MIRA
INFORM REPORT
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Report Date : |
16.10.2013 |
IDENTIFICATION DETAILS
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Name : |
NIHON KOHDEN CORPORATION |
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Registered Office : |
1-31-4 Nishi-Ochiai Shinjukuku Tokyo 161-8560 |
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Country : |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
August 1951 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturer of electronic medical equipment |
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No. of Employees : |
4,360 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry
cooperation, a strong work ethic, mastery of high technology, and a comparatively
small defense allocation (1% of GDP) helped Japan develop a technologically
advanced economy. Two notable characteristics of the post-war economy were the
close interlocking structures of manufacturers, suppliers, and distributors,
known as keiretsu, and the guarantee of lifetime employment for a substantial
portion of the urban labor force. Both features are now eroding under the dual
pressures of global competition and domestic demographic change. Japan's
industrial sector is heavily dependent on imported raw materials and fuels. A
small agricultural sector is highly subsidized and protected, with crop yields
among the highest in the world. While self-sufficient in rice production, Japan
imports about 60% of its food on a caloric basis. For three decades, overall
real economic growth had been spectacular - a 10% average in the 1960s, a 5%
average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in
the 1990s, averaging just 1.7%, largely because of the after effects of inefficient
investment and an asset price bubble in the late 1980s that required a
protracted period of time for firms to reduce excess debt, capital, and labor.
Modest economic growth continued after 2000, but the economy has fallen into
recession three times since 2008. A sharp downturn in business investment and
global demand for Japan's exports in late 2008 pushed Japan into recession.
Government stimulus spending helped the economy recover in late 2009 and 2010,
but the economy contracted again in 2011 as the massive 9.0 magnitude
earthquake and the ensuing tsunami in March disrupted manufacturing. The
economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Newly-elected Prime
Minister Shinzo ABE has declared the economy his government's top priority; he
has pledged to reconsider his predecessor's plan to permanently close nuclear
power plants and is pursuing an economic revitalization agenda of fiscal
stimulus and regulatory reform and has said he will press the Bank of Japan to
loosen monetary policy. Measured on a purchasing power parity (PPP) basis that
adjusts for price differences, Japan in 2012 stood as the fourth-largest
economy in the world after second-place China, which surpassed Japan in 2001,
and third-place India, which edged out Japan in 2012. The new government will
continue a longstanding debate on restructuring the economy and reining in
Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation,
reliance on exports to drive growth, and an aging and shrinking population are
other major long-term challenges for the economy
Source
: CIA
Company name and address
NIHON KOHDEN CORPORATION
REGD NAME: Nihon
Kohden Kogyo KK
MAIN OFFICE: 1-31-4
Nishi-Ochiai Shinjukuku
Tel:
03-5996-8000
Fax: 03-5996-8005 -
URL: http://www.nihonkohden.co.jp
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
electronic medical equipment
BRANCHES
68
branches/offices nationwide from Hokkaido to Kyushu
OVERSEAS
USA
(5), Brazil, Europe (5), Asia (6)
FACTORIES
Nihon
Kohden Tomioka Corp (subsidiary), China, other
CHIEF EXEC
KAZUO
OGINO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 132,538 M
PAYMENTS REGULAR CAPITAL Yen 7,544 M
TREND UP WORTH Yen 76,256 M
STARTED 1951 EMPLOYES 4,360
COMMENT
MFR OF ELECTRONIC MEDICAL EQUIPMENT
FINANCIAL SITUATION COSIDERED FAIR
AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2014
fiscal term.
HIGHLIGHTS
This is a specialist producer of electronic medical
equipment. World’s largest maker of
electro-encephalographs. Highly
competitive in patient monitoring systems for hospitals and AED (automated
external defibrillators). Engaged in
global operations, having 17 subsidiaries and branch offices overseas. In the Americas, the company aims to increase
sales from Yen 8 billion in the preceding term to Yen 19.5 billion in the Mar
2017 term, and intends to expand the share of biological information monitors
through the strengthening marketing to joint purchasing organizations. .
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen
132,538 million, a 9.8% up from Yen 120,718 million in the previous term. Japanese medical treatment fees were revised
upward in Apr 2012 to ensure delivery of emergency and perinatal care and
improve home care. The firm released its
first waterproof transmitter and a new ECG for emerging markets which was
developed and manufactured in China. By
Divisions; Physiological Measuring Equipment up 10.4% to Yen 33,871 million;
Patient Monitors up 10.9% to Yen 43,661 million; Treatment Equipment up 6.5% to
Yen 21,604 million; Other Medical Equipment up 9.9% to Yen 33,400 million. The recurring profit was posted at Yen 14,658
million and the net profit at Yen 9,151 million, respectively, compared with
Yen 12,193 million recurring profit and Yen 7,621 million net profit,
respectively, a year ago.
(Apr/Jun/2013 results): Sales Yen 30,415 million (up 9.5%),
operating profit Yen 1,552 million (down 28.4%), recurring profit Yen 2,010
million (up 8.4%), net profit Yen 1,316 million (up 24.2%). (% compared with the corresponding period a
year ago).
For the current term ending Mar 2014 the recurring profit is
projected at Yen 15,000 million and the net profit at Yen 9,500 million, on a 9.4%
rise in turnover, to Yen 145,000 million.
