MIRA INFORM REPORT

 

 

Report Date :

12.04.2014

 

IDENTIFICATION DETAILS

 

Name :

JTEKT CORPORATION

 

 

Registered Office :

Midland Square 15F, 4-7-1 Meieki Nakamuraku Nagoya 450-8515

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

January 1935

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of steering systems, driveline components, bearings, machine tools, sensor systems, mechatronics components, electronic control devices & home accessory equipment

 

 

No. of Employees

Consolidated:        43,086 (as of September 30,2013)
Nonconsolidated:  11,026 (as of September 30,2013)

 

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 Limit :

Yen 28,906.6 Million

 

 

Status :

Satisfactory 

 

 

Payment Behaviour :

No Complaints 

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

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 2013 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 225% 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

 

JTEKT CORPORATION

 

 

REGD NAME

 

KK JTEKT

 

NAGOYA OFFICE

 

Midland Square 15F, 4-7-1 Meieki Nakamuraku Nagoya 450-8515 JAPAN

 

Tel: 052-527-1900     Fax: 052-527-1911

 

OSAKA OFFICE

 

3-5-8 Minamisemba Chuoku Osaka 542-8502 JAPAN

 

Tel: 06-6271-8451     Fax: 06-6245-7892

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

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

 

 

ACTIVITIES  

 

Manufacturer of steering systems, driveline components, bearings, machine tools, sensor systems, mechatronics components, electronic control devices & home accessory equipment

 

 

BRANCHES   

 

Osaka, Nagoya, Toyota, Kariya, Yokohama, Nara, Hamamatsu, other (Tot 49)

 


OVERSEAS   

 

(Subsidiaries): USA (19), Brazil (3), Argentina, Canada, Panama, Mexico, France (7), Netherlands (3), UK (3), Germany (2), Czech Republic (2), Italy, Belgium (2), Romania, Sweden, Spain, China (30), Thailand (5), Korea (2), Singapore, Australia, Malaysia, Philippines

 

 

FACTOR(IES)

 

Nara, Osaka, Okazaki, Toyohashi, Tagomisaki, Kokubu, Tokushima, Tokyo, Kagawa, Kameyama, Kariya,

Higashikariya (Tot 12)

 

 

CHIEF EXEC 

 

TETSUO AGATA,, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 1,067,526 M

PAYMENTSNo Complaints    CAPITAL           Yen 45,591 M

TREND STEADY                       WORTH            Yen 384,243 M

STARTED         1935                            

 

 

EMPLOYEES 

 

Consolidated:               43,086 (as of September 30,2013)
Nonconsolidated:          11,026 (as of September 30,2013)

 

COMMENT    

 

MFR SPECIALIZING IN BEARINGS & STEERING SYSTEMS FOR AUTOMOBILE, AFFILIATED TO TOYOTA MOTOR.

           

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 28,906.6 MILLION, 30 DAYS NORMAL TERMS.

           


 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

769,682

-252

-19,413

(%)

315,159

(Consolidated)

31/03/2011

955,470

40,263

20,052

24.14

336,086

31/03/2012

1,052,671

38,649

12,303

10.17

342,340

31/03/2013

1,067,526

34,240

13,862

1.41

384,243

31/03/2014

1,240,000

61,000

19,000

16.16

..

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is one of the leading mfr and associated with Toyota Motor.  Highly reliant on auto industry with power steering systems being world-strategy product.  Merged with Toyota Machine Works in Jan 2006, with Koyo Seiko as existing entity.  By the merger, newly added machine tools & driveline components businesses.  The firm developed world’s first electronically controlled power steering in 1983, followed by world’s first electric power steering in 1988.  Aggressively engaged in overseas activities

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 1,057,525 million, a 1.4% up from Yen 1,052,671 million in the previous term.   The recurring profit was posted at Yen 34,240 million and the net profit at Yen 13,862 million, respectively, compared with Yen 38,649 million recurring profit and Yen 12,303 million net profit, respectively, a year ago.

 

(Apr/Dec/2013 results): sales Yen 926,168 million (up 19.0%), operating profit Yen 41,255 million (up 118.5%), recurring profit Yen45,764 million (up 130.8%) net profit Yen 13,526 million (up 104.2%).  (% compared with the corresponding period a year ago).

 

For the that ended Mar 2014 the recurring profit was projected at Yen 61,000 million and the net profit at Yen 19,000 million, respectively, on a 16.2% rise in turnover, to Yen 1,240,000 million.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 28,906.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Jan 1935

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         1,200 million shares

Issued:             342,186,207 shares

Sum:                   Yen 45,591 million

 

Major shareholders (%): Toyota Motor (22.5), Master Trust Bank of Japan T (6.1), Japan Trustee Services Bank T (6.5), Denso Corp (53.5), Nippon Life Ins (3.5) Toyota Industries (223), Resona Bank (1.9), Sumitomo Trust Bank (2.1), SMBC (1.8), Toyota Tsusho Corp (1.7); foreign owners (16.3)

 

No. of shareholders: 15,679

           

Listed on the S/E of; Tokyo

            *..

