MIRA INFORM REPORT

 

 

Report Date :

29.10.2013

 

IDENTIFICATION DETAILS

 

Name :

OBAYASHI CORP

 

 

Registered Office :

Shinagawa Intercity Tower B, 2-15-2 Minato-ku, JP 108-8502

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

19.12.1936

 

 

Legal Form :

Public Parent

 

 

Line of Business :

Subject is engaged in construction business

 

 

No. of Employees :

12,838

 

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

 

Maximum Credit Limits :

USD 204.45 Million

Status :

Good

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

 

OBAYASHI CORP

 

 

 

Shinagawa Intercity Tower B, 2-15-2

Konan

 

Minato-ku, JP 108-8502

Japan

 

 

Tel:

+81 3 5769-1111

Fax:

81 (6) 5769-1910

 

Employees:

12,838

Company Type:

Public Parent

Corporate Family:

27 Companies

Traded:

Tokyo Stock Exchange:

1802

Incorporation Date:

19-Dec-1936

Auditor:

Ernst & Young ShinNihon LLC

 

 

Fiscal Year End:

31-Mar-2013

Reporting Currency:

Japanese Yen

Annual Sales:

17,455.7  1

Net Income:

159.0

Total Assets:

17,603.5  2

Market Value:

4,383.0

 

(11-Oct-2013)

 

 

Business Description     

 

OBAYASHI CORPORATION is primarily engaged in construction business. It operates in three business segments. The Construction segment is involved in the order receiving and construction of building works in Japan, Thailand, United States, Canada and Singapore. This segment is also engaged in the construction of interior and facility works, the sale and rental of construction materials and general management of buildings. The Real Estate segment is engaged in the purchase, sale and leasing of real estate properties, as well as the development of residential land. The Others segment is involved in the private finance initiative (PFI) business, the operation of golf courses, the provision of financing services, among other business. As of March 31, 2013, the Company had 87 subsidiaries and 28 associated companies. For the three months ended 30 June 2013, Obayashi Corp revenues increased 11% to Y330.56B. Net income applicable to common stockholders increased 56% to Y3.18B. Revenues reflect Domestic Civil Engineering projects segment increase of 27% to Y71.05B, Overseas Construction Business segment increase of 22% to Y49.04B, Domestic Construction Business segment increase of 5% to Y177.7B.

 

Industry                                                     

 

Industry

Residential and Commercial Building Construction

ANZSIC 2006:

3020 - Non-Residential Building Construction

ISIC Rev 4:

4100 - Construction of buildings

NACE Rev 2:

4120 - Construction of buildings

NAICS 2012:

23622 - Commercial and Institutional Building Construction

UK SIC 2007:

41202 - Construction of domestic buildings

US SIC 1987:

1542 - General Contractors-Nonresidential Buildings, Other than Industrial Buildings and Warehouses

 

 

 Key Executives  

         

Name

Title

 

Toru Shiraishi

President, Representative Director

 

Hidetoshi Miyazawa

Director of Accounting

 

Tamio Akiyama

Corporate Auditor

 

Ryuhei Funano

Managing Officer

 

Takeo Ohbayashi

Chairman of the Board, Representative Director

 

 

Significant Developments  

 

Topic

#*

Most Recent Headline

Date

Divestitures

1

Jowa Holdings Co Ltd's Subsidiary to Acquire Property from OBAYASHI CORP

21-Jan-2013

Debt Ratings

1

R&I Affirms Obayashi Corporation's Rating at "A"; Rating Outlook Stable

15-Feb-2013

 

News   

 

Title

Date

In Fukushima cleanup, low pay, high risks and gang...
New York Daily News (3494 Words)

26-Oct-2013

Fukushima: Low pay, high risks and gangsters
Reuters (3469 Words)

25-Oct-2013

SPECIAL REPORT | Help wanted in Fukushima: Low pay, high risks and gangsters
Interaksyon (3495 Words)

25-Oct-2013

Radiation, desperation and gangsters: Inside the hidden tragedy of Fukushima
Globe and Mail (726 Words)

25-Oct-2013

In Fukushima cleanup, low pay, high risks and gangsters
New York Daily News (3470 Words)

25-Oct-2013

Help wanted: Low pay, high risks and gangsters

25-Oct-2013

 

Financial Summary    

 

As of 30-Jun-2013

Key Ratios

Company

Industry

Current Ratio (MRQ)

1.01

1.90

Quick Ratio (MRQ)

0.82

1.42

Debt to Equity (MRQ)

1.16

0.51

Sales 5 Year Growth

-3.06

4.38

Net Profit Margin (TTM) %

1.27

1.44

Return on Assets (TTM) %

1.14

2.80

Return on Equity (TTM) %

3.98

4.41

 

 

 Stock Snapshot   

 

Traded: Tokyo Stock Exchange: 1802

 

As of 11-Oct-2013

   Financials in: JPY

Recent Price

596.00

 

EPS

22.86

52 Week High

648.00

 

Price/Sales

0.30

52 Week Low

324.00

 

Dividend Rate

8.00

Avg. Volume (mil)

6.34

 

Price/Earnings

25.81

Market Value (mil)

430,019.80

 

Price/Book

1.11

 

 

 

Beta

1.00

 

Price % Change

Rel S&P 500%

4 Week

1.53%

0.52%

13 Week

2.23%

2.64%

52 Week

72.25%

2.73%

Year to Date

23.14%

-11.56%

 

 

 

 

Key IDSM Number: 91309

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
Shinagawa Intercity Tower B, 2-15-2
Konan
Minato-ku, JP, 108-8502
Japan

 

Tel:

+81 3 5769-1111

Fax:

81 (6) 5769-1910

 

www.obayashi.co.jp

Quote Symbol - Exchange

1802 - Tokyo Stock Exchange

Sales JPY(mil):

1,448,305.0

Assets JPY(mil):

1,656,289.0

Employees:

12,838

Fiscal Year End:

31-Mar-2013

 

 

 

Industry:

Construction Services

Incorporation Date:

19-Dec-1936

Company Type:

Public Parent

Quoted Status:

Quoted

 

President, Representative Director:

Toru Shiraishi

 

Industry Codes

 

ANZSIC 2006 Codes:

3020

-

Non-Residential Building Construction

6999

-

Other Professional, Scientific and Technical Services Not Elsewhere Classified

6923

-

Engineering Design and Engineering Consulting Services

9113

-

Sports and Physical Recreation Venues, Grounds and Facilities Operation

6712

-

Non-Residential Property Operators

 

ISIC Rev 4 Codes:

4100

-

Construction of buildings

8299

-

Other business support service activities n.e.c.

9311

-

Operation of sports facilities

6810

-

Real estate activities with own or leased property

7110

-

Architectural and engineering activities and related technical consultancy

 

NACE Rev 2 Codes:

4120

-

Construction of buildings

7112

-

Engineering activities and related technical consultancy

9311

-

Operation of sports facilities

6820

-

Renting and operating of own or leased real estate

8299

-

Other business support service activities n.e.c.

 

NAICS 2012 Codes:

23622

-

Commercial and Institutional Building Construction

561990

-

All Other Support Services

541330

-

Engineering Services

713910

-

Golf Courses and Country Clubs

531120

-

Lessors of Nonresidential Buildings (except Miniwarehouses)

 

US SIC 1987:

1542

-

General Contractors-Nonresidential Buildings, Other than Industrial Buildings and Warehouses

7992

-

Public Golf Courses

7389

-

Business Services, Not Elsewhere Classified

8711

-

Engineering Services

6512

-

Operators of Nonresidential Buildings

 

UK SIC 2007:

41202

-

Construction of domestic buildings

71129

-

Other engineering activities (not including engineering design for industrial process and production or engineering related scientific and technical consulting activities)

68209

-

Letting and operating of own or leased real estate (other than Housing Association real estate and conference and exhibition services) n.e.c.

9311

-

Operation of sports facilities

8299

-

Other business support service activities n.e.c.

 

Business Description

OBAYASHI CORPORATION is primarily engaged in construction business. It operates in three business segments. The Construction segment is involved in the order receiving and construction of building works in Japan, Thailand, United States, Canada and Singapore. This segment is also engaged in the construction of interior and facility works, the sale and rental of construction materials and general management of buildings. The Real Estate segment is engaged in the purchase, sale and leasing of real estate properties, as well as the development of residential land. The Others segment is involved in the private finance initiative (PFI) business, the operation of golf courses, the provision of financing services, among other business. As of March 31, 2013, the Company had 87 subsidiaries and 28 associated companies. For the three months ended 30 June 2013, Obayashi Corp revenues increased 11% to Y330.56B. Net income applicable to common stockholders increased 56% to Y3.18B. Revenues reflect Domestic Civil Engineering projects segment increase of 27% to Y71.05B, Overseas Construction Business segment increase of 22% to Y49.04B, Domestic Construction Business segment increase of 5% to Y177.7B.

 

More Business Descriptions

Civil engineering and construction; architecture and town planning; engineering consultants; electrical engineering; mechanical engineering; building maintenance and security and guard services; construction machinery manufacture, sale and leasing; manufacture of concrete building products; real estate sale, purchase, lease exchange, brokering and caretaking

 

Commercial Building Contractor

 

Obayashi Corporation (Obayashi) is involved in planning, construction, possession, maintenance, management and operation of government office buildings, educational and cultural facilities, medical facilities, roads, harbors, water and sewerage works, waste disposal and other public facilities The service portfolio of the company includes consulting, designing, engineering and architectural services. The company is also involved in power generation, supply of electricity, heat and Greenhouse gas emission rights trading. The company has segregated its business into three reportable segments namely Construction business, Real Estate business, and other business. The company’s construction business segment is engaged in civil engineering, building construction, and all other construction related businesses. Building construction includes the construction of offices, plants, houses, and commercial complexes. Civil engineering includes projects that involve construction of bridges, tunnels, roads, closed-system waste disposal facilities, and dams. Obayashi’s construction business segment is specialized in areas such as shielded tunnels, environment, and railway-related projects. The company's construction orders received decreased by 15.5% from the previous fiscal year to 1,214.7 billion yen. Orders received for civil engineering business were down 35.4% to 208.5 billion yen, due, among other factors, to less overseas contracts awarded. Orders received for building construction business were 1,108.3 billion, down by 8.8% from the previous fiscal year. For the fiscal year ended 2011, the net sales from construction segment amounted for JPY 1,054,945m, a decrease of 18.5% compared to 2010. Under the real estate business segment, the company is engaged in redevelopment projects as a business partner or private agent commissioned by the contractor. Obayashi is engaged in securitizing of real estate assets, purchase and sale, rent, and brokerage of real estate and property development. The company develops residential lands and constructs houses and condominiums. For the fiscal year ended 2011, the net sales from real estate business amounted for JPY 47,647m, an increase of 109.8% compared to 2010. The company’s other business segment comprises PFI (Private Finance Initiative), finance, operation of golf courses, and other businesses in engineering and renovation. Under the Private Finance Initiative business, Obayashi leverages its capital, technology, and its know-how to develop, manage, and maintain public facilities. The company carries out build-operate-transfer of such projects. Obayashi’s renovation business is engaged in extending the operational period of a building by anti-seismic retrofitting, dealing with degradation, conversion, fulfilling environmental requirements, installing information technology infrastructure and enhancing the physical image. The company’s engineering business is engaged in offering a complete range of building solutions from designing to after-services. For the fiscal year ended 2011, the net sales from other businesses amounted for JPY 29,271m, an increase of 22.3% compared to 2010. In March 2011, the company acquired Seiwa Real Estate Co., Ltd., Japan-based construction company. In the same month, the company through its subsidiary, Obayashi Canada Holdings Ltd., acquired Kenaidan Group Ltd., general contracting company headquartered in Ontario, Canada.

 

Obayashi Corporation (Obayashi) is a provider of comprehensive range of building construction and civil engineering services. The services offered by the company include are consulting, designing and architectural services. In addition, Obayashi provides maintenance services after completion of the construction projects. The company also conducts feasibility studies, and research and analysis on construction projects. The company has its overseas presence in the Europe, US, and in major South East Asian countries. The company participated in overseas Private Finance Initiative projects, such as the Sydney Olympics Main Stadium,In Japan, Obayashi operates across Kyushu, Nagoya, Tohoku, Shikoku, Kobe, Hiroshima, Hokuriku, Sapporo, and Yokohama. The company is headquartered at Tokyo, Japan.The company reported revenues of (Yen) JPY 1,448,305.00 million during the fiscal year ended March 2013, an increase of 16.26% over 2012. The operating profit of the company was JPY 27,366.00 million during the fiscal year 2013, an increase of 344.47% over 2012. The net profit of the company was JPY 13,196.00 million during the fiscal year 2013, an increase of 156.53% over 2012.

