MIRA INFORM REPORT

 

 

Report Date :

11.10.2013

 

IDENTIFICATION DETAILS

 

Name :

EBARA CORPORATION

 

 

Registered Office :

11-1 Haneda-Asahicho Ohtaku Tokyo 144-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

May 1920

 

 

Com. Reg. No.:

0108-01-001748 (Tokyo-Ohtaku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of various types of industrial pumps, freezers, garbage incinerators and semiconductor equipment.

 

 

No. of Employees :

15,170

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

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

 

EBARA CORPORATION

 

 

REGD NAME

 

Ebara KK

 

 

MAIN OFFICE

 

11-1 Haneda-Asahicho Ohtaku Tokyo 144-8510 JAPAN

Tel: 03-3743-6111     Fax: 03-3745-3356

                       

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

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

 

 

ACTIVITIES

 

Mfg of industrial pumps, freezers, garbage incinerators, semiconductor  equipment

 

 

BRANCHES   

 

Tokyo, Osaka, Nagoya, Sapporo, Sendai, Saitama, Chiba, Yokohama, Niigata, Kanazawa, Hiroshima, Takamatsu, Fukuoka

 

 

OVERSEAS   

 

USA (4), Brazil, Italy, Spain, Australia, China (5), Indonesia, Malaysia, Philippines, Singapore, Taiwan (2), Vietnam

 

 

FACTORIES  

 

Haneda (at the caption address & vicinities), Fujisawa, Sodegaura (Chiba),  Suzuka (Mie)

 

OVERSEAS   

 

China (4), Korea, Taiwan, Vietnam, Indonesia, Malaysia

 

 

CHIEF EXEC

 

TOICHI MAEDA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES                      Yen 426,302 M

PAYMENTSREGULAR   CAPITAL                       Yen 68,613 M

TREND UP                    WORTH                        Yen 191,788 M

STARTED         1920                 EMPLOYES                  15,170

 

 

COMMENT

 

MFR SPECIALIZING IN INDUSTRIAL PUMPS & AIR BLOWERS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

 

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2014 fiscal term

 

 

HIGHLIGHTS

 

This is a time-honored mfr of industrial pumps and air blowers, dating back to1912 when started making centrifugal pumps, by a local entrepreneur, on his account.  Since incorporated, the firm has grown rapidly to mfg various types of industrial pumps, freezers, garbage incinerators and semiconductor equipment.  Ranked 1st in both large & mass-produced industrial pumps.  Heavily depends upon public demand.  Top class in in-house technologies for environment-related lines including garbage incinerators and smoke desulfurizers, as well as semiconductor polishing systems.  The firm decided to exit the fuel cell business as a round of restructuring, including pulling the plug on overseas environmental businesses.  Considered to have grown potential, fuel cell operations were long spared rigorous cost-cutting.  In the pump business with the overseas ratio at 30% minus, the company is planning to enhance maintenance works in the overseas market. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 426,302 million, a 3.5% up from Yen 412,076 million in the previous term.  Sales of precision & electronic equipment sagged, affected by weak demand from  semiconductor makers.  Sales in the mainstay wind and hydraulic power business stayed flat.  But profit margin on the environmental business rose, thanks to steadiness of high-profitable long-term management & maintenance works and free of loss in works in the overseas market.  The recurring profit was posted at Yen 25,663 million and the net profit at Yen 15,303 million, respectively, compared with Yen 21,088 million recurring profit and Yen  2,889 million net profit, respectively, a year ago.

 

 (Apr/Jun/2013 results): Sales Yen 79,334 million (down 1.8%), operating loss Yen 1,950 million (previously Yen 839 million profit), recurring loss Yen 2,182 million (previously Yen 772 million profit), net loss Yen 2,386 million (previously Yen 424 million loss). (% & figures compared with the corresponding period a year ago). 

 

For the current term ending Mar 2014 the recurring profit is projected at Yen 28,000 million and the net profit at Yen 15,000 million, respectively, on a 1.0% fall in turnover, to Yen 422,000 million.  Orders for semiconductor-use equipment will slump.  Sales in the environmental business will inch down, affected by drop in plant construction projects.  But orders for mainstay wind and hydraulic power equipment such as pumps compressors for coal chemical plants in Chin and shale gas plants in North America will increase.  Operating profit will rise, buoyed by decline in low-profitable orders and the positive impact of the weaker Yen.  With the foreign exchange rate assumed at Yen 90 per dollar, one yen drop in value will add Yen 300 million to profits.

