MIRA INFORM REPORT

 

 

Report Date :

05.12.2014

 

IDENTIFICATION DETAILS

 

Name :

NAKANISHI INC. 

 

 

Registered Office :

700, Shimo-hinata, Kanuma-shi, Tochigi pref. 322-8666

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2013 (Consolidated)

 

 

Date of Incorporation :

24.02.1953

 

 

Com. Reg. No.:

0600-01-010545 (Utsunomiya)

 

 

Legal Form :

Private Company

 

 

Line of Business :

manufacturer of dental and Industrial Equipment

 

Subject product ranges includes:

·         Turbines

·         Contra-angles

·         Clinical micro motors

·         Built-in

·         Mobile dentistry

·         Oral hygiene

·         Endodontic

·         Surgical

·         Laboratory

·         Hygiene and maintenance

 

 

No of Employees :

776

 

 

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

 

NAKANISHI INC.

 

 

Company OUTLINE

 

Company name:            NAKANISHI INC.

Name in local language: NAKANISHI, K.K.

Office address:             700, Shimo-hinata, Kanuma-shi, Tochigi pref. 322-8666

Country:                        Japan

Office tel:                                 0289-64-3380

Office fax:                    0289-62-5636

Website:                       www.japan.nsk-dental.com 

Business type:              Manufacturer

Industry:                      Dental and industrial equipment

Established:                  February 24, 1953

Capital:                         Jp. 867,948,542 yen

Employees:                  776

Corporate formation:     Listed

Corporation No.:           0600-01-010545 (Utsunomiya Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

As of December 31, 2013:

Paid in capital :                         Jp. 867,948,542 yen

Number of authorized shares :   125,000,000 shares

Shares issued :                         31,419,800 shares

Number of shareholder :                        752

 

Name of shareholders                           Number of thousand shares (%)

-----------------------------------------------------------------------------------------------

Nakanishi Inc.(treasury stock)                             418 (6.66)

Chase Manhattan Bank NA(UK)                          412 (6.56)

Nakanishi E&N Inc.                                            302 (4.81)

Mr. Sousuke Nakanishi                                       286 (4.55)

Ms. Chiyo Nakanishi                                          286 (4.55)

 

 


DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Manufacturing               Dental equipment

Manufacturing               Industrial equipment

 

 

COMPANY MANAGEMENT

 

President                      Mr. Eiichi Nakanishi (*)

Nationality:                    Japan

 

Vice President               Mr. Kensuke Nakanishi

Nationality:                    Japan

 

Senior Managing Director Mr. Shunji Onoue

Nationality:                    Japan

 

Director                        Mr. Yuji Nonagase

Nationality:                    Japan

 

Auditor                                     Mr. Hideki Toyotama

Nationality:                    Japan

 

Auditor                                     Mr. Mamoru Somemiya

Nationality:                    Japan

 

Auditor                         Mr. Yuji Sawada

Nationality                     Japan

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

*Key Personnel*

==============

Mr. Eichi Nakanishi

President and representative director

Born on August 11, 1964

Business career:

Jul. 1990: Employed by the subject.

Oct. 1993: Director & vice president.

Jul. 1994: President of NSK-America Corp.

May 2000: Representative director and president of the subject.

Other responsibilities:

President of:

- NSK-America Corp.

- NSK Europe GmbH

- NSK Euro Holdings S.A.

- NSK France S.A.(Chairman)

- NSK Oceania Pty. Ltd.

- NSK UK Ltd.

- NSK-Dental Spain S.A.

- Shanghai NSK Co., Ltd.

Home address: 340, Kami-hinata, Kanuma-shi, Tochigi pref.

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |          Sales            |      Net Income    

-------------------------------------------------------------------------------------

2008

23,020,328,000

3,885,402,000

2009

19,982,635,000

4,338,149,000

2010

22,213,537,000

4,687,912,000

2011

22,266,020,000

4,694,866,000

2012

22,583,136,000

4,340,596,000

2013

26,236,358,000

4,735,468,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

December 31st

 

*Financials*

==========

Consolidated Balance Sheet

Unit: millions of JP yen

                          

12/31/2011

12/31/2012

12/31/2013

Current assets  

26,995

29,940

34,809

 Cash & deposits      

12,166

14,977

15,701

 Account receivables   

3,440

3,192

4,227

 Inventories          

5,677

6,286

6,615

 Others

5,712

5,485

8,266

Fixed assets           

11,430

12,929

15,895

 Tangible assets      

4,608

4,601

5,243

 Intangible assets    

422

331

697

 Investments & others  

6,398

7,996

9,955

Total Assets       

38,425

42,869

50,705

 

 

 

 

Current liabilities     

3,209

3,622

5,624

 Account payables  

561

362

728

 Short term loans    

108

104

113

 Outstanding taxes    

1,489

1,248

1,708

 Others

1,051

1,908

3,075

Fixed liabilities      

394

416

495

 Long term loans     

3

0

48

 Retirement benefits    

207

231

250

 Others

184

185

197

Shareholders' equity    

36,053

38,952

42,743

 Paid up capital      

867

867

867

 Capital reserves      

1,163

1,163

1,163

 Retained earnings    

36,475

40,216

44,363

 Treasury stock        

-2,452

-3,296

-3,651

Valuation & adjustment 

-1,365

-303

1,542

Minority Interest    

115

152

253

Warrants

19

28

45

Total Net Assets       

34,822

38,830

44,585

Total Liabilities & Net Assets     

38,425

42,869

50,705

 