 

Other Heavy and Civil Engineering Construction

 

 

 

 

 

 

Financial Data

Financials in:

JPY(mil)

 

Revenue:

1,448,305.0

Net Income:

13,196.0

Assets:

1,656,289.0

Long Term Debt:

239,928.0

 

Total Liabilities:

1,271,558.0

 

Working Capital:

101.4

 

 

 

Date of Financial Data:

31-Mar-2013

 

1 Year Growth

16.3%

156.6%

2.3%

 

Market Data

Quote Symbol:

1802

Exchange:

Tokyo Stock Exchange

Currency:

JPY

Stock Price:

596.0

Stock Price Date:

10-11-2013

52 Week Price Change %:

72.3

Market Value (mil):

430,019,808.0

 

SEDOL:

6656407

ISIN:

JP3190000004

 

Equity and Dept Distribution:

FY'94-02 WAS were estimated. FY'07 1Q WAS & O/S were estimated. FY'08 1Q O/S was estimated and O/S=WAS. Name changed from Obayashi Corporation. FY'08 3Q O/S was estimated, O/S=WAS.

 

 

Subsidiaries

Company

Percentage Owned

Country

Webcor LP

100%

USA

Thai Obayashi Corporation Ltd

100%

THAILAND

Obayashi Vietnam Corporation

100%

VIETNAM

Obayashi Corporation (Singapore)

 

SINGAPORE

Obayashi Real Estate Corporation

100%

JAPAN

OC Finance Corporation

100%

JAPAN

Taiwan Obayashi Corporation

100%

TAIWAN

E W Howell Co Inc

100%

USA

OC Real Estate Management LLC

100%

USA

James E Roberts-Obayashi Corporation

100%

USA

Obayashi Facilities Corporation

100%

JAPAN

Jaya Obayashi, PT

100%

INDONESIA

Obayashi USA LLC

100%

USA

John S Clark Company LLC

100%

USA

 

 

 

 

Shareholders

 

 

Major Shareholders

Japan Trustee Services Bank (Trust Account) (8.09%); Master Trust Bank of Japan (6.98%)

 

 

 

 

Key Corporate Relationships

Auditor:

Ernst & Young ShinNihon LLC

 

Auditor:

Ernst & Young ShinNihon LLC, Ernst & Young ShinNihon LLC

 

 

 

 

 

 

 

 

 

Overview

 

Obayashi is a Japan-based construction company that operates in the area of building construction, civil engineering and real estate. The company leverages its diverse projects and services portfolio, geographic landscape and research and development activities to advance its business growth objectives. However, competitive environment, shrinking supply of skilled craft professional and cost overuns could have an adverse on its financials in the long run.

 

Strengths

Sturdy Research and Development

The company leverages on its focused research and development initiatives to get support in its projects and to stay ahead of its competitors. Obayashi conducts its research and development and technical service activities at Obayashi’s Technical Research Institute. The company is involved in high-level of research and development and pursued technical development aimed to meet the client needs. The institute has a Super Energy conservation building, which is one of the first seismically isolated office building constructed in Japan. Further, the company maintains a gamut of advanced experimental facilities, such as Japan’s largest tri-axial shaking table for developing anti-seismic technologies in buildings and civil engineering structures; geo-technical centrifuge system facility; and a fire protection laboratory that includes multipurpose fire resistance test furnace and experimental fire device. For the fiscal year ended 2012, the company incurred R&D expenditure of JPY9095m. With this strong R&D base the company has developed expertise to effectively and efficiently pursue its projects successfully.

Diverse Project and Services Portfolio

Obayashi leverages on its diversified project base which not only provides it the access to a large customer base but also provide opportunity to enhance its expertise in handling construction projects across industry verticals. The company operates in three business units, namely, Building Construction business, Civil Engineering business and Real Estate business. Through the building construction business unit, the company is involved in the construction of offices, high productivity plants, hospitals and schools using its earthquake resistant and disaster prevention technologies. Some of the major construction projects executed by the company include Anantara Timeshare Samui, CITY TOWER Osaka Temma, Bando Chemical Industries, Ltd. Head Office, Sumitomo Fudosan Mita Twin Building West, Uminonakamichi Nata Sea Water Desalination Center, The University of Tokyo Hospital Central Clinical Service Building, and SONY ATSUGI Technology Center No. 105. Its civil engineering business unit is involved in the construction and development of tunnels, bridges, dams, city redevelopment projects and railroads projects. Some of the projects executed by the company under its civil engineering business unit include Minoh-shinmachi, a newly developed residential town in the north of Minoh-City. Tokuyama Dam, Kansai International Airport, 2nd-phase Airport Island, Metropolitan Expressway Central Circular Shinjuku Route Naka-ochiai Shield Tunnel (outbound), and Nakakoba Dam in. Experience in a range of projects across industries adds to the strength of the company. While, its Real Estate business unit is involved in large-scale development projects and redevelopment projects mainly in the vicinity of Tokyo. The company also has significant experience in construction of environment-friendly closed-system waste disposal facilities and soil decontamination. Experience in a range of projects across industries vertical add to the experience of the company and also provides strong revenue generation base as the company can cater to needs of various industrial segments.

 

Geographic Landscape

Obayashi leverages its extensive geographical presence to create new revenue generation streams and to increase its customer base across various industry verticals. It has extensive presence in North America, Asia, Europe, Oceania and Middle East region. The company has successfully executed various projects through its focused research and development activities in earthquake resistant engineering and antiseismic technologies. In North America, the company operates across the US and Canada. In Japan, the company operates across Japan, Singapore, Malaysia, Thailand, Indonesia, Vietnam, Taiwan, Philippines, Hong Kong and China. Moreover, the company has presence across the UK, United Arab Emirates, New Zealand and Australa. In Japan, the company has various projects Palace Hotel Tokyo/Palace Building, Palace Hotel Tokyo/Palace Building, and Hakata Medical Technical College, among others. In the North American region the company has projects such as Hoover Dam Bypass Project Colorado River Bridge, Metro Gold Line Eastside Extension Project, Central Link Light Rail Beacon Hill Tunnel & Station, Golden Gate Bridge Seismic Retrofit, The Beverly Hills Hotel and various others. In European region the company is involved in various projects such as Bracken House, Canon I.S.R.D.E. R&D Center and Nissan Europe N.V. Headquarters Building. While, in the Asian region the company is executing various projects such as Q-square, Taipei Bus Terminal, Ciputat Flyover, Toyota Parts Center Asia Pacific, Thanh Tri Bridge and others. Recent international projects include the Dubai Urban Rail Transit System, the Taiwan High Speed Rail and the Thanh Tri Bridge in Vietnam. For the fiscal year ended 2012, the Japan accounted for 88.4% of the total revenue of the company, followed by overseas with 13.6% consisting of North America with 8.1%, Asia with 5.3% and others with 0.2%. With this extensive presence across geographies the company is tapping the huge market potential existing in these markets to provide strength to its balance sheet.

 

Weaknesses

Weak Profitability Indicators

The company reported weak profitability in the fiscal year ended March 2012. Although, the company's revenue increased from JPY1131.86 billion in 2011 to JPY1245.77 billion in 2012, its operating income declined from JPY12763m in 2011 to JPY6157m in 2012, and net income declined from JPY15424m in 2011 to JPY5144m in 2012. This can be attributed to the increment in the total operating expenses from JPY1119.10 billion in 2011 to JPY1239.61 billion in 2012, with JPY70.43 billion of selling, general and administration expenses in 2012. As a result, the company's profitability ratios declined in 2012, as its operating margin declined from 1.12% in 2011 to 0.49% 2012, net profit margin declined from 1.36% in 2011 to 0.41% in 2012, return on equity declined from 4.73% in 2011 to 1.51% in 2012, return on capital employed declined from 1.77% in 2011 to 0.83% in 2012, return on assets declined from 1.02% in 2011 to 0.31% in 2012, and return on fixed assets declined from 1.86% in 2011 to 0.84% in 2012.

 

Substantial Debt Burden

Increasing debt could have a major impact on the operational performance of the company as a major portion of the company's earnings would be diverted to servicing its debt obligations. This could be of concern to the investors and make it difficult for the company to raise funds on favorable terms from the market. The company's total debt increased from JPY410.24 billion in 2011 to JPY405.65 billion in 2012, consisting of total long term debt of JPY262.14 billion in 2012. Its current portion of long term debt/capital leases stands at JPY10.99 billion in 2012. As a result, the company reported substantially high leverage ratios, as in 2012 its debt to equity ratio stood at 119.14% and debt to capital ratio stood at 54.8% in 2012.The company incurred this debt to meet its working capital and capital expenditure needs. If it fails to comply with any of the debt service requirements, the debt could become due and payable prior to its scheduled maturity. The company needs to dedicate a significant portion of its cash flow from operations to service interest and principal payments. Any reduction in revenues and operating cash flows could hinder the company’s ability to repay interest and principal, resulting in default.

 

Opportunities

Growth Opportunities: Emerging Markets

The company has an opportunity gain contracts in emerging markets such as Brazil, India, China, and countries in the Eastern Europe, which holds high growth potential. Construction spending growth in Asia Pacific, though was slow in 2009-10, was still higher than any other region in the world. According to IMF, growth rate of developing economies is around 4.8% in the year 2009 as compared to negative growth in developed nations. The non-residential category accounts for about 40% of construction spending. The rest of the market is divided almost equally between the residential and infrastructure sectors. These markets are likely to remain stable as many projects are financed through the use of development bank funds throughout the regions. Further, India’s construction spending is expected to increase from approximately 7% of its GDP in 2009-10 to more than 9% in 2010-11. The construction spending in the country is expected to increase from $ 175 billion in 2007 to $ 370 billion by the end of 2013. In China, the residential building construction expenditures are expected to rise at an annual pace of 8.4% through 2014. The projects in various sectors amount to $ 1.3 trillion in civil engineering projects, $ 200 billion in transportation projects, $ 217 billion in power and water utilities projects and $ 1.9 trillion in energy projects. The company through its presence in these countries could gain immensely from the growth opportunities provided.

 

Key Business Initiatives

The company has undertaken various key business initiatives to advance its business growth objectives. In September 2012, the company secured one of the six contracts from SP PowerAssets Limited to construct S$2 billion next-generation power infrastructure project in Singapore. In 2011, the company secured an award to construct Weston Tunnel Phase3 Canadian Railway Development Business. The company in joint venture with Farglory construction, secured a contract to construct a multi-use stadium and a commercial building as part of the Taipei Dome new construction project. In 2012, the company entered into an agreement with Aidea Philippines, Inc, related to business alliance for reinforcing the business system of both companies by Building Information Modeling cooperation in domestic and overseas construction projects. The construction of the Tokyo Sky Tree was completed in February 2012. In October 2011, the company completed the construction of the Dubai Metro Urban Rail System in Dubai, United Arab Emirates. In March 2011, the company acquired Kenaidan Group Ltd., a Canada-based general contracting company.

 

Stimulus Packages

The Japanese Prime Minister announced $154 billion package of subsidies and tax breaks in various sectors to control a deepening recession. The Japanese government has plans to invest JPY 78 billion for the reinforcement of school buildings against earthquakes and JPY 38 billion for protection against flooding. In addition, tax incentives aimed at energy efficiency retrofits and better energy conservation will indirectly boost spending on infrastructure. The economic growth, coupled with the stimulus packages, could provide ample opportunities for the company. Further, according to the World Bank, the global GDP was 2.7% in 2010, is expected to grow 3.5% in 2012. China will maintain a double digit GDP growth rate. The China National Statistics Bureau estimates that about 20% of world economic growth was attributable to China and the United Nations estimated that China accounted for half of world economic growth this decade. The Chinese government is implementing a number of proactive policies and intends to spend close to RMB4.0 trillion between 2010-2015 as a part of its domestic demand economic stimulus plan. Public infrastructure development accounts for 38% of the stimulus package with emphasis on railway, road, irrigation, and airport construction projects. Since the company is already among the leaders in power and water infrastructure sectors, it could take up infrastructure build-transfer (BT) and build-operate-transfer (BOT) projects in the mainland and Hong Kong.