 

The financial situation is considered FAIR and should be good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:       May 1920

Regd No.:                 0108-01-001748 (Tokyo-Ohtaku)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,000 million shares

Issued:                465,118,658 shares

Sum:                   Yen 68,613 million

 

Major shareholders (%): Master Bank of Japan T (7.4), Japan Trustee Services T (5.6), Mizuho Bank (2.1), Pictet & Cie (Europe) (1.8), Deutche Bank London (1.7), MSIP Client Securities (1.5), MUFG (1.5), employees’ S/Holding Assn (1.1), Nippon Life Ins (1.0), Trust & Custody Services Inv T (1.0); foreign owners (26.1)

 

No. of shareholders: 41,172

 

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

 

Managements: Natsunosuke Yago, ch; Toichi Maeda, pres; Tetsuji Fujimoto, s/mgn dir; Manabu Tsujimura, s/mgn dir; Atsuo Ohi, mgn dir; Akira Ogata, mgn dir; Masaru Shibuya, mgn dir; Nobuharu Noji, mgn dir

 

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

 

Related companies: Ebara Engineering Service Corp, Ebara Techno-Serve Co, other

 

 

OPERATION

 

Activities: Manufactures industrial pumps, freezers, garbage incinerators, semiconductor  equipment

 

(Sales Breakdown by Divisions):

 

Wind & Hydraulic Power (72%): fluid machinery & systems, various types of industrial pumps, blowers, gas & steam turbines, sewage collection systems, others;

 

Engineering (12%): solid waste incinerators, waste water treatment plants, wind power generation systems, fuel cell cogeneration systems, inorganic chemicals, thermal energy systems, soil &        groundwater remediation systems, others;

 

Precision equipment & electronics (16%): vacuum pumps, clean ozonizers for semiconductor device fabrication, pure-water pumps, chemical mechanical polishers, waste gas treatment equip, automated water carriers, other.   

 

Overseas sales ratio (51%)

 

Clients: [Government agencies, municipal offices, wholesalers] Japanese Red Cross Society, Shinryo cop, IHI Plant Engineering, Kitasato Daiichi Vaccine Corp, Tokyo Univ, Keio Univ, Chiyoda Corp, Shimadzu Corp, Donated Blood Distribution Foundation, other.

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Yoshidagumi, Hitachi Plant Engineering & Construction,

Tsukishima Kikai, Ebara Jitsugyo (subsidiary), Nippon Glass Building Materials, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Jiyugaoka)

MUFG (Toritsu Daigaku-Ekimae)

Relations: Satisfactory

 

FINANCES

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

426,302

412,076

 

  Cost of Sales

322,191

318,937

 

      GROSS PROFIT

104,110

93,139

 

  Selling & Adm Costs

79,026

69,872

 

      OPERATING PROFIT

25,084

23,266

 

  Non-Operating P/L

579

-180

 

      RECURRING PROFIT

25,663

21,086

　

      NET PROFIT

15,303

2,589

BALANCE SHEET

 

 

 

 

  Cash

　

90,752

84,955

 

  Receivables

 

157,459

160,995

 

  Inventory

 

66,947

69,709

 

  Securities, Marketable

23,553

2,856

 

  Other Current Assets

24,587

27,733

 

      TOTAL CURRENT ASSETS

363,298

346,248

 

  Property & Equipment

90,722

89,104

 

  Intangibles

 

6,889

5,567

 

  Investments, Other Fixed Assets

43,667

48,045

 

      TOTAL ASSETS

504,576

488,964

 

  Payables

 

95,886

105,638

 

  Short-Term Bank Loans

66,015

79,377

 

　

 

　

　

 

  Other Current Liabs

83,829

65,330

 

      TOTAL CURRENT LIABS

245,730

250,345

 

  Debentures

 

20,000

20,000

 

  Long-Term Bank Loans

31,338

42,640

 

  Reserve for Retirement Allw

9,629

15,047

 

  Other Debts

　

6,090

6,279

 

      TOTAL LIABILITIES

312,787

334,311

 

      MINORITY INTERESTS

 

 

 

Common stock

68,613

61,313

 

Additional paid-in capital

72,543

65,243

 

Retained earnings

53,886

41,750

 

Evaluation p/l on investments/securities

1,662

1,116

 

Others

 

(4,632)

(14,490)

 

Treasury stock, at cost

(284)

(279)

 

      TOTAL S/HOLDERS` EQUITY

191,788

154,653

　

      TOTAL EQUITIES

504,576

488,964

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

34,014

12,588

 

Cash Flows from Investment Activities

-33,130

-8,837

 

Cash Flows from Financing Activities

3,265

-19,997

　

Cash, Bank Deposits at the Term End

　

93,792

87,294

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

191,788

154,653

 

 

Current Ratio (%)

147.84

138.31

 

 

Net Worth Ratio (%)

38.01

31.63

 

 

Recurring Profit Ratio (%)

6.02

5.12

 

 

Net Profit Ratio (%)

3.59

0.63

 

 

Return On Equity (%)

7.98

1.67

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.14

UK Pound

1

Rs.99.02

Euro

1

Rs.83.87

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.