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MIRA INFORM REPORT

 

 

Report Date :

16.02.2012

 

 

IDENTIFICATION DETAILS

 

Name :

IHI CORP

 

 

Registered Office :

Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

January 1889

 

 

Com. Reg. No.:

(Tokyo-Kotoku) 031604

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering works of aerospace, ships/marine structure, industrial machinery, energy-related fields

 

 

No. of Employees :

26,035

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 15,165.7 Million

Status :

Good

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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

 

IHI CORP

REGD NAME:    KK I H I 

MAIN OFFICE:  Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710 JAPAN

                        Tel: 03-6204-7800     Fax: 03-6204-8800

 

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

E-Mail address: webmaster@IHI.co.jp

 

 

ACTIVITIES

 

Engineering works of aerospace, ships/marine structure, industrial machinery, energy-related fields

 

BRANCHES   

 

Tokyo (3), Yokohama, Chita, Nagasaki, Aioi, Kure, Soma, other (Tot 19)

 

OVERSEAS         

 

Paris, Piraeus, Bangkok, Beijing, Shanghai, Taipei, Kaohsiung, Hanoi, Jakarta, Manila, Seoul, New Delhi, Algiers (--branch offices) (Tot 14)

(Subsidiaries/JV’s): Europe (9), Americas (11), Oceania (1), Asia (24, including 9 in China)

 

FACTORIES

 

Aioi, Kure, Soma, Yokohama, Mizuho, Chita, other (Tot 10)

 

 

CHIEF EXEC

 

KAZUAKI KAMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 1,187,292 M

PAYMENTS      REGULAR                     CAPITAL           Yen 95,762 M

TREND             SLOW                          WORTH            Yen 253,640 M

STARTED         1889                             EMPLOYES      26,035

 

 

COMMENT

 

HEAVY ELECTRIC MACHINERY MFR. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 15,165.7 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 

HIGHLIGHTS

 

This is a major comprehensive heavy electric machinery mfr expanding operations in aerospace, ships/marine structures, industrial machinery/energy related fields, other.  Bought aerospace business from the then ailing Nissan Motor in 2000.  Highly competitive in aerospace and defense areas.  Largest mfr of aircraft jet engines for civil aircraft.  Has business alliance in shipbuilding with Mitsui Engineering & Shipbuilding and Kawasaki Heavy Industries.  Strong in large bridge projects including the Akashi Kaikyo Bridge, linking Honshu Island and Shikoku Island.  Actively expanding into environmental sector such as garbage processing.  Has business tie-up with Ebara Corp, pump/air blower mfr, Tokyo, for garbage incineration and pumps.  The firm withdrew from unprofitable operations to focus on growth areas such as aircraft engines, energy-related fields such as LNG, auto turbochargers on a global basis.  Pulled out of overseas cement project.  Developed mfg equipment for vaccines for new-type influenza in collaboration with pharmaceutical venture firm.  Launched a new sales base in Brazil in autumn 2010 to develop the sales channel of floating LNG plants.  In railway rollingstock, it is planning to move into China with diesel railcars. 

An N-power plant equipment JV with Toshiba Corp will start up operations in full scale in March 2012 term.  Has business alliances in shipbuilding with Mitsui Engineering & Shipbuilding & Kawasaki Heavy Industries.  The firm completely restored in May the Soma Plant, Fukushima, damaged by the recent Great East Earthquake and aims to clear delayed deliveries through increased production, including outsourcing.  It will start up in-house power generation facilities at the halted Mizuho plant in Tokyo and is also planning power sales.  It will advance into ocean LNG tanks.

 

(Recent news from the NIkkei dated 30/01/2012): IHI Corp and JFE Holdings Inc agreed on Monday to merge their shipping units in October.  The two firms has held talks since 2008 toward merging the JFE unit Universal Shipbuilding Corp and the IHI unit IHI Marine United Inc.  The deal will bring the units’ combined construction volume close to that of Imabari Shipbuilding Co, Japan’s leading shipbuilder.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2011 fiscal term amounted to Yen 1,187,292 million, a 4.5% down from Yen 1,242,700 million in the previous term.  The economy generally remained on a recovery track, but close to the end of the fiscal year under review on Mar 11, 2011 the Great East Japan Earthquake occurred.  As a result, mfg activity across the Japanese economy contracted sharply over a short period of time, putting considerable downward pressure on exports and domestic private-sector demand.  Although sales from Rotating & Industrial Machinery Operations rose sharply, overall net sales declined, due mainly to lower sales from Energy & Space Operations.  The recurring profit was posted at Yen 51,482 million and the net profit at Yen 29,764 million, respectively, compared with Yen 33,027 million recurring profit and Yen 17,378 million net profit, respectively, a year ago

           

            (Apr/Dec/2011 results): Sales Yen 832,330 million (down 0.7%), operating profit Yen 27,420 million (down 38.2%), recurring profit Yen 23,485 million (down 38.2%), net profit Yen 16,781 million (down 11.6%).  (% compared with the corresponding period a year ago).  Exports were lackluster as  result of overseas demand lacking in strength and the entrenchment of the strong Yen exchange rate, which limited economic recovery to a gradual pace.