 

Threats

Shrinking Supply of Skilled Craft Professionals

Low availability of skilled professionals could affect the operations of the company. Construction is ranked the fifth largest source of job growth following education and health services; professional and business services; leisure and hospitality and retail. However, according to the Department of Labor’s Bureau of Labor Statistics (BLS), approximately 7 million craft employees work in the construction industry. It is estimated that 1.4 million workers would be lost over the period till 2012 due to attrition, promotion, relocation to other industries and retirement. The emerging and growing shortages of skilled craft workers would impact contractors to a certain extent in terms of project consulting, scheduling and completion and reliability of sub-contractors.

 

Competitive Landscape

Since commercial and residential real estate markets are currently uninviting, the concentration is growing upon the infrastructural projects in most of the countries. As part of recovery policies several stimulus packages were brought out by the government bodies to restore the economic growth or stabilize the economic downturn. Major importance is given to infrastructure development projects which include civil engineering, transportation, power and water utilities, and energy projects. These projects are granted largely through tendering process. To acquire these projects, the companies have to quote least price by maintaining minimum margins. Reduced margins accompanied with increasing costs will decrease the liquidity and also could lead to uncertainty in long term sustenance of the company. In addition, the company also faces stiff competition in renewable energy and power sector. Due to the various subsidies being provided by the governments to promote renewable energy, several new players are entering this sector. In addition, big industry players in traditional energy business are diversifying into renewable energy. Such companies have greater financial leverage and technical capabilities to undertake prestigious projects which will adversely affect the company’s operations. Failure to sustain competition would adversely affect the company’s market share.

 

Cost Overruns

Obayashi‘s business could be adversely affected in case of a cost overrun. Contract prices are established based, in part, on cost estimates that are subject to a number of assumptions, including future economic conditions, third party costs, estimated schedule to complete the work, availability of labor and materials. If these estimates prove inaccurate or circumstances change, cost overruns result, having a material adverse effect on its business and results of its operations. For instance, any delay by subcontractors in completing their portion of the project, or any failure by a subcontractor to satisfactorily complete its portion of the project, may result in delay in the overall progress of the project or cause additional costs, or both. This would affect the overall profitability of the project. Additionally, rising raw material prices also contribute significantly to cost overruns. Thus, it is important for Obayashi to be thorough in selecting third party subcontractors and suppliers, be proactive in monitoring the project schedules and budgets and efficiently manage its operating costs.

 


Corporate Structure News

 

Company Name

Company Type

Location

Country

Industry

Sales
(USD mil)

Employees

Obayashi Corp

Parent

Minato-ku, JP

Japan

Residential and Commercial Building Construction

17,455.7

12,838

OBAYASHI ROAD CORPORATION

Subsidiary

Sumida-Ku

Japan

Internet and Web Services

1,143.9

1,027

Thai Obayashi Corporation Limited

Joint Venture

Bangkok

Thailand

Residential and Commercial Building Construction

 

600

H.R.Osaka Co.,Ltd.

Subsidiary

Osaka, Osaka

Japan

Hotels and Accommodation

55.1

470

Obayashi Corporation (Singapore)

Subsidiary

Singapore

Singapore

Residential and Commercial Building Construction

 

200

Technical Research Institute

Subsidiary

Tokyo

Japan

Specialty Construction Trade Contractors

 

200

Obayashi Corporation

Subsidiary

Singapore

Singapore

Residential and Commercial Building Construction

187.6

160

P.T. Jaya Obayashi

Subsidiary

Jakarta

Indonesia

Civil Engineering

55.0

150

OBAYASHI VIETNAM CORPORATION

Subsidiary

Ho Chi Minh City

Viet Nam

Architecture and Engineering

 

100

Mutsuzawa Green Co., Ltd.

Subsidiary

Chosei-Gun, Chiba

Japan

Golf Courses and Country Clubs

6.3

91

James E. Roberts-Obayashi Corporation

Subsidiary

Danville, CA

United States

Specialty Construction Trade Contractors

10.5

15

Taiwan Obayashi Corporation

Subsidiary

Taipei

Taiwan

Specialty Construction Trade Contractors

 

10

Obayashi USA, LLC

Subsidiary

South San Francisco, CA

United States

Holding Companies

 

7

Webcor, LP

Subsidiary

San Mateo, CA

United States

Residential and Commercial Building Construction

 

2,010

John S. Clark Company, LLC

Subsidiary

Mount Airy, NC

United States

Residential and Commercial Building Construction

75.1

125

E.W. Howell Company, Inc.

Subsidiary

New York, NY

United States

Residential and Commercial Building Construction

10.9

30

OC Real Estate Management, LLC

Subsidiary

Los Angeles, CA

United States

Real Estate Agents and Brokers

 

10

Obayashi Construction, Inc.

Subsidiary

South San Francisco, CA

United States

Residential and Commercial Building Construction

 

8

Naigai Technos Co.,Ltd.

Subsidiary

Shinjuku-Ku, Tokyo

Japan

Construction and Hardware Materials Wholesale

1,071.5

 

Seiwa Real Estate Co.,Ltd.

Subsidiary

Osaka, Osaka

Japan

Real Estate Agents and Brokers

374.7

 

Oak Setsubi Corporation

Subsidiary

Chuo-Ku, Tokyo

Japan

Specialty Construction Trade Contractors

182.9

 

Oak Information System Corporation

Subsidiary

Sumida-Ku, Tokyo

Japan

Electronics Wholesale

98.2

 

Obayashi (Shanghai) Construction Co., Ltd.

Subsidiary

Shanghai, Shanghai

China

Residential and Commercial Building Construction

 

 

Obayashi Philippines Corporation

Joint Venture

Makati, Metro Manila

Philippines

Residential and Commercial Building Construction

 

 

OC FINANCE CORPORATION

Subsidiary

Tokyo

Japan

Investment Services

 

 

OBAYASHI FACILITIES CORPORATION

Subsidiary

Tokyo

Japan

Facilities Management

 

 

OBAYASHI REAL ESTATE CORPORATION

Subsidiary

Tokyo

Japan

Real Estate Agents and Brokers

 

 

 


Competitors Report

 

CompanyName

Location

Employees

Ownership

Fujita Corporation

Tokyo, Japan

1,854

Public

Kajima Corp

Minato-Ku, Japan

15,468

Public

Nishimatsu Construction Co., Ltd.

Minato-Ku, Japan

2,557

Public

Shimizu Corporation

Chuo-Ku, Japan

15,616

Public

Taisei Corp

Shinjuku-Ku, Japan

13,569

Public

TOBISHIMA CORPORATION

Kawasaki-Shi, Japan

1,093

Public

 

 

Executives Report

 

Board of Directors

 

Name

Title

Function

 

Takeo Ohbayashi

 

Chairman of the Board, Representative Director

Chairman

 

Biography:

Mr. Takeo Ohbayashi has been serving as Chairman of the Board and Representative Director in OBAYASHI CORPORATION since June 2009. He previously served as Managing Director, Senior Managing Director, Vice President and Vice Chairman of the Board in the Company. He joined the Company in April 1977. He obtained his Bachelor's degree in Economics from Keio University in March 1977.

 

 

Age: 59

 

Education:

 

 

Shozo Harada

 

Executive Vice President, Representative Director

Director/Board Member

 

 

Biography:

Mr. Shozo Harada has been serving as Executive Vice President and Representative Director in OBAYASHI CORPORATION, since April 1, 2012. He joined the Company in April 1973. He previously served as Managing Executive Officer, Director of Finance, Senior Managing Executive Officer and Senior Managing Director in the Company. He obtained his Bachelor's degree in Social Science from Hitotsubashi University in March 1973.

:

Age: 63

 

Education:

Hitotsubashi University, B (Social Sciences)

 

Makoto Kanai

 

Executive Vice President, Representative Director

Director/Board Member

 

 

Biography:

Mr. Makoto Kanai has been serving as Executive Vice President and Representative Director in OBAYASHI CORPORATION, since April 1, 2011. He used to serve as Managing Executive Officer, Deputy Director of Tokyo Civil Engineering Business, Senior Managing Director and Senior Managing Executive Officer in the Company. He obtained his Bachelor's degree in Civil Engineering from Osaka University in March 1971, and Master's degree in Engineering from Osaka University in March 1973.

 

Age: 65

 

Education:

Osaka University, M (Engineering)
Osaka University, B (Civil Engineering)

 

Makoto Kishida

 

Senior Managing Executive Officer, Manager of Overseas Office, Director

Director/Board Member

 

 

Biography:

Mr. Makoto Kishida has been serving as Senior Managing Executive Officer, Manager of Overseas Office and Director in OBAYASHI CORPORATION since April 2011. He previously served as Managing Executive Officer, Deputy Chief Director of Construction, Managing Director and Director of Tokyo Construction Business in the Company. He obtained his Bachelor's degree in Architecture from The University of Tokyo in March 1974.

 

Age: 61

 

Education:

University of Tokyo, B (Architecture)

 

Akihisa Miwa

 

Senior Managing Executive Officer, Chief Director of Technology, Chief Director of Nuclear Power, Director

Director/Board Member

 

 

Biography:

Mr. Akihisa Miwa has been serving as Senior Managing Executive Officer, Chief Director of Technology, Chief Director of Nuclear Power and Director in OBAYASHI CORPORATION, since April 1, 2010. He joined the Company in April 1974. He previously served as Managing Executive Officer, Deputy Chief Director of Construction and Managing Director in the Company. He used to serve as President and Director in a United States-based subsidiary. He obtained his Bachelor's degree in Architecture from Kyoto University in March 1974.

 

Age: 61

 

Education:

Kyoto University, B (Architecture)

 

Tadahiko Noguchi

 

Executive Vice President, Representative Director

Director/Board Member

 

 

Biography:

Mr. Tadahiko Noguchi has been serving as Executive Vice President and Representative Director of OBAYASHI CORPORATION, since April 1, 2012. He joined the Company in April 1970 and previously served as Deputy Director of Tokyo Construction Business, Managing Executive Officer, Chief Director of Construction, Senior Managing Executive Officer and Senior Managing Director in the Company. Mr. Noguchi graduated from Waseda University with a Bachelor's Degree in Architecture in March 1970.

 

Age: 66

 

Education:

Waseda University, B (Architecture)

 

Shinichi Ohtake

 

Independent Director

Director/Board Member

 

 

Biography:

Mr. Shinichi Ohtake has been serving as Independent Director in OBAYASHI CORPORATION since June 2013. He is also working for NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION, where he used to serve as President and Representative Director. He also used to work for Nippon Telegraph and Telephone Public Corporation. He graduated from Kyoto University in March 1971.

 

Age: 65

 

Education:

Kyoto University

 

Kenichi Shibata

 

Senior Managing Executive Officer, Chief Director of Development, Director

Director/Board Member

 

 

Biography:

Mr. Kenichi Shibata has been serving as Senior Managing Executive Officer, Chief Director of Development and Director in OBAYASHI CORPORATION, since April 1, 2010. He joined the Company in April 1972 and previously served as Director of Sales Real Estate in Main Construction Business Unit, Senior Director in Tokyo Construction Business Unit, Deputy Director of Tokyo Construction Business, Managing Executive Officer, Managing Director and Chief Director of Development in the Company. Mr. Shibata graduated from Otaru University of Commerce with a Bachelor's Degree in Commerce in March 1972.

 

Age: 63

 

Education:

Otaru University of Commerce, B (Commerce)

 

Toru Shiraishi

 

President, Representative Director

Director/Board Member

 

 

Biography:

Mr. Toru Shiraishi has been as President and Representative Director in OBAYASHI CORPORATION since June 2007. He served as Senior Managing Executive Officer and Director of Tokyo Construction Business in the Company. He joined the Company in July 1971. He obtained his Bachelor's degree from Tokyo University in June 1971.

 

Age: 66

 

Education:

University of Tokyo, B (Engineering)

 

Nao Sugiyama

 

Senior Managing Executive Officer, Chief Director of Construction, Manager of Main Tokyo Office, Director

Director/Board Member

 

 

Biography:

Mr. Nao Sugiyama has been serving as Senior Managing Executive Officer, Chief Director of Construction, Manager of Main Tokyo Office and Director of OBAYASHI CORPORATION, since April 1, 2012. He joined the Company in April 1975 and served as Executive Officer, Manager of Yokohama Office, Managing Director and Deputy Director of Tokyo Construction Business in the Company. He obtained his Bachelor's and Master's degree in Architecture from Tokyo Institute of Technology in March 1973 and March 1975, respectively.

