MIRA INFORM REPORT

 

 

Report Date :

26.12.2014

 

IDENTIFICATION DETAILS

 

Name :

KYOCERA CORPORATION 

 

 

Registered Office :

6, Takeda Tobadono-cho, Fushimi-ku, Kyoto-shi, Kyoto 612-8450

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

30.09.2014 (Quarterly)

 

 

Date of Incorporation :

06.11.1946

 

 

Com. Reg. No.:

1300-01-000049 (Kyoto)

 

 

Legal Form :

Private Company

 

 

Line of Business :

Engaged in Development, Manufacture, Sales, Exports and Imports of Information-Related Equipment & Devices, Electronic Devices, Fine Ceramic-Applied Products, Communications-Related Equipment & Devices, Semiconductor Components as well as Fine Ceramic Parts & Components

 

 

No of Employees :

69,072

 

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 :

Good

Payment Behaviour :

Regular

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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. 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 2012 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 200% 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

 

KYOCERA CORPORATION

 

 

Company OUTLINE

 

Company name:            KYOCERA CORPORATION

Name in local language: KYOCERA K.K.

Office address:             6, Takeda Tobadono-cho, Fushimi-ku, Kyoto-shi, Kyoto 612-8450

Country:                        Japan

Office tel:                    075-604-3500

Office fax:                    075-604-3501

Website:                       www.kyocera.co.jp 

Business type:              Manufacturer

Industry:                                   Electronic Products & Components

Established:                  November 6, 1946

Capital:                                     Jp. 115,703,327,726 yen

Employees:                  69,072

Corporate formation:     Listed

Corporation No.:           1300-01-000049 (Kyoto Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

As of September 30, 2014:

Paid in capital                           Jp. 115,703,327,726 yen

Number of authorized shares     600,000,000 shares

Number of outstanding shares   377,618,580 shares

Number of shareholders                        56,713

 

Major shareholders                                      No. of thousand shares (%)

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

Master Trust Bank of Japan, Ltd.                        29,556 ( 7.83)

State Street Bank and Trust Co.(USA)                 21,306 ( 5.64)

Japan Trustee Services Bank, Ltd.                      20,235 ( 5.36)

Bank of Kyoto, Ltd.                                           14,436 ( 3.82)

Mr. Kazuo Inamori, the founder                          11,212 ( 2.97)

Kyocera Corporation(treasury stock)                   10,754 ( 2.85)

Inamori Foundation                                            9,360 ( 2.48)

K.I. Kosan Co., Ltd.                                           7,099 ( 1.88)

BNP Paribas Securities, Inc.                               7,058 ( 1.87)

Employees shareholders fund                             5,372 ( 1.42)

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

Total                                                            136,389 (36.12)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

Activity                         Product/Service Description

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

Manufacturing               Fine ceramic products and application products

Manufacturing               Semiconductor

Manufacturing               Smartphone and other electronic devices

Manufacturing               Communication equipment

Manufacturing               Information equipment

Manufacturing               Optical equipment

 

Brands & Trade marks

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

Kyocera

 

 

COMPANY MANAGEMENT

 

Chairman                                  Mr. Tetsuo Kuba (*)

Nationality:                                Japan

 

Vice Chairman                           Mr. Tatsumi Maeda (*)

Nationality:                                Japan

 

President                                  Mr. Goro Yamaguchi (*)

Nationality:                                Japan

 

Senior Managing Director          Mr. Katsumi Komaguchi

Nationality:                                Japan

 

Senior Managing Director          Mr. Yasuyuki Yamamoto

Nationality:                                Japan

 

Director                                    Mr. Takeshi Ishii

Nationality:                                Japan

 

Director                                                Mr. Yoshihito Ota

Nationality:                                Japan

 

Director                                                Mr. Shoichi Aoki

Nationality:                                Japan

 

Director                                                Mr. Hiroshi Fure

Nationality:                                Japan

 

Director                                   Mr. Yoji Date

Nationality:                                Japan

 

Director                                    Mr. John Gilbertson

Nationality:                                USA

 

Director                                    Mr. John Rigby

Nationality:                                USA

 

Director                                    Mr. Tadashi Onodera

Nationality                                  Japan

 

Auditor                                     Mr. Yoshihiro Kano

Nationality:                                Japan

 

Auditor                                                 Mr. Koji Mae

Nationality:                                Japan

 

Auditor                                                 Mr. Osamu Nishieda

Nationality:                                Japan

 

Auditor                                                 Mr. Yoshinori Yasuda

Nationality:                                Japan

 

Auditor                                     Mr. Nichimu Inada

Nationality:                                Japan

 

Auditor                                                 Mr. Yasuya Koyano

Nationality:                                Japan

 

 

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

      (*): Representative directors

 

*Key Personnel*

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

Mr. Goro Yamaguchi

Representative director and president since April 2013

Born on January 21, 1956

Business career:

  March 1978: Employed by the subject.

