MIRA INFORM REPORT

Report Date :

19.07.2014

IDENTIFICATION DETAILS

Name :	OLYMPUS CORPORATION
Registered Office :	2-3-1 Nishishinjuku Shinjukuku Tokyo 163-0914
Country :	Japan
Financials (as on) :	31.03.2014
Date of Incorporation :	October, 1919
Legal Form :	Limited Company (Kabushiki Kaisha)
Line of Business :	Manufacturing of SRL cameras, precision machineries & instruments
No. of Employees :	30,702

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 – 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
Moderately Low Risk	B1
Moderate Risk	B2
Moderately 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

OLYMPUS CORPORATION

REGD NAME: Olympus KK

MAIN OFFICE: 2-3-1 Nishishinjuku Shinjukuku Tokyo 163-0914 JAPAN

Tel: 03-3340-2111

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

E-Mail address: info@olympus.co.jp

ACTIVITIES

Mfg of SRL cameras, precision machineries & instruments

BRANCHES

Sapporo, Sendai, Nagano, Hachioji, Saitama, Yokohama, Shizuoka,

Nagoya, Osaka, Fukuoka, other

OVERSEAS

Americas (18), Europe (57), Asia/Oceania (37) (--subsidiaries)

FACTORIES

Nagano, Ina, Okaya, Mishima

CHIEF EXEC

HIROYUKI SASA, PRES

Yen Amount

In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 713,286 M

PAYMENTSNO COMPLAINTS CAPITAL Yen 124,520 M

TREND SLOW WORTH Yen 331,284 M

STARTED 1919 EMPLOYES 30,702

COMMENT

MFR OF PRECISION MCHINERIES AND INSTRUMENTS.

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	847,105	23,215	3,866	(%)	115,579
(Consolidated)	31/03/2012	848,548	17,865	-48,985	0.17	48,028
	31/03/2013	743,851	13,046	8,020	-12.34	151,907
	31/03/2014	713,286	50,913	13,627	-4.11	331,284
	31/03/2015	760,000	70,000	45,000	6.55	..

Unit: In Million Yen

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

HIGHLIGHTS

The subject company is the pioneer of lightweight SLR cameras. Its major profit earner endoscopes accounts for 70% of global market shares. Training endoscope specialists in China. Medium-size maker of digital cameras. Has subsidiary ITX Corp engaging in IT field. Expanding into biotechnology field on basis of clinical analyzers. Plans to broaden the lineup of medical treatment devices. It intends to expand the market share for cameras through the release of new low-priced models and reinforcement of the sales network in China.　Sony Corp is the top shareholder.

FINANCIAL INFORMATION

The sales volume for Mar/2014 fiscal term amounted to Yen 713,286 million, a 4.1% down from Yen 743,851 million in the previous term. The sale of an unprofitable business in the preceding term reduced sales. Sales of endoscopes grew strongly, thanks to new products. The recurring profit was posted at Yen 50,913 million and the net profit at Yen 13,627 million, respectively, compared with Yen 13,046 million recurring profit and Yen 8,020 million net losses, respectively, a year ago.

For the current term ending Mar 2015 the recurring profit is projected at Yen 70,000 million and the net profit at Yen 45,000 million, on a 6.5% rise in turnover, to Yen 760,000 million. Sales of endoscopes will continue rising, thanks to replacement demand. The weaker Yen is boosting earnings.