 

Age: 63

 

Education:

Tokyo Institute of Technology, M (Architecture)
Tokyo Institute of Technology, B (Architecture)

 

 

Executives

 

Name

Title

Function

Toru Shiraishi

 

President, Representative Director

President

Yukihiro Aizawa

 

Executive Officer, Deputy Chief Director of Development Business

Division Head Executive

 

Nobuyuki Asada

 

Executive Officer, Deputy Director in charge of Construction Business in Main Osaka Office

Division Head Executive

 

Sompong Chintawongvanish

 

Executive Officer, President of Subsidiary

Division Head Executive

 

Katsuji Fukumoto

 

Managing Executive Officer, Deputy Chief Director of Civil Engineering, Assistant Manager of Overseas Office

Division Head Executive

 

Takafumi Hanai

 

Managing Executive Officer, Deputy Director of Construction Business in Main Tokyo Office, Deputy Chief Director of Construction

Division Head Executive

 

Moriyuki Hanawa

 

Executive Officer, Chief Director of Production Technology in Main Civil Engineering Unit

Division Head Executive

 

Hiroshi Hasegawa

 

Senior Managing Executive Officer, Manager of Main Osaka Office

Division Head Executive

 

Kenji Hasuwa

 

Managing Executive Officer, Deputy Chief Director of Technology

Division Head Executive

 

Masahito Hayashi

 

Managing Executive Officer, Manager of Kyushu Office

Division Head Executive

 

Makoto Hidetaka

 

Executive Officer

Division Head Executive

 

Shoji Higashitani

 

Executive Officer, Manager of Kyoto Office

Division Head Executive

 

Mamoru Hikita

 

Executive Officer, Deputy Chief Director of Civil Engineering

Division Head Executive

 

Yuji Inoue

 

Executive Officer, Deputy Director of Construction Business of Main Tokyo Office

Division Head Executive

 

Tatsuro Ishimaru

 

Executive Officer, Senior Director of Main Osaka Office

Division Head Executive

 

Yoshio Ishizuka

 

Managing Executive Officer, Deputy Chief Director of Civil Engineering Business

Division Head Executive

 

Kunio Isozaki

 

Managing Executive Officer, Deputy Director of Construction Business in Tokyo Main Office

Division Head Executive

 

Shigehisa Kage

 

Managing Executive Officer, Manager of Hiroshima Office

Division Head Executive

 

Mitsuyasu Kaihara

 

Managing Officer

Division Head Executive

 

Naoki Kajita

 

Executive Officer, Deputy Chief Director of Technology

Division Head Executive

 

Isamu Kakeno

 

Executive Officer, Assistant Manager of Nagoya Office

Division Head Executive

 

Yuichi Kashima

 

Managing Executive Officer, Deputy Director of Construction Business in Main Tokyo Office

Division Head Executive

 

Hideo Kawamura

 

Executive Officer, Manager of Hokuriku Office

Division Head Executive

 

Atsuteru Kiritani

 

Executive Officer, Deputy Director in charge of Construction Business in Main Tokyo Office

Division Head Executive

 

Makoto Kishida

 

Senior Managing Executive Officer, Manager of Overseas Office, Director

Division Head Executive

 

Teruo Kobayashi

 

Managing Executive Officer, Chief Director of Design

Division Head Executive

 

Chiaki Kobayashi

 

Executive Officer, Deputy Director in charge of Construction Business in Main Tokyo Office

Division Head Executive

 

Yasuo Kotera

 

Managing Executive Officer

Division Head Executive

 

Kazuo Matsuoka

 

Executive Officer, Deputy Chief Director of Civil Engineering

Division Head Executive

 

Akihisa Miwa

 

Senior Managing Executive Officer, Chief Director of Technology, Chief Director of Nuclear Power, Director

Division Head Executive

 

Masaru Mizuno

 

Managing Executive Officer, Director of Civil Engineering Business in Main Osaka Office

Division Head Executive

 

Toshihiko Murata

 

Executive Officer, Deputy Director of Construction Business in Main Osaka Office

Division Head Executive

 

Munenori Nakamura

 

Managing Executive Officer, Assistant Manager of Overseas Office

Division Head Executive

 

Yoshiharu Nakamura

 

Executive Officer, Manager of Northern America Affairs Supervision Center in Overseas Office

Division Head Executive

 

Kotaro Nonaka

 

Executive Officer, Manager of Middle Asia Business Center of Overseas Office

Division Head Executive

 

Shoji Ohi

 

Executive Officer, Deputy Director in charge of Construction Business in Main Osaka Office, Deputy Chief Director of Design

Division Head Executive

 

Katsuyoshi Ohkawa

 

Executive Officer, Manager of Yokohama Office

Division Head Executive

 

Kazuo Okayama

 

Executive Officer, Deputy Chief Director of Civil Engineering

Division Head Executive

 

Taketo Sato

 

Executive Officer, Deputy Director in charge of Civil Engineering in Main Tokyo Office

Division Head Executive

 

Kenichi Shibata

 

Senior Managing Executive Officer, Chief Director of Development, Director

Division Head Executive

 

Takashi Shiokawa

 

Executive Officer, Deputy Chief Director of Technology, Director of Technology Research Institute

Division Head Executive

 

Nao Sugiyama

 

Senior Managing Executive Officer, Chief Director of Construction, Manager of Main Tokyo Office, Director

Division Head Executive

 

Koichi Tajitsu

 

Executive Officer, Manager of Sapporo Office

Division Head Executive

 

Mikio Takatsuki

 

Executive Officer, Manager of Tohoku Office

Division Head Executive

 

Takashi Takeuchi

 

Executive Officer, Deputy Director of Construction Business in Main Osaka Office

Division Head Executive

 

Hitoshi Tobuchi

 

Managing Executive Officer, Manager of Shikoku Office

Division Head Executive

 

Yasuji Tomohiro

 

Senior Managing Executive Officer, Manager of Nagoya Office

Division Head Executive

 

Kozaburo Tsuchiya

 

Senior Managing Executive Officer, Chief Director of Civil Engineering

Division Head Executive

 

Nobuo Tsuruta

 

Managing Executive Officer, Director of Construction Business in Main Osaka Office

Division Head Executive

 

Hikaru Ueno

 

Managing Executive Officer

Division Head Executive

 

Shingo Ura

 

Senior Managing Executive Officer, Director of Construction Business in Main Tokyo Office

Division Head Executive

 

Kazuo Yagi

 

Managing Executive Officer

Division Head Executive

 

Hirotoshi Yamamoto

 

Managing Executive Officer, Deputy Director of Construction Business in Main Osaka Office

Division Head Executive

 

Shuji Yamane

 

Managing Executive Officer, Director of Civil Engineering Business in Main Tokyo Office

Division Head Executive

 

Yuji Nakamura

 

Director

Managing Director

 

Tamio Akiyama

 

Corporate Auditor

Accounting Executive

 

Tatsunosuke Kagaya

 

Corporate Auditor

Accounting Executive

 

Yasutaka Kakiuchi

 

Corporate Auditor

Accounting Executive

 

Hiroshi Tadokoro

 

Corporate Auditor

Accounting Executive

 

Hidetoshi Miyazawa

 

Director of Accounting

Investor Relations Executive

 

Shigeyoshi Cho

 

Executive Vice President

Other

 

Ryuhei Funano

 

Managing Officer

Other

 

Masashi Honjo

 

Director

Other

 

Mitsuo Ikeuchi

 

Executive Officer

Other

 

Kunihiro Kagami

 

Managing Officer

Other

 

Haruki Kasuga

 

Executive Officer

Other

 

Takashi Matsuda

 

Executive Officer

Other

 

Shuji Nakamoto

 

Managing Officer

Other

 

Takashi Nishiyama

 

Executive Officer

Other

 

Hiroshi Sakamoto

 

Managing Officer

Other

 

Kazuyoshi Uehara

 

Managing Officer

Other

 

Hiroki Umehara

 

Executive Officer

Other

 

 

 

 
Significant Developments

 

 

R&I Affirms Obayashi Corporation's Rating at "A"; Rating Outlook Stable

Feb 15, 2013


Rating and Investment Information, Inc. (R&I) announced that it has affirmed the rating on Obayashi Corporation at "A". The rating outlook is stable.

Jowa Holdings Co Ltd's Subsidiary to Acquire Property from OBAYASHI CORP

Jan 21, 2013


Jowa Holdings Co Ltd announced that its Tokyo-based wholly owned subsidiary engaged in the real estate business will acquire a Tokyo-located property for JPY 16,500 million in total, from OBAYASHI CORP, effective March 29, 2013.

 

 

News

 

 

In Fukushima cleanup, low pay, high risks and gang...
New York Daily News (3494 Words)

26-Oct-2013

 

 

Fukushima: Low pay, high risks and gangsters
Reuters (3469 Words)

25-Oct-2013

 

 

SPECIAL REPORT | Help wanted in Fukushima: Low pay, high risks and gangsters
Interaksyon (3495 Words)

25-Oct-2013

 

 

Radiation, desperation and gangsters: Inside the hidden tragedy of Fukushima
Globe and Mail (726 Words)

25-Oct-2013

 

 

In Fukushima cleanup, low pay, high risks and gangsters
New York Daily News (3470 Words)

25-Oct-2013

 

 

Help wanted: Low pay, high risks and gangsters
Reuters (3469 Words)

25-Oct-2013

 

 

Low pay, high risks and gangsters
Reuters (3469 Words)

25-Oct-2013

 

 

Special Report: Low pay, high risks and gangsters in Fukushima
Reuters India (3524 Words)

25-Oct-2013

 

 

Japans JFE full-year forecast disappoints sparks drop in shares
Big News Network (55 Words)

25-Oct-2013

 

 

Cleaning Fukushima: Low pay, high risks and gangsters
Yahoo! News (3496 Words)

25-Oct-2013

 

 

Japan's JFE full-year forecast disappoints, sparks drop in shares
Sharenet (477 Words)

25-Oct-2013

 




Annual Income Statement

 

 

 

 

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

Ernst & Young ShinNihon LLC

Ernst & Young ShinNihon LLC

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified with Explanation

 

 

 

 

 

 

    Net Sales

17,455.7

15,777.0

13,208.6

14,433.4

16,743.5

Revenue

17,455.7

15,777.0

13,208.6

14,433.4

16,743.5

    Other Revenue

-

0.0

-

-

-

Other Revenue, Total

-

0.0

-

-

-

Total Revenue

17,455.7

15,777.0

13,208.6

14,433.4

16,743.5

 

 

 

 

 

 

    Cost of Revenue

16,073.4

14,375.3

12,044.9

14,276.6

15,679.9

Cost of Revenue, Total

16,073.4

14,375.3

12,044.9

14,276.6

15,679.9

Gross Profit

1,382.3

1,401.7

1,163.7

156.8

1,063.7

 

 

 

 

 

 

    Selling/General/Administrative Expense

430.1

458.3

393.2

378.6

368.5

    Labor & Related Expense

423.1

433.8

400.1

364.7

350.5

Total Selling/General/Administrative Expenses

853.2

892.1

793.3

743.3

719.0

Research & Development

105.4

115.2

99.9

86.3

72.3

    Litigation

-

-

0.0

18.9

0.0

    Impairment-Assets Held for Use

38.2

250.2

41.1

92.2

19.0

    Impairment-Assets Held for Sale

-

35.2

53.9

9.5

71.0

    Other Unusual Expense (Income)

55.6

31.0

26.5

50.4

15.8

Unusual Expense (Income)

93.9

316.5

121.5

171.1

105.7

    Other Operating Expense

0.0

-

-

-

-

Other Operating Expenses, Total

0.0

-

-

-

-

Total Operating Expense

17,125.8

15,699.0

13,059.6

15,277.3

16,576.9

 

 

 

 

 

 

Operating Income

329.8

78.0

148.9

-843.9

166.6

 

 

 

 

 

 

        Interest Expense - Non-Operating

-42.0

-49.2

-44.3

-42.9

-37.5

    Interest Expense, Net Non-Operating

-42.0

-49.2

-44.3

-42.9

-37.5

        Interest Income - Non-Operating

30.8

26.1

13.5

15.3

17.3

        Investment Income - Non-Operating

172.7

254.1

129.3

75.0

117.6

    Interest/Investment Income - Non-Operating

203.4

280.2

142.8

90.3

135.0

Interest Income (Expense) - Net Non-Operating Total

161.4

231.0

98.4

47.4

97.4

Gain (Loss) on Sale of Assets

-

-10.1

0.0

-

-3.4

    Other Non-Operating Income (Expense)

