MIRA INFORM REPORT

 

 

Report Date :

12.06.2013

 

IDENTIFICATION DETAILS

 

Name :

NIHON KOHDEN CORPORATION

 

 

Registered Office :

3-14-20, Higashi-Nakano Nakano-Ku, 164-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

07.08.1951

 

 

Legal Form :

Public Parent

 

 

Line of Business :

Manufacture of medical and surgical equipment and orthopaedic appliances

 

 

No. of Employees :

4,057

 

RATING & COMMENTS

 

MIRAs Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 Top of Form

Bottom of Form

Top of Form

 

 

NIHON KOHDEN CORPORATION

 

3-14-20, Higashi-Nakano

 

 

Nakano-Ku, 164-0003

Japan

 

 

Tel:

81-3-59968000

Fax:

81-3-59968085

 

www.nihonkohden.com

 

Head Office :

1-31-4 Nishiochiai, Shinjuku-Ku, Tokyo 161-8560, Japan

Employees:

4,057

Company Type:

Public Parent

Corporate Family:

24 Companies

Traded:

Tokyo Stock Exchange:

6849

Incorporation Date:

07-Aug-1951

Auditor:

Toyo Audit

Financials in:

USD (mil) 

Fiscal Year End:

31-Mar-2013

Reporting Currency:

Japanese Yen

Annual Sales:

1,597.4  1

Net Income:

110.3

Total Assets:

1,241.4  2

Market Value:

1,676.8

 

(24-May-2013)

 

Business Description  

 

NIHON KOHDEN CORPORATION is a Japan-based company engaged in the research, development, manufacture and sale of medical electronic equipment, as well as the provision of maintenance and repair services. The Company offers electrocardiographs, electroencephalographs, evoked potential inspection equipment, electromyogram inspection equipment, vagal nerve stimulators, polygraphs, breathing function inspection equipment, cardiac pacemakers, bedside monitors, central monitors, ophthalmologic examination equipment, blood gas analyzers, electrodes catheters, emergency-related equipment, ultrasonic diagnostic equipment, artificial respirators and blood cell counters, among others. The Company is also engaged in the sales promotion for its products, the provision of agency support services, as well as the general affair-related and manpower dispatching businesses. On October 17, 2012, the Company established a wholly owned subsidiary RESUSCITATION SOLUTION, INC. in the United States. For the fiscal year ended 31 March 2013, NIHON KOHDEN CORPORATION revenues increased 10% to Y132.54B. Net income applicable to common stockholders increased 20% to Y9.15B. Revenues reflect an increase in demand for the Company's products and services due to favorable market conditions. Net income benefited from NOP Other Income increase of 88% to Y484M (income), NOP Exchange Loss decrease from Y131M (expense) to Y0K.

 

Industry  

 

Industry

Medical Equipment and Supplies

ANZSIC 2006:

2412 - Medical and Surgical Equipment Manufacturing

NACE 2002:

3310 - Manufacture of medical and surgical equipment and orthopaedic appliances

NAICS 2002:

334510 - Electromedical and Electrotherapeutic Apparatus Manufacturing

UK SIC 2003:

3310 - Manufacture of medical and surgical equipment and orthopaedic appliances

UK SIC 2007:

3250 - Manufacture of medical and dental instruments and supplies

US SIC 1987:

3845 - Electromedical and Electrotherapeutic Apparatus

 


Key Executives

 

 

Name

Title

Fumio Suzuki

Executive President, Representative Director

Hirokazu Ogino

Senior Executive Officer, Director of Marketing Strategy, Director

Hiroshi Aida

Senior Executive Officer, Chief Director of Product Business, Director

Shigeru Hirata

Executive Officer, Director of Human Resources & General Affairs

Kenji Hakuta

Senior Managing Executive Officer, Director

 

Significant Developments  

 

Topic

#*

Most Recent Headline

Date

New Business / Unit / Subsidiary

1

NIHON KOHDEN CORP Establishes New Subsidiary in United States to Acquire Defibtech LLC

27-Nov-2012

Business Deals

1

LiDCO Group Plc Appoints Nihon Kohden Corporation As Exclusive Distributor For LiDCOrapid In Japan

3-Aug-2012

Positive Earnings Pre-Announcement

1

Nihon Kohden Corporation Amends Consolidated Mid-year Forecast for FY 2013

2-Aug-2012

Dividends

1

NIHON KOHDEN CORP to Issue Year-end Dividend for FY 2013

8-May-2013

 

Financial Summary  

 

As of 31-Mar-2013

Key Ratios

Company

Industry

Current Ratio (MRQ)

2.44

2.84

Quick Ratio (MRQ)

2.00

1.96

Debt to Equity (MRQ)

0.02

0.37

Sales 5 Year Growth

4.80

13.75

Net Profit Margin (TTM) %

6.91

10.96

Return on Assets (TTM) %

8.47

7.42

Return on Equity (TTM) %

12.70

13.52

 

 

 

Stock Snapshot  

 

Traded: Tokyo Stock Exchange: 6849

 

As of 24-May-2013

   Financials in: JPY

Recent Price

3,735.00

 

EPS

211.48

52 Week High

4,300.00

 

Price/Sales

1.29

52 Week Low

2,105.00

 

Dividend Rate

52.00

Avg. Volume (mil)

0.24

 

Price/Earnings

15.75

Market Value (mil)

170,934.10

 

Price/Book

2.15

 

 

 

Beta

0.68

 

Price % Change

Rel S&P 500%

4 Week

0.67%

-2.10%

13 Week

13.35%

-8.54%

52 Week

74.61%

5.61%

Year to Date

42.67%

2.73%

 

 

1 - Profit & Loss Item Exchange Rate: USD 1 = JPY 82.97047
2 - Balance Sheet Item Exchange Rate: USD 1 = JPY 94.08855

 

 

Corporate Overview

 

Location
3-14-20, Higashi-Nakano
Nakano-Ku, 164-0003
Japan

 

Tel:

81-3-59968000

Fax:

81-3-59968085

 

www.nihonkohden.com

Quote Symbol - Exchange

6849 - Tokyo Stock Exchange

Sales JPY(mil):

132,538.0

Assets JPY(mil):

116,800.0

Employees:

4,057

Fiscal Year End:

31-Mar-2013

 

Industry:

Medical Equipment and Supplies

Incorporation Date:

07-Aug-1951

Company Type:

Public Parent

Quoted Status:

Quoted

 

Executive President, Representative Director:

Fumio Suzuki

 

Industry Codes

 

ANZSIC 2006 Codes:

2412

-

Medical and Surgical Equipment Manufacturing

7212

-

Labour Supply Services

9429

-

Other Machinery and Equipment Repair and Maintenance

 

NACE 2002 Codes:

3310

-

Manufacture of medical and surgical equipment and orthopaedic appliances

5274

-

Repair not elsewhere classified

7450

-

Labour recruitment and provision of personnel

 

NAICS 2002 Codes:

334510

-

Electromedical and Electrotherapeutic Apparatus Manufacturing

561320

-

Temporary Help Services

811310

-

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

 

US SIC 1987:

3845

-

Electromedical and Electrotherapeutic Apparatus

7363

-

Help Supply Services

7699

-

Repair Shops and Related Services, Not Elsewhere Classified

 

UK SIC 2003:

3310

-

Manufacture of medical and surgical equipment and orthopaedic appliances

5274

-

Repair not elsewhere classified

7450

-

Labour recruitment and provision of personnel

 

UK SIC 2007:

3250

-

Manufacture of medical and dental instruments and supplies

9529

-

Repair of other personal and household goods

7820

-

Temporary employment agency activities

 

Business Description

NIHON KOHDEN CORPORATION is a Japan-based company engaged in the research, development, manufacture and sale of medical electronic equipment, as well as the provision of maintenance and repair services. The Company offers electrocardiographs, electroencephalographs, evoked potential inspection equipment, electromyogram inspection equipment, vagal nerve stimulators, polygraphs, breathing function inspection equipment, cardiac pacemakers, bedside monitors, central monitors, ophthalmologic examination equipment, blood gas analyzers, electrodes catheters, emergency-related equipment, ultrasonic diagnostic equipment, artificial respirators and blood cell counters, among others. The Company is also engaged in the sales promotion for its products, the provision of agency support services, as well as the general affair-related and manpower dispatching businesses. On October 17, 2012, the Company established a wholly owned subsidiary RESUSCITATION SOLUTION, INC. in the United States. For the fiscal year ended 31 March 2013, NIHON KOHDEN CORPORATION revenues increased 10% to Y132.54B. Net income applicable to common stockholders increased 20% to Y9.15B. Revenues reflect an increase in demand for the Company's products and services due to favorable market conditions. Net income benefited from NOP Other Income increase of 88% to Y484M (income), NOP Exchange Loss decrease from Y131M (expense) to Y0K.

 

More Business Descriptions

Manufacture, export, import and distribution of medical electronic equipment including defibrillators and patient monitoring systems

 

Medical Equipment Mfr

 

Nihon Kohden Corporation (Nihon) is a medical device company, which undertakes the manufacturing, developing and marketing of electronic medical equipment. Its product base consists of patient monitors, electroencephalographs, evoked potential and electromyograph systems, electrocardiographs, defibrillators and hematology analyzers. The company imports and markets medical equipment catering to the needs of cardiology, sports medicine, urology, emergency care, respiratory care, anesthesiology, and rehabilitation markets. Nihon conducts operations across the regions of the US, Europe and Asia through its subsidiaries; and distributes its products across the world through an established network of distributors. The company is headquartered in Tokyo, Japan.Nihon focuses on its geographic expansion by building strong operating base besides gaining expertise through agreements and collaborations. This intent is reflected from the recent establishment of two subsidiaries in Brazil and India. Nihon also signed an agreement with the US based St. Jude Medical, Inc., for distribution of cardiac rhythm management (CRM) devices in Japan. It also focuses on product portfolio expansion with its recent acquisition of hematology analyzer division business of SPAN, a company, which manufactures and distributes diagnostic products.The company reported revenues of (Yen) JPY 120,718.00 million during the fiscal year ended March 2012, an increase of 6.47% over 2011. The operating profit of the company was JPY 12,018.00 million during the fiscal year 2012, an increase of 16.52% over 2011. The net profit of the company was JPY 7,625.00 million during the fiscal year 2012, an increase of 15.85% over 2011.

 

Nihon Kohden Corporation (Nihon) is one of Japan’s leading providers of medical electronic equipment. Its range of imported products is used in the fields of cardiology, anesthesiology, emergency care, urology, respiratory care, sports medicine and rehabilitation. The company’s products are also used widely by NASDA, Japan's space exploration agency. Nihon carries out operations through over 30 subsidiaries spread across the US, Asia, and Europe.The principal production facility of the company, Nihon Kohden Tomioka Corporation, is situated in Tomioka, Japan. It also manufactures products through its other facilities, namely, Shanghai Kohden Medical Electronic Instrument Corporation (Shanghai, China); Nihon Kohden Firenze, S.r.l. (Florence, Italy); and Span Nihon Kohden Diagnostics Private Ltd. (Surat, India). All the production facilities of Nihon in Japan are ISO 14001 certified; and all its production facilities and the European products are ISO 9001 and EN 46001 certified.Nihon classifies its geographical operations into five regions, namely, Japan, the Americas, Europe (Germany, Italy, Spain and France), Asia (China, Singapore and Korea) and Other regions. During the fiscal year ended March 2012, Nihon generated about 82.6% of its total revenue from Japan, followed by 5.8% from Americas, 5.3% from Asia, 5.6% from Europe and 0.7% from other regions.In November 2012, the company signed an agreement to acquire Defibtech, LLC, a designer and manufacturer of automated external defibrillators (AEDs) and other resuscitation equipment. Nihon operates through a single reporting business segment, namely, Medical Electronic Equipment Business.

