MIRA INFORM REPORT

 

 

Report Date :

30.08.2014

 

IDENTIFICATION DETAILS

 

Name :

DAINIPPON SCREEN MFG CO LTD

 

 

Registered Office :

1-1 Tenjinkita-machi Tennoji-agaru 4 Horikawa-dori Kamigyoku Kyoto 602-8585

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

October, 1943

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of semiconductor & LCD-making equipment

 

 

No of Employees :

4,968

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 & ADDRESS

 

DAINIPPON SCREEN MFG CO LTD

 

 

REGD NAME

 

Dainippon Screen Seizo KK

 

 

MAIN OFFICE

 

1-1 Tenjinkita-machi Tennoji-agaru 4 Horikawa-dori Kamigyoku Kyoto 602-8585

JAPAN

Tel:                               075-414-7155   

Fax:                              075-451-9603    

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

E-Mail address:             (thru the URL)

 

ACTIVITIES:                  Mfg of semiconductor & LCD-making equipment

BRANCHES:                 Tokyo, Shiga

OVERSEAS:                 USA (11), Europe (13), Asia/Oceania (27, including 13 in China)

FACTORIES:                 Hikone, Nozu, Shiga, Kyoto

 

CHIEF EXEC:                EIJI KAKIUCHI, PRES

 

Yen Amount:                 In million Yen, unless otherwise stated

 

 

SUMMARY          

 

FINANCES        FAIR                             A/SALES          Yen 235,946 M

PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 54,044 M

TREND             UP                                WORTH            Yen 87,097 M

STARTED         1943                             EMPLOYES      4,968

 

 

COMMENT           

 

MFR OF SEMICONDUCTOR & LCD-MAKING EQUIPMENT 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

                        Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is a precision machinery mfr, with semiconductor and LCD-making equipment as mainline.  Also makes electronic color scanners for printing plates, automatic drafters, and precision image processors.  Maintains the overwhelming global market share in wafer cleaners for CTP (computer to plate) systems. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 235,946 million, an 18.1% up from Yen 199,795 million in the previous term.  Semiconductor-mfg equipment sales were benefitted from greater than anticipated of smartphone-related sales mainly to Taiwan.  LCD-mfg equipment sales for large TVs expanded in China.  Digital printing equipment demand in Japan &the US was solid.  The recurring profit was posted at Yen 8,394 million and the net profit at Yen 5,418 million, respectively, compared with Yen 5,052 million recurring loss and Yen 11,333 million net losses, respectively, a year ago.

 

(Apr/Jun/2014 results): Sales Yen 52,475 million (down 11.5%), operating profit Yen 2,240 million (up 1.3%), recurring profit Yen 2,354 million (up 5.5%), net profit Yen 1,535 million (down 9.1%).  (% compared with the corresponding period a year ago) 

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 10,500 million and the net profit at Yen 8,300 million, respectively, on a 2.1% rise in turnover, to Yen 241,000 million.  Sales will increase further, backed by continued robust demand for semiconductor-mfg equipment.

 

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

 

 

REGISTRATION

           

Date Registered:　         Oct 1943

Legal Status:                 Limited Company (Kabushiki Kaisha

Authorized:                    900 million shares

Issued:                          258,974,333 shares

Sum:                            Yen 54,044 million

 

Major shareholders (%): Master Trust Bank of Japan T (10.2), Japan Trustee Services T (7.3), Company’s Treasury Stock (6.5), Nippon Life Ins (3.8), Bank of Kyoto (2.6), Resona Bank (1.7), Business Partners S/Holding Assn (1.7), Shiga Bank (1.6), Employees’ S/Holding Assn (1.6), MUFG (1.5); foreign owners (17.8)

 

No. of shareholders: 12,558

 

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

 

Managements: Akira Ishida, ch; Masahiro Hashimoto, v ch; Eiji Kakiuchi, pres; Shin Minamishima, mgn dir; Katsutoshi Oki, mgn dir; Soichi Nadahara, mgn dir; Yoichi Kondo, mgn dir; Yoshio Tateishi, dir; Shosaku Murayama, dir; Shigeru Saito, dir

 

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

 

Related companies: Tec In Tec Co, Sokudo Corp, other.