5.4

0.0

-13.5

6.7

9.5

Other, Net

5.4

0.0

-13.5

6.7

9.5

Income Before Tax

496.7

298.8

233.9

-789.7

270.1

 

 

 

 

 

 

Total Income Tax

291.0

225.0

53.9

-234.0

126.3

Income After Tax

205.6

73.8

180.0

-555.7

143.8

 

 

 

 

 

 

    Minority Interest

-46.6

-8.6

0.0

-18.3

-34.6

Net Income Before Extraord Items

159.0

65.1

180.0

-574.0

109.2

Net Income

159.0

65.1

180.0

-574.0

109.2

 

 

 

 

 

 

    Miscellaneous Earnings Adjustment

0.0

0.0

0.0

0.0

0.0

Total Adjustments to Net Income

0.0

0.0

0.0

0.0

0.0

Income Available to Common Excl Extraord Items

159.0

65.1

180.0

-574.1

109.1

 

 

 

 

 

 

Income Available to Common Incl Extraord Items

159.0

65.1

180.0

-574.1

109.1

 

 

 

 

 

 

Basic/Primary Weighted Average Shares

718.2

718.4

718.7

719.0

719.4

Basic EPS Excl Extraord Items

0.22

0.09

0.25

-0.80

0.15

Basic/Primary EPS Incl Extraord Items

0.22

0.09

0.25

-0.80

0.15

Dilution Adjustment

-

-

0.0

0.0

0.0

Diluted Net Income

159.0

65.1

180.0

-574.1

109.1

Diluted Weighted Average Shares

718.2

718.4

718.7

719.0

719.4

Diluted EPS Excl Extraord Items

0.22

0.09

0.25

-0.80

0.15

Diluted EPS Incl Extraord Items

0.22

0.09

0.25

-0.80

0.15

Dividends per Share - Common Stock Primary Issue

0.10

0.10

0.09

0.09

0.08

Gross Dividends - Common Stock

69.2

72.8

67.1

61.9

57.3

Interest Expense, Supplemental

42.0

49.2

44.3

42.9

37.5

Depreciation, Supplemental

131.6

151.4

133.0

113.3

109.0

Total Special Items

93.9

326.6

121.5

171.1

109.1

Normalized Income Before Tax

590.5

625.4

355.4

-618.7

379.2

 

 

 

 

 

 

Effect of Special Items on Income Taxes

55.0

114.3

28.0

59.9

51.0

Inc Tax Ex Impact of Sp Items

346.0

339.3

82.0

-174.2

177.4

Normalized Income After Tax

244.5

286.1

273.4

-444.5

201.8

 

 

 

 

 

 

Normalized Inc. Avail to Com.

197.9

277.4

273.5

-462.9

167.2

 

 

 

 

 

 

Basic Normalized EPS

0.28

0.39

0.38

-0.64

0.23

Diluted Normalized EPS

0.28

0.39

0.38

-0.64

0.23

Research & Development Exp, Supplemental

105.4

115.2

99.9

86.3

72.3

Reported Operating Profit

423.7

394.4

270.4

-672.8

272.3

Reported Ordinary Profit

538.6

446.3

259.2

-641.4

316.8

Normalized EBIT

423.7

394.4

270.4

-672.8

272.3

Normalized EBITDA

555.2

545.8

403.4

-559.5

381.3

    Current Tax - Total

73.8

37.5

-

-

-

Current Tax - Total

73.8

37.5

-

-

-

    Deferred Tax - Total

217.2

187.5

-

-

-

Deferred Tax - Total

217.2

187.5

-

-

-

Income Tax - Total

291.0

225.0

-

-

-

Interest Cost - Domestic

40.4

44.4

42.5

40.7

38.9

Service Cost - Domestic

56.2

61.1

56.8

53.8

51.4

Prior Service Cost - Domestic

0.4

0.3

-0.5

-0.5

-0.4

Expected Return on Assets - Domestic

-19.7

-21.3

-20.1

-17.6

-19.8

Actuarial Gains and Losses - Domestic

23.0

32.6

38.0

38.9

24.4

Domestic Pension Plan Expense

100.4

117.1

116.6

115.3

94.5

Total Pension Expense

100.4

117.1

116.6

115.3

94.5

Discount Rate - Domestic

1.80%

1.80%

1.80%

1.80%

1.80%

Expected Rate of Return - Domestic

1.80%

1.80%

1.80%

1.80%

1.80%

Total Plan Interest Cost

40.4

44.4

42.5

40.7

38.9

Total Plan Service Cost

56.2

61.1

56.8

53.8

51.4

Total Plan Expected Return

-19.7

-21.3

-20.1

-17.6

-19.8

 


 

 

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

Ernst & Young ShinNihon LLC

Ernst & Young ShinNihon LLC

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified with Explanation

 

 

 

 

 

 

    Cash & Equivalents

1,059.8

1,477.4

1,315.5

1,465.8

1,464.4

    Short Term Investments

33.0

33.8

43.6

17.9

19.7

Cash and Short Term Investments

1,092.8

1,511.2

1,359.2

1,483.8

1,484.1

        Accounts Receivable - Trade, Gross

5,645.7

5,905.7

5,023.7

4,639.5

5,031.2

        Provision for Doubtful Accounts

-3.3

-9.0

-9.2

-10.9

-5.7

    Trade Accounts Receivable - Net

5,642.4

5,896.7

5,014.4

4,628.6

5,025.5

    Other Receivables

705.8

888.4

1,179.1

956.4

674.1

Total Receivables, Net

6,348.2

6,785.1

6,193.5

5,585.0

5,699.6

    Inventories - Work In Progress

509.8

585.7

637.3

886.6

2,102.0

    Inventories - Other

1,170.2

1,540.7

1,255.2

1,348.0

1,374.5

Total Inventory

1,680.0

2,126.4

1,892.6

2,234.6

3,476.5

    Deferred Income Tax - Current Asset

220.6

223.1

325.8

275.4

389.9

    Other Current Assets

148.8

136.3

131.9

133.7

162.4

Other Current Assets, Total

369.4

359.4

457.7

409.1

552.3

Total Current Assets

9,490.4

10,782.0

9,902.9

9,712.5

11,212.6

 

 

 

 

 

 

        Buildings

-

-

-

-

1,686.1

        Land/Improvements

-

-

-

-

2,482.4

        Machinery/Equipment

-

-

-

-

730.3

        Construction in Progress

-

-

-

-

4.1

        Leases

-

-

-

-

22.8

    Property/Plant/Equipment - Gross

-

0.0

-

-

4,925.7

    Accumulated Depreciation

-

-

-

-

-1,590.5

Property/Plant/Equipment - Net

4,001.4

4,347.7

4,346.1

3,417.9

3,335.2

Intangibles, Net

57.5

73.4

86.0

64.2

69.1

    LT Investment - Affiliate Companies

39.2

35.9

35.6

31.9

-

    LT Investments - Other

3,334.1

3,173.0

2,995.3

3,142.2

2,412.1

Long Term Investments

3,373.3

3,208.9

3,030.8

3,174.1

2,412.1

Note Receivable - Long Term

46.1

42.0

12.5

12.8

15.0

    Deferred Charges

0.1

0.1

0.2

0.5

0.6

    Deferred Income Tax - Long Term Asset

41.2

483.8

552.3

395.9

234.8

    Other Long Term Assets

593.5

710.6

236.3

245.4

191.9

Other Long Term Assets, Total

634.8

1,194.5

788.8

641.8

427.3

Total Assets

17,603.5

19,648.5

18,167.1

17,023.3

17,471.2

 

 

 

 

 

 

Accounts Payable

5,646.8

6,379.0

5,180.6

4,848.8

4,999.1

Notes Payable/Short Term Debt

1,398.9

1,608.5

1,149.0

1,150.0

1,742.1

Current Portion - Long Term Debt/Capital Leases

179.7

133.5

793.0

362.6

278.8

    Customer Advances

654.5

755.6

724.0

1,013.7

1,649.0

    Security Deposits

645.7

841.6

776.1

773.8

710.9

    Income Taxes Payable

39.1

29.0

19.7

24.5

28.4

    Deferred Income Tax - Current Liability

6.3

5.6

10.0

0.0

-

    Other Current Liabilities

827.3

912.0

854.1

871.6

777.4

Other Current liabilities, Total

2,173.0

2,543.8

2,384.0

2,683.7

3,165.8

Total Current Liabilities

9,398.3

10,664.7

9,506.6

9,045.2

10,185.8

 

 

 

 

 

 

    Long Term Debt

2,548.3

3,179.2

3,002.0

2,679.1

2,024.5

    Capital Lease Obligations

1.7

2.7

5.8

7.5

8.2

Total Long Term Debt

2,550.0

3,182.0

3,007.8

2,686.7

2,032.7

Total Debt

4,128.6

4,923.9

4,949.9

4,199.3

4,053.6

 

 

 

 

 

 

    Deferred Income Tax - LT Liability

352.5

361.5

420.0

361.8

294.6

Deferred Income Tax

352.5

361.5

420.0

361.8

294.6

Minority Interest

318.0

303.8

305.9

271.7

250.5

    Reserves

21.5

12.5

12.8

15.5

5.0

    Pension Benefits - Underfunded

659.9

768.7

784.1

707.7

677.5

    Other Long Term Liabilities

214.2

222.7

197.4

272.1

268.3

Other Liabilities, Total

895.6

1,003.9

994.2

995.4

950.8

Total Liabilities

13,514.5

15,515.9

14,234.5

13,360.8

13,714.3

 

 

 

 

 

 

    Common Stock

613.8

701.0

696.8

618.1

584.7

Common Stock

613.8

701.0

696.8

618.1

584.7

Additional Paid-In Capital

443.7

506.8

503.7

446.8

422.7

Retained Earnings (Accumulated Deficit)

1,718.2

1,848.4

1,830.2

1,489.5

2,054.7

Treasury Stock - Common

-16.4

-18.6

-16.6

-14.3

-12.6

Unrealized Gain (Loss)

1,361.4

1,159.2

969.0

1,156.6

743.0

    Translation Adjustment

-30.5

-62.5

-51.4

-33.5

-34.9

    Other Equity

0.0

0.0

-

-

-

    Other Comprehensive Income

-1.1

-1.7

1.0

-0.6

-0.7

Other Equity, Total

-31.7

-64.2

-50.5

-34.1

-35.6

Total Equity

4,089.0

4,132.6

3,932.6

3,662.5

3,756.9

 

 

 

 

 

 

Total Liabilities & Shareholders’ Equity

17,603.5

19,648.5

18,167.1

17,023.3

17,471.2

 

 

 

 

 

 

