MIRA
INFORM REPORT
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Report Date : |
13.08.2013 |
IDENTIFICATION DETAILS
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Name : |
KYOCERA CORPORATION |
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Registered Office : |
6 Takeda-Tobadonocho Fushimiku |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
April 1959 |
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Com. Reg. No.: |
1300-01-000049 (Kyoto-Fushimiku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of ceramics |
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No. of Employees : |
63,876 |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.
Source
: CIA
Company name and address
KYOCERA CORPORATION
REGD NAME: Kyocera
KK
MAIN OFFICE: 6
Takeda-Tobadonocho Fushimiku Kyoto 612-8501 JAPAN
Tel:
075-604-3500 Fax: 075-604-3501
URL: http://www.kyocera.co.jp/
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of ceramics
BRANCHES
Tokyo, Sapporo,
Nagoya, Osaka, other (Tot 41)
OVERSEAS
USA, Europe,
China, S/E Asia, other
FACTORIES
Shiga, Kagoshima
(2), Mie, Fukushima, Hokkaido, other (Tot 10)
CHIEF EXEC
GORO YAMAGUCHI,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,280,054 M
PAYMENTS REGULAR CAPITAL Yen
115,703 M
TREND UP WORTH Yen 1,714,942 M
STARTED 1959 EMPLOYES 63,876
COMMENT
MFR OF CERAMICS & PRODUCTS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR
ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2014
fiscal term
HIGHLIGHTS
The subject company
is the major comprehensive ceramics mfr.
Highly competitive in ceramic products such as IC packages &
capacitors. Front runner in
bio-ceramics, including artificial bones.
Also major make of telecom equipment.
Leading shareholder in KDDI. The firm
will emphasize solar battery business.
The company plans to boost output of ceramic package products in Vietnam
from Aug 2013. It will set up additional
production lines for the substrates mainly for smartphones at the Ayabe Plant
in Kyoto, with completion slated for Dec 2013.
It will raise the payout ratio from 20% to 30%.
FINANCIAL INFORMATION
The sales volume for
Mar/2013 fiscal term amounted to Yen 1,280,054 million, a 7.5% up from Yen
1,190,870 million in the previous term.
In domestic sales of photovoltaic power generation systems, sales
volumes mainly of industrial products increased, covering lower unit
prices. But sales of lucrative
electronic parts slowed down toward term’s end.
The recurring profit was posted at Yen 101,363 million and the net
profit at Yen 66,473 million, respectively, compared with Yen 114,893 million
recurring profit and Yen 79,357 million net profit, respectively, a year ago.
(Apr/Jun/2014 results):
Sales Yen 331,655 million (up 11.4%), operating profit Yen 25,398 million
(previously Yen 2,002 million loss), recurring profit Yen 34,813 million (up
636.5%), net profit Yen 22,651 million (up 244.8%). (% compared with the corresponding period a
year ago).
For the current
term ending Mar 2014 the recurring profit is projected at Yen 150,000 million
and the net profit at Yen 96,000 million, on a 9.4% rise in turnover, to Yen
1,400,000 million. Sales of solar cell
modules will continue to rise. Sales of
electronic devices for smartphones will also grow, backed by stronger demand
for high function terminals, such as ETS smartphones. In North America the firm gained a new
mobile-phone-carrier customer. Costs for
purifying environment will not be posted.
Operating profits will double, thanks partly to increased overseas
production at optimum location.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Apr 1959
Regd
No.: 1300-01-000049 (Kyoto-Fushimiku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 600 million shares
Issued: 191,309,290 shares
Sum: Yen 115,703 million
Major
shareholders (%): Master Trust Bank of Japan T (7.2), Japan Trusty Services T (6.2),
Company’s Treasury Stock (4.1), Bank of Kyoto (3.7), Kazuo Inamori (2.9), State
Street Bank & Trust (2.8), Inamori Foundation (2.4), SSBT OD05 Omnibus Acct
Treaty C1 (1.8), Keiai Kosan (1.8); foreign owners (35.7)
No.