 

Navigational, Measuring, Medical, and Control Instruments Manufacturing

 

 

 

 

 

 

Financial Data

Financials in:

JPY(mil)

 

Revenue:

132,538.0

Net Income:

9,152.0

Assets:

116,800.0

Long Term Debt:

28.0

 

Total Liabilities:

40,591.0

 

Working Capital:

52.0

 

 

 

Date of Financial Data:

31-Mar-2013

 

1 Year Growth

9.8%

20.1%

17.5%

 

Market Data

Quote Symbol:

6849

Exchange:

Tokyo Stock Exchange

Currency:

JPY

Stock Price:

3,735.0

Stock Price Date:

05-24-2013

52 Week Price Change %:

74.6

Market Value (mil):

170,934,096.0

 

SEDOL:

6639970

ISIN:

JP3706800004

 

Equity and Dept Distribution:

FY'99-02 WAS were estimated. FY'05-'06 1Q & 3Q's WAS & O/S are estimated. FY'08 1Q WAS was used as o/s. FY'08 3Q WAS & o/s were estimated.

 

 

Subsidiaries

Company

Percentage Owned

Country

Nihon Kohden Hokkaido Corp

100%

JAPAN

Nihon Kohden Tohoku Corp

100%

JAPAN

Nihon Kohden Higashi Kanto Corp

100%

JAPAN

Nihon Kohden Kita Kanto Corp

100%

JAPAN

Nihon Kohden Tokyo Corp

100%

JAPAN

Nihon Kohden Minami Kanto Corp

100%

JAPAN

Nihon Kohden Chubu Corp

100%

JAPAN

Nihon Kohden Kansai Corp

100%

JAPAN

Nihon Kohden Chushikoku Corp

100%

JAPAN

Nihon Kohden Kyushu Corp

100%

JAPAN

Nihon Kohden Tomioka Corp

100%

JAPAN

Nihon Kohden America Inc

100%

USA

Nihon Kohden Europe GmbH

100%

GERMANY

Nihon Kohden Singapore Pte Ltd

100%

SINGAPORE

Shanghai Kohden Medical Electronic Instrument Corp

100%

PEOPLE'S REPUBLIC OF CHINA

BeneFicks Corporation

100%

JAPAN

Nihon Kohden Firenze Srl

100%

ITALY

E-Staff Corporation

100%

JAPAN

Nihon Kohden France Sarl

100%

FRANCE

Nihon Kohden Italia Srl

100%

ITALY

Nihon Kohden Iberica SL

100%

SPAIN

Nihon Kohden Korea Inc

100%

SOUTH KOREA

NK US Lab

100%

USA

Medinet Kohden Shanghai Corporation

100%

PEOPLE'S REPUBLIC OF CHINA

Nihon Kohden Service Corp

100%

JAPAN

 

 

 

 

 

Shareholders

 

 

Major Shareholders

Japan Trustee Services Bank (5.75%)

 

 

 

 

 

Key Corporate Relationships

Auditor:

Toyo Audit

 

Auditor:

BDO, Toyo Audit

 

 

 

 

 

 

 

 

NIHON KOHDEN CORPORATION

 

The Strategic Initiatives report is created using technology to extract meaningful insights from analyst reports about a company's strategic projects and investments. More about Strategic Initiatives

 

Strategic Initiatives



 

Sales and Distribution

Geographical concentration makes the company vulnerable to potential risks in Japanese economy, its major market. Moreover, the company should begin tapping other large healthcare markets such as China and US.Business ExpansionGeographical and business expansion is expected to provide significant growth opportunities to Nihon. With an aim to expand its operations across Brazil, in January 2012, the company announced plans to establish a sales subsidiary, Nihon Kohden Do Brasil Ltda in San Paulo, Brazil. In April 2011, the company entered into an agreement with Span Diagnostics Ltd. to acquire the hematology analyzer division of SPAN.
Source: GlobalData, May 24, 2013

 

These new facilities would offer tailored products to emerging markets and expand its sales network.Regulatory GrantsApprovals and grants from regulatory bodies provide enough opportunities for the company to improve its market share. In April 2011, Nihon received regulatory grants for two of its projects, namely, “development of a rapid diagnosis support system for cancer surgery” and “enhancement of the safety function of high frequency oscillation (HFO) ventilators”. The Ministry of Economy, Trade and Industry (METI) designated these projects as supportive of the collaboration between hospitals and industry for the development of medical devices and resolution of various issues in medical practice. These projects were in consonance with the company’s key strategy of developing new businesses and introducing innovative medical equipment to improve medical safety and security. Successful completion of these projects could enhance Nihon’s operational performance and provide it with new avenues to garner higher revenues.Growing Cardiovascular Devices MarketThe company could benefit from the rapidly growing cardiovascular devices market.
Source: GlobalData, May 24, 2013

 

In April 2011, Nihon received regulatory grants for two of its projects, namely, “development of a rapid diagnosis support system for cancer surgery” and “enhancement of the safety function of high frequency oscillation (HFO) ventilators”. The Ministry of Economy, Trade and Industry (METI) designated these projects as supportive of the collaboration between hospitals and industry for the development of medical devices and resolution of various issues in medical practice. These projects were in consonance with the company’s key strategy of developing new businesses and introducing innovative medical equipment to improve medical safety and security. Successful completion of these projects could enhance Nihon’s operational performance and provide it with new avenues to garner higher revenues.Growing Cardiovascular Devices MarketThe company could benefit from the rapidly growing cardiovascular devices market. The global cardiovascular devices market was valued at $35,054.1m in 2009 and is expected to grow more than 5% during 2009-2016 to reach $49,185.68m by 2016, according to in-house forecasts.
Source: GlobalData, May 24, 2013

 

 

 

 

 

Strengths/Weaknesses (SWOT)



 

Helpful
to achieving the objective

Harmful
to achieving the objective

Internal Origin
(attributes of the organization)

Strengths

        Strong Liquidity Position

        Strong Market Position

        Innovative PWTT Technology

        Broad Product Portfolio

Weaknesses

        Declining Efficiency

        Concentrated Revenue

External Origin
(attributes of the environment)

Opportunities

        Business Expansion

        Growing Aged Population

        Growing Cardiovascular Devices Market

        Regulatory Grants

Threats

        Industry Consolidation Challenges

        Risk of Product Obsolesce

        Stringent Regulations

        Competitive Landscape

 

 

Overview

 

Nihon Kohden Corporation (Nihon) is one of the largest providers of medical electronic equipment in Japan. The company imports outstanding overseas products into Japan. These imported products cater to the needs of cardiology, urology, respiratory care, anesthesiology, emergency care, sports medicine and rehabilitation fields. Nihon’s leading market position with its innovative technological platform could strengthen its overall performance. However, stringent government regulations and intense competition could have a negative impact on the company’s revenue.

 

 

Strengths

 

Strong Liquidity Position

Strong liquidity helps the company in meeting its working capital requirements effectively. Nihon reported an increase in all the liquidity ratios owing to decreased current liabilities, which declined from JPY29,671m in 2011 to JPY30,709m in 2012. During the fiscal year ended March 2012, the company reported current ratio of 2.69 times as against 2.54 times in 2010, followed by quick ratio of 2.23 times as against 2.05 times, and cash ratio of 0.69 times in 2012 as against 0.63 times in 2010. Growth in current ratio indicates that the company is in a strong position to meet its short-term obligations. Nihon also reported an increase in its cash and cash equivalents in fiscal year 2012. The company had JPY9,342m in cash and cash equivalents as of March 2012, as compared to cash and cash equivalents of JPY9,331m in 2011, reflecting an increase of 0.11%. The increase in cash reserves was principally due to strong cash flows from operating activities. Increasing cash reserves indicate the company’s ability to obtain additional debt to finance acquisitions, capture business opportunities and meet capital expenditure or other capital requirements in the future.

 

Strong Market Position

Nihon’s strong market position in the area of medical electronic equipment enables it to strengthen its brand image, which would help in the easy launch of its new products. Nihon is one of the leading providers of medical electronic equipment in Japan. The company has subsidiaries in the US, Europe and Asia. It is one of the leading companies in the world to provide medical electronic equipment. The company is listed among the top 100 companies in the world that sell medical equipment, and among the top 10 companies that specialized in medical devices. Nihon is the world’s leading producer of electroencephalographs and electrocardiographs, evoked potential / electromyograms, measuring systems, patient monitors, defibrillators, automatic hematology analyzers and other medical equipment. All these products enhanced the company’s status among the worldwide users. The company could leverage its strong foothold in the market to gain a higher customer base and garner higher revenue.

 

Innovative PWTT Technology

The company’s innovative technology provides it an edge over other players in the market and helps ward off competition. Nihon’s monitors incorporate a new parameter, PWTT (Pulse Wave Transit Time), which has correlation with blood pressure. PWTT is a new noninvasive parameter that indicates sudden change in blood pressure. It is measured by constant monitoring of ECG and pulse wave. Nihon's innovative PWTT technology can detect and trigger non-invasive blood pressure (NIBP) measurement to confirm it, if any sudden blood pressure changes take place during periodic NIBP measurements. PWTT has a correlation with blood pressure in most of the cases. In spite of its limitation in capturing blood pressure changes in a few instances, PWTT remains a considerable improvement in noninvasive blood pressure monitoring.

 

Broad Product Portfolio

Nihon's broad portfolio of medical electronic equipment is instrumental in creating brand value and goodwill for the company. Its product line includes patient monitors, electroencephalographs, evoked potential and electromyograph systems, electrocardiographs, defibrillators, and hematology analyzers. The company markets its products under four major heads, namely, Physiological Measuring Equipment, Patient Monitors, Treatment Equipment, and Other Medical Equipment. Physiological Medical Equipment segment of the company offers electroencephalographs, evoked potential and electromyograph systems, electrocardiographs, defibrillators, and hematology analyzers. Patient Monitor Segment of the company includes instruments, which continuously monitor patient's condition. The company also offers defibrillators, AEDs, pacemakers, ventilators, artificial ears, cardiac life support pump, warming systems and other equipment through its treatment equipment segment. Nihon provides other medical equipment including automated haematology analyzers, emergency transmitters, hand held emergency monitors, ultrasound diagnostic equipment, transformers and other equipment. During the fiscal year ended March 2012, the company generated about 32.6 of its total revenue from Patient Monitors division, followed by 25.4% from Physiological Medical Equipment division, 16.8% from Treatment Equipment division, and 25.2% from Other Medical Equipment division. Such broad line of product offerings helps the company reduce the impact of market volatility in any particular product category and provides economic stability.

 

 

Weaknesses

 

Declining Efficiency

Nihon reported a marginal fall in its efficiency ratios in the fiscal year ended March 2012. The decline in these ratios assumes significance as these are used to analyze the uses of assets and liabilities by the company internally. It reported a Current Asset Turnover ratio of 1.46 times in 2012 as against 1.5 times in 2011, followed by Working Capital Turnover of 2.32 times as against 2.48 times, and Capital Employed Turnover of 1.78 times in 2012 as against 1.82 times in 2011. The decline in its efficiency ratios clearly suggests that the company did not make effective use of its assets and liabilities to maximize its bottom line.

 

Concentrated Revenue

Nihon's operations are highly concentrated geographically and lack scale in other international markets. Even though the company’s operations are spread across the world, it generates majority of its revenue from the Japanese market. Its geographical markets are divided into two segments, namely Japan and International. The International segment operates across the geographies of Europe, Asia and the Americas. The company’s domestic geographical market, Japan, contributed 82.6%, 82% and 69.7% of its total revenue in the fiscal years ended March 2012, 2011 and 2010. Geographical concentration makes the company vulnerable to potential risks in Japanese economy, its major market. Moreover, the company should begin tapping other large healthcare markets such as China and US.

