MIRA INFORM REPORT

 

 

Report Date :

21.07.2012

 

IDENTIFICATION DETAILS

 

Name :

HONDA MOTOR CO LTD

 

 

Registered Office :

2-1-1 Minami-Aoyama Minatoku Tokyo 107-8556

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

September 1948

 

 

Com. Reg. No.:

0104-01-027577 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of motorcycles, four-wheeled cars, power equipment

 

 

No. of Employees :

24,888         

 

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

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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

 

HONDA MOTOR CO LTD

REGD NAME:    Honda Giken Kogyo KK

MAIN OFFICE:  2-1-1 Minami-Aoyama Minatoku Tokyo 107-8556 JAPAN

Tel: 03-3423-1111     Fax: 03-5412-1515     -

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfr of motorcycles, four-wheeled cars, power equipment

 

BRANCHES

 

Shizuoka, Mie, Saitama, Tochigi, Kumamoto

 

OVERSEAS

 

Worldwide

 

FACTORIES

 

Saitama, Hamamatsu, Suzuka, Kumamoto, Tochigi

 

 

CHIEF EXEC

 

TAKANOBU ITO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 7,948,095 M

PAYMENTS      REGULAR         　CAPITAL        Yen 86,067 M

TREND UP                    　WORTH         Yen 4,528,290 M

STARTED         1948                 　EMPLOYES   24,888

 

 

COMMENT

 

MFR OF MOTORCYCLES, FOUR-WHEELED CARS, OTHER 

FINANCIAL SITUATION COSIDERED FAI AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                                   

 

                        Unit: In Million Yen

Forecast figures for the 31/03/2013 fiscal term.

 

 

HIGHLIGHTS

 

This is the major car maker ranking in 2nd in domestic market and world’s top motorcycle mfr.  Also produces power products like cultivators.  Last to begin 4-wheeler production.  One of Japan’s fastest growth companies after WWII along with Sony Corp.  Established worldwide operations, maintaining strong position in the US market.  Sales of the “CR-V” model launched at the end of 2011 are extremely faring well.  The company is confident it can regain market share through the launch of the “Accord” in the current term.  It also plans to broaden the product lineup for the high-end “Acura”.  .

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 7,948,095 million, an 11.1% down from Yen 8,936,867 million in the previous term.   This is primarily due to decreased revenue in the automobile business mainly caused by temporary suspension of production and production adjustments as a result of the Great East Japan Earthquake which occurred on March 11, 2011 as well as flooding in Thailand, and unfavorable foreign currency translation effect, despite increased revenue in the motorcycle business.  Sales by Divisions; Motorcycles up 9.7% to Yen 1,348,800 million, due mainly to increased unit sales in Asia and other regions including South America (unit sales totaled 12,559 thousand units); Automobiles down 10.7% to 3,137 thousand units to Yen 5,805,900 million, due mainly to decreased unit sales in all regions resulting from the Earthquake and flooding in Thailand.  Sales by regions: Japan down 6.9%; North America down 10.4%; Europe down 16.9%; Asia down 19.0%.  The recurring profit was posted at Yen 257,403 million and the net profit at Yen 211,482 million, respectively, compared with Yen 630,548 million recurring profit and Yen 534,088 million net profit, respectively, a year ago. 

           

            For the current term ending Mar 2013 the recurring profit is projected at Yen 635,000 million and the net profit at Yen 470,000 million, on a 30% rise in turnover, to Yen 10,300,000 million.  Sales will pick up without impacts from the Earthquake and Thailand floods.  Sales in North America will recover strongly.  Four-wheeler sales volume is projected to grow 38.3% to hit a record high 4.3 million units.  Motorcycle sales will also continue rising.  Operating profit will increase sharply.  Foreign exchange rate is assumed at Yen 80 per Dollar, with one Yen appreciation erode profit by Yen 17 million.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 189,615.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

      Date Registered:　Sept 1948

      Regd No.:                0104-01-027577 (Tokyo-Minatoku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       7,086 million shares

Issued:                1,811,428,430

Sum:                   Yen 86,067 million

 

