MIRA INFORM REPORT

 

 

Report Date :

18.03.2014

 

IDENTIFICATION DETAILS

 

Name :

IBIDEN CO LTD

 

 

Registered Office :

2-1 Kandacho Ogaki City Gifu-Pref 503-8604

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

November, 1912

 

 

Com. Reg. No.:

2000-01-013231 (Gifu-Ogaki)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Manufacturing of electronic circuits, ceramics products, housing materials

 

 

No. of Employees :

11,960

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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 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 exceeds 225% 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 and address

 

IBIDEN CO LTD

 

REGD NAME:   Ibiden KK

MAIN OFFICE:  2-1 Kandacho Ogaki City Gifu-Pref 503-8604 JAPAN

                        Tel: 0584-81-3111    

Fax: 0584-81-4676     -

 

                        *.. The is its Aoyanagi Plant

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of electronic circuits, ceramics products, housing materials, other

 

 

BRANCHES   

 

Tokyo, Osaka, Ogaki (4), Gifu, Aichi, other (Total 16)

 

 

OVERSEAS   

 

USA, Netherlands, Hungary, France, Austria, Philippines, China (2), Hong Kong, Singapore (2), Malaysia, Korea (2), Taiwan (--subsidiaries)

 

 

FACTORIES

 

Ogaki (4), Gifu (3); Hydroelectric Power Plant (Gifu 3)

 

 

CHIEF EXEC

 

HIROKI TAKENAKA, PRES

 

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES        FAIR                                         A/SALES          Yen 285,946 M

PAYMENTS      SLOW BUT CORRECT               CAPITAL           Yen 64,152 M

TREND             SLOW                                       WORTH            Yen 286,705 M

STARTED         1912                                         EMPLOYES      11,960

 

 

COMMENT    

 

MFR OF ELECTRONIC CIRCUITS, CERAMICS PRODUCTS, OTHER 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2010

274,204

19,447

11,896

(%)

268,364

(Consolidated)

31/03/2011

304,968

33,575

19,740

11.22

271,249

31/03/2012

300,863

16,256

10,647

-1.35

274,901

31/03/2013

285,946

10,890

2,232

-4.96

286,705

31/03/2014

306,000

26,000

15,500

7.01

..

Unit: In Million Yen

Forecast figures for the 31/03/2014 fiscal term.

 

 

HIGHLIGHTS

 

This is originally a carbide maker, but diversified into building materials, electronic circuits, including PCBs, specialty carbons.  The firm is hurrying to shift to production of IC packages to Intl (US) for smartphone and tablet-uses.  Also engaged in diesel vehicle-use black smoke filter business worldwide.  The company invests Yen 40 billion for production boost of electronic parts at a plant in Malaysia to meet brisk demand for smartphones use, with new facilities starting up in Sept 2014. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2013 fiscal term amounted to Yen 285,946 million, a 5% down from Yen 300,863 million in the previous term.  This is referred to the sluggish PC markets and the harder competition among the trade.  The recurring profit was posted at Yen 10,890 million and the net profit at Yen 2,232 million, respectively, compared with Yen 16,256 million recurring profit and Yen 10,647 million net profit, respectively, a year ago. 

 

(Apr/Dec/2013 results): Sales Yen 230,749 million (up 10.5%), operating profit Yen 19,944 million (up 343.9%), recurring profit Yen 28,267 million (up 221.1%), net profit Yen 16,537 million (up 529.2%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2014 the recurring profit is projected at Yen 26,000 million and the net profit at Yen 15,500 million, on a 7% rise in turnover, to Yen 306,000 million.  Sales of electronic parts for smartphones and tablet PCs are brisk.  Benefits of weaker Yen will reduce depreciation costs substantially.  Printed circuit board business is improving faster than estimated after posting deficit in the previous term.  Operating profit will grow even further. 