 

 

Opportunities

 

Business Expansion

Geographical and business expansion is expected to provide significant growth opportunities to Nihon. With an aim to expand its operations across Brazil, in January 2012, the company announced plans to establish a sales subsidiary, Nihon Kohden Do Brasil Ltda in San Paulo, Brazil. In April 2011, the company entered into an agreement with Span Diagnostics Ltd. to acquire the hematology analyzer division of SPAN. Through this acquisition, Nihon established its sales subsidiary, Nihon Kohden India Private Ltd. This facility strengthens the company’s operational network in India; and enlarges its sales and support activities from hematology analyzers and reagents to its core products such as patient monitors. The new entity was established with an aim to increase Nihon’s sales in India by five times in the next five years. These new facilities would offer tailored products to emerging markets and expand its sales network.

 

Growing Aged Population

The increasing population of people aged above 65, who consume more medical solutions than younger population and are more prone to chronic diseases, has significant market potential for the company. The United Nations Population Division estimated that the number of people over 60 years of age throughout the world will triple to nearly 2 billion by 2050. Globally, the population of older persons is growing at a rate of 2.6% annually. According to the United Nations Population Division, people aged 60 are projected to account for 22% of the total world population by 2050, up from 11% in 2009. In developed economies such as the US, the UK, France, Germany and Japan, the percentage of people aged 65 and older is in double digits and is expected to continue to grow for the next seven years. While developed countries have managed to slow down their overall population growth, the longevity in the elderly population will cause problems in the future. Such a situation will increase the healthcare costs in those countries. The pace of population aging is faster in developing countries than in developed countries. Due to the large volume of population in countries such as China and India, the number of people growing older is quite high. In 2009, the number of persons aged above 60 had increased three and a half times to 737 million. There were 12 countries with more than 10 million people each aged above 60, including China (160 million), India (89 million), the US (56 million), Japan (38 million), the Russian Federation (25 million) and Germany (21 million). By 2050, 32 countries are expected to have over 10 million people each aged above 60, including five countries with more than 50 million older people: China (440 million), India (316 million), the US (111 million), Indonesia (72 million) and Brazil (64 million). Such elderly population is expected to exert increasing pressure on the healthcare system.

 

 

Growing Cardiovascular Devices Market

The company could benefit from the rapidly growing cardiovascular devices market. The global cardiovascular devices market was valued at $35,054.1m in 2009 and is expected to grow more than 5% during 2009-2016 to reach $49,185.68m by 2016, according to in-house forecasts. External Defibrillator was the fastest growing category in Asia-Pacific with a growth rate of 21.8% between 2002 and 2009. The category is forecast to grow 6.5% between 2009 and 2016. In Europe and North America, Electrophysiology is the fastest growing category, which is forecast to grow at 10% and 11.7% respectively between 2009 and 2016. Globally, Interventional Cardiology and Cardiac Rhythm Management are the two key categories in terms of revenue potential in 2016. While Interventional Cardiology could be the largest category in Asia Pacific with $3,424.8m in 2016, Cardiac Rhythm Management is expected to generate $1,355.8m in 2016. In Europe and North America, Cardiac Rhythm Management is expected to be the largest category in 2016 with $4,106.2m and $7,096.6m respectively in revenue. The category is expected to grow at a CAGR of 5.2% and 1.5% between 2009 and 2016 in Europe and North America respectively. Interventional Cardiology, the second largest category in Europe and North America, is expected to generate revenues of $3,124.9m and $5,087.3m respectively in 2016. In terms of units sold, Interventional Cardiology remains the largest category globally with a CAGR of 8.2%, 5.6%, and 5.6% from 2009 to 2016 in Asia Pacific, Europe and North America respectively. Volumes sold in these regions are expected to be in the order of 6,936,902; 8,794,495; and 11,604,348 units respectively.

 

Regulatory Grants

Approvals and grants from regulatory bodies provide enough opportunities for the company to improve its market share. In April 2011, Nihon received regulatory grants for two of its projects, namely, “development of a rapid diagnosis support system for cancer surgery” and “enhancement of the safety function of high frequency oscillation (HFO) ventilators”. The Ministry of Economy, Trade and Industry (METI) designated these projects as supportive of the collaboration between hospitals and industry for the development of medical devices and resolution of various issues in medical practice. These projects were in consonance with the company’s key strategy of developing new businesses and introducing innovative medical equipment to improve medical safety and security. Successful completion of these projects could enhance Nihon’s operational performance and provide it with new avenues to garner higher revenues.

 

 

Threats

 

Industry Consolidation Challenges

The company could be forced to decrease its prices due to industry consolidation in the healthcare market. Consolidation in the medical device industry is leading to intense competition in providing goods and services to patients and individuals. In 2011, a total of 2,672 deals worth $188.37 billion were accomplished in the medical devices market. Such consolidation poses a potential threat as the resultant players, larger in size, could use their influence to negotiate price concessions. This may result in decreasing revenue for the company.

 

Risk of Product Obsolesce

The medical device industry is subject to significant technological advances and product innovation and development. The company must continuously design new products, and update existing products and develop new technologies to meet its customers’ demands. The launch of new products and technologies involves a significant commitment to research and development. Upon investing in these new technologies, the company’s profits may suffer if they are not accepted in the marketplace as anticipated. Its competitors may develop innovative technologies and products, which could render its technology and products under development obsolete or uncompetitive.

 

 

 

Stringent Regulations

The company’s products, research and development activities and manufacturing processes have to comply with various local, state, federal, foreign and transnational laws and regulations. In the US, the FDA regulates the introduction of new medical products, manufacturing and labeling and record keeping procedures for such products. Obtainment of marketing approval for new medical devices from the US FDA is time consuming and expensive. Products marketed outside the US are also subject to government regulations, which vary from country to country. The company has to comply with different regulations governing product standards, packaging and labeling requirements, import restrictions, tariff regulations and tax requirements. Non-compliance by the company with applicable laws and regulations or failure to maintain, renew or obtain necessary permits and licenses could have an adverse effect on the company's results of operations and financial performance.

 

Competitive Landscape

In Japan, Medical institutions are able to attain business efficiency, which resulted in intense competition among the suppliers of medical equipment. The inclination to increase capital investment for functional enhancement of large-scale hospitals and also private practice startups increases competition. Competition intensified outside Japan as M&A activities hastened among large-scale Western companies. Competition increased with the entry of the newcomers from Asia and other developing regions with their attractive products in the markets of developed countries. The company might lose its market position if it fails to be in pace with its competitors.

 

 

Corporate Structure News

NIHON KOHDEN CORPORATION
Total Corporate Family Members: 24

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

NIHON KOHDEN CORPORATION

Parent

Nakano-Ku

Japan

Medical Equipment and Supplies

1,597.4

4,057

Kunshan Nicera Electrical Appliance Co., Ltd.

Subsidiary

Kunshan, Jiangsu

China

Appliance and Tool

35.9

1,600

Nihon Kohden Corporation - International Division

Division

Tokyo

Japan

Medical Equipment and Supplies

 

800

Nihon Kohden Tomioka Corporation

Subsidiary

Tomioka, Gunma

Japan

Medical Equipment and Supplies

 

500

Shanghai Photo-Electric Medical Electronic Instrument Co., Ltd.

Subsidiary

Shanghai, Shanghai

China

Medical Equipment and Supplies

9.3

160

E-Staff Corporation

Subsidiary

Shinjuku-Ku, Tokyo

Japan

Business Services

15.2

145

Nihon Kohden Europe GmbH

Subsidiary

Rosbach, Hessen

Germany

Medical Equipment and Supplies

59.2

100

Nihon Kohden Italia SRL

Subsidiary

Bergamo, Bergamo

Italy

Business Services

5.6

14

Nihon Kohden France S.a.r.l

Subsidiary

Cachan

France

Medical Equipment and Supplies

10.6

7

Nihon Kohden Higashi Kanto Corporation

Subsidiary

Chiba

Japan

Medical Equipment and Supplies

 

80

Nihon Kohden America, Inc.

Subsidiary

Foothill Ranch, CA

United States

Healthcare Facilities

6.8

60

Nihon Kohden Trading (Shanghai) Co., Ltd.

Subsidiary

Shanghai

China

Medical Equipment and Supplies

 

50

Nihon Kohden Iberica Sl

Subsidiary

Madrid

Spain

Medical Equipment and Supplies

4.5

12

Nihon Kohden Singapore Pte Ltd

Subsidiary

Singapore

Singapore

Medical Equipment and Supplies

 

8

Neurotronics Inc.

Subsidiary

Gainesville, FL

United States

Medical Equipment and Supplies

1.3

7

Nippon Koden Kansai K.K.

Subsidiary

Osaka, Osaka

Japan

Medical Equipment and Supplies

197.1

 

Nihon Kohden Kyushu Corporation

Subsidiary

Fukuoka

Japan

Medical Equipment and Supplies

 

 

Nihon Kohden Minami Kanto Corporation

Subsidiary

Yokohama, Kanagawa

Japan

Medical Equipment and Supplies

 

 

Nihon Kohden Tohoku Corporation

Subsidiary

Sendai, Miyagi

Japan

Medical Equipment and Supplies

 

 

Nihon Kohden Chubu Corporation

Subsidiary

Nagoya, Aichi

Japan

Medical Equipment and Supplies

 

 

Nihon Kohden Chushikoku Corporation

Subsidiary

Hiroshima

Japan

Medical Equipment and Supplies

 

 

Nihon Kohden Tokyo Corporation

Subsidiary

Tokyo

Japan

Medical Equipment and Supplies

 

 

Nicera Hong Kong Ltd.

Subsidiary

Kowloon

Hong Kong

Aerospace and Defense

 

 

Shanghai Kohden Medical Electronic Instrument Corporation

Subsidiary

Shanghai

China

Medical Equipment and Supplies

 

 

 



 

Competitors Report



CompanyName

Location

Employees

Ownership

3M Health Care Ltd.

Loughborough, United Kingdom

967

Private

Draegerwerk AG & Co. KGaA

Luebeck, Germany

12,707

Public

Ge Healthcare Iits UK Ltd.

Chalfont St Giles, United Kingdom

8

Private

Mindray Medical International Ltd (ADR)

Shenzhen, China

7,500

Public

Omron Healthcare Co., Ltd.

Muko, Japan

4,492

Private

Philips Medical Systems

Andover, Massachusetts, United States

37,460

Private

 

 

 

Executives Report

 

Board of Directors

 

Name

Title

Function

 

Kazuo Ogino

 

Chairman of the Executive Board, Representative Director

Chairman

 

Biography:

Mr. Kazuo Ogino has been serving as Chairman of the Executive Board and Representative Director in NIHON KOHDEN CORPORATION since June 27, 2008. He joined the Company in April 1985. He previously served as Director of Electrocardiogram Business, Managing Director, Senior Managing Director and President. Prior to joining the Company, he worked for another company that is under the new name Nippon Telegraph and Telephone Corporation.

 

Age: 71

 

Hiroshi Aida

 

Senior Executive Officer, Chief Director of Product Business, Director

Director/Board Member

 

 

Biography:

Mr. Hiroshi Aida has been serving as Senior Executive Officer, Chief Director of Product Business and Director in NIHON KOHDEN CORPORATION since June 2011. He joined the Company in April 1973.

 

Age: 59

 

Kenji Hakuta

 

Senior Managing Executive Officer, Director

Director/Board Member

 

 

Biography:

Mr. Kenji Hakuta has been serving as Senior Managing Executive Officer and Director in NIHON KOHDEN CORPORATION since June 27, 2008. He joined the Company in May 2004. He previously served as Senior Director of Administration, Director of Accounting and Managing Executive Officer in the Company. Prior to joining the Company, he worked for Saitama Bank, Ltd., Asahi Bank, Ltd. and Saitama Resona Bank, Limited.