Major shareholders (%): Japan Trustee Services T (7.5), Master Trust Bank of Japan T (4.6), Moxley & Co (3.3), Meiji Yasuda Life Ins (2.8), Tokio Marine & Nichido Fire Ins (2.7), JP Morgan Chase Bank 380055 (2.6), SSBT OD05 Omnibus Acct Treaty CI (2.2), MUFG (2.0), Mitsui Sumitomo Ins (1.9), Nippon Life Ins (1.9); foreign owners (35.6)

 

No. of shareholders: 205,852

Listed on the S/Exchange (s) of: Tokyo, Osaka, New York, London

 

Managements: Takanobu Ito, pres; Tetsuo Iwamoto, v pres; Tatsuhiro Oyama, s/mgn dir; Fumihiko Ike, s/mgn dir; Tomohiko Kawanabe, s/mgn dir; Takushi Yamamoto, s/mgn dir; Yoshiharu Yamamoto, s/mgn dir; Nobuo Kuroyanagi, dir; Takeo Fukui, dir; Masahiro Yoshida, dir

 

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

 

Related companies: Honda USA,  Honda Engineering, Honda R&D Co, other.

 

 

OPERATION

 

Activities: Manufactures motorcycles (17%), four-wheeled cars (73%), financing (6%), power equipment (3%)

Overseas Sales (81%)

 

Clients: [Subsidiary agent dealers] Honda Four-wheel car sales, Honda Motorcycle Sales, Honda Power Equipment Sales, America Honda Motor, Honda Motor Europe, Asia Honda Motor, other

No. of accounts: 1,000-2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Keihin Corp, Denso Corp, TS Tech Co, Yachiyo Ind, Showa Corp, other

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

MUFG (H/O)

Saitama Resona Bank (Tokyo)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

7,948,095

8,936,867

 

  Cost of Sales

5,919,633

6,496,841

 

      GROSS PROFIT

2,028,462

2,440,026

 

  Selling & Adm Costs

1,797,097

1,870,251

 

      OPERATING PROFIT

231,364

569,775

 

  Non-Operating P/L

26,039

60,773

 

      RECURRING PROFIT

257,403

630,548

　

      NET PROFIT

211,482

534,088

BALANCE SHEET

 

 

 

 

  Cash

　

1,247,113

1,279,024

 

  Receivables

 

812,155

787,691

 

  Inventory

 

1,035,779

899,813

 

  Securities, Marketable

　

　

 

  Other Current Assets

　

　

 

      TOTAL CURRENT ASSETS

4,739,086

4,690,047

 

  Property & Equipment

1,973,458

1,939,356

 

  Intangibles

 

　

　

 

  Investments, Other Fixed Assets

　

　

 

      TOTAL ASSETS

11,780,759

11,570,874

 

  Payables

 

964,848

1,094,740

 

  Short-Term Bank Loans

911,395

962,455

 

　

 

　

　

 

  Other Current Liabs

　

　

 

      TOTAL CURRENT LIABS

3,579,759

3,568,192

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,235,001

2,043,240

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

　

　

 

      TOTAL LIABILITIES

7,252,469

6,987,962

 

      MINORITY INTERESTS

 

 

 

Common stock

86,067

86,067

 

Additional paid-in capital

172,529

172,529

 

Retained earnings

5,769,029

5,666,539

 

Evaluation p/l on investments/securities

(1,646,078)

(1,495,380)

 

Others

 

　

　

 

Treasury stock, at cost

(26,117)

(26,110)

 

      TOTAL S/HOLDERS` EQUITY

4,528,290

4,582,912

　

      TOTAL EQUITIES

11,780,759

11,570,874

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

737,429

1,070,837

 

Cash Flows from Investment Activities

-673,069

-731,390

 

Cash Flows from Financing Activities

-44,121

-100,416

　

Cash, Bank Deposits at the Term End

　

1,247,113

1,279,024

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

4,528,290

4,582,912

 

 

Current Ratio (%)

132.39

131.44

 

 

Net Worth Ratio (%)

38.44

39.61

 

 

Recurring Profit Ratio (%)

3.24

7.06

 

 

Net Profit Ratio (%)

2.66

5.98

 

 

Return On Equity (%)

4.67

11.65

 

 

           

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.86.58

Euro

1

Rs.67.60

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.