MIRA
INFORM REPORT
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Report Date : |
19.10.2013 |
IDENTIFICATION DETAILS
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Name : |
CANON INC |
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Registered Office : |
3-30-2 Shimomaruko Ohtaku |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
April 1937 |
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Com. Reg. No.: |
003186 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturer of OA equipment and cameras |
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No. of Employees : |
198,511 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limits : |
YEN 106,178.7 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
CANON INC
REGD NAME: Canon
KK
MAIN OFFICE: 3-30-2
Shimomaruko Ohtaku
Tel:
03-3758-2111 Fax: 03-5482-5135
URL: http://www.canon.jp/
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
OA equipment & cameras
BRANCHES
Kanagawa
(4), Tochigi (2), Saitama, other
OVERSEAS
USA
(11), Latin America (6), Europe/Africa/Mid East (42), East Asia (8),
S/E Asia (8), Oceania (2)
FACTORIES
Tamagawa,
Kawasaki, Hiratsuka, Atsugi, Utsunomiya, Toride, other (Tot 13)
OVERSEAS
USA
(3)
CHIEF EXEC
FUJIO
MITARAI, CH & PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES GOOD A/SALES Yen 3,479,788 M
PAYMENTS REGULAR CAPITAL Yen 174,762 M
TREND SLOW WORTH Yen 2,754,302 M
STARTED 1937 EMPLOYES 198,511
COMMENT
MFR OF O/A EQUIPMENT & CAMERAS.
FINANCIAL SITUATION CONSIDERED
GOOD AND RESPONSIBLE FOR OR
DINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for 31/12/2013 fiscal term
MAX
CREDIT LIMIT: YEN 106,178.7 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
Top-ranked mfr of PC printers & cameras, with LBP (laser
beam printers) accounting for 60% of market share. Strength placed on multimedia equipment such
as digital cameras, printer, copiers and scanners. Top-class mfr of copiers & inkjet
printers. Advancing to large display
SEDs (surface conduction electron-emitter display). Now all-embracing producer of visual image, LCDs,
etc. Leads others in
multi-internalization. Overseas sales
ratio high. Known as high cash flow
management. In display business, tied up
with Toshiba Corp. In March 2010,
acquired a high-speed printer maker OCE NV of the Netherlands. The company plans to expand production of
office equipment in the Mekong region, but mainly at the new plant in Thailand
operating since April.
FINANCIAL INFORMATION
The sales volume for Dec/2012 fiscal term amounted to Yen
3,479,788 million, a 2.2% down from Yen 3,557,433 million in the previous
term. During the term US continued to
enjoy a relatively solid economy, but Europe economy struggled in the face of
financial instability and clouds began to appear over growth in China and other
emerging nations. The Japanese economy
realized moderate expansion driven by internal demand, but the rate of growth
slowed somewhat in the second half of the year.
Japanese Yen’s appreciation remained at a historically high level. Sales of SRL cameras made a strong recovery. Multifunction printers also rebounded. But delays in the sales of LBPs and costs on
changes in parts supplies after the Thailand floods were greater than
anticipated. By Divisions; Office Div
down 8.4% to Yen 1,757,600 million; Imaging System Div up 7.2% to Yen 1,406,000
million; Industrial Equipment Div down 3.1% to Yen 407,800 million. The recurring profit was posted at Yen
342,557 million and the net profit at Yen 224,564 million, respectively,
compared with Yen 374,524 million recurring profit and Yen 248,630 million net
profit, respectively, a year ago..
(Jan/Jun/2013 results): Sales Yen 1,783,533 million (up
3.2%), operating profit Yen 153,127 million (down 12.6%), recurring profit Yen 159,123
million (down 10.7%), net profit Yen 107,409 million (down 5.2%). (% compared with the corresponding period a
year ago).
For the current term ending Dec 2013 the recurring profit is
projected at Yen 390,000 million and the net profit at 260,000 million,
respectively, on a 10.6% rise in turnover, to Yen 3,850,000 million. LBP business is faring well. Te weaker Yen is also having a favorable
impact, with foreign exchange rate assumed at Yen 95 per dollar and Yen 125 per
euro. But sales of compact digital
cameras are falling sharply. Sales of
main profit-earner SLR cameras are also slowing in Europe and China, and sales
growth rate is decreasing.
The financial situation is considered FAIR TO GOOD (even to
EXCELLENT) and responsible for ORDINARY business engagements. Max credit limit is estimate at Yen 106,178.7
million, 30 days normal terms.