 

Age: 60

 

Toshitsugu Izawa

 

Senior Managing Executive Officer, Senior Director of Reliability and Safety, Director

Director/Board Member

 

 

Biography:

Mr. Toshitsugu Izawa has been serving as Senior Managing Executive Officer, Senior Director of Reliability and Safety and Director in NIHON KOHDEN CORPORATION, since June 2012. He joined the Company in April 1973 and previously served as Senior Executive Officer, Director of 1st Technology in Medical Equipment Business Unit, Director of Supply Business and Manager of Medical Equipment Technology Center in the Company. He used to serve as President and Representative Director in a subsidiary, as well as Chairman of the Board in a Shanghai-based subsidiary.

 

Age: 62

 

Toshinobu Mayuzumi

 

Managing Executive Officer, President of Subsidiary, Director

Director/Board Member

 

 

Biography:

Mr. Toshinobu Mayuzumi has been serving as Managing Executive Officer and Director in NIHON KOHDEN CORPORATION, as well as President and Representative Director in a subsidiary, since June 2012. He previously served as Senior Director of Quality Management in the Company. He used to work for another company, as well as Chairman of the Board in a Shanghai-based company.

 

Age: 62

 

Tatsuya Nakagawa

 

Senior Executive Office, Director

Director/Board Member

 

 

Biography:

Mr. Tatsuya Nakagawa has been serving as Senior Executive Office and Director in NIHON KOHDEN CORPORATION since June 2011. He joined the Company in April 1976 and used to serve as Manager of Living Body Information Technology Center.

 

Age: 59

 

Minoru Obara

 

Independent Director

Director/Board Member

 

 

Biography:

Mr. Minoru Obara has been serving as Independent Director in NIHON KOHDEN CORPORATION since June 2012. He is also Professor in Keio University.

 

Age: 64

 

Hirokazu Ogino

 

Senior Executive Officer, Director of Marketing Strategy, Director

Director/Board Member

 

 

Biography:

Mr. Hirokazu Ogino has been serving as Senior Executive Officer, Director of Marketing Strategy and Director in NIHON KOHDEN CORPORATION since June 2012. He joined the Company in April 1995 and used to serve as Executive Officer. He used to serve as President in another company.

 

Age: 42

 

Fumio Suzuki

 

Executive President, Representative Director

Director/Board Member

 

 

Biography:

Mr. Fumio Suzuki has been serving as Executive President and Representative Director in NIHON KOHDEN CORPORATION since June 27, 2008. He joined the Company in April 1973. Mr. Suzuki previously served as Manager of Business Planning Office, Director of Human Resources, Chief Director of System Business, Managing Director, Manager of Medical Equipment Technology Center, Director of General Affairs and Human Resources and Senior Executive Officer in the Company. He used to serve as President in a United States-based subsidiary and as Chairman in a China-based subsidiary.

 

Age: 63

 

Education:

Gakushuin University, B (Economics)

 

Takashi Tamura

 

Senior Executive Officer, Chief Director of Overseas Business, Director

Director/Board Member

 

 

Biography:

Mr. Takashi Tamura has been serving as Senior Executive Officer, Chief Director of Overseas Business and Director in NIHON KOHDEN CORPORATION since April 2011. He joined the Company in April 1973 and used to serve as Chief Director of Sales. He used to serve as President and Representative Director in a subsidiary.

 

Age: 53

 

Yoshito Tsukahara

 

Senior Executive Officer, Chief Director of Sales, Director

Director/Board Member

 

 

Biography:

Mr. Yoshito Tsukahara has been serving as Senior Executive Officer, Chief Director of Sales and Director in NIHON KOHDEN CORPORATION since April 2011. He joined the Company in April 1980. He used to serve as President in three other subsidiaries and worked for another subsidiary.

 

Age: 59

 

Masaya Yamauchi

 

Independent Director

Director/Board Member

 

 

Biography:

Mr. Masaya Yamauchi has been serving as Independent Director in NIHON KOHDEN CORPORATION since June 2010. He is also working for Hibiki Law Office.

 

Age: 52

 

 

Executives

 

Name

Title

Function

Fumio Suzuki

 

Executive President, Representative Director

President

Biography:

Mr. Fumio Suzuki has been serving as Executive President and Representative Director in NIHON KOHDEN CORPORATION since June 27, 2008. He joined the Company in April 1973. Mr. Suzuki previously served as Manager of Business Planning Office, Director of Human Resources, Chief Director of System Business, Managing Director, Manager of Medical Equipment Technology Center, Director of General Affairs and Human Resources and Senior Executive Officer in the Company. He used to serve as President in a United States-based subsidiary and as Chairman in a China-based subsidiary.

 

Age: 63

 

Education:

Gakushuin University, B (Economics)

 

Kenji Hakuta

 

Senior Managing Executive Officer, Director

Division Head Executive

 

 

Biography:

Mr. Kenji Hakuta has been serving as Senior Managing Executive Officer and Director in NIHON KOHDEN CORPORATION since June 27, 2008. He joined the Company in May 2004. He previously served as Senior Director of Administration, Director of Accounting and Managing Executive Officer in the Company. Prior to joining the Company, he worked for Saitama Bank, Ltd., Asahi Bank, Ltd. and Saitama Resona Bank, Limited.

 

Age: 60

 

Eishi Harasawa

 

Senior Managing Executive Officer

Division Head Executive

 

 

Age: 65

 

Toshihiko Hiraoka

 

Executive Officer, Chief Director of Service Business

Division Head Executive

 

Shigeru Hirata

 

Executive Officer, Director of Human Resources & General Affairs

Division Head Executive

 

Fumio Hirose

 

Executive Officer, Manager of Business Planning Office

Division Head Executive

 

Kazuhiko Ikuta

 

Executive Officer, Director of Accounting

Division Head Executive

 

Toshitsugu Izawa

 

Senior Managing Executive Officer, Senior Director of Reliability and Safety, Director

Division Head Executive

 

Biography:

Mr. Toshitsugu Izawa has been serving as Senior Managing Executive Officer, Senior Director of Reliability and Safety and Director in NIHON KOHDEN CORPORATION, since June 2012. He joined the Company in April 1973 and previously served as Senior Executive Officer, Director of 1st Technology in Medical Equipment Business Unit, Director of Supply Business and Manager of Medical Equipment Technology Center in the Company. He used to serve as President and Representative Director in a subsidiary, as well as Chairman of the Board in a Shanghai-based subsidiary.

 

Age: 62

 

Toshifumi Kamihirata

 

Managing Executive Officer, Chief Director of Analyte Machinery Business

Division Head Executive

 

 

Biography:

Mr. Toshifumi Kamihirata has been serving as Managing Executive Officer and Chief Director of Analyte Machinery Business in NIHON KOHDEN CORPORATION. He joined the Company in April 1966 and served as Director, Senior Executive Officer and Chief Director of Overseas Business in the Company. He used to serve as President in subsidiaries in the United Kingdom, Germany, Italy and Spain.

 

Age: 64

 

Toshinobu Mayuzumi

 

Managing Executive Officer, President of Subsidiary, Director

Division Head Executive

 

 

Biography:

Mr. Toshinobu Mayuzumi has been serving as Managing Executive Officer and Director in NIHON KOHDEN CORPORATION, as well as President and Representative Director in a subsidiary, since June 2012. He previously served as Senior Director of Quality Management in the Company. He used to work for another company, as well as Chairman of the Board in a Shanghai-based company.

 

Age: 62

 

Eiichi Tanaka

 

Executive Officer, Chief Director of Appliance Business

Division Head Executive

 

Yoshiaki Uematsu

 

Executive Officer, President of Subsidiary

Division Head Executive

 

Shinji Yamamori

 

Executive Officer, Director of Ogino Memorial Research Institute

Division Head Executive

 

Kazuteru Yanagihara

 

Executive Officer, Manager of Medical Equipment Technology Center

Division Head Executive

 

Yasuhiro Yoshitake

 

Executive Officer, Chief Senior Director of Chugoku

Division Head Executive

 

Takeshi Akahane

 

Corporate Auditor

Accounting Executive

 

Osamu Kato

 

Corporate Auditor

Accounting Executive

 

Masahiro Kawamura

 

Corporate Auditor

Accounting Executive

 

Masami Sugiyama

 

Corporate Auditor

Accounting Executive

 

Yoshito Tsukahara

 

Senior Executive Officer, Chief Director of Sales, Director

Sales Executive

 

Biography:

Mr. Yoshito Tsukahara has been serving as Senior Executive Officer, Chief Director of Sales and Director in NIHON KOHDEN CORPORATION since April 2011. He joined the Company in April 1980. He used to serve as President in three other subsidiaries and worked for another subsidiary.

 

Age: 59

 

Takashi Tamura

 

Senior Executive Officer, Chief Director of Overseas Business, Director

International Executive

 

 

Biography:

Mr. Takashi Tamura has been serving as Senior Executive Officer, Chief Director of Overseas Business and Director in NIHON KOHDEN CORPORATION since April 2011. He joined the Company in April 1973 and used to serve as Chief Director of Sales. He used to serve as President and Representative Director in a subsidiary.

 

Age: 53

 

Hirokazu Ogino

 

Senior Executive Officer, Director of Marketing Strategy, Director

Marketing Executive

 

 

Biography:

Mr. Hirokazu Ogino has been serving as Senior Executive Officer, Director of Marketing Strategy and Director in NIHON KOHDEN CORPORATION since June 2012. He joined the Company in April 1995 and used to serve as Executive Officer. He used to serve as President in another company.

 

Age: 42

 

Hiroshi Aida

 

Senior Executive Officer, Chief Director of Product Business, Director

Product Management Executive

 

 

Biography:

Mr. Hiroshi Aida has been serving as Senior Executive Officer, Chief Director of Product Business and Director in NIHON KOHDEN CORPORATION since June 2011. He joined the Company in April 1973.

 

Age: 59

 

 

 Significant Developments

 

 

 

 

NIHON KOHDEN CORP to Issue Year-end Dividend for FY 2013

May 08, 2013


NIHON KOHDEN CORP announced that it has decided to issue a year-end dividend of JPY 30 per share, above the latest dividend forecast of JPY 22 per share, disclosed on May 10, 2012, to all the shareholders of record as of March 31, 2013, effective June 27, 2013.

NIHON KOHDEN CORP Establishes New Subsidiary in United States to Acquire Defibtech LLC

Nov 27, 2012


NIHON KOHDEN CORP announced that it has established a wholly owned subsidiary RESUSCITATION SOLUTION, INC. in the United States, for the acquisition of Defibtech, LLC, on October 17, 2012. Defibtech will become a wholly owned subsidiary of RESUSCITATION SOLUTION by means of a cash merger with a special purpose company established by RESUSCITATION SOLUTION as the extinct company and Defibtech as the surviving company. The acquisition is scheduled to close on November 30, 2012.

LiDCO Group Plc Appoints Nihon Kohden Corporation As Exclusive Distributor For LiDCOrapid In Japan

Aug 03, 2012


LiDCO Group Plc announceD that Nihon Kohden, has been appointed as the exclusive distributor for the LiDCOrapid monitor and disposable kit in Japan. Nihon Kohden will work with LiDCO, and its existing partner Argon Medical Devices, to market and sell LiDCOrapid products in Japan. Under the terms of the agreement LiDCO has appointed Nihon Kohden as the exclusive distributor of LiDCOrapid monitors in Japan. LiDCO will continue to supply Argon with LiDCOrapid Smartcards, for assembly into kits with Argon's blood pressure transducer with Nihon Kohden being the exclusive distributor of these kits in Japan.

Nihon Kohden Corporation Amends Consolidated Mid-year Forecast for FY 2013

Aug 02, 2012


Nihon Kohden Corporation announced that it has reaffirmed the consolidated mid-year forecast for revenue of JPY 60,000 million, and raised the forecast for operating profit from JPY 4,300 million to JPY 5,000 million, ordinary profit from JPY 4,300 million to JPY 4,700 million, net profit from JPY 2,600 million to JPY 2,800 million and earning per share from JPY 59.18 to JPY 63.73 for the fiscal year ending March 31, 2013. The Company raised the consolidated mid-year outlook due to increased sales and improved production efficiency.