    Shares Outstanding - Common Stock Primary Issue

718.2

718.3

718.7

718.8

719.0

Total Common Shares Outstanding

718.2

718.3

718.7

718.8

719.0

Treasury Shares - Common Stock Primary Issue

3.3

3.2

2.8

2.7

2.5

Employees

12,838

12,870

14,639

14,476

15,150

Number of Common Shareholders

41,388

41,011

41,396

39,830

39,299

Deferred Revenue - Current

654.5

755.6

724.0

1,013.7

1,649.0

Total Long Term Debt, Supplemental

3,265.8

3,972.3

3,788.9

3,035.0

2,516.7

Long Term Debt Maturing within 1 Year

717.5

793.1

786.9

355.9

492.2

Long Term Debt Maturing in Year 2

781.0

771.0

610.8

657.2

285.4

Long Term Debt Maturing in Year 3

523.0

829.8

532.9

512.6

489.5

Long Term Debt Maturing in Year 4

556.4

656.3

638.2

415.0

355.0

Long Term Debt Maturing in Year 5

105.3

152.3

412.5

535.4

326.6

Long Term Debt Maturing in 2-3 Years

1,304.0

1,600.8

1,143.7

1,169.9

774.9

Long Term Debt Maturing in 4-5 Years

661.7

808.6

1,050.7

950.4

681.5

Long Term Debt Matur. in Year 6 & Beyond

582.6

769.8

807.6

558.9

568.1

Total Capital Leases, Supplemental

3.1

-

11.9

14.2

15.8

Capital Lease Payments Due in Year 1

1.3

-

6.1

6.7

7.6

Capital Lease Payments Due in Year 2

0.8

-

3.7

4.3

4.5

Capital Lease Payments Due in Year 3

0.5

-

1.2

2.2

2.4

Capital Lease Payments Due in Year 4

0.3

-

0.5

0.6

1.0

Capital Lease Payments Due in Year 5

0.1

-

0.3

0.3

0.3

Capital Lease Payments Due in 2-3 Years

1.3

-

4.9

6.5

6.9

Capital Lease Payments Due in 4-5 Years

0.4

-

0.8

0.9

1.3

Cap. Lease Pymts. Due in Year 6 & Beyond

0.1

-

0.1

0.1

0.0

Pension Obligation - Domestic

1,409.1

1,663.7

1,709.2

1,579.1

1,551.4

Plan Assets - Domestic

729.8

810.3

815.2

743.2

668.3

Funded Status - Domestic

-679.3

-853.4

-894.0

-835.9

-883.1

Total Funded Status

-679.3

-853.4

-894.0

-835.9

-883.1

Discount Rate - Domestic

1.80%

1.80%

1.80%

1.80%

1.80%

Expected Rate of Return - Domestic

1.80%

1.80%

1.80%

1.80%

1.80%

Prepaid Benefits - Domestic

1.8

2.8

0.0

0.2

1.6

Accrued Liabilities - Domestic

-659.9

-768.7

-784.1

-707.7

-677.5

Other Assets, Net - Domestic

21.2

87.2

109.9

128.4

207.2

Net Assets Recognized on Balance Sheet

-636.9

-678.7

-674.1

-579.2

-468.8

Total Plan Obligations

1,409.1

1,663.7

1,709.2

1,579.1

1,551.4

Total Plan Assets

729.8

810.3

815.2

743.2

668.3

 

 

 

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

Ernst & Young ShinNihon LLC

Ernst & Young ShinNihon LLC

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified with Explanation

 

 

 

 

 

 

Net Income/Starting Line

496.7

298.8

233.9

-789.7

270.1

    Depreciation

131.6

151.4

133.0

113.3

109.0

Depreciation/Depletion

131.6

151.4

133.0

113.3

109.0

    Unusual Items

-11.7

106.4

-1.1

167.7

23.5

    Other Non-Cash Items

-91.5

-90.6

-233.5

55.5

-23.2

Non-Cash Items

-103.2

15.8

-234.7

223.2

0.3

    Accounts Receivable

-491.8

-906.3

238.2

689.6

-720.3

    Inventories

193.8

-53.5

158.3

-7.0

-104.8

    Prepaid Expenses

3.5

58.0

350.5

1,342.5

655.0

    Other Assets

93.1

-167.4

-40.0

-278.3

196.8

    Accounts Payable

32.0

1,225.2

-303.5

-444.8

-206.7

    Other Liabilities

-62.2

139.9

-537.9

-702.6

-517.4

    Other Operating Cash Flow

86.1

70.8

14.9

27.7

-76.4

Changes in Working Capital

-145.4

366.7

-119.4

627.0

-773.7

Cash from Operating Activities

379.6

832.7

12.8

173.8

-394.3

 

 

 

 

 

 

    Purchase of Fixed Assets

-407.4

-222.1

-561.0

-121.3

-112.9

Capital Expenditures

-407.4

-222.1

-561.0

-121.3

-112.9

    Sale of Business

-

46.9

-21.1

0.0

-

    Sale of Fixed Assets

9.4

50.0

11.3

2.3

6.7

    Sale/Maturity of Investment

120.4

197.9

284.6

66.7

148.1

    Purchase of Investments

-75.1

-101.5

-102.7

-87.4

-97.3

    Other Investing Cash Flow

1.3

4.5

2.2

2.5

72.3

Other Investing Cash Flow Items, Total

56.0

197.8

174.3

-15.9

129.9

Cash from Investing Activities

-351.3

-24.3

-386.7

-137.2

16.9

 

 

 

 

 

 

    Other Financing Cash Flow

-171.8

-174.2

-162.9

-86.2

-421.7

Financing Cash Flow Items

-171.8

-174.2

-162.9

-86.2

-421.7

    Cash Dividends Paid - Common

-69.3

-72.8

-67.1

-61.9

-57.3

Total Cash Dividends Paid

-69.3

-72.8

-67.1

-61.9

-57.3

    Short Term Debt, Net

79.6

-328.0

-174.0

-466.5

562.8

        Long Term Debt Issued

500.5

802.9

807.1

910.3

834.3

        Long Term Debt Reduction

-688.2

-847.9

-279.2

-464.9

-296.7

    Long Term Debt, Net

-187.8

-45.0

527.9

445.3

537.5

Issuance (Retirement) of Debt, Net

-108.2

-373.0

353.8

-21.2

1,100.3

Cash from Financing Activities

-349.2

-619.9

123.9

-169.3

621.3

 

 

 

 

 

 

Foreign Exchange Effects

55.9

-27.9

-23.3

10.0

-91.7

Net Change in Cash

-265.1

160.6

-273.4

-122.6

152.1

 

 

 

 

 

 

Net Cash - Beginning Balance

1,466.6

1,380.4

1,545.4

1,547.4

1,279.2

Net Cash - Ending Balance

1,201.5

1,541.0

1,272.0

1,424.8

1,431.3

Cash Interest Paid

42.6

50.2

44.0

43.0

36.8

Cash Taxes Paid

55.6

26.4

37.8

44.7

145.9

 


 Annual Income Statement

 

 

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

Ernst & Young ShinNihon LLC

Ernst & Young ShinNihon LLC

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified with Explanation

 

 

 

 

 

 

    Rounding adjustment Income Statement

-

0.0

-

-

-

    Construction Sales

16,188.7

14,819.8

12,311.0

13,931.6

16,088.0

    Real Estate Sales

1,267.0

957.2

897.6

501.8

655.5

Total Revenue

17,455.7

15,777.0

13,208.6

14,433.4

16,743.5

 

 

 

 

 

 

    Rounding adjustment Income Statement

0.0

-

-

-

-

    Rounding adjustment Income Statement

0.0

0.0

-

-

-

    Cost of Construction

15,055.0

13,589.6

11,334.9

13,793.7

15,179.1

    Cost of Real Estate

1,018.4

785.7

710.1

483.0

500.8

    Salaries

395.0

400.9

367.4

331.5

323.6

    Accrued Retirement Expenses

28.1

32.9

32.8

33.2

26.8

    Resarch & Development

105.4

115.2

99.9

86.3

72.3

    Other Selling/General/Admin. Expense

430.1

458.3

-

-

-

    Provision for doubtful accounts(SGA)

-

-

-

20.2

-

    Other SGA

-

-

393.2

358.4

368.5

    Other Unusual Expense (Income)

0.0

-

-

-

-

    Provision and other for loss on real est

31.8

-

-

-

-

    Earthquake recovery support costs

-

11.4

-

-

-

    SP Reversal-Doubt Debt

-

-

-

-

-1.9

    SP Other Special Gains

-8.0

-18.0

-11.3

-2.6

-1.9

    SP Impairment Loss

38.2

250.2

41.1

92.2

14.7

    SP L on val. of LT inv't. secs.

-

35.2

53.9

9.5

39.7

    SP Earthquake recovery support costs

-

-

1.6

-

-

    SP L on Ajust for Accting. assets change

-

-

15.0

0.0

-

    SP Loss Retirement Fixed Assets

-

-

-

-

4.3

    SP Loss Val R.E-Sale

-

-

-

0.0

31.2

    SP Settlement Expanses

-

-

0.0

18.9

0.0

    SP Tenant Relocation Compens.

-

-

0.0

18.8

15.0

    SP Other Special Loss

31.9

37.6

21.2

34.1

4.6

Total Operating Expense

17,125.8

15,699.0

13,059.6

15,277.3

16,576.9

 

 

 

 

 

 

    SP Gain-Fix Asset Sold

-

-

-

-

2.2

    Foreign Exchange Gains

54.9

7.4

-

-

-

    SP G on sale of LT inv't. secs.

51.9

179.1

96.3

22.7

62.4

    SP L liquid. of affiliated companies

-

-10.1

0.0

-

-

    SP Loss Sale Fixed Assets

-

-

-

-

-5.5

    NOP Interest Income

30.8

26.1

13.5

15.3

17.3

    NOP Dividend Income

65.9

67.6

63.2

56.0

68.4

    NOP Exchange Gain

-

-

0.0

-

-

    Other Non-Operating Income (Expense)

0.0

0.0

-

-

-

    NOP Other Income

13.2

8.4

8.3

18.4

20.7

    NOP Interest Expenses

-42.0

-49.2

-44.3

-42.9

-37.5

    NOP Exchange Loss

-

0.0

-30.1

-3.8

-13.3

    NOP Provision for doubtful accounts

-

-

-11.1

0.0

-

    NOP Other Expenses

-7.8

-8.4

-10.6

-11.7

-11.3

Net Income Before Taxes

496.7

298.8

233.9

-789.7

270.1

 

 

 

 

 

 

Provision for Income Taxes

291.0

225.0

53.9

-234.0

126.3

Net Income After Taxes

205.6

73.8

180.0

-555.7

143.8

 

 

 

 

 

 

    Minority interests in income (loss)

-46.6

-8.6

0.0

-18.3

-34.6

Net Income Before Extra. Items

159.0

65.1

180.0

-574.0

109.2

Net Income

159.0

65.1

180.0

-574.0

109.2

 

 

 

 

 

 

    BI-Net income incl. after tax adj.

0.0

-

-

-

-

    Miscellaneous Earnings Adjustment

-

0.0

-

-

-

    Rounding Adjustment

-

-

0.0

0.0

0.0

Income Available to Com Excl ExtraOrd

159.0

65.1

180.0

-574.1

109.1

 

 

 

 

 

 

Income Available to Com Incl ExtraOrd

159.0

65.1

180.0

-574.1

109.1

 

 

 

 

 

 

Basic Weighted Average Shares

718.2

718.4

718.7

719.0

719.4

Basic EPS Excluding ExtraOrdinary Items

0.22

0.09

0.25

-0.80

0.15

Basic EPS Including ExtraOrdinary Items

0.22

0.09

0.25

-0.80

0.15

Dilution Adjustment

-

-

0.0

0.0

0.0

Diluted Net Income

159.0

65.1

180.0

-574.1

109.1

Diluted Weighted Average Shares

718.2

718.4

718.7

719.0

719.4

Diluted EPS Excluding ExtraOrd Items

0.22

0.09

0.25

-0.80

0.15

Diluted EPS Including ExtraOrd Items

0.22

0.09

0.25

-0.80

0.15

DPS-Ordinary Shares

0.10

0.10

0.09

0.09

0.08

Gross Dividends - Common Stock

69.2

72.8

67.1

61.9

57.3

Normalized Income Before Taxes

590.5

625.4

355.4

-618.7

379.2

 

 

 

 

 

 

Inc Tax Ex Impact of Sp Items

346.0

339.3

82.0

-174.2

177.4

Normalized Income After Taxes

244.5

286.1

273.4

-444.5

201.8

 

 

 

 

 

 

Normalized Inc. Avail to Com.