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

REGISTRATION

Date Registered:　Oct 1919

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 1,000 million shares

Issued: 342,671,508 shares

Sum: Yen 125,520 million

Major shareholders (%): Sony Corp (10.0), State Street Bank &Trust 505223 (5.4), Master Trust Bank of Japan T (4.6), Nippon Life Ins (3.8), MUFG (3.8), Japan Trustee Services T (3.5), JTSB (SMBC) (2.3), State Street Bank & Trust (3.0), SMBC (2.4), Terumo Corp (1.6); foreign owners (41.5)

No. of shareholders: 22,273

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

Managements: Yasuyuki Kimoto, ch; Hiroyuki Sasa, pres; Hideaki Fujisawa, s/mgn dir; Yasuo Takeuchi, s/mgn dir; Shigeo Hayashi, mgn dir

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

Related companies: Olympus Medical Systems, other

OPERATION

Activities: Manufactures precision machineries & instruments:

(Sales Breakdown by Divisions):

Imaging Equipment (13%): digital cameras, IC recorders, other peripherals;

Medical Lines (69%): gastrointestinal endoscopes, & medical equipment for diagnoses & treatments;

Life Science (14%): microscopes and diagnostic systems;

Others (4%); industrial endoscopes, non-destructive testing devices, printers, bar code scanners, system development;

Overseas Sales Ratio (76%)

Clients: [Mfrs, wholesalers] KS Olympus, Olympus Medical Systems, Olympus Medical Science Sales, Olympus America Inc (--subsidiaries), other

No. of accounts: 2,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Ks Olympus, Nagano Olympus, AVS, Olympus Engineering (--subsidiaries), other

Payment record: No complaints

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

Bank References:

SMBC (Shinjuku-Nishiguchi)

MUFG (Shinjuku)

Relations: Satisfactory

FINANCES (In Million Yen)

FINANCES: (Consolidated in million yen)
		Terms Ending:	31/03/2014	31/03/2013
INCOME STATEMENT
	Annual Sales		713,286	743,851
	Cost of Sales		272,830	365,653
	GROSS PROFIT		440,456	378,198
	Selling & Adm Costs		367,011	343,121
	OPERATING PROFIT		73,445	35,077
	Non-Operating P/L		-22,532	-22,031
	RECURRING PROFIT		50,913	13,046
	NET PROFIT		13,627	8,020
BALANCE SHEET
	Cash		252,121	229,610
	Receivables		132,233	125,231
	Inventory		98,595	99,307
	Securities, Marketable
	Other Current Assets		93,563	86,889
	TOTAL CURRENT ASSETS		576,512	541,037
	Property & Equipment		135,440	129,802
	Intangibles		173,559	174,606
	Investments, Other Fixed Assets		141,964	114,794
	TOTAL ASSETS		1,027,475	960,239
	Payables		45,409	42,272
	Short-Term Bank Loans		69,017	102,510
	Other Current Liabs		161,880	172,078
	TOTAL CURRENT LIABS		276,306	316,860
	Debentures		55,000	55,000
	Long-Term Bank Loans		291,814	367,880
	Reserve for Retirement Allw		27,291	28,251
	Other Debts		45,780	40,341
	TOTAL LIABILITIES		696,191	808,332
	MINORITY INTERESTS
	Common stock		124,520	73,882
	Additional paid-in capital		131,871	79,788
	Retained earnings		81,534	68,000
	Evaluation p/l on investments/securities		11,836	6,295
	Others		(17,379)	(64,803)
	Treasury stock, at cost		(1,098)	(11,255)
	TOTAL S/HOLDERS` EQUITY		331,284	151,907
	TOTAL EQUITIES		1,027,475	960,239
CONSOLIDATED CASH FLOWS
		Terms ending:	31/03/2014	31/03/2013
	Cash Flows from Operating Activities		72,388	25,233
	Cash Flows from Investment Activities		-20,273	33,455
	Cash Flows from Financing Activities		-39,693	-42,436
	Cash, Bank Deposits at the Term End		251,344	225,782
ANALYTICAL RATIOS Terms ending:			31/03/2014	31/03/2013
		Net Worth (S/Holders' Equity)	331,284	151,907
		Current Ratio (%)	208.65	170.75
		Net Worth Ratio (%)	32.24	15.82
		Recurring Profit Ratio (%)	7.14	1.75
		Net Profit Ratio (%)	1.91	1.08
		Return On Equity (%)	4.11	5.28

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 :	NNA

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.