 

Annual Income Statement

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

 

 

  Financial Glossary

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Mar-2013

Updated Normal
31-Mar-2012

Updated Normal
31-Mar-2011

Updated Normal
31-Mar-2010

Updated Normal
31-Mar-2009

Filed Currency

JPY

JPY

JPY

JPY

JPY

Exchange Rate (Period Average)

82.970472

78.961215

85.691434

92.941082

100.484331

Auditor

 

Toyo Audit

Toyo Audit

Toyo Audit

Toyo Audit

Auditor Opinion

 

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified

 

 

 

 

 

 

    Net Sales

1,597.4

1,528.8

1,323.1

1,151.4

1,086.0

Revenue

1,597.4

1,528.8

1,323.1

1,151.4

1,086.0

Total Revenue

1,597.4

1,528.8

1,323.1

1,151.4

1,086.0

 

 

 

 

 

 

    Cost of Revenue

798.1

760.3

655.8

563.6

548.9

Cost of Revenue, Total

798.1

760.3

655.8

563.6

548.9

Gross Profit

799.3

768.5

667.4

587.9

537.1

 

 

 

 

 

 

    Selling/General/Administrative Expense

215.6

196.5

172.6

153.0

143.8

    Labor & Related Expense

317.9

322.7

288.0

274.4

253.6

Total Selling/General/Administrative Expenses

533.5

519.2

460.6

427.4

397.4

Research & Development

77.4

70.7

59.6

45.1

44.1

    Depreciation

25.9

26.2

23.5

15.1

14.9

Depreciation/Amortization

25.9

26.2

23.5

15.1

14.9

    Impairment-Assets Held for Use

1.3

0.2

0.3

0.0

-

    Impairment-Assets Held for Sale

0.4

0.0

0.0

0.5

0.3

    Other Unusual Expense (Income)

0.0

0.0

3.1

2.3

-1.1

Unusual Expense (Income)

1.7

0.2

3.4

2.8

-0.8

    Other Operating Expense

0.0

-

-

-

-

Other Operating Expenses, Total

0.0

-

-

-

-

Total Operating Expense

1,436.6

1,376.6

1,202.8

1,053.9

1,004.5

 

 

 

 

 

 

Operating Income

160.8

152.2

120.4

97.5

81.5

 

 

 

 

 

 

        Interest Expense - Non-Operating

-0.3

-0.2

-0.2

-0.4

-0.6

    Interest Expense, Net Non-Operating

-0.3

-0.2

-0.2

-0.4

-0.6

        Interest Income - Non-Operating

0.6

0.4

0.2

0.3

0.4

        Investment Income - Non-Operating

8.7

-0.6

-2.7

1.0

-4.1

    Interest/Investment Income - Non-Operating

9.3

-0.2

-2.4

1.3

-3.7

Interest Income (Expense) - Net Non-Operating Total

9.0

-0.4

-2.6

1.0

-4.3

Gain (Loss) on Sale of Assets

0.1

0.0

0.1

-1.4

-0.3

    Other Non-Operating Income (Expense)

5.2

2.5

2.3

1.4

-0.3

Other, Net

5.2

2.5

2.3

1.4

-0.3

Income Before Tax

175.1

154.3

120.2

98.4

76.6

 

 

 

 

 

 

Total Income Tax

64.7

57.6

43.3

34.6

30.4

Income After Tax

110.4

96.7

76.9

63.8

46.2

 

 

 

 

 

 

    Minority Interest

-0.1

-0.2

-0.1

-0.1

-0.3

Net Income Before Extraord Items

110.3

96.6

76.8

63.7

45.9

Net Income

110.3

96.6

76.8

63.7

45.9

 

 

 

 

 

 

    Miscellaneous Earnings Adjustment

0.0

-0.1

-0.1

0.0

0.0

Total Adjustments to Net Income

0.0

-0.1

-0.1

0.0

0.0

Income Available to Common Excl Extraord Items

110.3

96.5

76.7

63.7

45.9

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

110.3

96.5

76.7

63.7

45.9

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

43.9

43.9

43.9

43.9

43.9

Basic EPS Excl Extraord Items

2.51

2.20

1.75

1.45

1.04

Basic/Primary EPS Incl Extraord Items

2.51

2.20

1.75

1.45

1.04

Dilution Adjustment

-

0.0

0.0

0.0

0.0

Diluted Net Income

110.3

96.5

76.7

63.7

45.9

Diluted Weighted Average Shares

43.9

43.9

43.9

43.9

43.9

Diluted EPS Excl Extraord Items

2.51

2.20

1.75

1.45

1.04

Diluted EPS Incl Extraord Items

2.51

2.20

1.75

1.45

1.04

Dividends per Share - Common Stock Primary Issue

0.63

0.56

0.51

0.40

0.37

Gross Dividends - Common Stock

27.5

24.5

22.5

17.5

16.2

Interest Expense, Supplemental

0.3

0.2

0.2

0.4

0.6

Depreciation, Supplemental

34.4

36.1

31.4

27.0

27.1

Total Special Items

2.3

0.8

3.9

4.8

-0.7

Normalized Income Before Tax

177.3

155.1

124.0

103.2

75.9

 

 

 

 

 

 

Effect of Special Items on Income Taxes

0.6

0.1

1.2

1.5

-0.2

Inc Tax Ex Impact of Sp Items

65.3

57.6

44.5

36.1

30.1

Normalized Income After Tax

112.1

97.5

79.6

67.1

45.8

 

 

 

 

 

 

Normalized Inc. Avail to Com.

112.0

97.3

79.4

67.0

45.4

 

 

 

 

 

 

Basic Normalized EPS

2.55

2.21

1.81

1.52

1.03

Diluted Normalized EPS

2.55

2.21

1.81

1.52

1.03

Amort of Acquisition Costs, Supplemental

0.7

0.6

0.6

0.6

-0.1

Research & Development Exp, Supplemental

77.4

70.7

59.6

47.5

46.3

Reported Operating Profit

162.5

152.3

123.7

100.3

80.7

Reported Ordinary Profit

176.7

154.4

123.3

100.5

76.0

Normalized EBIT

162.5

152.4

123.7

100.3

80.7

Normalized EBITDA

197.6

189.1

155.8

127.8

107.7

    Current Tax - Total

73.0

-

-

-

-

Current Tax - Total

73.0

-

-

-

-

    Deferred Tax - Total

-8.3

-

-

-

-

Deferred Tax - Total

-8.3

-

-

-

-

Income Tax - Total

64.7

-

-

-

-

Interest Cost - Domestic

-

-

3.1

3.0

2.7

Service Cost - Domestic

-

-

10.0

9.5

8.3

Prior Service Cost - Domestic

-

-

0.0

-2.0

0.0

Expected Return on Assets - Domestic

-

-

-3.1

-2.5

-2.7

Actuarial Gains and Losses - Domestic

-

-

1.3

11.9

3.4

Domestic Pension Plan Expense

-

-

11.4

19.8

11.6

Total Pension Expense

-

-

11.4

19.8

11.6

Discount Rate - Domestic

-

-

2.00%

2.00%

2.00%

Expected Rate of Return - Domestic

-

-

2.00%

2.00%

2.00%

Total Plan Interest Cost

-

-

3.1

3.0

2.7

Total Plan Service Cost

-

-

10.0

9.5

8.3

Total Plan Expected Return

-

-

-3.1

-2.5

-2.7

 

 

 

Annual Balance Sheet

Financials in: USD (mil)

 

  Financial Glossary

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

UpdateType/Date

Updated Normal
31-Mar-2013

Updated Normal
31-Mar-2012

Updated Normal
31-Mar-2011

Updated Normal
31-Mar-2010

Updated Normal
31-Mar-2009

Filed Currency

JPY

JPY

JPY

JPY

JPY

Exchange Rate

94.088557

82.385362

82.88

93.44

98.77

Auditor

 

Toyo Audit

Toyo Audit

Toyo Audit

Toyo Audit

Auditor Opinion

 

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified

 

 

 

 

 

 

    Cash & Equivalents

124.8

113.4

112.6

94.5

88.1

    Short Term Investments

159.4

145.7

114.6

80.3

25.3

Cash and Short Term Investments

284.2

259.1

227.2

174.8

113.4

        Accounts Receivable - Trade, Gross

489.4

512.8

450.8

376.4

326.7

        Provision for Doubtful Accounts

-3.3

-4.4

-4.2

-2.5

-1.8

    Trade Accounts Receivable - Net

486.0

508.4

446.6

373.9

324.9

Total Receivables, Net

486.0

508.4

446.6

373.9

324.9

    Inventories - Finished Goods

136.4

126.9

130.3

120.7

113.0

    Inventories - Work In Progress

12.4

15.8

14.5

0.8

5.9

    Inventories - Raw Materials

32.9

29.1

27.5

23.0

24.2

Total Inventory

181.7

171.8

172.3

144.5

143.2

    Deferred Income Tax - Current Asset

46.1

46.6

50.4

40.4

32.2

    Other Current Assets

13.5

18.5

12.8

12.1

8.7

Other Current Assets, Total

59.6

65.1

63.2

52.5

40.9

Total Current Assets

1,011.6

1,004.3

909.3

745.7

622.3

 

 

 

 

 

 

Property/Plant/Equipment - Net

94.4

103.3

106.6

100.2

104.3

Goodwill, Net

23.9

9.2

9.2

8.7

8.8

Intangibles, Net

44.9

33.5

39.9

37.8

21.9

    LT Investments - Other

36.8

31.0

28.5

29.5

29.1

Long Term Investments

36.8

31.0

28.5

29.5

29.1

    Pension Benefits - Overfunded

-

-

0.0

0.3

10.1

    Deferred Income Tax - Long Term Asset

18.0

12.1

9.3

8.0

6.3

    Other Long Term Assets

11.8

13.0

13.1

11.4

12.0

Other Long Term Assets, Total

29.7

25.1

22.4

19.7

28.3

Total Assets

1,241.4

1,206.5

1,115.9

941.7

814.7

 

 

 

 

 

 

Accounts Payable

259.6

243.6

227.7

194.8

162.3

Accrued Expenses

59.7

59.6

41.7

42.0

41.0

Notes Payable/Short Term Debt

16.9

7.5

16.1

12.1

24.0

Current Portion - Long Term Debt/Capital Leases

0.2

0.3

0.5

0.4

0.5

    Income Taxes Payable

40.9

26.6

28.1

29.0

12.0

    Other Payables

21.3

19.6

20.5

16.9

13.7

    Other Current Liabilities

16.3

15.6

23.4

22.8

12.5

Other Current liabilities, Total

78.4

61.7

72.0

68.8

38.3

Total Current Liabilities

414.8

372.7

358.0

318.0

266.0

 

 

 

 

 

 

    Long Term Debt

0.0

0.0

0.1

0.1

0.2

    Capital Lease Obligations

0.3

0.2

0.5

0.6

0.9

Total Long Term Debt

0.3

0.3

0.6

0.7

1.1

Total Debt

17.4

8.0

17.2

13.2

25.6

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

0.3

0.2

0.3

0.2

2.8

Deferred Income Tax

0.3

0.2

0.3

0.2

2.8

Minority Interest

0.5

0.5

0.4

0.2

0.1

    Pension Benefits - Underfunded

11.9

4.9

1.4

0.0

-

    Other Long Term Liabilities

3.6

4.1

4.1

2.6

2.5

Other Liabilities, Total

15.6

9.0

5.5

2.6

2.5

Total Liabilities

431.4

382.7

364.8

321.8

272.5

 

 

 

 

 

 

    Common Stock

80.2

91.6

91.0

80.7

76.4

Common Stock

80.2

91.6

91.0

80.7

76.4

Additional Paid-In Capital

111.5

127.3

126.5

112.2

106.2

Retained Earnings (Accumulated Deficit)