 

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

 

 

REGISTRATION

           

Date Registered: Nov 1912

Regd No.:            2000-01-013231 (Gifu-Ogaki)

Legal Status:        Limited Company (Kabushiki Kaisha

Authorized:          230 million shares

Issued:                150,860,557 shares

Sum:                   Yen 64,152 million

 

Major shareholders (%): Company’s Treasury Stock (8.4), Master Trust Bank of Japan T (4.8), Japan Trustee Services T (4.7), Toyota Industries (4.1), Juroku Bank (2.7), Ogaki Kyoritsu Bank (2.7), Bank of New York Jasdec Treaty (2.3), OM04 SSB Client Omnibus (2.2), Northern Trust (AVFC) British (1.8), Co-op, Companies’ S/Holding Assn (1.8); foreign owners (29.5)

 

No. of shareholders: 40,788

 

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

 

Managements: Yoshifumi Iwata, ch; Hiroki Takenaka, pres; Hironobu Kodaka, v pres; Shigeyasu Kurita, s/mgn dir; Keiichi Sakashita, s/mgn dir; Takayuki Takagi, s/mgn dir; Yoichi Kuwayama, mgn dir; Katsumi Sagisaka, mgn dir; Yoshiyuki Iwata, mgn dir; Tsuyoshi Nishida, dir; Takeshi Aoki, dir

 

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

 

Related companies: Ibiden Philippines, Ibiden Hungary, other.

 

 

OPERATION

           

Activities: Manufactures: electronics (54%), ceramics (26%), construction materials (8%), construction works (4%), others (7%)

Overseas Sales Ratio (74%)

(Mfg/Handling Items)

Electronics: printed wiring board, IC packages, other

Ceramics: DPF/automotive exhaust system components, graphite products, fine ceramics, ceramic fiber, other

           

Clients: [Mfrs, wholesalers] Intel Corp (29%), Ibiden USA, Samsung Electronics, Ibiden

Europe, Amkor Technology Inc, other

            No. of accounts: 500 (domestic only)

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Mitsubishi Plastics Inc, Ibiden Philippines, Ajinomoto Fine

            Techno, Japan Pure Chemical Co, FINECS Co, Panasonic Corp Yakushima Denko Co, Hitachi Kasei Shoji Co, other

 

Payment record: Slow but correct

 

Location: Business area in Ogaki City, Gifu-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

                        Juroku Bank (H/O)

                        Ogaki Kyoritsu Bank (H/O)

                        Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/03/2013

31/03/2012

INCOME STATEMENT

  Annual Sales

 

285,946

300,863

  Cost of Sales

234,203

235,867

      GROSS PROFIT

51,743

64,996

  Selling & Adm Costs

46,324

49,480

      OPERATING PROFIT

5,419

15,515

  Non-Operating P/L

5,471

741

      RECURRING PROFIT

10,890

16,256

 

      NET PROFIT

2,232

10,647

BALANCE SHEET

  Cash

 

63,047

77,960

  Receivables

58,837

58,097

  Inventory

38,663

35,818

  Securities, Marketable

20,183

27,194

  Other Current Assets

8,955

12,570

      TOTAL CURRENT ASSETS

189,685

211,639

  Property & Equipment

193,788

177,878

  Intangibles

11,336

5,286

  Investments, Other Fixed Assets

35,231

31,068

      TOTAL ASSETS

430,040

425,871

  Payables

38,951

50,613

  Short-Term Bank Loans

20,515

18,716

 

 

 

  Other Current Liabs

33,910

31,173

      TOTAL CURRENT LIABS

93,376

100,502

  Debentures

40,000

40,000

  Long-Term Bank Loans

3,409

5,021

  Reserve for Retirement Allw

355

237

  Other Debts

 

6,194

5,210

      TOTAL LIABILITIES

143,334

150,970

      MINORITY INTERESTS

Common stock

64,152

64,152

Additional paid-in capital

68,354

68,331

Retained earnings

182,263

184,000

Evaluation p/l on investments/securities

6,736

2,483

Others

2,307

(13,424)

Treasury stock, at cost

(37,107)

(30,641)

      TOTAL S/HOLDERS` EQUITY

286,705

274,901

 

      TOTAL EQUITIES

430,040

425,871

CONSOLIDATED CASH FLOWS

Terms ending:

31/03/2013

31/03/2012

Cash Flows from Operating Activities

 

45,101

37,370

Cash Flows from Investment Activities

-58,325

-59,291

Cash Flows from Financing Activities

-11,507

34,092

 

Cash, Bank Deposits at the Term End

 

82,969

104,487

ANALYTICAL RATIOS            Terms ending:

31/03/2013

31/03/2012

Net Worth (S/Holders' Equity)

286,705

274,901

Current Ratio (%)

203.14

210.58

Net Worth Ratio (%)

66.67

64.55

Recurring Profit Ratio (%)

3.81

5.40

Net Profit Ratio (%)

0.78

3.54

Return On Equity (%)

0.78

3.87

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.52

UK Pound

1

Rs.102.22

Euro

1

Rs.85.23

 

 

INFORMATION DETAILS

 

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.