MIRA INFORM REPORT

 

 

Report Date :

14.08.2014

 

IDENTIFICATION DETAILS

 

Name :

HORIBA LTD

 

 

Registered Office :

2 Miyanohigashi Kisshoin Minamiku Kyoto 601-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

January 1953

 

 

Com. Reg. No.:

1300-01-011676

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of measuring instruments, analyzers

 

 

No. of Employees

5,787

 

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

 

HORIBA LTD

 

REGD NAME:    KK Horiba Seisakusho

MAIN OFFICE:  2 Miyanohigashi Kisshoin Minamiku Kyoto 601-8510 JAPAN

Tel: 075-313-8121     Fax: 075-321-8312-

 

URL:                 http://www.horiba.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Mfg of measuring instruments, analyzers

 

 

BRANCHES   

 

Tokyo, Sendai, Tsukuba, Yokohama, Nagoya, Osaka, other (Tot 14)

 

 

OVERSEAS   

 

USA, UK (4), Italy (2), India, Austria, Netherlands, Canada, Korea (3), Singapore, Sweden, Spain, Thailand, China (3), Czech, Germany (3), Turkey, Brazil, France

(3), Vietnam, Belgium (2), Poland, Portugal, Russia (--subsidiaries)

 

 

FACTORIES  

 

At the caption address

 

 

CHIEF EXEC 

 

ATSUSHI HORIBA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                             A/SALES          Yen 138,136 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 12,011 M

TREND UP                                WORTH            Yen 114,545 M

STARTED         1953                             EMPLOYES      5,787

 

 

COMMENT    

 

MFR OF MEASURING INSTRUMENTS, ANALYZERS, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

118,556

12,309

7,927

(%)

84,155

(Consolidated)

31/12/2011

123,456

14,611

8,664

4.13

90,460

 

31/12/2012

117,609

11,353

7,396

-4.74

99,536

 

31/12/2013

138,136

13,056

8,999

17.45

114,545

 

31/12/2014

150,000

14,500

9,000

8.59

..

Unit: In Million Yen

Forecast figures for the 31/12/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of measuring instruments and analyzers for environmental pollution. Independent of corporate affiliation.  Expanding analyzers for research on semiconductors.  Holds 80% global market share in engine measurement equipment.  Aggressively involved in M&A activities overseas.  The company expanded its reagent plant in Aso, Kumamoto-Pref in summer 2012 and those in Brazil at the year-end of 2012.  The company has totally changed large-sized exhaust gas measuring equipment for automobiles for the first time in 17 years, and aims to promote them to government organizations in various countries.  The firm will establish an R&D and production base for exhaust gas measuring equipment in Otsu, Shiga at a cost of Yen 10 billion, a highest level in the past, with full-scale startup slated for the end of 2015.  It acquired an optical analyzer maker in the US with sales at about Yen 800 million in Feb 2014, to obtain new technologies for bio-based medical products. 

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2013 fiscal term amounted to Yen 138,136 million, a 17.5% up from Yen 117,609 million in the previous term.  Sales of mainstay automobile-use exhaust gas measuring equipment increased.  Demand for semiconductor-related products recovered.  The recurring profit was posted at Yen 13,056 million and the net profit at Yen 8,999 million, respectively, compared with Yen 11,353 million recurring profit and Yen 7,396 million net profit, respectively, a year ago. 

 

(Jan/Jun/2014 results): Sales Yen 67,934 million (up 13.8%), operating profit Yen 5,661 million (up 42.5%), recurring profit Yen 5,138 million (up 37.4%), net profit Yen 2,592 million (up 2.5%).  (% compared with the corresponding period a year ago).

 

For the current term ending Dec 2014 the recurring profit is projected at Yen 14,500 million and the net profit at Yen 9,000 million, on an 8.6% rise in turnover, to Yen 150,000 million. Sales of exhaust gas analyzers for power plants will grow.  Orders for automobile-use products will fare well, led by those for exhaust gas measuring equipment.  Demand for measuring equipment for smartphone mfg was strong in the first quarter, but ceased to grow in Apr 2014. 

 

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

 

 

REGISTRATION

           

Date Registered:　     Jan 1953

Regd No.:                     1300-01-011676 (Kyoto-Minamiku)

Legal Status:   Limited Company (Kabushiki Kaisha

Authorized:                   100 million shares

Issued:             42,532,752 shares

Sum:                 Yen 12,011 million

 

Major shareholders (%): Japan Trustee Services T (6.6), Master Trust Bank of Japan T (4.6), Taiyo Fund LP (4.1), Zenkyoren (3.0), Masuo Horiba (2.7), Nomura Lux Multi Currency 1818517 (2.1), Bank of Kyoto (1.9), Atsushi Horiba (1.9), Horiba Rakurakukai Invest (1.8), Japan Re Fidelity (1.6); foreign owners (36.8)

 

No. of shareholders: 6,328

 

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

 

Managements: Atsushi Horiba, ch & pres; Kozo Ishida, v ch; Juichi Saito, v pres; Fumitoshi Sato, mgn dir; Masayuki Adachi, dir; Masahiro Sugita, dir

 

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

 

Related companies: Horiba Stec, Horiba ABX, Horiba Techno Services, other.