637.1

640.5

569.1

452.8

384.4

Treasury Stock - Common

-21.5

-24.5

-24.4

-21.6

-20.4

Unrealized Gain (Loss)

4.9

0.5

-0.9

1.6

0.7

    Translation Adjustment

-2.1

-11.6

-10.2

-5.8

-5.0

    Other Equity

0.0

-

-

-

-

Other Equity, Total

-2.1

-11.6

-10.2

-5.8

-5.0

Total Equity

810.0

823.8

751.2

619.9

542.3

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

1,241.4

1,206.5

1,116.0

941.7

814.8

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

43.9

43.9

43.9

43.9

43.9

Total Common Shares Outstanding

43.9

43.9

43.9

43.9

43.9

Treasury Shares - Common Stock Primary Issue

1.8

1.8

1.8

1.8

1.8

Employees

-

4,057

3,776

3,588

3,552

Number of Common Shareholders

-

6,177

7,218

7,775

8,083

Total Long Term Debt, Supplemental

-

0.1

0.1

0.2

0.2

Long Term Debt Maturing within 1 Year

-

0.0

0.0

0.0

0.0

Long Term Debt Maturing in Year 2

-

0.0

0.0

0.0

0.0

Long Term Debt Maturing in Year 3

-

0.0

0.0

0.0

0.0

Long Term Debt Maturing in Year 4

-

0.0

0.0

0.0

0.0

Long Term Debt Maturing in Year 5

-

0.0

0.0

0.0

0.1

Long Term Debt Maturing in 2-3 Years

-

0.0

0.0

0.1

0.1

Long Term Debt Maturing in 4-5 Years

-

0.0

0.0

0.0

0.1

Long Term Debt Matur. in Year 6 & Beyond

-

0.0

0.0

0.0

0.0

Total Capital Leases, Supplemental

-

0.5

1.0

0.9

1.4

Capital Lease Payments Due in Year 1

-

0.3

0.5

0.4

0.5

Capital Lease Payments Due in Year 2

-

0.2

0.3

0.3

0.5

Capital Lease Payments Due in Year 3

-

0.0

0.2

0.1

0.2

Capital Lease Payments Due in Year 4

-

-

0.0

0.1

0.2

Capital Lease Payments Due in Year 5

-

-

0.0

0.0

-

Capital Lease Payments Due in 2-3 Years

-

0.2

0.4

0.5

0.7

Capital Lease Payments Due in 4-5 Years

-

-

0.0

0.1

0.2

Cap. Lease Pymts. Due in Year 6 & Beyond

-

0.0

0.0

0.0

0.0

Pension Obligation - Domestic

-

184.9

166.6

144.3

140.1

Plan Assets - Domestic

-

160.6

156.9

141.5

119.8

Funded Status - Domestic

-

-24.3

-9.6

-2.8

-20.3

Total Funded Status

-

-24.3

-9.6

-2.8

-20.3

Discount Rate - Domestic

-

2.00%

2.00%

2.00%

2.00%

Expected Rate of Return - Domestic

-

2.00%

2.00%

2.00%

2.00%

Prepaid Benefits - Domestic

-

-

0.0

0.3

10.1

Accrued Liabilities - Domestic

-

-4.9

-1.4

0.0

0.0

Other Assets, Net - Domestic

-

19.4

8.2

3.1

30.4

Net Assets Recognized on Balance Sheet

-

14.5

6.8

3.5

40.5

Total Plan Obligations

-

184.9

166.6

144.3

140.1

Total Plan Assets

-

160.6

156.9

141.5

119.8

 

 

 

Annual Cash Flows

Financials in: USD (mil)

 

  Financial Glossary

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Mar-2013

Updated Normal
31-Mar-2012

Updated Normal
31-Mar-2011

Updated Normal
31-Mar-2010

Updated Normal
31-Mar-2009

Filed Currency

JPY

JPY

JPY

JPY

JPY

Exchange Rate (Period Average)

82.970472

78.961215

85.691434

92.941082

100.484331

Auditor

 

Toyo Audit

Toyo Audit

Toyo Audit

Toyo Audit

Auditor Opinion

 

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified

 

 

 

 

 

 

Net Income/Starting Line

175.1

154.3

120.1

98.4

76.6

    Depreciation

34.4

36.1

31.4

27.0

27.1

Depreciation/Depletion

34.4

36.1

31.4

27.0

27.1

    Amortization of Acquisition Costs

0.7

0.6

0.6

0.6

-0.1

Amortization

0.7

0.6

0.6

0.6

-0.1

    Unusual Items

1.8

0.3

0.2

0.3

1.0

    Equity in Net Earnings (Loss)

-

-

0.0

0.1

0.4

    Other Non-Cash Items

2.1

0.5

4.5

1.7

-1.2

Non-Cash Items

3.9

0.8

4.7

2.1

0.2

    Accounts Receivable

-39.4

-64.6

-29.1

-28.8

-12.8

    Inventories

-34.4

1.7

-9.1

6.8

3.9

    Prepaid Expenses

-

0.0

0.4

10.4

1.9

    Accounts Payable

50.5

15.2

7.8

23.4

-20.1

    Accrued Expenses

4.4

12.7

-6.2

-2.4

1.4

    Taxes Payable

0.9

1.5

-1.8

1.9

-0.5

    Other Operating Cash Flow

-37.1

-62.5

-50.1

-24.4

-36.5

Changes in Working Capital

-55.1

-96.1

-88.1

-13.2

-62.8

Cash from Operating Activities

158.9

95.7

68.7

114.9

41.0

 

 

 

 

 

 

    Purchase of Fixed Assets

-25.7

-23.9

-16.1

-12.8

-35.1

    Purchase/Acquisition of Intangibles

-6.5

-5.4

-6.4

-21.4

-12.0

Capital Expenditures

-32.2

-29.3

-22.5

-34.2

-47.1

    Acquisition of Business

-48.0

-

-

0.0

-4.8

    Sale of Fixed Assets

0.2

0.0

0.9

0.1

0.6

    Sale/Maturity of Investment

1.6

0.5

0.4

4.3

0.0

    Purchase of Investments

-5.4

-0.5

-0.4

-0.5

-8.2

    Other Investing Cash Flow

-0.1

-0.3

-0.2

0.0

0.1

Other Investing Cash Flow Items, Total

-51.7

-0.3

0.7

3.9

-12.3

Cash from Investing Activities

-83.9

-29.6

-21.9

-30.2

-59.4

 

 

 

 

 

 

    Other Financing Cash Flow

-0.1

-

-

0.0

-0.3

Financing Cash Flow Items

-0.1

-

-

0.0

-0.3

    Cash Dividends Paid - Common

-23.8

-25.6

-20.1

-16.9

-16.6

Total Cash Dividends Paid

-23.8

-25.6

-20.1

-16.9

-16.6

    Common Stock, Net

0.0

0.0

0.0

0.0

0.0

Issuance (Retirement) of Stock, Net

0.0

0.0

0.0

0.0

0.0

    Short Term Debt, Net

10.1

-8.3

2.7

-13.0

11.7

        Long Term Debt Issued

-

-

-

0.0

0.0

        Long Term Debt Reduction

-0.4

-0.6

-0.5

-0.7

-0.7

    Long Term Debt, Net

-0.4

-0.6

-0.5

-0.7

-0.7

Issuance (Retirement) of Debt, Net

9.8

-8.9

2.2

-13.7

11.0

Cash from Financing Activities

-14.1

-34.5

-17.9

-30.6

-6.0

 

 

 

 

 

 

Foreign Exchange Effects

3.9

0.0

0.0

1.2

-1.5

Net Change in Cash

64.8

31.6

28.9

55.2

-25.9

 

 

 

 

 

 

Net Cash - Beginning Balance

256.8

238.2

190.6

120.5

137.3

Net Cash - Ending Balance

321.6

269.8

219.5

175.7

111.4

Cash Interest Paid

0.2

0.2

0.4

0.1

0.7

Cash Taxes Paid

52.6

59.2

51.3

30.2

38.1

 

 

 


Annual Income Statement

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Mar-2013

Updated Normal
31-Mar-2012

Updated Normal
31-Mar-2011

Updated Normal
31-Mar-2010

Updated Normal
31-Mar-2009

Filed Currency

JPY

JPY

JPY

JPY

JPY

Exchange Rate (Period Average)

82.970472

78.961215

85.691434

92.941082

100.484331

Auditor

 

Toyo Audit

Toyo Audit

Toyo Audit

Toyo Audit

Auditor Opinion

 

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified

 

 

 

 

 

 

    Net Sales

1,597.4

1,528.8

1,323.1

1,151.4

1,086.0

Total Revenue

1,597.4

1,528.8

1,323.1

1,151.4

1,086.0

 

 

 

 

 

 

    Rounding adjustment Income Statement

0.0

-

-

-

-

    Cost of Sales

798.1

760.3

655.8

563.6

548.9

    Other SGA

0.0

-

-

-

-

    Payrolls

224.6

237.4

223.9

205.3

192.4

    Provision for Bonuses

30.3

28.3

15.0

17.5

19.7

    Periodic retirement benefit costs

25.9

21.3

10.6

19.1

11.2

    Depreciation

25.9

26.2

23.5

15.1

14.9

    Legal Welfare Expenses

37.0

35.7

38.5

32.5

30.3

    Traveling Expense

30.2

28.1

24.8

21.6

22.4

    R&D Expenses

77.4

70.7

59.6

45.1

44.1

    Business tax

-

-

-

-

1.6

    Other SGA

185.4

168.4

147.7

131.5

119.8

    Rounding adjustment Income Statement

0.0

-

-

-

-

    SP Rev. for doubt. accou

-

0.0

-0.4

-1.2

-1.2

    Impairment loss

0.7

-

-

-

-

    SP Loss on retirement of non-current ass

0.5

0.2

0.3

0.0

-

    SP Loss on valu. of invest secus

0.4

0.0

0.0

0.5

0.3

    SP Adj. L Accnt. Assts. Retirel Obliga.

-

0.0

0.1

0.0

-

    SP Fix of Products

-

0.0

2.8

0.0

-

    SP Prov. for product warranties for pri

-

-

0.0

3.4

0.0

    SP Loss on disaster

-

0.0

0.5

0.0

-

    SP Other Loss

-

-

-

0.0

0.0

Total Operating Expense

1,436.6

1,376.6

1,202.8

1,053.9

1,004.5

 

 

 

 

 

 

    Foreign Exchange Gains

7.6

-

-

-

-

    SP G on sales of inve. secus

0.0

0.0

0.1

2.1

0.0

    SP G on sale of PPE

0.1

0.0

0.1

0.0

-

    SP L on sale of PPE

0.0

0.0

0.0

0.0

-

    SP L on sales and retire. of ppe

-

-

0.0

-1.4

-0.3

    SP Loss Sale Inv. Secs.

0.0

0.0

0.0

0.0

-

    NOP Interest Income

0.6

0.4

0.2

0.3

0.4

    NOP Dividend Income

1.1

1.0

0.9

0.8

0.9

    Rounding adjustment Income Statement

0.0

-

-

-

-

    Subsidy income

1.1

-

-

-

-

    NOP Subsidy income

-

1.2

0.0

-

-

    NOP Other Income

5.8

3.3

4.2

3.3

2.7

    NOP Interest Expenses

-0.3

-0.2

-0.2

-0.4

-0.6

    NOP L on sale/retire. fixed assets

-

-

-

-

0.0

    NOP Equity Loss

-

-

0.0

-0.1

-0.4

    NOP Exchange Loss

0.0

-1.7

-3.6

-1.9

-4.6

    NOP Contribution

-

0.0

-0.7

0.0

-

    NOP Other Expense

-1.7

-1.9

-1.2

-1.9

-3.0

Net Income Before Taxes

175.1

154.3

120.2

98.4

76.6

 

 

 

 

 

 

Provision for Income Taxes

64.7

57.6

43.3

34.6

30.4

Net Income After Taxes

110.4

96.7

76.9

63.8

46.2

 

 

 

 

 

 

    Minority Int.