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 33,000 million and the net profit at Yen 22,000 million, respectively, on a 1.1% rise in turnover, to Yen 1,200,000 million.  Orders will rise 4% to Yen 1.25 trillion.  Vehicle-use turbo engines sales are robust.  But mainline plants sales are hit by the slump in nuclear power-related works.  Aerospace businesses are affected by startup costs on the new engine.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 15,165.7 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jan 1889

Regd No.:         (Tokyo-Kotoku) 031604

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         3,300 million shares

Issued:                1,467,058,482 shares

Sum:                   Yen 95,762 million

Major shareholders (%): JTSB (Toshiba Corp) (3.7), Dai-ichi Life Ins (3.6), Japan Trustee Services T (3.6), Master Trust Bank of Japan T (3.1), TCSB (Mizuho Bank) (2.9), Company’s Kyoeikai Assn (1.8), Nippon Life Ins (1.6), Mitsui Sumitomo Ins (1.5), Mizuho Corporate Bank (1.4); foreign owners (20.2)

 

No. of shareholders: 108,858

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo

 

Managements: Kazuaki Kama, pres & CEO; Yuji Hiruma, v pres; Ichiro Hashimoto, v pres; Tamotsu Saito, v pres; Fusayoshi Nakamura, v pres; Makoto Serizawa, dir; Kazuo Tsukahar, dir; Sadao Idekawa, dir

 

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

 

Related companies: IHI Aerospace, IHI Marine United, IHI Europe Ltd, other

 

 

OPERATION

 

Activities: Heavy machinery engineering works:

 

(Sales Breakdown by Divisions):

 

Distribution Systems & Steel Structures (17%): material handling systems, physical dis- tribution & factory automation systems, parking systems, bridges, construction materials;

Industrial Machinery (12%): iron & steel mfg equipment, vehicular turbochargers, mass-produced machinery, others

Energy & Plant Operations (26%); boilers, gas turbines, components for nuclear power     plants, environmental control systems, storage facilities, others;

Aero-Engine & Space Operations (23%): jet engines, space-related equipment, others;

Shipbuilding & Offshore Operations (15%): shipbuilding, ship repairs, offshore struc-       tures;

Other Operations (7%): diesel engines, agricultural machinery, construction machinery,     financing & service industry, marine transport, others

Overseas sales ratio (43%).

 

Clients: [Government agencies, electric powers, mfrs] Defense Agency, Toshiba Corp, Japanese Aero Engine Corp, Tokyo Electric Power, Sumitomo Metal Ind, Japan Nuclear   Fuel, other.

No. of accounts: 2,000 - 3,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers]: Ishikawajima Plant Construction, Ishikawajima Transport

Machinery, JAS Aircraft, Ishikawajima Mass-Produced Machinery, Mitsui Bussan

Aerospace, 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 (H/O)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,187,292

1,242,700

 

  Cost of Sales

976,846

1,048,875

 

      GROSS PROFIT

210,446

193,825

 

  Selling & Adm Costs

149,056

146,680

 

      OPERATING PROFIT

61,390

47,145

 

  Non-Operating P/L

-9,908

-14,118

 

      RECURRING PROFIT

51,482

33,027

　

      NET PROFIT

29,764

17,378

BALANCE SHEET

 

 

 

 

  Cash

　

116,422

76,641

 

  Receivables

 

291,033

320,227

 

  Inventory

 

363,099

404,455

 

  Securities, Marketable

1,183

30,894

 

  Other Current Assets

81,668

109,525

 

      TOTAL CURRENT ASSETS

853,405

941,742

 

  Property & Equipment

328,739

290,909

 

  Intangibles

 

21,056

23,116

 

  Investments, Other Fixed Assets

158,241

156,654

 

      TOTAL ASSETS

1,361,441

1,412,421

 

  Payables

 

269,445

241,185

 

  Short-Term Bank Loans

134,885

173,527

 

　

 

　

　

 

  Other Current Liabs

286,801

343,452

 

      TOTAL CURRENT LIABS

691,131

758,164

 

  Debentures

 

53,565

40,000

 

  Long-Term Bank Loans

162,151

184,190

 

  Reserve for Retirement Allw

132,347

135,217

 

  Other Debts

　

68,607

67,785

 

      TOTAL LIABILITIES

1,107,801

1,185,356

 

      MINORITY INTERESTS

 

 

 

Common stock

95,762

95,762

 

Additional paid-in capital

43,037

43,028

 

Retained earnings

95,973

65,933

 

Evaluation p/l on investments/securities

6,508

9,462

 

Others

 

12,448

12,985

 

Treasury stock, at cost

(88)

(105)

 

      TOTAL S/HOLDERS` EQUITY

253,640

227,065

　

      TOTAL EQUITIES

1,361,441

1,412,421

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

95,565

76,708

 

Cash Flows from Investment Activities

-77,798

-62,754

 

Cash Flows from Financing Activities

-25,907

-1,800

　

Cash, Bank Deposits at the Term End

　

115,025

124,870

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

253,640

227,065

 

 

Current Ratio (%)

123.48

124.21

 

 

Net Worth Ratio (%)

18.63

16.08

 

 

Recurring Profit Ratio (%)

4.34

2.66

 

 

Net Profit Ratio (%)

2.51

1.40

 

 

Return On Equity (%)

11.73

7.65

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.29

UK Pound

1

Rs.77.45

Euro

1

Rs.64.89

 

 

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.