197.9

277.4

273.5

-462.9

167.2

 

 

 

 

 

 

Basic Normalized EPS

0.28

0.39

0.38

-0.64

0.23

Diluted Normalized EPS

0.28

0.39

0.38

-0.64

0.23

Interest expense, supplemental

42.0

49.2

44.3

42.9

37.5

BC - Depreciation of Fixed Assets

131.6

-

-

-

-

Amort of Tangible Assets-Current Portion

-

151.4

-

-

-

Depreciation, supplemental

-

-

133.0

113.3

109.0

Research Expenses

105.4

115.2

99.9

86.3

72.3

    Income taxes-current

73.8

37.5

-

-

-

Current Tax - Total

73.8

37.5

-

-

-

    Income taxes-deferred

217.2

187.5

-

-

-

Deferred Tax - Total

217.2

187.5

-

-

-

Income Tax - Total

291.0

225.0

-

-

-

Reported Operating Profit

423.7

394.4

270.4

-672.8

272.3

Reported Ordinary Profit

538.6

446.3

259.2

-641.4

316.8

Service cost

56.2

61.1

56.8

53.8

51.4

Interest cost

40.4

44.4

42.5

40.7

38.9

Expected return on plan assets

-19.7

-21.3

-20.1

-17.6

-19.8

Actuarial G&L

23.0

32.6

38.0

38.9

24.4

Prior service cost

0.4

0.3

-0.5

-0.5

-0.4

Domestic Pension Plan Expense

100.4

117.1

116.6

115.3

94.5

Total Pension Expense

100.4

117.1

116.6

115.3

94.5

Discount Rate(MIN)-Retirement Cost(Domes

1.80%

1.80%

-

-

-

Discount Rate

-

-

1.80%

1.80%

1.80%

Expected return on assets(MIN)-Retiremen

1.80%

1.80%

-

-

-

Expected Rate of Return

-

-

1.80%

1.80%

1.80%

 






 

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

Ernst & Young ShinNihon LLC

Ernst & Young ShinNihon LLC

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified with Explanation

 

 

 

 

 

 

    Cash & Deposit

1,059.8

1,477.4

1,315.5

1,465.8

1,464.4

    Notes receivable, accounts receivable fr

5,645.7

5,905.7

5,023.7

4,639.5

5,031.2

    Short-term investment securities

33.0

33.8

43.6

17.9

19.7

    Inventories - real est. held for sale

218.4

495.7

299.1

587.7

621.8

    Inventories - construc.-in-process

509.8

585.7

637.3

886.6

2,102.0

    PFI Inventory

706.9

796.3

783.4

638.0

630.7

    Costs on real estate business

190.3

183.2

95.4

-

-

    Other inventories

54.7

65.5

77.3

122.3

122.0

    Defer Tax Asset

220.6

223.1

325.8

275.4

389.9

    Accounts receivable-other

705.8

888.4

1,179.1

956.4

674.1

    Rounding adjustment Assets

0.1

0.1

-

-

-

    Other Current

148.7

136.2

131.9

133.7

162.4

    Doubt Debt Allow

-3.3

-9.0

-9.2

-10.9

-5.7

Total Current Assets

9,490.4

10,782.0

9,902.9

9,712.5

11,212.6

 

 

 

 

 

 

    Other total PPE

0.0

-

-

-

-

    Buildings And Structures

1,006.8

951.3

965.2

708.6

-

    Machinery, Vehicles, Tools, Fur&Fixtures

110.0

103.1

120.7

100.4

-

    Land, net

2,867.9

3,177.7

3,221.0

2,576.7

-

    Lease assets, net

3.7

7.4

12.5

13.5

-

    Constr in Progr., net

13.0

108.2

26.7

18.8

-

    Buildings & Structures

-

-

-

-

1,686.1

    Machineries

-

-

-

-

730.3

    Land

-

-

-

-

2,482.4

    Lease Assets

-

-

-

-

22.8

    Constr in Progr

-

-

-

-

4.1

    Depreciation

-

-

-

-

-1,590.5

    Intangible assets

57.5

-

-

-

-

    Total intangible assets

-

73.4

86.0

64.2

69.1

    Other LTinvest.

3,334.1

3,173.0

-

-

-

    Investment Sec.

-

-

2,995.3

3,142.2

2,412.1

    Invt Secs Noncons, Asc, Affd Cos

39.2

35.9

-

-

-

    Equity secs.-nonconsolidated affil.

-

-

35.6

31.9

-

    Long-term loans receivable

46.1

42.0

12.5

12.8

15.0

    Rounding adjustment Assets

0.0

-

-

-

-

    Other Total investments and other assets

0.0

-

-

-

-

    Other Long Term Assets

-

0.0

-

-

-

    Other Other Long Term Assets

-

0.0

-

-

-

    Deferred tax assets

41.2

483.8

552.3

395.9

234.8

    Other Assets

641.7

767.6

295.1

289.3

223.0

    Doubt Debt Allow

-48.2

-57.0

-58.8

-43.8

-31.0

    Deferred Assets

0.1

0.1

0.2

0.5

0.6

    Rounding Adjustment

-

-

-

-

0.0

    Other total PPE, net

-

0.0

-

-

-

Total Assets

17,603.5

19,648.5

18,167.1

17,023.3

17,471.2

 

 

 

 

 

 

    Notes payable, accounts payable for cons

5,646.8

6,379.0

5,180.6

4,848.8

4,999.1

    Short-term loans payable

1,345.8

1,608.5

666.4

614.9

1,073.8

    Current portion of PFI and other project

72.0

129.6

161.0

114.5

68.7

    Current Port. of LT Debt

-

-

505.3

134.4

-

    Commercial Paper

53.1

0.0

482.6

535.1

668.2

    Straight bonds (current)

106.3

0.0

120.7

107.0

202.5

    Lease Debt

1.3

3.9

6.1

6.7

7.6

    Income Tax Pybl.

39.1

29.0

19.7

24.5

28.4

    Deferred tax liabilities (current)

6.3

5.6

10.0

0.0

-

    Advances

654.5

755.6

724.0

1,013.7

1,649.0

    Deposits received

645.7

841.6

776.1

773.8

710.9

    Rounding adjustment Liability

0.1

0.1

-

-

-

    Warranty Reserve

30.2

32.1

23.9

17.7

14.3

    Construction Loss Allowance

65.6

89.5

109.7

275.3

188.5

    Other Current

731.4

790.3

720.5

578.6

574.7

Total Current Liabilities

9,398.3

10,664.7

9,506.6

9,045.2

10,185.8

 

 

 

 

 

 

    Corporate Debt

637.7

728.3

603.3

214.0

303.7

    Long-term loans payable

1,112.8

1,557.1

1,499.3

1,709.1

932.5

    Project Fin Loan

797.8

893.8

899.4

756.0

788.3

    Lease Debt

1.7

2.7

5.8

7.5

8.2

Total Long Term Debt

2,550.0

3,182.0

3,007.8

2,686.7

2,032.7

 

 

 

 

 

 

    Deferred Tax Liabilities

47.6

-

-

-

-

    Defer Tax Liab

-

-

-

-

0.0

    Reval Defer Tax

304.9

361.5

420.0

361.8

294.6

    Provision For Loss On Real Estate Busine

10.6

-

-

-

-

    Accrued Retirem.

659.9

768.7

784.1

707.7

677.5

    Environment Reserves

11.0

12.5

12.8

15.5

5.0

    Rounding adjustment Liability

0.0

0.0

-

-

-

    Other LT Liab

214.1

222.6

197.4

272.1

268.3

    Minority Int.

318.0

303.8

305.9

271.7

250.5

Total Liabilities

13,514.5

15,515.9

14,234.5

13,360.8

13,714.3

 

 

 

 

 

 

    Other Equity

0.0

0.0

-

-

-

    Common Stock

613.8

701.0

696.8

618.1

584.7

    Total capital surpluses

443.7

506.8

503.7

446.8

422.7

    Total retained earnings

1,718.2

1,848.4

1,830.2

1,489.5

2,054.7

    Treasury Stock

-16.4

-18.6

-16.6

-14.3

-12.6

    Valuation difference on available-for-sa

1,134.1

876.3

722.3

875.9

474.9

    Deferred hedge gain/loss

-1.1

-1.7

1.0

-0.6

-0.7

    Reserve by valuation of land

227.3

282.8

246.7

280.7

268.1

    Translation Adjustment

-30.5

-62.5

-51.4

-33.5

-34.9

Total Equity

4,089.0

4,132.6

3,932.6

3,662.5

3,756.9

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

17,603.5

19,648.5

18,167.1

17,023.3

17,471.2

 

 

 

 

 

 

    S/O-Ordinary Shares

718.2

718.3

718.7

718.8

719.0

Total Common Shares Outstanding

718.2

718.3

718.7

718.8

719.0

T/S-Ordinary Shares

3.3

3.2

2.8

2.7

2.5

Advanced received on construction

654.5

755.6

724.0

1,013.7

1,649.0

Full-Time Employees

12,838

12,870

14,639

14,476

15,150

Total Number of Shareholders

41,388

41,011

-

-

-

Number of Common Shareholders

-

-

41,396

39,830

39,299

Within One Year

106.3

-

-

-

-

Division And End Of Current Period Remai

53.1

-

-

-

-

Division And End Of Current Period Remai

558.1

793.1

-

-

-

LT Debts Maturing within 1yr.

-

-

786.9

355.9

492.2

Over One Year And Within Two Years

0.0

121.4

-

-

-

Lns Pble Maturing over a Yr within 2 Yrs

781.0

649.6

-

-

-

LT Debts Maturing within 2yr.

-

-

610.8

657.2

285.4

Over Two Years And Within Three Years

265.7

-

-

-

-

Lns Pble Maturg over 2 Yrs within 3 Yrs

257.3

829.8

-

-

-

LT Debts Maturing within 3yr.

-

-

532.9

512.6

489.5

Over Three Years And Within Four Years

106.3

303.5

-

-

-

Over Four Years And Within Five Years

265.7

121.4

-

-

-

Lns Pble Maturg over 3 Yrs within 4 Yrs

184.4

231.5

-

-

-

LT Debts Maturing within 4yr.

-

-

638.2

415.0

355.0

Lns Pble Maturg over 4 Yrs within 5 Yrs

105.3

152.3

-

-

-

LT Debts Maturing within 5yr.

-

-

412.5

535.4

326.6

Other remaining

582.6

-

-

-

-

Other LT within 1 year

-

587.7

-

-

-

Other Total Long Term Debt, Supplemental

-

182.1

-

-

-

Remaining

-

-

807.6

558.9

568.1

Total Long Term Debt, Supplemental

3,265.8

3,972.3

3,788.9

3,035.0

2,516.7

Capital Lease Due Within 1 Year

1.3

-

6.1

6.7

7.6

Cap Lease Maturg over a Yr within 2 Yrs

0.8

-

-

-

-

Capital Lease Due Within 2 Year

-

-

3.7

4.3

4.5

Cap Lease Maturg over 2 Yr within 3 Yrs

0.5

-

-

-

-

Capital Lease Due Within 3 Year

-

-

1.2

2.2

2.4

Cap Lease Maturg over 3 Yr within 4 Yrs

0.3

-

-

-

-

Capital Lease Due Within 4 Year

-

-

0.5

0.6

1.0

Cap Lease Maturg over 4 Yr within 5 Yrs

0.1

-

-

-

-

Capital Lease Due Within 5 Year

-

-

0.3

0.3

0.3

Other lease

0.1

-

-

-

-

Capital Lease Remaining Maturities

-

-

0.1

0.1

0.0

Total Capital Leases, Supplemental

3.1

-

11.9

14.2

15.8

Pension obligation

1,409.1

1,663.7

1,709.2

1,579.1

1,551.4

Fair value of plan assets

729.8

810.3

815.2

743.2

668.3

Funded Status

-679.3

-853.4

-894.0

-835.9

-883.1

Total Funded Status

-679.3

-853.4

-894.0

-835.9

-883.1

Discount rate

1.80%

1.80%

1.80%

1.80%

1.80%

Expected rate of return

1.80%

1.80%

1.80%

1.80%

1.80%

Unrecognized Actuarial Gains and Losses

18.3

84.0

110.5

129.4

208.6

Unrecognized Prior Service Cost

2.9

3.2

-0.6

-1.0

-1.4

Prepaid Pension Benefits

1.8

2.8

0.0

0.2

1.6

Reserve for Accrued Retirement Benefits

-659.9

-768.7

-784.1

-707.7

-677.5

Net Assets Recognized on Balance Sheet

-636.9

-678.7

-674.1

-579.2

-468.8

 

 

 

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

Ernst & Young ShinNihon LLC

Ernst & Young ShinNihon LLC

Ernst & Young LLP

Ernst & Young LLP

Ernst & Young LLP

Auditor Opinion

Unqualified

Unqualified

Unqualified with Explanation

Unqualified with Explanation

Unqualified with Explanation

 

 

 

 

 

 

Income Before Tax

496.7

298.8

233.9

-789.7

270.1

    Depreciation

131.6

151.4

133.0

113.3

109.0

    L/G on valuation of ST and LT investment

1.5

-

-

-

-

    Impairment Loss

38.2

250.2

41.1

92.2

14.7

    Inc./Dec. in Prov. for Retire. Benefit

-15.1

-

-

-

-

    Increase (decrease) in allowance for dou

-7.3

-2.6

6.2

16.0

-1.8

    Increase (decrease) in provision for los

-14.5

-21.7

-194.0

76.5

40.2

    Increase (decrease) in provision for ret

-

-21.8

-13.4

-8.5

-13.2

    Loss (gain) on valuation of short-term a

-

35.2

53.9

0.0

39.7

    L on val. Real Estate for Sale

-

-

0.0

95.7

31.2

    Int.& Dividend Inc.