 

 

OPERATION

           

Activities: Mfr of semiconductor & LCD-mfg equipment, others:

 

(Sales Breakdown by division companies):

Semiconductor Equipment Company (69%): single wafer cleaning equipment, batch-type cleaning equipment, spin scrubbers, coater/developers, annealing system, water surface inspection, measurement system, other;

FPD Equipment Company (8%): coater/developers, wet etchers, resist strippers, exposure system & measurement system for thin film devices;

Media & Precision Technology Company (22%): graphic arts equipment, CTP (plate recorders), digital printing equipment, workflow RIP and fonts, PCB-related equipment, pattern inspection system, automatic optical inspection system, plotters, exposure system & pattern measurement system, other

Overseas Sales Ratio (77%)

           

Clients:                                    [Mfrs, wholesalers] Taiwan Semiconductor Mfg, Sokudo Corp, Japan Display, other

No. of accounts:                       1,000

Domestic areas of activities:    Nationwide

Suppliers:                                [Mfrs, wholesalers] Epson Sales, Tec In Tec, Takebishi Corp, Natsuhara

Industrial Technologies Inc, Daiwa Co, Sinfonia Technology, other

 

Payment record:                      No Complaints

 

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

 

Bank References:

Resona Bank (Kyoto)

Bank of Kyoto (H/O)

Relations: Satisfactory

 

 

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

　

　

  Annual Sales

　

235,946

199,795

　

  Cost of Sales

177,175

157,790

　

      GROSS PROFIT

58,771

42,005

　

  Selling & Adm Costs

49,869

46,838

　

      OPERATING PROFIT

8,902

-1,833

　

  Non-Operating P/L

-508

-3,219

　

      RECURRING PROFIT

8,394

-5,052

　

      NET PROFIT

5,418

-11,333

BALANCE SHEET

 

 

　

　

  Cash

　

34,213

40,420

　

  Receivables

 

45,256

41,093

　

  Inventory

 

70,158

93,144

　

  Securities, Marketable

　

　

　

  Other Current Assets

7,699

(13,043)

　

      TOTAL CURRENT ASSETS

157,326

161,614

　

  Property & Equipment

40,710

39,902

　

  Intangibles

 

2,406

2,624

　

  Investments, Other Fixed Assets

31,934

28,250

　

      TOTAL ASSETS

232,376

232,390

　

  Payables

 

68,705

60,750

　

  Short-Term Bank Loans

104

33,783

　

　

 

　

　

　

  Other Current Liabs

45,558

25,480

　

      TOTAL CURRENT LIABS

114,367

120,013

　

  Debentures

 

13,600

19,000

　

  Long-Term Bank Loans

8,342

10,642

　

  Reserve for Retirement Allw

1,291

151

　

  Other Debts

　

7,678

5,729

　

      TOTAL LIABILITIES

145,278

155,535

　

      MINORITY INTERESTS

 

　

　

Common stock

54,044

54,044

　

Additional paid-in capital

4,583

4,583

　

Retained earnings

41,824

36,405

　

Evaluation p/l on investments/securities

7,089

2,716

　

Others

 

(8,192)

(8,649)

　

Treasury stock, at cost

(12,251)

(12,245)

　

      TOTAL S/HOLDERS` EQUITY

87,097

76,854

　

      TOTAL EQUITIES

232,376

232,390

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

24,702

-15,319

　

Cash Flows from Investment Activities

-4,201

-5,767

　

Cash Flows from Financing Activities

-29,301

21,533

　

Cash, Bank Deposits at the Term End

　

31,562

38,026

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

 

Net Worth (S/Holders' Equity)

87,097

76,854

　

 

Current Ratio (%)

137.56

134.66

　

 

Net Worth Ratio (%)

37.48

33.07

　

 

Recurring Profit Ratio (%)

3.56

-2.53

　

 

Net Profit Ratio (%)

2.30

-5.67

　

　

Return On Equity (%)

6.22

-14.75

 

           

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.35

Euro

1

Rs.79.86

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SMN

 

 

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.