MIRA INFORM REPORT

 

 

Report Date :

26.10.2013

 

IDENTIFICATION DETAILS

 

Name :

FUJIKURA LTD

 

 

Registered Office :

1-5-1 Kiba Kotoku Tokyo 135-8512

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

March, 1910

 

 

Com. Reg. No.:

(Tokyo-Kotoku) 007861

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of electric wires & cables

 

 

No. of Employees :

52,409

 

RATING & COMMENTS

 

MIRA’s 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

 

FUJIKURA LTD

 

REGD NAME 

 

KK Fujikura

 

 

MAIN OFFICE

 

1-5-1 Kiba Kotoku Tokyo 135-8512 JAPAN

Tel: 03-5606-1030     Fax: 03-5606-1539

 

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

E-Mail address: info@fujikura.co.jp

 

ACTIVITIES

 

Mfg of electric wires & cables

 

 

BRANCH (ES)

 

Osaka, Nagoya, Fukuoka, Hiroshima, Sendai, Sapporo, Toyama, Takamatsu, Okinawa, Numazu

 

 

OVERSEAS   

 

USA (3), Europe (5), Russia, Malaysia (2), Singapore, China (11), Taiwan, Korea, Thailand (3), Vietnam (4), Mexico, Morocco (--subsidiaries/affiliates)

 

 

FACTORIES

 

Sakura (Chiba), Suzuka, Numazu (Overseas): USA, UK, Singapore, Malaysia, Thailand, China, Vietnam, India, Russia

 

 

CHIEF EXEC

 

YOICHI NAGAHAMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 491,118 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 53,075 M

TREND             SLOW                           WORTH            Yen 204,771 M

STARTED         1910                             EMPLOYES      52,409

 

 

COMMENT

 

MFR SPECIALIZING IN ELECTRIC WIRES, OPTICAL TRANSMISSION SYSTEMS, OTHER. 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

The subject company was established on the basis of electric cable division spun off from Fujikura Electric Cables & Rubber in 1910 as Fujikura Cable Works (renamed as captioned in 1992).  Later diversified into optical cables, communications systems, etc.  One of big 3 wire suppliers for NTT.  World’s second largest maker of flexible printed wiring boards.  Optical cables & optical parts at high level at home and in US.  Operates overseas mfg plants in US, Europe, Asia, other.  Anticipating an expansion in demand for OPWs in South America, the company set up a JV in Brazil in Aug 2013.   Mass production of automobile-use harnesses will start in India as well in summer 2014. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 491,118 million, a 3.5% down from Yen 509,081 million in the previous term.  In this fiscal year, although the Japanese economy showed signs of improvement, overall progress has been uncertain due to the ongoing European debt crisis and the effect of decreasing demand from China; improvements were mainly due to reconstruction in the aftermath of the Great East Japan Earthquake and the Yen’s continuing depreciation based on the expectations of an economic recovery policy put forward at the launch of the new administration at the end of last year.  By divisions, Telecommunications up 4.7% to Yen 110,900 million; Electronics & Electrical Equipment down 9.7% to Yen 164,400 million; Cables & Equipment down 0.9% to Yen 200,100 million; Real Estate down 0.5% to Yen 19,800 million.  The recurring profit was posted at Yen 1,279 million and the net profit at Yen 3,048 million, respectively, compared with Yen 9,156 million recurring profit and Yen 6,232 million net losses, respectively, a year ago. 

 

(Apr/Jun/2013 results): Sales Yen 136,255 million (up 12.9%), operating profit Yen 2,831 million (down 12.3%), recurring profit Yen 2,738 million (down 3.7%), net profit Yen 52 million (previously Yen 1,181 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 12,000 million and the net profit at Yen 7,500 million, on a 16.1% rise in turnover, to Yen 570,000 million.  Sales of export-oriented optical-related products will be favorable in North America, benefitting from a weaker Yen.  Sales of automobile-related products, on which the company’s efforts are focused, got off to a better-than-expected start, absorbing prior investment.

 

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

 

 

REGISTRATION

 

Date Registered:           Mar 1910

Regd No.:                     (Tokyo-Kotoku) 007861

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                 1,190 million shares

Issued:                        360,863,000 shares

Sum:                             Yen 53,075 million

 

Major shareholders (%): Japan Trustee Services T (5.6), Master Trust Bank of Japan T (4.7), BBH Vanguard Int’l VF Edinburgh (4.6), Mitsui Life Ins (2.8), JTSB (Sumitomo Mitsui Trust Bank) (2.7), SMBC (2.3), Shizuoka Bank (2.1), DOWA Metals & Mining Co (1.8), Employees’ S/Holding Assn (1.5); foreign owners (24.1)

 

No. of shareholders: 27,377

 

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

 

Managements: Yoichi Nagahama, pres & CEO; Takashi Satoh, v pres; Takamasa Kato, v pres; Masato Koike, s/mgn dir; Hideo Naruse, s/mgn dir; Masato Sugo, s/mgn dir; Akio Miyagi, s/mgn dir; Yoshikzu Nomura, s/mgn dir

 

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

 

Related companies: Yonezawa Electric Wire, Fujikura America Inc, Nishi Nippon Electric Wire & Cable, DDK Ltd, Tohoku Fujikura Ltd, other.