  June 2009: Director.

Other responsibilities:

Chairman of board of;

- Kyocera Korea Co., Ltd.

- Kyocera (China) Sales & Trading Corporation

 

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

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

 Year |         Sales             |        Net Income    

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

2009

1,128,586,000,000

29,506,000,000

2010

1,073,805,000,000

40,095,000,000

2011

1,266,924,000,000

122,448,000,000

2012

1,190,870,000,000

79,357,000,000

2013

1,280,054,000,000

66,473,000,000

2014

1,447,369,000,000

146,268,000,000

 

 

FINANCIAL DESCRIPTION

 

*Book Closing*

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

March 31st

 

*Financials*

==========

Consolidated Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current Assets  

1,144,603

1,268,383

1,367,435

 Cash & deposits      

273,288

305,454

335,174

 Account receivables   

240,344

291,283

274,842

 Inventories          

270,336

296,450

335,802

 Others

360,635

375,196

421,617

Fixed assets           

849,500

1,014,470

1,269,269

 Tangible assets      

260,537

268,824

270,557

 Intangible assets    

197,086

226,495

245,653

 Investments & others  

391,877

519,151

753,059

Total Assets       

1,994,103

2,282,853

2,636,704

　

　

 

 

Current liabilities     

301,048

326,630

327,451

 Account payables  

102,699

111,249

122,424

 Short term loans    

4,062

3,135

4,064

 Long term loans due   

10,610

9,817

12,360

 Outstanding accounts  

60,993

52,018

48,224

 

Reserves for bonus pays due

49,880

52,420

56,068

 Others

72,804

97,991

84,311

Fixed liabilities      

158,814

241,281

322,027

 Long term loans     

21,197

20,855

19,466

 Retirement/pension benefits    

32,441

36,322

36,812

 Others

105,176

184,104

265,749

Shareholders' equity    

1,469,505

1,646,157

1,910,083

 Paid up capital      

115,703

115,703

115,703

 Capital reserves      

162,617

163,062

162,666

 Retained earnings    

1,324,052

1,368,512

1,415,784

Treasury stock        

-51,228

-51,258

-35,033

 Valuation & adjustment 

-81,639

50,138

250,963

Minority Interest    

64,736

68,785

77,143

Total Net Assets       

1,534,241

1,714,942

1,987,226

Total Liabilities & Net Assets     

1,994,103

2,282,853

2,636,704

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

1,190,870

1,280,054

1,447,369

Cost of goods sold      

870,143

952,350

1,068,465

Gross profit(loss)    

320,727

327,704

378,904

Sales/administrative expenses  

223,052

250,778

258,322

Operating profit(loss)    

97,675

76,926

120,582

Pretax profit                

114,893

101,363

146,268

Taxes & adjustment           

30,135

34,012

51,254

Minority interest   

-5,401

-878

-6,258

Net profit      

79,357

66,473

88,756

 

 

*Latest Financials*

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

On October 30, 2014 the subject released the following business results and forecast:

As of September 30, 2014 (2Q):

Unit: millions of JPY

Year                                 

Sales

Operating profit

Pretax profit

Net profit

2Q 2014                         

699,663

58,203

69,053

42,930

2Q 2015                          

714,329

54,751

68,118

43,649

FY 2015(F)

1,580,000

135,000

158,000

97,000

 

Current assets

1,368,096

Fixed assets

1,405,577

Total assets

2,773,673

Current liabilities

351,922

Fixed liabilities

333,409

Shareholders' equity

2,009,597

    Retained earnings

1,444,758

Total net assets

2,088,342

Total liabilities & net assets

2,773,673

 

 

Bank Details

 

Bank Name:      Bank of Kyoto, Ltd.

Branch:             Head office

 

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

Branch:             Kyoto

 

Bank Name:      Sumitomo Mitsui Banking Corp.

Branch:             Kyoto

 

Bank Name:      Mizuho Bank, Ltd.

Branch:             Kyoto corporate banking department

 

 

Credit Opinion

 

The subject is a major manufacturer of electronic components such as capacitor.

While solar panel and organic package businesses are suffering a price down competition, other mainstay products have been boosting its whole performance.

The subject is aiming at increasing the market share of LCD display and sensor.

A taskforce team has been set up to double up the sales to JPY 300 billion in the sphere of car-mounted devices for Mar. 2017 term.

A new plant in Kyoto is ready for full-fledged operation for organic package.

Financial condition is excellent.

