MIRA INFORM REPORT

 

 

Report Date :

06.08.2014

 

IDENTIFICATION DETAILS

 

Name :

EBARA CORPORATION

 

 

Registered Office :

11-1 Haneda-Asahicho Ohtaku Tokyo 144-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May 1920

 

 

Com. Reg. No.:

0108-01-001748

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of industrial pumps, freezers, garbage incinerators, semiconductor equipment

 

 

No. of Employees

15,168

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No complaints

Litigation :

Clear

 

NOTES :

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

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy

 

Source : CIA

 

 

 


Company name and address

 

EBARA CORPORATION

 

REGD NAME:    Ebara KK

MAIN OFFICE:  11-1 Haneda-Asahicho Ohtaku Tokyo 144-8510 JAPAN

Tel: 03-3743-6111     Fax: 03-3745-3356

                       

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

E-Mail address: webmaster@ebara.co.jp

 

 

ACTIVITIES  

 

Mfg of industrial pumps, freezers, garbage incinerators, semiconductor

Equipment

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sapporo, Sendai, Saitama, Chiba, Yokohama, Niigata,

Kanazawa, Hiroshima, Takamatsu, Fukuoka, other (Tot 35

 

 

OVERSEAS   

 

USA (5), Europe (3), Mid East (1), Asia/Oceania (20)

 

 

FACTORIES

 

Haneda (at the caption address & vicinities), Fujisawa, Sodegaura (Chiba),

Suzuka (Mie)

 

 

OVERSEAS

 

China (4), Korea, Taiwan, Vietnam, Indonesia, Malaysia

 


 

CHIEF EXEC

 

TOICHI MAEDA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 448,657 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 68,625 M

TREND UP                                WORTH            Yen 215048 M

STARTED         1920                             EMPLOYES      15,168

 

 

COMMENT

 

MFR SPECIALIZING IN INDUSTRIAL PUMPS & AIR BLOWERS. 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY  BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

401,675

28,750

28,191

(%)

154,939

(Consolidated)

31/03/2012

412,076

21,086

2,889

2.59

154,653

 

31/03/2013

426,302

25,663

15,303

3.45

191,788

 

31/03/2014

448,657

31,311

18,973

5.24

215,048

 

31/03/2015

490,000

34,000

20,000

9.21

..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

 

 

HIGHLIGHTS

 

This is a time-honored mfr of industrial pumps and air blowers, dating back to1912 when started making centrifugal pumps, by a local entrepreneur, on his account.  Since incorporated, the firm has grown rapidly to mfg various types of industrial pumps, freezers, garbage incinerators and semiconductor equipment.  Ranked 1st in both large & mass-produced industrial pumps.  Heavily depends upon public demand.  Top class in in-house technologies for environment-related lines including garbage incinerators and smoke desulfurizers, as well as semiconductor polishing systems.  The company established a base in Dubai, UAE in fiscal 2013 in a bid to strengthen its support system in the overseas market including Middle East and Southeast Asia.  Shale gas-related facilities in North America will start up in 2017. 

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 448,657 million, a 5.2% up from Yen 428,302 million in the previous term.  Orders for semiconductor-use equipment rallied in the second half.  Demand for wind and hydraulic power equipment were strong in the energy industries in North America and China.  Operating profit advanced, absorbing higher fixed costs for expanding overseas service bases.  The recurring profit was posted at Yen 31,311 million and the net profit at Yen 18,973 million, respectively, compared with Yen 25,663 million recurring profit and Yen 15,303 million net profit, respectively, a year ago.

 

 For the current term ending Mar 2015 the recurring profit is projected at Yen 34,000 million and the net profit at Yen 20,000 million, respectively, on a 9.2% rise in turnover, to Yen 490,000 million.  Orders for mainstay fluid products are likely to continue expanding, buoyed by strong demand from petroleum refinery and chemical plants in the overseas market, mainly in the US and China.  Sales of waste incinerators and semiconductor mfg-use equipment will also remain steady. 

 

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

 

 

REGISTRATION

 

Date Registered:       May 1920

Regd No.:                   0108-01-001748 (Tokyo-Ohtaku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1,000 million shares

Issued:                465,187,829 shares

Sum:                   Yen 68,625 million

 

Major shareholders (%): Master Trust Bank of Japan T (12.0), Japan Trustee Services T (9.5), Mizuho Bank (2.1), MUFG (1.5), State Street Bank & Trust (1.4), Pictet & Cie (Europe) (1.4), Trust & Custody Services Inv T (1.1), Japan Trustee Services T1 (1.1), Nomura Trust Inv T (1.1), Morgan Stanley & Co (1.1); foreign owners (31.6)

 

No. of shareholders: 27,245

 

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

 

