MIRA INFORM REPORT

 

 

Report Date :

03.07.2014

 

IDENTIFICATION DETAILS

           

Name :

NABTESCO CORPORATION

 

 

Registered Office :

JA Kyosai Bldg, 2-7-9 Hirakawacho Chiyodaku Tokyo 102-0093

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

29.09.2003

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

·         Manufacturer of precision equipment for industrial robots and working tools

·         Subject also manufacture transportation equipment, aircraft & hydraulic equipment as well as industrial equipment

 

 

No of Employees :

5,257

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

NABTESCO CORPORATION

 

REGD NAME 

 

Nabtesco KK

 

MAIN OFFICE

 

JA Kyosai Bldg, 2-7-9 Hirakawacho Chiyodaku Tokyo 102-0093 JAPAN

           

Tel: 03-5213-1133     Fax: 03-5213-1171    

 

URL:                 http://www.nabtesco.com

E-Mail address:            (thru the URL)

 

 

ACTIVITIES

 

·         Manufacturer of precision equipment for industrial robots and working tools

·         Subject also manufacture transportation equipment, aircraft & hydraulic equipment as well as industrial equipment

 

BRANCHES

 

Kobe, Nagoya, other (Tot 3)

 

 

OVERSEAS   

 

USA (4), Europe (8), Canada (2), China (12), Thailand (2), other (Tot 36)

 

 

FACTORIES

 

Gifu (2), Mie, Kobe (3)

 


CHIEF EXEC

 

KAZUAKI KOTANI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 202,292 M

PAYMENTS      REGULAR         CAPITAL           Yen 10,000 M

TREND             UP                    WORTH            Yen 139,471 M

STARTED         2003                 EMPLOYES      5,257

 

 

COMMENT

 

HOLDING COMPANY OF PRECISION EQUIPMENT MFRS 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

169,303

22,365

13,387

(%)

96,531

(Consolidated)

31/03/2012

198,527

24,656

14,756

17.26

107,466

31/03/2013

179,543

17,890

13,269

-9.56

120,857

31/03/2014

202,292

24,227

14,978

12.67

139,471

31/03/2015

216,000

24,400

15,500

6.78

..

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the holding company established thru business combination with TS Corp and Nabco Ltd.  Main profit earner is precision equipment for industrial robots and working tools.  Maintains 60% global market share in precision motion reduction gears for use in industrial robots.  Has strength in railway rolling-stock brakes.  To expand sales of solar tracking units for photovoltaic power generation plants, the company established its office in the US.  It will focus on business expansion through M&A under the next medium-term business plan to be released in 2014.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 202,292 million, a 12.7% up from Yen 179,543 million in the previous term.  Sales of railway rolling-stock equipment and automatic doors increased steadily.  Orders for aircraft systems also grew.  The recurring profit was posted at Yen 24,227 million and the net profit at Yen 14,978 million, respectively, compared with Yen 17,890 million recurring profit and Yen 13,269 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 24,400 million and the net profit at Yen 15,500 million, respectively, on a 6.8% rise in turnover, to Yen 216,000 million.  Sales of motion reduction gears and hydraulic equipment will rise.  Solar tracking units will also make a contribution.

 

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

 

 

REGISTRATION

 

Date Registered: 29 Sept 2003

Legal Status:       Limited Company (Kabushiki Kaisha

Authorized:       400 million shares

Issued:                128,265,799

Sum:                   Yen 10,000 million

 

Major shareholders (%): Goldman Sachs (Regular) Acct (4.3), Central Japan Railway (4.0), JP Morgan Chase Bank 380055 (3.5), Japan Trustee Services T (3.5), BNP Paribas  Lux J Aberdeen G (3.4), Chase London SL Omnibus Acct (3.2), Master Trust Bank of Japan T (3.1), Harmonic Drive Systems (2.5), Mellon Bank NA Treaty CL Omnibus (1.9), Mellon Bank Treaty CL Omnibus (1.9); foreign owners (62.09

 

No. of shareholders: 12,871

 

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

 

Managements: Kazuaki Kotani, pres; Yusuke Mishiro, s/mgn dir; Tsutomu Sakamoto, mgn dir; Hiroyuki Aoi, mgn dir; Nobutaka Osada, mgn dir; Ken’ichi Nakamura, mgn dir; Hiroaki Sakai, mgn dir; Toshio Yoshikawa, dir

 

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

 

Related companies: Nabtesco Automotive, Nabtesco Door, Toyo Jidoki Co, other.

 

 

OPERATION

           

Activities: Manufactures precision equipment (23%), transportation equipment (25%), aircraft & hydraulic equipment (26%), industrial equipment (27%)

 

Overseas Sales Ratio (40%)

           

Clients: [Mfrs, wholesalers] Nabtesco Precision Europe, Kawasaki Heavy Ind, Cobra Thermosolar Plants, Nabco System, other

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sumisho Aero System, FMC, Mutsumi Ind Co, Toa Electric Ind Co, SSA Ind, other

 

Payment record: Regular

 

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

 

Bank References:

MUFG (Tokyo)

Mizuho Bank (Ohtemachi)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

  Annual Sales

 

202,292

179,543

  Cost of Sales

148,321

134,859

      GROSS PROFIT

53,970

44,684

  Selling & Adm Costs

33,877

29,670

      OPERATING PROFIT

20,092

15,013

  Non-Operating P/L

4,135

2,877

      RECURRING PROFIT

24,227

17,890

 

      NET PROFIT

14,978

13,269

BALANCE SHEET

  Cash

 

25,726

13,904

  Receivables

52,840

45,131

  Inventory

22,233

20,529

  Securities, Marketable

27,999

26,998

  Other Current Assets

5,361

5,486

      TOTAL CURRENT ASSETS

134,159

112,048

  Property & Equipment

55,225

54,475

  Intangibles

21,393

17,579

  Investments, Other Fixed Assets

23,207

18,954

      TOTAL ASSETS

233,984

203,056

  Payables

35,265

28,026

  Short-Term Bank Loans

5,825

6,098

 

 

 

  Other Current Liabs

32,071

18,198

      TOTAL CURRENT LIABS

73,161

52,322

  Debentures

10,000

10,000

  Long-Term Bank Loans

259

10,220

  Reserve for Retirement Allw

7,111

7,022

  Other Debts

 

3,982

2,634

      TOTAL LIABILITIES

94,513

82,198

      MINORITY INTERESTS

Common stock

10,000

10,000

Additional paid-in capital

19,011

19,026

Retained earnings

94,225

83,606

Evaluation p/l on investments/securities

1,783

1,294

Others

17,439

7,670

Treasury stock, at cost

(2,987)

(739)

      TOTAL S/HOLDERS` EQUITY

139,471

120,857

 

      TOTAL EQUITIES

233,984

203,056

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2014

31/03/2013

Cash Flows from Operating Activities

 

27,597

12,952

Cash Flows from Investment Activities

-8,064

-13,693

Cash Flows from Financing Activities

-8,175

-10,090

 

Cash, Bank Deposits at the Term End

 

53,052

40,200

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

Net Worth (S/Holders' Equity)

139,471

120,857

Current Ratio (%)

183.38

214.15

Net Worth Ratio (%)

59.61

59.52

Recurring Profit Ratio (%)

11.98

9.96

Net Profit Ratio (%)

7.40

7.39

Return On Equity (%)

10.74

10.98

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.97

UK Pound

1

Rs.102.89

Euro

1

Rs.82.02

 

 

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.