111

 

* Tokyo Office at: 5-2-8 Toshima Kitaku Tokyo 114-8518, as given

(Tel: 03-3927-5541; Fax: 03-3927-2906)

                       

URL:                             http://www.ryobi-group.co.p/

E-Mail address:            (thru URL to each division)

 

 

ACTIVITIES  

 

Mfg of die castings, printing press, power tools

 

 

BRANCHES   

 

Tokyo (2), Osaka, Sapporo, Sendai, Hamamatsu, Nagoya, Toyama, Hiroshima, Fukuoka

 

 

OVERSEAS   

 

Ryobi Die Casting (USA) Inc; Ryobi Aluminum (UK) Ltd; Ryobi Die Casting Dalian Co Ltd.

 

 

FACTORIES  

 

Hiroshima (3), Shizuoka

OVERSEAS   

 

UK, USA, China (3), Mexico

 

 

CHIEF EXEC 

 

SUSUMU YOSHIKAWA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 125,940 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 18,472 M

TREND             SLOW                          WORTH            Yen 67,995 M

STARTED                     1943                             EMPLOYES      5,847

 

 

COMMENT    

 

LARGEST MFR OF DIE CASTINGS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 3,521.3 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

 

This is the largest mfr of die castings mainly for automakers.  Originally set up in 1943 as die cast airplane parts maker for Mitsubishi Electric Hiroshima plant.  After 1960, expanded into finished products using die cast pasts: power tools, printing machining and fishing tackle.  Printing machines are now major income sources.  Established new plant in Mexico to boost output of die castings bound for USA, started operations in Apr 2008, following operation start in China in the preceding term.  The company plans to set up No.2 plant in Jiangsu province, China, with an investment of Yen 9 billion; startup slated for spring 2012.  It will boost sales in China to Yen 14 billion in March 2015 term, from the projected (Yen 4 billion sales for the current term).  It aims to increase sales of printing machines by expanding energy-saving products.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 125,940 million, a 28.6% down from Yen 176,340 million in the previous term.  The global economic downturn spread from the US subprime housing loan incident affected the sales significantly particularly in the first half of the term.  The high Yen hurt export earnings & profits in Yen terms.  Demand for automobiles recovered but not sufficient to cover the losses carried from the previous term.  Sales declined in all segments.  By Divisions, Die-Castings down 29.8% to Yen 86,139 million; Printing Machines down 38.5% to Yen 18,101 million; Housing Appliances down 10.1% to Yen 21,699 million.  The operations plunged into the red to register Yen 1,312 recurring loss and Yen 1,601 million net losses, respectively, compared with Yen 1,570 recurring profit and Yen 160 million net profit, respectively, a year ago.

           

(Apr/Dec/2011 results): Sales Yen 119,989 million (up 34.3%), operating profit yen 6,537 million (up from Yen 2,497 million loss), recurring profit Yen 5,921 million (up from Yen 2,934 million loss), net profit Yen 3,661 million (up from Yen 2,588 million loss).  (% & figures compared with the corresponding period a year ago).

 

For the current term ending Mar 2011 the operations are projected to come back to profitability to post Yen 7,200 million recurring profit and Yen 4,500 million net profit, respectively, on a 27% rise in turnover, to Yen 160,000 million.  Sales of printing machines are still in a slump globally, but demand for die-casts is growing in Japan, North America and China.  Sales are dropping in the second half due to the termination of the government’s eco-car subsidy, but covered by steady sales in the first half.  Profits will recover sharply.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 3,521.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:          Dec 1943

Regd No.:                     (Hiroshima-Fuchu) 034478

Legal Status:              Limited Company (Kabushiki Kaisha)

Authorized:                 500 million shares

Issued:                         171,230,715 shares

Sum:                            Yen 18,472 million

 

Major shareholders (%): Japan Trustee Services T (9.4), Company’s Treasury Stock (5.5), Meiji Yasuda Life Ins(5.4), Dai-ichi Life Ins (4.7), Nippon Life Ins (4.5), Ryokokai’s S/Holding Assn (3.9), Master Trust Bank of Japan T (3.7), Urakami Foundation (3.2), MFCG (3.0), Sumitomo Trust Bank (2.0); foreign owners (11.0) .

