MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	FUJI ELECTRIC CO LTD

Registered Office :	Gate City Osaki East Tower, 1-11-2 Osaki Shinagawaku Tokyo 141-0032

Country :	Japan

Financials (as on) :	31.03.2013

Date of Incorporation :	August 1923

Legal Form :	Limited Company

Line of Business :	Manufacturing of heavy electric machinery

No. of Employees	25,524

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	Yen 14,972.8 Million
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 – March 31, 2014

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

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 and address

FUJI ELECTRIC CO LTD

REGD NAME: Fuji Denki KK

MAIN OFFICE: Gate City Osaki East Tower, 1-11-2 Osaki Shinagawaku Tokyo 141-0032

JAPAN

Tel: 03-5435-7111 Fax: 03-5435-7486

*.. The given postal code No (210-9530) is its Kawasaki Factory

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

E-Mail address: (thru the URL)

ACTIVITIES

Mfr of heavy electric machinery

BRANCHES

Nationwide

OVERSEAS

USA (8), Europe (3), China (12), Taiwan (2), Korea (2), Singapore, Malaysia,

Philippines (2), Thailand, Indonesia

FACTOR(IES

At the caption address, Kawasaki, Kobe, Chiba, other (Tot 11)

CHIEF EXEC

MICHIHIRO KITAZAWA, PRES

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 759,911 M

PAYMENTSNO COMPLAINT S　CAPITAL Yen 47,586 M

TREND STEADY 　 WORTH Yen 251,225 M

STARTED 1923 　 EMPLOYES 25,524

COMMENT

HEAVY ELECTRIC MACHINERY MFR.

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	689,065	7,225	15,104	(%)	174,935
(Consolidated)	31/03/2012	703,534	18,554	11,803	2.10	183,217
	31/03/2013	745,781	25,714	26,368	6.00	215,672
	31/03/2014	759,911	36,731	19,582	1.89	251,225
	31/03/2015	780,000	39,000	23,000	2.64	..

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2015 fiscal term

HIGHLIGHTS

The subject company is one of the top-ranked heavy electric machinery mfr. Originally JV formed in 1923by Furukawa Electric and Siemens. Mother company of Fujitsu Ltd. Maintaining higher shares in automatic vending machines and power semiconductors. Earnings concentrate in 2^nd half each term. Smartmeters for Tokyo Electric Power will start making a contribution.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 759,911 million, a 1.9% up from Yen 745,781 million in the previous term. Sales of mega-photovoltaic power generation systems did well in Japan, covering fading-out of orders for thermal power plants. Plant utilization in the power semiconductor business recovered sharply. The recurring profit was posted at Yen 36,731 million and the net profit at Yen 19,582 million, respectively, compared with Yen 25,714 million recurring profit and Yen 26,368 million net profit, respectively, a year ago.

(For the current term ending Mar 2015 the recurring loss is projected at Yen 39,000 million and the net loss at Yen 23,000 million, respectively, on a 2.6% rise in turnover, to Yen 780,000 million. Operating profit will remain steady, aided by brisk sales of semiconductors and photovoltaic power systems.

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

REGISTRATION

Date Registered:　 Aug 1923

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 1,800 million shares

Issued: 746,484,957 shares

Sum: Yen 47,586 million

Major shareholders (%): Fujitsu Ltd (9.9), Japan Trustee Services T (8.8), Master Trust Bank of Japan (5.1), Company’s Treasury Stock (4.2), Mizuho Corporate Bank (2.9), Asahi Life Ins (2.6), Fanuc Ltd (1.7), Chase London SL Omnibus Acct (1.6), Furukawa Co (1.4), Furukawa Electric (1.4); foreign owners (26.4)

No. of shareholders: 37,141

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

Managements: Michihiro Kitazawa, pres; Yoshio Okuno, v pres; Michio Abe, s/mgn dir; Hidehiko Asahi, mgn dir; Kuniaki Yanagisawa, mgn dir; Kenzo Sugai, mgn dir; Fumio Ito, dir; Motofumi Matsumura, dir

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

Related companies: Fuji Electric Systems, Fuji Electric Device Technology, Fuji Electric Retail Systems, other

OPERATION

Activities: Manufactures heavy electric machineries: power generation and social infrastructure (20%), industrial infrastructure (24%), power electric equipment (20%), electric devices (16%), others (20%)

Overseas Sales Ratio (23%):

Clients: [Mfrs, wholesalers] Sojitz Corp, Sumitomo Corp, Fujitsu Ltd,JFE Steel, Chubu Electric Power, Tokyo Electric Power, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Fuji Furukawa E&C, Fuji IT, Fuji IT Center, other

Payment record: No complaints

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

Bank References:

Mizuho Bank (H/O)

MUFG (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		759,911	745,781
	Cost of Sales		579,856	587,457
	GROSS PROFIT		180,055	158,323
	Selling & Adm Costs		146,918	136,330
	OPERATING PROFIT		33,136	21,992
	Non-Operating P/L		3,595	3,722
	RECURRING PROFIT		36,731	25,714
	NET PROFIT		19,582	26,368
BALANCE SHEET
	Cash		34,025	39,750
	Receivables		222,481	216,852
	Inventory		121,441	107,721
	Securities, Marketable
	Other Current Assets		51,391	60,383
	TOTAL CURRENT ASSETS		429,338	424,706
	Property & Equipment		172,619	168,442
	Intangibles		13,874	12,706
	Investments, Other Fixed Assets		194,943	159,709
	TOTAL ASSETS		810,774	765,563
	Payables		142,087	129,934
	Short-Term Bank Loans		76,412	62,594

	Other Current Liabs		140,958	187,638
	TOTAL CURRENT LIABS		359,457	380,166
	Debentures		60,500	40,500
	Long-Term Bank Loans		62,592	85,623
	Reserve for Retirement Allw		34,236	11,681
	Other Debts		42,763	31,920
	TOTAL LIABILITIES		559,548	549,890
	MINORITY INTERESTS
	Common stock		47,586	47,586
	Additional paid-in capital		46,734	46,734
	Retained earnings		102,631	87,620
	Evaluation p/l on investments/securities		44,768	20,383
	Others		16,654	20,464
	Treasury stock, at cost		(7,148)	(7,115)
	TOTAL S/HOLDERS` EQUITY		251,225	215,672
	TOTAL EQUITIES		810,774	765,563
CONSOLIDATED CASH FLOWS
		Terms ending:	31/03/2014	31/03/2013
	Cash Flows from Operating Activities		53,651	55,342
	Cash Flows from Investment Activities		-9,649	-24,286
	Cash Flows from Financing Activities		-50,569	-56,827
	Cash, Bank Deposits at the Term End		33,412	39,688
ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013
		Net Worth (S/Holders' Equity)	251,225	215,672
		Current Ratio (%)	119.44	111.72
		Net Worth Ratio (%)	30.99	28.17
		Recurring Profit Ratio (%)	4.83	3.45
		Net Profit Ratio (%)	2.58	3.54
		Return On Equity (%)	7.79	12.23

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.60.33
UK Pound	1	Rs.103.18
Euro	1	Rs.81.58

INFORMATION DETAILS

Analysis Done by :	DIV

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%)

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