-0.1

-0.2

-0.1

-0.1

-0.3

Net Income Before Extra. Items

110.3

96.6

76.8

63.7

45.9

Net Income

110.3

96.6

76.8

63.7

45.9

 

 

 

 

 

 

    BI- Net Income Inc. after Tax adjust.

0.0

-

-

-

-

    Adjustment

-

-0.1

-0.1

0.0

0.0

Income Available to Com Excl ExtraOrd

110.3

96.5

76.7

63.7

45.9

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

110.3

96.5

76.7

63.7

45.9

 

 

 

 

 

 

Basic Weighted Average Shares

43.9

43.9

43.9

43.9

43.9

Basic EPS Excluding ExtraOrdinary Items

2.51

2.20

1.75

1.45

1.04

Basic EPS Including ExtraOrdinary Items

2.51

2.20

1.75

1.45

1.04

Dilution Adjustment

-

0.0

0.0

0.0

0.0

Diluted Net Income

110.3

96.5

76.7

63.7

45.9

Diluted Weighted Average Shares

43.9

43.9

43.9

43.9

43.9

Diluted EPS Excluding ExtraOrd Items

2.51

2.20

1.75

1.45

1.04

Diluted EPS Including ExtraOrd Items

2.51

2.20

1.75

1.45

1.04

DPS-Common Stock

0.63

0.56

0.51

0.40

0.37

Gross Dividends - Common Stock

27.5

24.5

22.5

17.5

16.2

Normalized Income Before Taxes

177.3

155.1

124.0

103.2

75.9

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

65.3

57.6

44.5

36.1

30.1

Normalized Income After Taxes

112.1

97.5

79.6

67.1

45.8

 

 

 

 

 

 

Normalized Inc. Avail to Com.

112.0

97.3

79.4

67.0

45.4

 

 

 

 

 

 

Basic Normalized EPS

2.55

2.21

1.81

1.52

1.03

Diluted Normalized EPS

2.55

2.21

1.81

1.52

1.03

Interest Expense

0.3

0.2

0.2

0.4

0.6

BC - Depreciation of Goodwill

0.7

-

-

-

-

Amort. of Goodwill

-

0.6

0.6

0.6

0.2

Amort. of Negative Goodwill

-

-

-

0.0

-0.4

Depreciation

34.4

36.1

31.4

27.0

27.1

R&D Expenses (SGA)

77.4

70.7

59.6

45.1

44.1

R&D Expenses (COGS)

-

-

0.0

2.4

2.2

    Current Tax - Total

73.0

-

-

-

-

Current Tax - Total

73.0

-

-

-

-

    Deferred Tax - Total

-8.3

-

-

-

-

Deferred Tax - Total

-8.3

-

-

-

-

Income Tax - Total

64.7

-

-

-

-

Reported Operating Profit

162.5

152.3

123.7

100.3

80.7

Reported Ordinary Profit

176.7

154.4

123.3

100.5

76.0

Service Cost

-

-

10.0

9.5

8.3

Interest Cost

-

-

3.1

3.0

2.7

Expected Return on Plan Assets

-

-

-3.1

-2.5

-2.7

Prior Service Cost

-

-

0.0

-2.0

0.0

Actuarial Gains and Losses

-

-

1.3

11.9

3.4

Domestic Pension Plan Expense

-

-

11.4

19.8

11.6

Total Pension Expense

-

-

11.4

19.8

11.6

Discount Rate

-

-

2.00%

2.00%

2.00%

Expected Rate of Return

-

-

2.00%

2.00%

2.00%

 



 

 

Annual Balance Sheet

Financials in: USD (mil)

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

UpdateType/Date

Updated Normal
31-Mar-2013

Updated Normal
31-Mar-2012

Updated Normal
31-Mar-2011

Updated Normal
31-Mar-2010

Updated Normal
31-Mar-2009

Filed Currency

JPY

JPY

JPY

JPY

JPY

Exchange Rate

94.088557

82.385362

82.88

93.44

98.77

Auditor

 

Toyo Audit

Toyo Audit

Toyo Audit

Toyo Audit

Auditor Opinion

 

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified

 

 

 

 

 

 

    Cash & Deposits

124.8

113.4

112.6

94.5

88.1

    Note Acct. Rcvbl

489.4

512.8

450.8

376.4

326.7

    Mrktbl. Secs.

159.4

145.7

114.6

80.3

25.3

    Inventories - merchandise & finished goo

136.4

126.9

130.3

120.7

113.0

    Inventories - work-in-process

12.4

15.8

14.5

0.8

5.9

    Inventories - raw materials & supplies

32.9

29.1

27.5

23.0

24.2

    Dfrd. Tax Asset

46.1

46.6

50.4

40.4

32.2

    Rounding adjustment Assets

0.0

-

-

-

-

    Other Cur. Asset

13.4

18.5

12.8

12.1

8.7

    Doubtful Acct.

-3.3

-4.4

-4.2

-2.5

-1.8

Total Current Assets

1,011.6

1,004.3

909.3

745.7

622.3

 

 

 

 

 

 

    other PPE net

0.0

-

-

-

-

    Buildings and structures, net

31.8

37.8

39.9

37.1

37.8

    Machinery, equipment and vehicles, net

6.7

6.3

8.1

8.4

10.3

    Tools, furniture and fixtures, net

24.0

24.8

21.8

21.6

25.7

    Land

27.3

31.9

31.7

28.7

27.1

    Lease assets, net

0.6

0.6

1.1

1.0

1.4

    Constr. in Prog.

3.9

2.0

4.1

3.4

2.0

    Goodwill

23.9

9.2

9.2

8.7

8.8

    Other Intangible Asset

44.9

33.5

39.9

37.8

21.9

    Investment Secs.

36.8

31.0

28.5

29.5

29.1

    Deferred tax assets

18.0

12.1

9.3

8.0

6.3

    Prepaid pension benefits

-

-

0.0

0.3

10.1

    Rounding adjustment Assets

0.0

-

-

-

-

    Other

12.3

13.7

13.7

11.9

14.4

    Doubtful Acct.

-0.5

-0.7

-0.6

-0.6

-2.4

Total Assets

1,241.4

1,206.5

1,115.9

941.7

814.7

 

 

 

 

 

 

    Note Acct. Pybl.

259.6

243.6

227.7

194.8

162.3

    Short-term loans payable

16.9

7.5

16.1

12.1

24.0

    Current LT Debt

-

-

0.0

-

0.0

    Accounts payable-other

21.3

19.6

20.5

16.9

13.7

    Current lease obligations

0.2

0.3

0.5

0.4

0.5

    Tax Payable

40.9

26.6

28.1

29.0

12.0

    Accrd. Expenses

29.7

29.8

24.1

20.7

18.6

    Allow. Bonuses

30.0

29.9

17.6

21.3

22.4

    Rounding adjustment Liability

0.1

-

-

-

-

    Reserve for products warranties

4.7

5.2

7.5

4.3

0.0

    Others

11.5

10.4

15.9

18.5

12.5

Total Current Liabilities

414.8

372.7

358.0

318.0

266.0

 

 

 

 

 

 

    LT Borrowings

0.0

0.0

0.1

0.1

0.2

    Lease obligations

0.3

0.2

0.5

0.6

0.9

Total Long Term Debt

0.3

0.3

0.6

0.7

1.1

 

 

 

 

 

 

    Other Long Term Liabilities

0.0

-

-

-

-

    LT accounts payable

1.8

2.3

2.3

2.1

2.0

    Dfrd. Tax Liab.

0.3

0.2

0.3

0.2

2.8

    Reserve for retirement benefits

11.9

4.9

1.4

0.0

-

    Other

1.8

1.7

1.7

0.6

0.4

    Minority Int.

0.5

0.5

0.4

0.2

0.1

Total Liabilities

431.4

382.7

364.8

321.8

272.5

 

 

 

 

 

 

    Other Equity

0.0

-

-

-

-

    Common Stock

80.2

91.6

91.0

80.7

76.4

    Paid in Capital

111.5

127.3

126.5

112.2

106.2

    Retained Earning

637.1

640.5

569.1

452.8

384.4

    Treas. Stock

-21.5

-24.5

-24.4

-21.6

-20.4

    Unreal. Gain Sec

4.9

0.5

-0.9

1.6

0.7

    Trans. Adjust.

-2.1

-11.6

-10.2

-5.8

-5.0

Total Equity

810.0

823.8

751.2

619.9

542.3

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

1,241.4

1,206.5

1,116.0

941.7

814.8

 

 

 

 

 

 

    S/O-Common Stock

43.9

43.9

43.9

43.9

43.9

Total Common Shares Outstanding

43.9

43.9

43.9

43.9

43.9

T/S-Common Stock

1.8

1.8

1.8

1.8

1.8

Full-Time Employees

-

4,057

3,776

3,588

3,552

Number of Common Shareholders

-

6,177

7,218

7,775

8,083

LT Debts Maturing within 1 Year

-

0.0

0.0

0.0

0.0

LT Debt, mat. b/w 1 & 2 yr.

-

0.0

0.0

0.0

0.0

LT Debt, mat. b/w 2 & 3 yr.

-

0.0

0.0

0.0

0.0

LT Debt, mat. b/w 3 & 4 yr.

-

0.0

0.0

0.0

0.0

LT Debt, mat. b/w 4 & 5 yr.

-

0.0

0.0

0.0

0.1

Other LT Debt

-

0.0

0.0

0.0

0.0

Total Long Term Debt, Supplemental

-

0.1

0.1

0.2

0.2

Lease payment due within year 1

-

0.3

0.5

0.4

0.5

Lease payment due within year 2

-

0.2

0.3

0.3

0.5

Lease payment due within year 3

-

0.0

0.2

0.1

0.2

Lease payment due within year 4

-

-

0.0

0.1

0.2

Capital Lease Payments Due in Year 5

-

-

0.0

0.0

-

Lease payment remaining maturity

-

0.0

0.0

0.0

0.0

Total Capital Leases, Supplemental

-

0.5

1.0

0.9

1.4

Pension Obligation

-

184.9

166.6

144.3

140.1

Fair Value of Plan Assets

-

160.6

156.9

141.5

119.8

Funded Status

-

-24.3

-9.6

-2.8

-20.3

Total Funded Status

-

-24.3

-9.6

-2.8

-20.3

Discount Rate

-

2.00%

2.00%

2.00%

2.00%

Expected Rate of Return

-

2.00%

2.00%

2.00%

2.00%

Unrecognized Actuarial Gains and Losses

-

19.4

8.2

3.1

30.4

Prepaid Pension Benefits

-

-

0.0

0.3

10.1

Reserve for Accrued Retirement Benefits

-

-4.9

-1.4

0.0

0.0

Net Assets Recognized on Balance Sheet

-

14.5

6.8

3.5

40.5

 



 

Annual Cash Flows

Financials in: USD (mil)

 

 

 

 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Period Length

12 Months

12 Months

12 Months

12 Months

12 Months

UpdateType/Date

Updated Normal
31-Mar-2013

Updated Normal
31-Mar-2012

Updated Normal
31-Mar-2011

Updated Normal
31-Mar-2010

Updated Normal
31-Mar-2009

Filed Currency

JPY

JPY

JPY

JPY

JPY

Exchange Rate (Period Average)

82.970472

78.961215

85.691434

92.941082

100.484331

Auditor

 

Toyo Audit

Toyo Audit

Toyo Audit

Toyo Audit

Auditor Opinion

 

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified

 

 

 

 

 

 

Income Before Tax

175.1

154.3

120.1

98.4

76.6

    Depreciation

34.4

36.1

31.4

27.0

27.1

    Amot. of Goodwill

0.7

0.6

0.6

0.6

0.2

    Amort of negative goodwill

-

-

-

0.0

-0.4

    L on sale/retire. of PPE

0.5

0.2

0.1

0.3

0.3

    Impairment loss

0.7

-

-

-

-

    Loss (gain) on sales and retirement of i

0.0

0.0

0.0

1.0

0.0

    Increase (decrease) in allowance for dou

-0.8

0.3

1.4

-1.5

-0.8

    Increase (decrease) in provision for pro

-0.3

-2.5

2.6

4.3

0.0

    Bonuses Allowance

4.4

12.7

-6.2

-2.4

1.4

    Reserve for Directors' Bonuses

-

-

-

-

0.0

    Increase (decrease) in provision for ret

8.6

3.7

1.4

0.0

-

    Prepaid Pension Expense

-

0.0

0.4

10.4

1.9

    Dir.'s Benefit Allow

-

-

-

-

0.0

    Int. & Div. Income

-1.6

-1.5

-1.2

-1.2

-1.3

    Interest Expenses

0.3

0.2

0.2

0.4

0.6

    Exchange Gain/loss

-4.1

0.2

0.1

-0.3

0.3

    Loss (gain) on valuation of investment s

0.6

0.2

0.1

1.0

0.7

    Loss (gain) on sales of investment secur

0.0

0.0

0.0

-2.1

0.0

    Acct. Rcvbl.