 

 

OPERATION

           

Activities: Manufactures measuring instruments & analyzers:

(Sales Breakdown by Divisions):

 

Automotive Test Systems (36%): analytical emissions systems, on-board emissions systems, portable emissions systems, dilution/sampling systems, engine test systems, driveline test systems, vehicle test systems, brake test systems, wind tunnel balances, automation systems;

Process & environmental Instruments Systems (11%): environmental radiation monitor, water quality measurement, water treatment & environment, gloss checker, thermometry, other;

Medical-Diagnostic Instruments Systems (19%): produces near 7,500 analyzers per year and over 8,000 tones of reagents;

Semiconductor Instruments Systems (17%): high performance mass flow controllers, reticule/mask particle detection systems, in-line chemical solution concentration monitors, direct injection vaporizers, automatic spectroscopic ellipsometers, other;

Scientific Instruments Systems (17%): scientific’s fluorometer, other;

Overseas Sales Ratio (65%)

 

Clients: [Mfrs, wholesalers] Horiba Techno Services, Hitachi Hitec Trading, Horiba Europe, Horiba Advances Techno, Horiba Instruments, Hitachi High Technologies, Yanmar Co, Fukuda Denshi, Honda Motor Co, Denso Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Horiba Techno Service, Horiba Advanced Techno, Horiba Korea, Hitachi Metals Admet Inc, Horiba Stec, Oxford Instruments, Mikasa Shoji co, other

 

Payment record: No complaints

 

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

 

Bank References:

                        MUFG (Kyoto)

                        Mizuho Bank (Kyoto)

                        Relations: Satisfactory

 

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2013

31/12/2012

INCOME STATEMENT

 

 

 

  Annual Sales

　

138,136

117,609

 

  Cost of Sales

80,625

68,220

 

      GROSS PROFIT

57,510

49,389

 

  Selling & Adm Costs

43,777

37,637

 

      OPERATING PROFIT

13,733

11,751

 

  Non-Operating P/L

-677

-398

 

      RECURRING PROFIT

13,056

11,353

　

      NET PROFIT

8,999

7,396

BALANCE SHEET

 

 

 

 

  Cash

　

42,228

34,685

 

  Receivables

 

47,412

37,521

 

  Inventory

 

33,084

28,099

 

  Securities, Marketable

10,271

6,100

 

  Other Current Assets

7,240

5,583

 

      TOTAL CURRENT ASSETS

140,235

111,988

 

  Property & Equipment

33,326

28,179

 

  Intangibles

 

5,110

4,490

 

  Investments, Other Fixed Assets

10,598

9,179

 

      TOTAL ASSETS

189,269

153,836

 

  Payables

 

16,409

11,829

 

  Short-Term Bank Loans

6,606

5,523

 

　

 

　

　

 

  Other Current Liabs

29,123

20,310

 

      TOTAL CURRENT LIABS

52,138

37,662

 

  Debentures

 

15,000

10,000

 

  Long-Term Bank Loans

2,576

2,113

 

  Reserve for Retirement Allw

2,406

2,066

 

  Other Debts

　

2,603

2,458

 

      TOTAL LIABILITIES

74,723

54,299

 

      MINORITY INTERESTS

 

 

 

Common stock

12,011

12,011

 

Additional paid-in capital

18,717

18,717

 

Retained earnings

78,477

71,725

 

Evaluation p/l on investments/securities

2,296

987

 

Others

 

3,809

(3,124)

 

Treasury stock, at cost

(765)

(780)

 

      TOTAL S/HOLDERS` EQUITY

114,545

99,536

　

      TOTAL EQUITIES

189,269

153,836

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2013

31/12/2012

 

Cash Flows from Operating Activities

　

15,076

13,395

 

Cash Flows from Investment Activities

-8,111

-7,891

 

Cash Flows from Financing Activities

2,324

-3,304

　

Cash, Bank Deposits at the Term End

　

49,246

38,858

ANALYTICAL RATIOS            Terms ending:

31/12/2013

31/12/2012

 

 

Net Worth (S/Holders' Equity)

114,545

99,536

 

 

Current Ratio (%)

268.97

297.35

 

 

Net Worth Ratio (%)

60.52

64.70

 

 

Recurring Profit Ratio (%)

9.45

9.65

 

 

Net Profit Ratio (%)

6.51

6.29

 

 

Return On Equity (%)

7.86

7.43

 

 

           

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.25

UK Pound

1

Rs.103.02

Euro

1

Rs.81.90

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.