MIRA INFORM REPORT

 

 

Report Date :

30.05.2014

 

IDENTIFICATION DETAILS

 

Name :

FANUC CORPORATION

 

 

Registered Office :

3580 Shibakusa Aza-Komanba Oshinomura Minamitsurugun Yamanashi-Pref 401-0597

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

May 1972

 

 

Com. Reg. No.:

0900-01-010053 (Yamanashi-Minamitsurugun-Oshinomura)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of NC apparatus & robots

 

Subject product ranges includes :

·         CNC series

Servo Motor

Laser

Robot

ROBODRILL

ROBOSHOT (Electric Injection Molding Machine)

ROBOCUT (Wire-cut Electric Discharge Machine)

ROBONANO (Super Nano Machine)

 

 

No of Employees :

5,261

 

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

 

FANUC CORPORATION

 

 

REGD NAME

 

Fanuc KK

 

 

MAIN OFFICE

 

3580 Shibakusa Aza-Komanba Oshinomura Minamitsurugun Yamanashi-Pref 401-0597 JAPAN

Tel: 0555-84-5555     Fax: 0555-84-5512

 

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

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

 

 

ACTIVITIES

 

Manufacturer of NC apparatus & robots

 

Subject product ranges includes :

·         CNC series

Servo Motor

Laser

Robot

ROBODRILL

ROBOSHOT (Electric Injection Molding Machine)

ROBOCUT (Wire-cut Electric Discharge Machine)

ROBONANO (Super Nano Machine)

 

 

BRANCHES

 

Osaka, Nagoya, Tsukuba, Ebetsu (Hokkaido), Kumamoto, other (Tot 32);

 

 

OVERSEAS

 

USA, Europe, Australia, China, Asia, other (Tot 10)

FACTORIES

 

At the caption address, Tsukuba, Hayato (Kagoshima)

 

CHIEF EXEC

 

YOSHIHARU INABA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 450,976 M

PAYMENTS      REGULAR         CAPITAL           Yen 69,014 M

TREND             SLOW              WORTH            Yen 1,199,863 M

STARTED         1972                 EMPLOYES      5,261

 

 

COMMENT

 

MFR OF NC EQUIPMENT & INDUSTRIAL ROBOTS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSI- NESS ENGAGEMENTS.

 

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

446,201

195,434

120,155

(%)

894,494

(Consolidated)

31/03/2012

538,492

228,578

138,819

20.68

985,322

 

31/03/2013

498,395

191,242

120,484

-7.45

1,094,129

 

31/03/2014

450,976

174,360

110,930

-9.51

1,199,863

 

31/03/2015

531,800

216,200

146,500

17.92

..

                        Unit; In Million Yen

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

 

 

HIGHLIGHTS

 

The subject company was established on the basis of the Computing Control Division separated from Fujitsu Ltd, nation’s largest computer mfr, Tokyo.  That year developed its first industrial robots.  This is the world’s largest mfr of NC equipment in use for machine tools.  Strong in-house production of servomotors.  Noted for debt-free financial position and strong earnings.  The firm increased the number of vice president position from one to three and granted a representation right to each of them, aiming to enhance the management term’s leadership capability.  Kiyonori Inaba, a son of president Yoshiharu Inaba, was promoted to executive management director.  Aggressively expanding into Europe, India and China.  Set up a sales company in Russia in partnership with Mitsui & Co.  Mostly exports on OEM basis.  Also engaged in NC equipment in US & Europe.  In 2009, Fanuc dissolved its JV with General Electric Company.  Accordingly, the firm established FANUC CNC America Inc and FANUC CNC Europe SA as wholly owned subsidiaries to conduct sales and maintenance service activities of CNCs in the Americas & Europe respectively.  

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 450,976 million, a 9.5% down from Yen 498,395 million in the previous term.  Sales of robots increased steadily mainly in the US, backed by car-related brisk demand.  But sales of small MCs decreased, hit by the absence of smartphone related large demand.  Sales of main profit-earner NC equipment fell short of projections, owing to a slow recovery in the machine tool market.  The recurring profit was posted at Yen 174,360 million and the net profit at Yen 110,930 million, respectively, compared with Yen 191,242 million recurring profit and Yen 120,484 million net profit, respectively, a year ago.

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 216,200 million and the net profit at yen 146,500 million, respectively, on a 17.9% rise in turnover, to Yen 531,800 million.  Sales of mainstay NC equipment will grow, with machine tool markets turning up in Japan and China.  Sales of robots will remain at a high level mainly in the US.