-39.4

-64.6

-29.1

-28.8

-12.8

    Inventories

-34.4

1.7

-9.1

6.8

3.9

    Acct. Payable

50.5

15.2

7.8

23.4

-20.1

    Increase (decrease) in accrued consumpti

0.9

1.5

-1.8

1.9

-0.5

    Equity Losses

-

-

0.0

0.1

0.4

    Other Operating Cash Flow

0.0

-

-

-

-

    Others

14.1

-4.5

0.4

4.7

0.9

    Int. & Div. Rcv'd

1.6

1.5

1.2

1.2

1.3

    Interest Paid

-0.2

-0.2

-0.4

-0.1

-0.7

    Tax Paid

-52.6

-59.2

-51.3

-30.2

-38.1

Cash from Operating Activities

158.9

95.7

68.7

114.9

41.0

 

 

 

 

 

 

    Inv. Secs. Sold

1.6

0.5

0.4

4.3

0.0

    Inv. Sec. Bought

-5.4

-0.5

-0.4

-0.5

-0.5

    PPE Sold

0.2

0.0

0.9

0.1

0.6

    Capital Expenditure

-25.7

-23.9

-16.1

-12.8

-35.1

    Intangible Bought

-6.5

-5.4

-6.4

-21.4

-12.0

    Purchase Of Investments In Subsidiaries

-48.0

-

-

-

-

    Purchase of subs.' securities, income

-

-

-

0.0

0.2

    Purchase of Newly consolid. Subs' Secs

-

-

-

0.0

-5.0

    Purchase of subs.

-

-

-

0.0

-7.7

    Rounding adjustment Cash flow

0.0

-

-

-

-

    Others

-0.1

-0.3

-0.2

0.0

0.1

Cash from Investing Activities

-83.9

-29.6

-21.9

-30.2

-59.4

 

 

 

 

 

 

    ST Debt Net

10.1

-8.3

2.7

-13.0

11.7

    Proc. LT Debt

-

-

-

0.0

0.0

    LT Debt Repaid

-0.1

-0.1

0.0

-0.1

-0.1

    Dividend Paid

-23.8

-25.6

-20.1

-16.9

-16.6

    Net decrease (increase) in treasury stoc

0.0

0.0

0.0

0.0

0.0

    Rounding adjustment Cash flow

0.0

-

-

-

-

    Cash Dividends Paid To Minority Sharehol

-0.1

-

-

-

-

    Dividends paid to minority shareholders

-

-

-

0.0

-0.3

    Repayment of lease

-0.3

-0.5

-0.5

-0.6

-0.6

    Others

-

-

-

-

0.0

Cash from Financing Activities

-14.1

-34.5

-17.9

-30.6

-6.0

 

 

 

 

 

 

Foreign Exchange Effects

3.9

0.0

0.0

1.2

-1.5

Net Change in Cash

64.8

31.6

28.9

55.2

-25.9

 

 

 

 

 

 

Net Cash - Beginning Balance

256.8

238.2

190.6

120.5

137.3

Net Cash - Ending Balance

321.6

269.8

219.5

175.7

111.4

    Cash Interest Paid

0.2

0.2

0.4

0.1

0.7

    Cash Taxes Paid

52.6

59.2

51.3

30.2

38.1

 

 

Financial Health

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 

Key Indicators USD (mil)

 

Quarter
Ending
31-Mar-2013

Quarter
Ending
Yr Ago

Annual
Year End
31-Mar-2013

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue1 (?)

452.6

9.94%

1,597.4

9.79%

7.39%

4.80%

Research & Development1 (?)

-

-

77.4

15.06%

15.30%

7.59%

Operating Income1 (?)

59.1

1.91%

160.8

11.03%

13.78%

6.12%

Income Available to Common Excl Extraord Items1 (?)

43.4

-1.29%

110.3

20.08%

15.64%

10.19%

Basic EPS Excl Extraord Items1 (?)

0.99

-1.28%

2.51

20.08%

15.65%

10.23%

Capital Expenditures2 (?)

32.2

15.39%

32.2

15.39%

-5.63%

2.81%

Cash from Operating Activities2 (?)

158.9

74.50%

158.9

74.50%

7.30%

8.88%

Free Cash Flow (?)

111.8

100.57%

111.8

100.57%

11.94%

10.81%

Total Assets3 (?)

1,241.4

17.51%

1,241.4

17.51%

9.90%

7.70%

Total Liabilities3 (?)

431.4

28.76%

431.4

28.76%

10.52%

6.81%

Total Long Term Debt3 (?)

0.3

33.33%

0.3

33.33%

-23.69%

0.00%

Total Common Shares Outstanding3 (?)

43.9

0.00%

43.9

0.00%

0.00%

0.00%

1-ExchangeRate: JPY to USD Average for Period

92.002316

 

82.970472

 

 

 

2-ExchangeRate: JPY to USD Average for Period

82.970472

 

82.970472

 

 

 

3-ExchangeRate: JPY to USD Period End Date

94.088557

 

94.088557

 

 

 

Key Ratios

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Profitability

Gross Margin (?)

50.04%

50.27%

50.44%

51.06%

49.46%

Operating Margin (?)

10.07%

9.96%

9.10%

8.46%

7.50%

Pretax Margin (?)

10.96%

10.09%

9.08%

8.55%

7.05%

Net Profit Margin (?)

6.90%

6.31%

5.80%

5.53%

4.22%

Financial Strength

Current Ratio (?)

2.44

2.69

2.54

2.34

2.34

Long Term Debt/Equity (?)

0.00

0.00

0.00

0.00

0.00

Total Debt/Equity (?)

0.02

0.01

0.02

0.02

0.05

Management Effectiveness

Return on Assets (?)

8.47%

7.96%

7.30%

7.04%

5.77%

Return on Equity (?)

12.70%

11.71%

10.94%

10.62%

8.78%

Efficiency

Receivables Turnover (?)

3.03

3.06

3.15

3.19

3.47

Inventory Turnover (?)

4.24

4.22

4.04

3.79

3.86

Asset Turnover (?)

1.23

1.26

1.26

1.27

1.35

Market Valuation USD (mil)

P/E (TTM) (?)

17.93

.

Enterprise Value2 (?)

1,550.4

Price/Sales (TTM) (?)

1.29

.

Enterprise Value/Revenue (TTM) (?)

1.10

Price/Book (MRQ) (?)

2.15

.

Enterprise Value/EBITDA (TTM) (?)

8.90

Market Cap as of 24-May-20131 (?)

1,676.8

.

 

 

1-ExchangeRate: JPY to USD on 24-May-2013

101.942831

 

 

 

2-ExchangeRate: JPY to USD on 31-Mar-2013

94.088557

 

 

 

 

 

 Annual Ratios

 

Financials in: USD (mil)

 

Except for share items (millions) and per share items (actual units)

 

 

 



 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Financial Strength

Current Ratio (?)

2.44

2.69

2.54

2.34

2.34

Quick/Acid Test Ratio (?)

1.86

2.06

1.88

1.73

1.65

Working Capital1 (?)

596.8

631.5

551.3

427.7

356.3

Long Term Debt/Equity (?)

0.00

0.00

0.00

0.00

0.00

Total Debt/Equity (?)

0.02

0.01

0.02

0.02

0.05

Long Term Debt/Total Capital (?)

0.00

0.00

0.00

0.00

0.00

Total Debt/Total Capital (?)

0.02

0.01

0.02

0.02

0.05

Payout Ratio (?)

24.96%

25.36%

29.41%

27.47%

35.26%

Effective Tax Rate (?)

36.96%

37.31%

36.02%

35.20%

39.63%

Total Capital1 (?)

827.4

831.8

768.4

633.1

567.8

 

 

 

 

 

 

Efficiency

Asset Turnover (?)

1.23

1.26

1.26

1.27

1.35

Inventory Turnover (?)

4.24

4.22

4.04

3.79

3.86

Days In Inventory (?)

86.13

86.43

90.24

96.33

94.58

Receivables Turnover (?)

3.03

3.06

3.15

3.19

3.47

Days Receivables Outstanding (?)

120.64

119.28

115.82

114.31

105.05

Revenue/Employee2 (?)

-

361,174

362,289

319,191

311,041

Operating Income/Employee2 (?)

-

35,956

32,957

27,018

23,342

EBITDA/Employee2 (?)

-

44,480

41,565

34,495

31,112

 

 

 

 

 

 

Profitability

Gross Margin (?)

50.04%

50.27%

50.44%

51.06%

49.46%

Operating Margin (?)

10.07%

9.96%

9.10%

8.46%

7.50%

EBITDA Margin (?)

12.22%

12.32%

11.47%

10.81%

10.00%

EBIT Margin (?)

10.07%

9.96%

9.10%

8.46%

7.50%

Pretax Margin (?)

10.96%

10.09%

9.08%

8.55%

7.05%

Net Profit Margin (?)

6.90%

6.31%

5.80%

5.53%

4.22%

R&D Expense/Revenue (?)

4.85%

4.62%

4.50%

3.92%

4.06%

COGS/Revenue (?)

49.96%

49.73%

49.56%

48.94%

50.54%

SG&A Expense/Revenue (?)

33.40%

33.96%

34.81%

37.12%

36.59%

 

 

 

 

 

 

Management Effectiveness

Return on Assets (?)

8.47%

7.96%

7.30%

7.04%

5.77%

Return on Equity (?)

12.70%

11.71%

10.94%

10.62%

8.78%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share2 (?)

2.54

1.45

1.09

1.83

-0.14

Operating Cash Flow/Share 2 (?)

3.19

2.09

1.62

2.60

0.95

1-ExchangeRate: JPY to USD Period End Date

94.088557

82.385362

82.88

93.44

98.77

2-ExchangeRate: JPY to USD Average for Period

94.088557

82.385362

82.88

93.44

98.77

 

Current Market Multiples

Market Cap/Earnings (TTM) (?)

18.68

Market Cap/Equity (MRQ) (?)

2.24

Market Cap/Revenue (TTM) (?)

1.29

Market Cap/EBIT (TTM) (?)

12.68

Market Cap/EBITDA (TTM) (?)

11.02

Enterprise Value/Earnings (TTM) (?)

15.94

Enterprise Value/Equity (MRQ) (?)

1.91

Enterprise Value/Revenue (TTM) (?)

1.10

Enterprise Value/EBIT (TTM) (?)

10.82

Enterprise Value/EBITDA (TTM) (?)

9.40

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.92

UK Pound

1

Rs.91.80

Euro

1

Rs.78.18

 

 

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 SCs 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.