Orders for mainline biological information monitors were off to a slow
start in the overseas markets, but will recover gradually. In the medical treatment system business,
sales of AEDs will increase in the domestic market, thanks to replacement
demand. Operating profit will expand,
absorbing higher R&D and depreciation costs. Net profit will hit a new high, and will
exceed the company’s target assuming the foreign exchange rate at Yen 90 per
dollar.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Aug
1951
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 98,996,000 shares
Issued:
45,765,490
Sum: Yen 7,544
million
Major shareholders (%): Japan Trustee Services T
(5.6), Saitama Resona Bank (4.5), Master Bank of Japan T (4.5), Toshiba Medical
Systems (4.3), State Street Bank & Trust 505223 (4.3), Company’s Treasury
Stock (2.3), Chase London SL Omnibus Acct (2.0), Morgan Stanley & Co (1.9),
RBC IST London Clients Account (1.8); foreign owners (36.4)
No. of shareholders: 5,500
Listed on the S/Exchange (s) of:
Tokyo
Managements: Kazuo Ogino, ch; Fumio Suzuki, pres;
Kenji Hakuta, dir; Toshitsugu Izawa, dir; Yoshito Tsukahara, dir; Hirokazu
Ogino, dir; Takeshi Tamura, dir; Hiroshi Aida, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Nihon Kohden Tomioka, Nihon Kohden Tokyo, Nihon Kohden
Kansai, other.
OPERATION
Activities: Manufactures electronic medical
equipment & devices:
(Sales Breakdown by Divisions):
Physiological Measuring Systems (26%): electro
encephalographs, electro cardiographs, clinical polygraphs;
Physiological Patient Monitors (33%):
central monitors, bedside monitors;
Medical Treatment Systems (16%): defibrillators, AEDs,
ventilators, pace makers, artificial ears, vegal nerve stimulators;
Others (25%): Medical Support Systems (diagnostic
information systems, clinical information systems), Laboratory Equipment
(hematology analyzers, immunological analyzers), Research Equipment (polygraph
systems, multi-channel telemetry systems), others
Overseas Sales Ratio (17%)
Clients: University hospitals, public/private hospitals,
clinics, fire stations, other
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Toshiba Medical Systems, Fujifilm Medical, Edwards Life
Science,
other
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References: Saitama Resona Bank (Tokyo)
MUFG
(Shinjuku-Chuo)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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132,538 |
120,718 |
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Cost of Sales |
66,218 |
60,038 |
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GROSS PROFIT |
66,319 |
60,679 |
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Selling & Adm Costs |
52,835 |
48,652 |
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OPERATING PROFIT |
13,484 |
12,027 |
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Non-Operating P/L |
1,174 |
166 |
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RECURRING PROFIT |
14,658 |
12,193 |
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NET PROFIT |
9,151 |
7,621 |
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BALANCE SHEET |
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Cash |
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11,743 |
9,342 |
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Receivables |
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46,043 |
12,249 |
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Inventory |
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17,100 |
14,151 |
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Securities, Marketable |
15,000 |
12,000 |
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Other Current Assets |
5,295 |
35,000 |
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TOTAL CURRENT ASSETS |
95,181 |
82,742 |
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Property & Equipment |
8,879 |
8,516 |
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Intangibles |
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6,476 |
3,522 |
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Investments, Other Fixed Assets |
6,264 |
4,623 |
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TOTAL ASSETS |
116,800 |
99,403 |
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Payables |
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24,423 |
20,068 |
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Short-Term Bank Loans |
1,589 |
620 |
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Other Current Liabs |
13,016 |
10,026 |
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TOTAL CURRENT LIABS |
39,028 |
30,714 |
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Debentures |
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Long-Term Bank Loans |
0 |
3 |
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Reserve for Retirement Allw |
1,121 |
405 |
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Other Debts |
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395 |
370 |
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TOTAL LIABILITIES |
40,544 |
31,492 |
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MINORITY INTERESTS |
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Common
stock |
7,544 |
7,544 |
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Additional
paid-in capital |
10,487 |
10,487 |
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Retained
earnings |
59,943 |
52,768 |
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Evaluation
p/l on investments/securities |
458 |
45 |
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Others |
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(153) |
(913) |
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Treasury
stock, at cost |
(2,023) |
(2,020) |
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TOTAL S/HOLDERS` EQUITY |
76,256 |
67,911 |
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TOTAL EQUITIES |
116,800 |
99,403 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash Flows
from Operating Activities |
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13,189 |
7,559 |
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Cash
Flows from Investment Activities |
-6,959 |
-2,338 |
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Cash
Flows from Financing Activities |
-1,174 |
-2,726 |
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Cash,
Bank Deposits at the Term End |
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26,683 |
21,304 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
76,256 |
67,911 |
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Current
Ratio (%) |
243.88 |
269.40 |
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Net
Worth Ratio (%) |
65.29 |
68.32 |
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Recurring
Profit Ratio (%) |
11.06 |
10.10 |
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Net
Profit Ratio (%) |
6.90 |
6.31 |
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Return
On Equity (%) |
12.00 |
11.22 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.69 |
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|
1 |
Rs.98.59 |
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Euro |
1 |
Rs.83.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.