of shareholders: 51,768
Listed on the S/Exchange (s) of: Tokyo, New York
Managements: Tetsuo Kuba, ch;
Tatsumi Maeda, v ch; Goro Yamaguchi, pres, Katsumi Komaguchi, s/mgn dir;
Yasuyuki Yamaguchi, s/mgn dir; Takeshi Ishii, dir; Yoshito Ohta, dir; Shoichi
Aoki, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: AVX Corp, Kyocera Mita, other (Tot 229)
OPERATION
Activities: Manufactures
ceramics & products: fine ceramic parts (6%), semiconductor parts (13%),
fine ceramic-applied products (17%), electronic devices (21%), communications
equipment, information equipment, others (44%).
Overseas
Sales Ratio (55%)
Clients: [Mfrs, wholesalers] KDDI, Hitachi Ltd,
Sony Corp, other
No. of accounts:
2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sharp Corp, Panasonic,
Hitachi Ltd, 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)
Relations:
Satisfactory
FINANCES
(In Million
Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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1,280,054 |
1,190,870 |
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Cost of Sales |
952,350 |
870,143 |
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GROSS PROFIT |
327,704 |
320,727 |
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Selling & Adm Costs |
250,778 |
223,052 |
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OPERATING PROFIT |
76,926 |
97,675 |
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Non-Operating P/L |
24,437 |
17,218 |
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RECURRING PROFIT |
101,363 |
114,893 |
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NET PROFIT |
66,473 |
79,367 |
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BALANCE SHEET |
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Cash |
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305,454 |
273,288 |
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Receivables |
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291,283 |
240,344 |
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Inventory |
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296,450 |
270,336 |
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Securities, Marketable |
179,843 |
158,765 |
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Other Current Assets |
195,353 |
201,870 |
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TOTAL CURRENT ASSETS |
1,268,383 |
1,144,603 |
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Property & Equipment |
268,824 |
260,637 |
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Intangibles |
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54,583 |
49,394 |
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Investments, Other Fixed Assets |
691,063 |
539,469 |
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TOTAL ASSETS |
2,282,853 |
1,994,103 |
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Payables |
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111,249 |
102,699 |
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Short-Term Bank Loans |
3,135 |
4,062 |
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Other Current Liabs |
212,246 |
353,101 |
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TOTAL CURRENT LIABS |
326,630 |
459,862 |
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Debentures |
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Long-Term Bank Loans |
20,855 |
21,197 |
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Reserve for Retirement Allw |
36,322 |
32,441 |
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Other Debts |
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184,104 |
(53,638) |
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TOTAL LIABILITIES |
567,911 |
459,862 |
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MINORITY INTERESTS |
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Common
stock |
115,703 |
115,703 |
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Additional
paid-in capital |
163,062 |
162,617 |
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Retained
earnings |
1,368,512 |
1,324,052 |
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Evaluation
p/l on investments/securities |
50,138 |
(81,639) |
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Others |
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68,785 |
64,736 |
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Treasury
stock, at cost |
(51,258) |
(51,228) |
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TOTAL S/HOLDERS` EQUITY |
1,714,942 |
1,534,241 |
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TOTAL EQUITIES |
2,282,853 |
1,994,103 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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109,489 |
109,065 |
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Cash Flows
from Investment Activities |
-66,142 |
-56,051 |
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Cash
Flows from Financing Activities |
-31,431 |
-50,769 |
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Cash,
Bank Deposits at the Term End |
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305,454 |
273,288 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
1,714,942 |
1,534,241 |
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Current
Ratio (%) |
388.32 |
248.90 |
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Net
Worth Ratio (%) |
75.12 |
76.94 |
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Recurring
Profit Ratio (%) |
7.92 |
9.65 |
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Net Profit
Ratio (%) |
5.19 |
6.66 |
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Return
On Equity (%) |
3.88 |
5.17 |
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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.60.80 |
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1 |
Rs.94.21 |
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Euro |
1 |
Rs.81.03 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.