Managements: Natsunosuke Yago, ch; Toichi Maeda, pres; Tetsuji Fujimoto, s/mgn dir; Manabu Tsujimura, s/mgn dir; Atsuo Ohi, s/mgn dir; Akira Ogata, mgn dir; Masaru Shibuya, mgn dir; Nobuharu Noji, mgn dir;

 

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

 

Related companies: Ebara Engineering Service Corp, Ebara Techno-Serve Co, other.  (79 subsidiaries – 49 of those are consolidated subsidiaries – and 11 affiliated companies)

 

 

 

 

OPERATION

 

Activities: Manufactures industrial pumps, freezers, garbage incinerators, semiconductor equipment, etc:

 

(Sales Breakdown by Divisions):

Fluid Machinery & System Company (72%): fluid machinery & systems, various types of industrial pumps, blowers, gas & steam turbines, sewage collection systems, others;

Environmental Engineering Company (12%): solid waste incinerators, waste water treatment plants, wind power generation systems, fuel cell cogeneration systems, inorganic chemicals, thermal energy systems, soil & groundwater remediation systems, others;

Precision Machinery Company (16%): vacuum pumps, clean ozonizers for semiconductor device fabrication, pure-water pumps, chemical mechanical polishers, waste gas treatment equip, automated water carriers, other.   

Overseas sales ratio (53%)

 

Clients: [Government agencies, municipal offices, wholesalers] Japanese Red Cross Society, Shinryo cop, IHI Plant Engineering, Kitasato Daiichi Vaccine Corp, Tokyo Univ, Keio Univ, Chiyoda Corp, Shimadzu Corp, Donated Blood Distribution Foundation, Taiwan Semiconductor Mfg Co, Ebara Field Tech, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toshiba Industrial Products & Systems Corp,

Yoshidagumi, Hitachi Plant Engineering & Construction, Tsukishima Kikai, Ebara Jitsugyo (subsidiary), Nippon Glass Building Materials, Ebara Eliot, Ebara Hamada Blower Co, Sanso Electro Co, Ebara Refrigeration & Systems Co, TSG, Kumagai-Tekkosho Co, other.

 

Payment record No complaints

 

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

 

Bank References:

                        Mizuho Bank (H/O)

                        MUFG (Kyobashi)

                        Relations: Satisfactory

 

 

FINANCES

 

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

448,657

426,302

 

  Cost of Sales

329,059

322,191

 

      GROSS PROFIT

119,597

104,110

 

  Selling & Adm Costs

87,403

79,026

 

      OPERATING PROFIT

32,194

25,084

 

  Non-Operating P/L

-883

579

 

      RECURRING PROFIT

31,311

25,663

 

      NET PROFIT

18,973

15,303

BALANCE SHEET

 

 

 

 

  Cash

 

97,839

90,752

 

  Receivables

 

184,077

157,459

 

  Inventory

 

70,333

66,947

 

  Securities, Marketable

5,514

23,553

 

  Other Current Assets

22,365

24,587

 

      TOTAL CURRENT ASSETS

380,128

363,298

 

  Property & Equipment

96,582

90,722

 

  Intangibles

 

9,894

6,889

 

  Investments, Other Fixed Assets

43,607

43,667

 

      TOTAL ASSETS

530,211

504,576

 

  Payables

 

103,339

95,886

 

  Short-Term Bank Loans

62,917

66,015

 

 

 

 

 

 

  Other Current Liabs

71,144

83,829

 

      TOTAL CURRENT LIABS

237,400

245,730

 

  Debentures

 

10,000

 

 

  Long-Term Bank Loans

24,954

31,338

 

  Reserve for Retirement Allw

16,440

9,629

 

  Other Debts

 

26,369

26,090

 

      TOTAL LIABILITIES

315,163

312,787

 

      MINORITY INTERESTS

 

 

 

Common stock

68,625

68,625

 

Additional paid-in capital

72,555

72,543

 

Retained earnings

70,629

53,886

 

Evaluation p/l on investments/securities

2,418

1,662

 

Others

 

1,207

(4,644)

 

Treasury stock, at cost

(386)

(284)

 

      TOTAL S/HOLDERS` EQUITY

215,048

191,788

 

      TOTAL EQUITIES

530,211

504,576

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

26,615

34,014

 

Cash Flows from Investment Activities

3,540

-33,130

 

Cash Flows from Financing Activities

-25,336

3,285

 

Cash, Bank Deposits at the Term End

 

102,341

93,792

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

215,048

191,788

 

 

Current Ratio (%)

160.12

147.84

 

 

Net Worth Ratio (%)

40.56

38.01

 

 

Recurring Profit Ratio (%)

6.98

6.02

 

 

Net Profit Ratio (%)

4.23

3.59

 

 

Return On Equity (%)

8.82

7.98

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.86

UK Pound

1

Rs.102.67

Euro

1

Rs.81.69

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

 

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.