Managements: Atsusi Niimi, ch; Shoji Ikawa, v ch; Tetsuo Agta, pres; Takaaki Suzuki, v pres; Seiho Kawakami, v pres; Masakazu Isaka, v pres; Noriya Murase, s/mgn dir; Tetsuji Okuda, s/mgn dir; Shiro Nakano, mgn dir; Atsushi Kume, mgn dir; Hiroyuki Miyazaki, mgn dir

 

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

 

Related companies: Koyo Machine Ind, JTEKT North America Inc, Koyo Canada Inc, JTEKT Europe, JTEKT Automotive UK, JTEKT (China) Co, other )

           

 

OPERATION

           

Activities: Manufactures bearings, steering systems, driveline components (86%),  Machine tools, sensor systems, mechatronics components, others (14%).

 

Overseas Sales Ratio (53%)

 

(Products lineups):

 

Steering systems: electric power steering, hydraulic power steering, high-performance    steering, components;

 

Driveline components: driveshaft, 4WD couplings, TORSENs (torque sensing differential for fulltime 4WD), damper pull-ups, proportionally controlled valves for AT, CVT oil pumps;

 

Bearings: general purpose bearings, automotive bearings & unit products, bearings for extreme special environment, bearings for electric & electronic products, machine tool             bearings, steel mill bearings, bearings for general industrial equipment, & related products;

 

Machine tools: machine tools & Mechatronics, grinders, horizontal spindle machining  center, die & mold machining center;

 

Mechatronics: programmable controllers (TOYOPUC), motion controllers, general  Operation panels;

 

Sensor systems: sensors for medical & health care equipment, advanced automotive systems, etc.

                       

Clients: [Automakers, machinery mfrs] Toyota Motor, Toyota Tsusho Corp, Koyo America, Daihatsu Motor, Toyota Machinery USA, other.

           

No. of accounts: 500

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, Denso Corp, Mitsubishi Electric Corp, Ihara Seiki, Nakanishi Metal Works, Nakatetsu KK, Toyota Tsusho Marubeni-Itochu Steel Inc, Hekikai Koki, Yamasei Kogyo, other

 

Payment record: No Complaints 

 

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

 

Bank References:

Resona Bank (Osaka)

Sumitomo Trust Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

1,067,526

1,052,671

  Cost of Sales

927,074

903,462

      GROSS PROFIT

140,452

149,208

  Selling & Adm Costs

111,294

113,550

      OPERATING PROFIT

29,158

15,657

  Non-Operating P/L

5,082

22,992

      RECURRING PROFIT

34,240

38,649

 

      NET PROFIT

13,862

12,303

BALANCE SHEET

  Cash

 

55,104

55,659

  Receivables

223,484

210,771

  Inventory

163,955

154,574

  Securities, Marketable

40,533

93,034

  Other Current Assets

55,805

50,239

      TOTAL CURRENT ASSETS

538,881

564,277

  Property & Equipment

385,443

308,290

  Intangibles

8,520

7,784

  Investments, Other Fixed Assets

94,089

79,323

      TOTAL ASSETS

1,026,933

959,674

  Payables

206,426

208,473

  Short-Term Bank Loans

85,561

87,315

 

 

 

  Other Current Liabs

142,465

110,545

      TOTAL CURRENT LIABS

434,452

406,333

  Debentures

40,000

40,000

  Long-Term Bank Loans

97,847

102,390

  Reserve for Retirement Allw

59,468

58,853

  Other Debts

 

10,923

9,757

      TOTAL LIABILITIES

642,690

617,333

      MINORITY INTERESTS

Common stock

45,591

45,591

Additional paid-in capital

108,237

108,237

Retained earnings

209,194

200,802

Evaluation p/l on investments/securities

16,650

10,968

Others

4,956

(22,875)

Treasury stock, at cost

(385)

(383)

      TOTAL S/HOLDERS` EQUITY

384,243

342,340

 

      TOTAL EQUITIES

1,026,933

959,674

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

49,934

48,878

Cash Flows from Investment Activities

-101,023

-56,212

Cash Flows from Financing Activities

-5,837

39,520

 

Cash, Bank Deposits at the Term End

 

93,890

146,625

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

384,243

342,340

Current Ratio (%)

124.04

138.87

Net Worth Ratio (%)

37.42

35.67

Recurring Profit Ratio (%)

3.21

3.67

Net Profit Ratio (%)

1.30

1.17

Return On Equity (%)

3.61

3.59

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.26

UK Pound

1

Rs.101.09

Euro

1

Rs.83.73

                

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

MNL

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

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

 

Unlimited

 

71-85

Aa

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

 

Large

 

56-70

A

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

 

Fairly Large

 

41-55

Ba

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

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

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

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

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

 

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

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

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

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