 

 

OPERATION

 

Activities: Manufactures electric wires, optical transmission systems, network systems,   power systems, coated wires, others:

 

(Sales Breakdown by Divisions):

 

Telecommunication Products Div (23%): optical fiber & optical fiber cables, optical con- nectors & connection components, optical devices, optical fusion splicers, optical network monitoring systems, optical transmission equipment, optical wiring systems, telecommuni-  cations-related installation products;

Electronic & Electric Equipment Div (33%): flexible printed circuit boards (FPC), con-    nectors, automotive wire harnesses, automotive components, sensors, electronic wiring, hard disk drive components, micro heat pipes & heat sinks;

Metal Cables & Systems Div (41%): industrial cables, metal telecommunications cables, overhead power transmission cables, distribution wires, magnet wires, electrical wires, all         kinds of cable accessory products, and cable laying works;

Real Estate, others (3%);

Overseas Sales Ratio (46%)

 

Clients: [Electric powers, telecommunications carriers] Tokyo Electric Power, Fuji Heavy Ind, Kansai Electric Power, NTT East, NTT West, Mazda Motor, Toshiba Mobile Display, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsui Bussan Metals, Pan Pacific Copper, JSR, Dowa

Mining, SWCC Showa Holdings, Mitsui & Co, other.  .

 

Payment record: No Complaints

 

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

 

Bank References:

SMBC (H/O)

MUFG (Tokyo)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

491,118

509,081

 

  Cost of Sales

415,082

428,397

 

      GROSS PROFIT

76,036

80,684

 

  Selling & Adm Costs

69,536

67,300

 

      OPERATING PROFIT

6,499

13,383

 

  Non-Operating P/L

-5,220

-4,227

 

      RECURRING PROFIT

1,279

9,156

　

      NET PROFIT

3,049

-6,232

BALANCE SHEET

 

 

 

 

  Cash

　

43,178

59,688

 

  Receivables

 

122,459

116,454

 

  Inventory

 

60,399

53,120

 

  Securities, Marketable

　

　

 

  Other Current Assets

21,226

22,486

 

      TOTAL CURRENT ASSETS

247,262

251,748

 

  Property & Equipment

182,343

147,620

 

  Intangibles

 

14,091

5,626

 

  Investments, Other Fixed Assets

85,204

84,485

 

      TOTAL ASSETS

528,900

489,479

 

  Payables

 

67,581

74,647

 

  Short-Term Bank Loans

65,380

39,815

 

　

 

　

　

 

  Other Current Liabs

42,334

60,161

 

      TOTAL CURRENT LIABS

175,295

174,623

 

  Debentures

 

50,000

50,000

 

  Long-Term Bank Loans

74,054

60,119

 

  Reserve for Retirement Allw

7,336

7,419

 

  Other Debts

　

17,443

13,082

 

      TOTAL LIABILITIES

324,128

305,243

 

      MINORITY INTERESTS

 

 

 

Common stock

53,075

53,075

 

Additional paid-in capital

54,957

54,957

 

Retained earnings

85,914

84,680

 

Evaluation p/l on investments/securities

4,361

463

 

Others

 

11,571

(8,783)

 

Treasury stock, at cost

(5,107)

(157)

 

      TOTAL S/HOLDERS` EQUITY

204,771

184,235

　

      TOTAL EQUITIES

528,900

489,479

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2013

31/03/2012

 

Cash Flows from Operating Activities

　

22,554

37,019

 

Cash Flows from Investment Activities

-58,077

-29,157

 

Cash Flows from Financing Activities

12,204

1,688

　

Cash, Bank Deposits at the Term End

　

42,250

59,083

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

 

 

Net Worth (S/Holders' Equity)

204,771

184,235

 

 

Current Ratio (%)

141.05

144.17

 

 

Net Worth Ratio (%)

38.72

37.64

 

 

Recurring Profit Ratio (%)

0.26

1.80

 

 

Net Profit Ratio (%)

0.62

-1.22

 

 

Return On Equity (%)

1.49

-3.38

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.63

UK Pound

1

Rs.99.94

Euro

1

Rs.85.14

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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.