 

 

Consolidated Income Statement

Unit : millions of JP yen

                          

12/31/2011

12/31/2012

12/31/2013

Sales          

22,266

22,583

26,236

Cost of goods sold      

8,786

9,038

10,462

Gross profit(loss)    

13,479

13,544

15,773

Sales/administrative expenses  

6,287

6,883

8,229

Operating profit(loss)    

7,191

6,661

7,543

Non operating income        

155

397

795

Non operating expenses       

210

22

15

Ordinary profit(loss)      

7,135

7,036

8,323

Special profits                

606

9

1

Special losses             

169

27

497

Pretax profit                

7,573

7,019

7,827

Taxes & adjustment           

2,832

2,658

3,055

Minority interest   

45

20

37

Net profit      

4,694

4,340

4,735

On November 7, 2014, the subject released the following business results and forecast:

As of September 30, 2014(3Q 2014)

Unit: millions of JPY

 

Year term   

Sales

Operating profit

Ordinary profit 

Net profit

3Q 2013      

18,899

5,829

6,159

3,715

3Q 2014      

22,867

7,431

8,080

5,220

FY 2014(P)    

29,284

8,437

8,593

5,350

 

 

Current assets;

36,701

Fixed assets;

15,917

Total assets;

52,618

Current liabilities;

4,334

Fixed liabilities;

394

Shareholders’ equity;

45,948

  Retained earnings;

48,293

Total net assets;

47,889

Total liabilities and net assets;

52,618

 

 

Bank Details

 

Bank Name :     Ashikaga Bank, Ltd.

Branch :            Kanuma

 

 

Bank Name :     Mizuho Bank, Ltd.

Branch :            Utsunomiya

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Omiya-ekimae

 

 

Credit Opinion

 

The subject is a reputed manufacturer of dental and industrial equipment, known for its high-speed revolutions equipment.

 

A steady performance has been maintained for years, particularly in overseas markets.

 

While the shipment in the nation is currently slow due to the aftermath of increased consumption tax, robust demands in America and Europe have been pulling the overall performance.

 

A record high performance was posted for Dec. 2013 term and further record is predicted blessed with a weaker currency, too.

 

Some investment for logistics in Germany and IT systems worldwide is scheduled.

 

Negative factors are not observed in particular at moment.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Tokyo office

Branch address:            TIXTOWER UENO 9F, 4-8-1, Higashi-ueno, Taito-ku, Tokyo 110-0015

----------------------------------------------------------------------------------------------------

Branch name:                Osaka office

Branch address:            4-1-5, Miyahara, Yodogawa-ku, Osaka-shi, Osaka 532-0003

----------------------------------------------------------------------------------------------------

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

Development and manufacture of the following dental and industrial equipment:

-       Turbines

-       Contra-angles

-       Clinical micro motors

-       Built-in

-       Mobile dentistry

-       Oral hygiene

-       Endodontic

-       Surgical

-       Laboratory

-       Hygiene and maintenance

 

For Dec. 2013 term:

-       Dental equipment (87%)

-       Industrial equipment (10%)

-       Other products (3%)

 

Overseas business (78%)

 

 


FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

At the location of the head office

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

The quoted address, 4-8-1, Higashi-ueno, Taito-ku, Tokyo, is for Tokyo office.

 

 

Company History

 

Date                 Development

-----------------------------------------------------------------------------------------------

1930                Started business under the name of “Nakanishi Seisakusho.”

February 24, 1953          Incorporated under the name of “Nakanishi Dental Equipment Mfg.

Co., Ltd”

1957                Launched its original brand, “NSK KN Contra.”

1979                Started exporting its products.

1984                Founded the first overseas operation, “NSK America Corp.”

1986                Started exporting to China.

1996                The above company and “Nakanishi Inc.” merged together and took

the current company name.

1997                ISO9001 certified.

1999                ISO14001 certified.

 

 

2000                Listed on the JASDAQ(#7716).

2001                Completed a new head office building.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Kuno Sangyo Co., Ltd.

Tanoi Corp.

Watanabe Metals Co., Ltd.

Toyo Bearing Sales Co., Ltd.

Chiaki Metal Plating Co., Ltd.

Yamato Transport Co., Ltd.

 

 

*Customers*

==========

Daiei Dental Industries Inc.

Momose Shika Shokai Ltd.

Nippon Shika Kogyosha Co., Ltd.

Belmont Technology Inc.

Yuasa Corp.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            NSK-America Corp.

Country:                        U.S.A.

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            NSK Europe GmbH

Country:                        Germany

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Shanghai NSK Co., Ltd.

Country:                        China

Status:                          Subsidiary  

----------------------------------------------------------------------------------------------------

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

=====================

As of December 31, 2013 the subject owns and controls a total of 18 subsidiaries at home and abroad.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.88

UK Pound

1

Rs.97.02

Euro

1

Rs.76.13

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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