REGISTRATION
Date Registered: Apr 1937
Regd
No.: (Tokyo-Ohtaku)
003186
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
3,000 million shares
Issued:
1,333,763,464 shares
Sum: Yen 174,762
million
Major shareholders (%): Company’s Treasury Stock
(13.5), Master Trust Bank of Japan T (4.8), Japan Trustee Services T (4.8),
Dai-ichi Life Ins (2.8), Nomura Securities Co (2.2), State Bank of Trust 505223
(1.8), SSBT OD05 Omnibus Act Treaty Cl (1.7), Moxley & Co (1.7), State
Street Bank & Trust 505225 (1.4), Deutche Securities (1.4); foreign owners
(33.1)
No. of shareholders:
65,774
Listed on the S/Exchange (s) of: Tokyo
Managements: Fujio Mitarai, ch & CEO; Toshizo
Tanaka, v pres; Toshiaki Ikoma, v pres; Kunio Watanabe, v pres; Yoroku Adachi,
s/mgn dir; Yasuo Mitsuhashi, s/mgn dir; Shigeyuki Matsumoto, s/mgn dir; Toshio
Homma, s/mgn dir; Masaki Nakaoka, s/mgn dir; Haruhisa Honda, s/mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Canon Sales, Canon Chemicals, Canon
Electronics, Canon Finetech, Canon Software, Canon Marketing Japan, other (275
consolidated subsidiaries)
OPERATION
Activities: Manufactures business machines,
cameras, optical & other O/A equipment & products:
(Sales Breakdown by Divisions):
Offices Div (51%):
Office imaging products: digital
multifunctional devices, copying machines, laser facsimiles;
Computer peripherals: laser beam
printers, inkjet printers, inkjet multifunctional devices, inkjet facsimiles,
image scanners;
Business Information products:
computers, document scanners, microfilm equipment, handy terminals,
calculators, electronic dictionaries;
Imaging Systems Div (40%): digital SRL cameras, film
cameras, digital video cameras, interchangeable lenses, LCD projectors;
Industrial Equipment Div, others (9%): semiconductor
production equipment, ophthalmic instruments, mirror projection mask aligners
for LCDs, Broadcast-use TV lenses, X-Ray equipment, medical image recording
equipment, others.
Overseas sales ratio (79%).
Clients: [Electronics mfrs, wholesalers] Canon
Europe NV, Canon USA, Canon Marketing Japan, Canon Singapore, Canon China,
Canon Sales, Hitachi Ltd, Sony Corp, Sanyo Electric, other.
No. of
accounts: 3,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Oita Canon
Materials, Canon Vietnam, Oita Canon, Canon Finetech, Fukushima Canon, other.
Payment record:
Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References: Mizuho
Corporate Bank (Ohtemachi)
SMBC (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2012 |
31/12/2011 |
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INCOME STATEMENT |
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Annual Sales |
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3,479,788 |
3,557,433 |
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Cost of Sales |
1,829,822 |
1,820,670 |
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GROSS PROFIT |
1,649,966 |
1,736,763 |
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Selling & Adm Costs |
1,326,110 |
1,358,692 |
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OPERATING PROFIT |
323,856 |
378,071 |
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Non-Operating P/L |
18,701 |
-3,547 |
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RECURRING PROFIT |
342,557 |
374,524 |
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NET PROFIT |
224,564 |
248,630 |
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BALANCE SHEET |
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Cash |
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666,678 |
773,227 |
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Receivables |
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573,375 |
533,208 |
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Inventory |
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551,623 |
476,704 |
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Securities, Marketable |
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Other Current Assets |
290,580 |
370,166 |
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TOTAL CURRENT ASSETS |
2,082,256 |
2,153,305 |
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Property & Equipment |
1,260,364 |
1,190,836 |
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Intangibles |
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135,736 |
138,030 |
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Investments, Other Fixed Assets |
(3,082,853) |
448,556 |
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TOTAL ASSETS |
395,503 |
3,930,727 |
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Payables |
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325,235 |
380,532 |
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Short-Term Bank Loans |
1,866 |
8,343 |
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Other Current Liabs |
517,334 |
504,973 |
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TOTAL CURRENT LIABS |
844,435 |
893,848 |
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Debentures |
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Long-Term Bank Loans |
2,117 |
3,368 |
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Reserve for Retirement Allw |
272,131 |
249,604 |
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Other Debts |
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82,518 |
70,240 |
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TOTAL LIABILITIES |
1,201,201 |
1,217,060 |
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MINORITY INTERESTS |
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Common
stock |
174,762 |
174,762 |
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Additional
paid-in capital |
401,547 |
401,572 |
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Retained
earnings |
3,138,976 |
3,059,298 |
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Evaluation
p/l on investments/securities |
61,663 |
59,004 |
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Others |
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(210,973) |
(319,238) |
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Treasury
stock, at cost |
(811,673) |
(661,731) |
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TOTAL S/HOLDERS` EQUITY |
2,754,302 |
2,713,667 |
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TOTAL EQUITIES |
3,955,503 |
3,930,727 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2012 |
31/12/2011 |
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Cash
Flows from Operating Activities |
|
384,077 |
469,562 |
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Cash
Flows from Investment Activities |
-212,740 |
-258,543 |
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Cash
Flows from Financing Activities |
-319,739 |
-257,513 |
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Cash,
Bank Deposits at the Term End |
|
666,678 |
773,227 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2012 |
31/12/2011 |
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Net
Worth (S/Holders' Equity) |
2,754,302 |
2,713,667 |
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Current
Ratio (%) |
246.59 |
240.90 |
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Net
Worth Ratio (%) |
69.63 |
69.04 |
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Recurring
Profit Ratio (%) |
9.84 |
10.53 |
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Net
Profit Ratio (%) |
6.45 |
6.99 |
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Return
On Equity (%) |
8.15 |
9.16 |
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FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.28 |
|
|
1 |
Rs.99.03 |
|
Euro |
1 |
Rs.83.80 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.