Financial strength is quite high.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Business*

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

Development, manufacture, sales, exports and imports of the following products;

For Mar. 2014 term:

- Information-related equipment & devices (21%)

- Electronic devices (20%)

- Fine ceramic-applied products (19%)

- Communications-related equipment & devices (13%)

- Semiconductor components (13%)

- Fine ceramic parts & components (6%)

- Other products (9%)

 

Overseas business accounts for 56%.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                SAPPORO - SAPPORO-SHI                                                         

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

Branch name:                TOHOKU - SENDAI-SHI                                                           

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

Branch name:                NAGOYA - NAGOYA-SHI                                                           

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

Branch name:                OSAKA - OSAKA-SHI                                                             

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

Branch name:                KYUSHU - FUKUOKA-SHI                                                           

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

 

 

*Domestic Business Network*

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

Besides the above-listed sales branches, the subject is operating a total of 16 local offices across the nation.

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

*Domestic Manufacturing, R&D Facilities*

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

Plants:

A total of ten plants including;

- Kitami..........................Hokkaido

- Okaya...........................Nagano

- Shiga-yohkaichi...........Shiga Pref.

- Kagoshima-sendai.......Kagoshima Pref.

 

Facilities:

A total of nine production facilities including;

- Yokohama....................Yokohama City, Kanagawa Pref.

- Kyto-fushimi................Kyoto City, Kyoto Pref.

- Osaka-daitoh...............Daitoh City, Osaka Pref.

 

R&Ds:

A total of four R&Ds including;

- Management Institute................Kyoto Pref.

- Central Institute.........................Kyoto Pref.

- Total R&D Institute....................Kagoshima Pref.

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is same as that of the operational head office.

 

The quoted address, 2-1-1, Kagahara, Tsuzuki-ku, Yokohama-shi, Kanagawa 224-8502, is for Yokohama facilities.

 

 

Company History*

 

Date                             Development

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

November 6, 1946         Incorporated in Kyoto City.

April 1, 1959                  Started an operation under the name of "Kyoto Ceramic Co., Ltd."

                        (actual date of foundation)

October 1971                Public listed.(#6971)

 

 

May 1980                      Listed on the NYSE.

October 1982                Changed the company name to the current "Kyocera Corporation."

October 1983                Merged "Yasica Corp."

June 1984                     Jointly founded "DDI"(now KDDI) with Mitsubishi Corp., Sony

                                    Corp. and Secom Corp.

August 1998                  Completed the head office building and relocated to the current

                                    address.

January 2001                 Acquired "Tycom Corp."(USA).

August 2002                  Acquired "Toshiba Chemical"(now Kyocera Chemical) Co., Ltd.

August 2003                  "Kinseki Co., Ltd." became a group member.

May 2005                      Mita Industries Co., Ltd. became a group member (now Kyocera

                                    Mita).

September 2005            Withdrew from the camera business.

April 2008                     Acquired the business assets of mobile phone from Sanyo Electric

                                    (now Panasonic Corp. group)

January 2009                 Acquired "TA Triumph-Adler AG," Germany.

July 2011                      "Unimerco Group A/S"(Denmark) became a group member.

February 2012               "Optrex Corp." became a group member.

 

 

TRADE REFERENCES

 

*Major Customers*

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

Sharp Corp.

Toshiba Corp.

Panasonic Corp.

Group companies

 

*Customers*

==========

Major electronic companies worldwide

KDDI Corp.

Group companies

 

 

SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            KYOCERA SLC TECHNOLOGY CO., LTD.

Country:                        Japan

Status:                          Subsidiary  

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

 

 

Company name:            KYOCERA SOLAR CORPORATION

Country:                        Japan

Status:                          Subsidiary   

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

Company name:            JAPAN MEDICAL MATERIAL CO., LTD.

Country:                        Japan

Status:                                      Subsidiary  

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

Company name:            KYOCERA KINSEKI CO., LTD.

Country:                        Japan

Status:                          Subsidiary  

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

Company name:            OPTREX CORPORATION

Country:                        Japan

Status:                         Subsidiary  

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

Company name:            KYOCERA MITA CORPORATION

Country:                        Japan

Status:                         Subsidiary  

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

Company name:            KYOCERA MITA AMERICA, INC.

Country:                        USA

Status:                                      Subsidiary  

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

Company name:            TA TRIUMPH-ADLER GMBH

Country:                        Germany

Status:                                      Subsidiary  

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

Company name:            KYOCERA ELECTRONICS (SHANGHAI) CO., LTD.

Country:                        China

Status:                         Subsidiary  

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

Company name:            KYOCERA KOREA CO., LTD.

Country:                        South Korea

Status:                          Subsidiary  

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

Company name:            KYOCERA AMERICA, INC.

Country:                        USA

Status:                         Subsidiary  

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

 

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

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

As of March 31, 2014 the subject owns and controls a total of 217 subsidiaries and 12 affiliates at home and abroad.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.46

UK Pound

1

Rs.98.51

Euro

1

Rs.77.31

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.