 

No. of shareholders: 10,475

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Hiroshi Urakami, ch & CEO; Susumu Yoshikawa, pres & COO; Takashi Yokoyama, dir; Koji Ishii, dir; Akira Urakami, dir; Kenjiro Suzuki, dir; Satoshi Oooka, dir; Taro Katoh, dir 

                       

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

 

 

OPERATION

 

Activities: Manufactures die castings, printing press, power tools, other:

 

(Sales breakdown by divisions):

 

Die Castings (68%): die casting products, including cylinder blocks & transmission cases, aluminum castings;

 

Printing Machines (14%): offset printing presses & peripherals;

 

Housing Appliances (17%): electrical power tools, door closers, air-conditioning Controllers, lawn & gardening equipment, hinges, architecture’s hardware, other;

 

Overseas sales ratio (25.1%): N America 14.0%%, Europe 4.2%, others 6.9%.

 

Clients: [Automakers, other makers] Honda Motor, Suzuki Motor, Jatco, Ryobi Hambai, Mitsubishi Motors, Mazda, other.

 

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Ryobi Mirasaka, Ryobi Mitsugi, Toyota Tsusho Corp, Mitsubishi Corp, Nissan Trading, other..

 

Payment record: Regular

 

Location: Business area in Fuchu City, Hiroshima-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (Marunouchi)

SMBC (Tokyo-Chuo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

125,940

176,340

 

  Cost of Sales

108,081

152,358

 

      GROSS PROFIT

17,859

23,981

 

  Selling & Adm Costs

18,784

22,176

 

      OPERATING PROFIT

-925

1,804

 

  Non-Operating P/L

-387

-234

 

      RECURRING PROFIT

-1,312

1,570

　

      NET PROFIT

-1,601

160

BALANCE SHEET

 

 

 

 

  Cash

　

15,154

13,767

 

  Receivables

 

31,244

26,203

 

  Inventory

 

26,504

29,218

 

  Securities, Marketable

10,362

1,516

 

  Other Current Assets

3,783

4,951

 

      TOTAL CURRENT ASSETS

87,047

75,655

 

  Property & Equipment

73,837

78,679

 

  Intangibles

 

1,077

1,187

 

  Investments, Other Fixed Assets

11,955

11,677

 

      TOTAL ASSETS

173,916

167,198

 

  Payables

 

25,475

20,166

 

  Short-Term Bank Loans

31,509

32,912

 

　

 

　

　

 

  Other Current Liabs

21,817

16,023

 

      TOTAL CURRENT LIABS

78,801

69,101

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

16,364

6,559

 

  Reserve for Retirement Allw

6,988

6,617

 

  Other Debts

　

3,767

16,915

 

      TOTAL LIABILITIES

105,920

99,192

 

      MINORITY INTERESTS

 

 

 

Common stock

18,472

18,472

 

Additional paid-in capital

23,750

23,750

 

Retained earnings

35,007

36,608

 

Evaluation p/l on investments/securities

2,157

1,088

 

Others

 

(9,037)

(9,558)

 

Treasury stock, at cost

(2,354)

(2,354)

 

      TOTAL S/HOLDERS` EQUITY

67,995

68,006

　

      TOTAL EQUITIES

173,915

167,198

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

16,308

8,122

 

Cash Flows from Investment Activities

-7,301

-18,088

 

Cash Flows from Financing Activities

2,146

12,622

　

Cash, Bank Deposits at the Term End

　

23,319

12,084

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

67,995

68,006

 

 

Current Ratio (%)

110.46

109.48

 

 

Net Worth Ratio (%)

39.10

40.67

 

 

Recurring Profit Ratio (%)

-1.04

0.89

 

 

Net Profit Ratio (%)

-1.27

0.09

 

 

Return On Equity (%)

-2.35

0.24

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.11

UK Pound

1

Rs.72.91

Euro

1

Rs.62.56

 

 

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

 

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.