-96.6

-93.8

-76.6

-71.4

-85.8

    Interest Expenses

42.0

49.2

44.3

42.9

37.5

    G/L on the sale of fixed assets

-

-

-

-

0.0

    Loss (gain) on sales of short-term and l

-51.5

-179.1

-96.1

-20.2

-62.1

    Decrease (increase) in notes and account

-491.8

-906.3

238.2

689.6

-720.3

    Decrease (increase) in costs on uncomple

3.5

58.0

350.5

1,342.5

655.0

    Other Receivables

-

-

-

-

0.0

    Decrease (increase) in inventories

204.7

-44.9

220.3

-35.8

-101.8

    Decrease (increase) in inventories for P

-10.8

-8.6

-62.0

28.9

-3.0

    Decrease (increase) in other assets

93.1

-167.4

-40.0

-278.3

196.8

    Increase (decrease) in notes and account

32.0

1,225.2

-303.5

-444.8

-206.7

    Increase (decrease) in advances received

-17.2

31.8

-420.0

-734.5

-434.9

    Other Payable

-

-

-

-

0.0

    Increase (decrease) in other liabilities

-45.0

108.1

-117.9

31.9

-82.5

    Other, net

89.5

52.1

21.5

40.7

20.4

    Int.& Dividend Rcv'd

94.8

95.4

75.2

74.7

85.9

    Interest Paid

-42.6

-50.2

-44.0

-43.0

-36.8

    Income taxes (paid) refund

-55.6

-26.4

-37.8

-44.7

-145.9

    Cash to change in consol. scope

-

-

-

-

-0.1

    Adjustment

-

-

-0.1

-

-

Cash from Operating Activities

379.6

832.7

12.8

173.8

-394.3

 

 

 

 

 

 

    Time deposit made

-

-

-64.1

-69.3

0.0

    Time deposit matured

-

-

115.6

29.7

0.0

    Purchase of property, plant and equipmen

-407.4

-222.1

-561.0

-121.3

-112.9

    Proceeds from sales of property, plant a

9.4

50.0

11.3

2.3

6.7

    Purchase of short-term and long term inv

-61.5

-68.8

-37.7

-17.3

-96.1

    Proceeds from sales and redemption of sh

120.4

197.9

169.0

37.0

148.1

    Rounding adjustment Cash flow

-

0.0

-

-

-

    Loans Made

-13.6

-32.7

-0.9

-0.8

-1.1

    Loans Returned

2.3

2.2

2.0

2.5

72.4

    Proceeds from purchase of investments in

-

46.9

-21.1

0.0

-

    Other, net

-0.9

2.2

0.2

-

0.0

    Other Investing CF

-

-

-

0.0

-0.1

Cash from Investing Activities

-351.3

-24.3

-386.7

-137.2

16.9

 

 

 

 

 

 

    Net increase (decrease) in short-term lo

19.3

178.6

-57.3

-294.3

214.4

    Net increase (decrease) in commercial pa

60.3

-506.6

-116.7

-172.2

348.3

    Lease Debt Repaid

-3.9

-7.9

-8.9

-9.2

-9.3

    Proceeds From PFI And Other Project Fina

137.7

-

-

-

-

    Proceeds from long-term loans payable

242.3

552.5

113.2

872.6

445.1

    Repayment of long-term loans payable

-684.4

-713.3

-153.6

-240.6

-187.9

    Proceeds from PFI and other project fina

-

123.8

227.1

37.7

389.2

    Payment of PFI and other project finance

-167.5

-169.0

-150.7

-73.3

-396.4

    Bond issued

120.5

126.6

466.8

0.0

-

    Bond redemption

-

-126.6

-116.7

-215.2

-99.5

    Dividend Paid

-69.3

-72.8

-67.1

-61.9

-57.3

    Rounding adjustment Cash flow

0.0

0.0

-

-

-

    Div. Paid-Newly Cons. Mino. shareholders

-

-

-

-

0.0

    Dividend Paid-Minority

-3.9

-3.2

-11.6

-12.5

-22.1

    Other, net

-0.4

-1.9

-0.5

-0.5

-3.2

Cash from Financing Activities

-349.2

-619.9

123.9

-169.3

621.3

 

 

 

 

 

 

Foreign Exchange Effects

55.9

-27.9

-23.3

10.0

-91.7

Net Change in Cash

-265.1

160.6

-273.4

-122.6

152.1

 

 

 

 

 

 

Net Cash - Beginning Balance

1,466.6

1,380.4

1,545.4

1,547.4

1,279.2

Net Cash - Ending Balance

1,201.5

1,541.0

1,272.0

1,424.8

1,431.3

    Cash Interest Paid

42.6

50.2

44.0

43.0

36.8

    Cash Taxes Paid

55.6

26.4

37.8

44.7

145.9

 

 

Financial Health

 

Key Indicators USD (mil)

 

Quarter
Ending
30-Jun-2013

Quarter
Ending
Yr Ago

Annual
Year End
31-Mar-2013

1 Year
Growth

3 Year
Growth

5 Year
Growth

Total Revenue1 (?)

3,353.7

11.26%

17,455.7

16.26%

2.59%

-3.06%

Research & Development1 (?)

-

-

105.4

-3.86%

2.92%

4.70%

Operating Income1 (?)

19.4

-24.85%

329.8

344.47%

-

7.01%

Income Available to Common Excl Extraord Items1 (?)

32.2

55.74%

159.0

156.61%

-

-6.63%

Basic EPS Excl Extraord Items1 (?)

0.04

55.75%

0.22

156.69%

-

-6.59%

Capital Expenditures2 (?)

-

-

407.4

92.71%

44.21%

-2.90%

Cash from Operating Activities2 (?)

-

-

379.6

-52.10%

24.92%

-

Free Cash Flow (?)

-

-

-24.5

-

-

-

Total Assets3 (?)

17,566.7

9.22%

17,603.5

2.32%

1.36%

-2.23%

Total Liabilities3 (?)

13,527.6

5.75%

13,514.5

-0.53%

0.61%

-1.96%

Total Long Term Debt3 (?)

2,589.1

-0.67%

2,550.0

-8.48%

-1.50%

4.27%

Employees3 (?)

-

-

12838

-0.25%

-3.92%

-3.18%

Total Common Shares Outstanding3 (?)

718.2

-0.01%

718.2

-0.01%

-0.03%

-0.04%

1-ExchangeRate: JPY to USD Average for Period

98.564314

 

82.970472

 

 

 

2-ExchangeRate: JPY to USD Average for Period

 

 

82.970472

 

 

 

3-ExchangeRate: JPY to USD Period End Date

98.239969

 

94.088557

 

 

 

Utility Industry Specific USD (mil)

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

 

Deferred Charges3 (?)

0.1

0.1

0.2

0.5

0.6

 

3-ExchangeRate: JPY to USD Period End Date

94.088557

82.385362

82.880000

93.440000

98.770000

 

Key Ratios

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Profitability

Gross Margin (?)

7.92%

8.88%

8.81%

1.09%

6.35%

Operating Margin (?)

1.89%

0.49%

1.13%

-5.85%

0.99%

Pretax Margin (?)

2.85%

1.89%

1.77%

-5.47%

1.61%

Net Profit Margin (?)

0.91%

0.41%

1.36%

-3.98%

0.65%

Financial Strength

Current Ratio (?)

1.01

1.01

1.04

1.07

1.10

Long Term Debt/Equity (?)

0.62

0.77

0.76

0.73

0.54

Total Debt/Equity (?)

1.01

1.19

1.26

1.15

1.08

Management Effectiveness

Return on Assets (?)

1.04%

0.37%

1.00%

-3.11%

0.81%

Return on Equity (?)

3.64%

1.54%

4.62%

-14.96%

2.67%

Efficiency

Receivables Turnover (?)

2.51

2.32

2.19

2.47

3.11

Inventory Turnover (?)

8.00

6.84

5.65

4.81

4.30

Asset Turnover (?)

0.88

0.80

0.73

0.81

0.94

Market Valuation USD (mil)

P/E (TTM) (?)

29.87

.

Enterprise Value2 (?)

8,352.4

Price/Sales (TTM) (?)

0.29

.

Enterprise Value/Revenue (TTM) (?)

0.55

Price/Book (MRQ) (?)

1.08

.

Enterprise Value/EBITDA (TTM) (?)

18.14

Market Cap as of 11-Oct-20131 (?)

4,383.0

.

 

 

1-ExchangeRate: JPY to USD on 11-Oct-2013

98.109887

 

 

 

2-ExchangeRate: JPY to USD on 30-Jun-2013

98.239969

 

 

 

 

 

 Annual Ratios

 

 



 

 

31-Mar-2013

31-Mar-2012

31-Mar-2011

31-Mar-2010

31-Mar-2009

Financial Strength

Current Ratio (?)

1.01

1.01

1.04

1.07

1.10

Quick/Acid Test Ratio (?)

0.79

0.78

0.79

0.78

0.71

Working Capital1 (?)

92.1

117.3

396.3

667.3

1,026.8

Long Term Debt/Equity (?)

0.62

0.77

0.76

0.73

0.54

Total Debt/Equity (?)

1.01

1.19

1.26

1.15

1.08

Long Term Debt/Total Capital (?)

0.31

0.35

0.34

0.34

0.26

Total Debt/Total Capital (?)

0.50

0.54

0.56

0.53

0.52

Payout Ratio (?)

43.55%

111.78%

37.28%

-10.78%

52.48%

Effective Tax Rate (?)

58.60%

75.31%

23.06%

-

46.78%

Total Capital1 (?)

8,217.6

9,056.5

8,882.5

7,861.8

7,810.5

 

 

 

 

 

 

Efficiency

Asset Turnover (?)

0.88

0.80

0.73

0.81

0.94

Inventory Turnover (?)

8.00

6.84

5.65

4.81

4.30

Days In Inventory (?)

45.60

53.39

64.65

75.95

84.91

Receivables Turnover (?)

2.51

2.32

2.19

2.47

3.11

Days Receivables Outstanding (?)

145.70

157.09

166.91

147.58

117.51

Revenue/Employee2 (?)

1,199,018

1,174,925

932,895

991,734

1,124,365

Operating Income/Employee2 (?)

22,656

5,807

10,519

-57,984

11,186

EBITDA/Employee2 (?)

31,693

17,081

19,910

-50,197

18,508

 

 

 

 

 

 

Profitability

Gross Margin (?)

7.92%

8.88%

8.81%

1.09%

6.35%

Operating Margin (?)

1.89%

0.49%

1.13%

-5.85%

0.99%

EBITDA Margin (?)

2.64%

1.45%

2.13%

-5.06%

1.65%

EBIT Margin (?)

1.89%

0.49%

1.13%

-5.85%

0.99%

Pretax Margin (?)

2.85%

1.89%

1.77%

-5.47%

1.61%

Net Profit Margin (?)

0.91%

0.41%

1.36%

-3.98%

0.65%

R&D Expense/Revenue (?)

0.60%

0.73%

0.76%

0.60%

0.43%

COGS/Revenue (?)

92.08%

91.12%

91.19%

98.91%

93.65%

SG&A Expense/Revenue (?)

4.89%

5.65%

6.01%

5.15%

4.29%

 

 

 

 

 

 

Management Effectiveness

Return on Assets (?)

1.04%

0.37%

1.00%

-3.11%

0.81%

Return on Equity (?)

3.64%

1.54%

4.62%

-14.96%

2.67%

 

 

 

 

 

 

Valuation

Free Cash Flow/Share2 (?)

-0.03

0.81

-0.79

0.07

-0.72

Operating Cash Flow/Share 2 (?)

0.47

1.11

0.02

0.24

-0.56

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) (?)

30.01

Market Cap/Equity (MRQ) (?)

1.08

Market Cap/Revenue (TTM) (?)

0.29

Market Cap/EBIT (TTM) (?)

12.57

Market Cap/EBITDA (TTM) (?)

9.51

Enterprise Value/Earnings (TTM) (?)

57.26

Enterprise Value/Equity (MRQ) (?)

2.07

Enterprise Value/Revenue (TTM) (?)

0.55

Enterprise Value/EBIT (TTM) (?)

23.99

Enterprise Value/EBITDA (TTM) (?)

18.14

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.50

UK Pound

1

Rs.99.49

Euro

1

Rs.84.88

 

 

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%)