 

Financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

 

Date Registered: May 1972

Regd No.:       0900-01-010053 (Yamanashi-Minamitsurugun-Oshinomura)

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:      400 million shares

Issued:             239,508,317 shares

Sum:                 Yen 69,014 million

 

Major shareholders (%): Company’s Treasury Stock (18.2), Master Trust Bank of Japan T (5.9), Japan Trustee Services T (4.8), State Street Bank & Trust (4.6), Chase London SL Omnibus Acct (3.0), State Street Bank & Trust (2) (2.6), CBNY for Depositary Shareholders (1.4), Caceis Bank France Ordinary (1.3), Bank of New York Treaty Jasdec (1.3), Mellon Bank Treaty Cl Omnibus (1.1); foreign owners (JP Morgan Chase Bank 380055 (1.9), JP Morgan Securities Japan (1.3), Trust & Custody Services Bank (1.2), SSB 0005 Omnibus China Treaty (1.1); foreign owners (46.4)

 

No. of shareholders: 47,851

 

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

 

Managements: Yoshiharu Inaba, pres & CEO; Kenji Yamaguchi, v pres; Hiroyuki Uchida, v pres; Yoshihiro Gonda, v pres; Kiyonori Inaba, s/mgn dir; Shunsuke Matsubara, s/mgn dir; Katsuo Kobari, s/mgn dir; Hiroshi Noda, s/mgn dir; Tetsuya Kosaka, mgn dir; Toshiya Okada, mgn dir; Kazuyuki Hiramoto mgn dir; Takayuki Ito mgn dir

 

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

 

Related companies: Fanuc Robotics America, other

 

 

OPERATION

 

Activities: Manufactures NC apparatus & robots:

 

(Sales breakdown by divisions):

 

FA Div (40%): CNC series, power mater, Servo motors (including spindle motors, linear motors, DD motors), lasers, other

 

Robotics Div (24%): robots;

 

Robot Machine Div (36%): electric injection molding machines, wire-cut EDMs, CNC drills, super 5 axis precision nano machines, including maintenance, repairing, testing, and other services for the products.

 

Overseas sales ratio (789.0%)

 

Clients: [Mfrs, wholesalers] Mitsui & Co, Makino Milling Machine, Murata Machinery, Amada Co, Yamazen Corp, Yuasa Trading, Tsugami Corp, Mori Seiki Co, Star Seiki Co, Foxconn Precision Electronics, other

            No. of accounts: 2,000

            Domestic areas of activities: Nationwide

 

Suppliers [Mfrs, wholesalers]: Fujitsu Ltd, Panasonic Corp, Nabtesco Corp, Fuji Electric Devise Technology, Umetoku Inc, Fanuc Pertronics, THK, Hitachi Metal Ind, Furukawa Electric Co, other

 

Payment record: Regular

 

Location: Light industrial area in Yamanashi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Tokyo)

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

 

450,976

498,395

 

  Cost of Sales

227,189

258,670

 

      GROSS PROFIT

223,787

239,725

 

  Selling & Adm Costs

59,653

54,904

 

      OPERATING PROFIT

164,134

184,821

 

  Non-Operating P/L

10,226

6,421

 

      RECURRING PROFIT

174,360

191,242

 

      NET PROFIT

110,930

120,484

BALANCE SHEET

 

 

 

 

  Cash

 

823,670

727,753

 

  Receivables

 

91,698

81,318

 

  Inventory

 

87,495

72,184

 

  Securities, Marketable

 

 

 

  Other Current Assets

24,938

25,185

 

      TOTAL CURRENT ASSETS

1,027,801

906,440

 

  Property & Equipment

262,473

264,821

 

  Intangibles

 

4,213

8,747

 

  Investments, Other Fixed Assets

49,417

39,105

 

      TOTAL ASSETS

1,343,904

1,219,113

 

  Payables

 

26,192

22,044

 

  Short-Term Bank Loans

 

 

 

 

 

 

 

 

  Other Current Liabs

73,257

70,929

 

      TOTAL CURRENT LIABS

99,449

92,973

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

 

 

 

  Reserve for Retirement Allw

40,456

28,172

 

  Other Debts

 

4,136

3,839

 

      TOTAL LIABILITIES

144,041

124,984

 

      MINORITY INTERESTS

 

 

 

Common stock

69,014

69,014

 

Additional paid-in capital

96,270

96,268

 

Retained earnings

1,340,809

1,261,572

 

Evaluation p/l on investments/securities

5,112

2,941

 

Others

 

957

(24,030)

 

Treasury stock, at cost

(312,299)

(311,636)

 

      TOTAL S/HOLDERS` EQUITY

1,199,863

1,094,129

 

      TOTAL EQUITIES

1,343,904

1,219,113

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

125,559

158,848

 

Cash Flows from Investment Activities

-16,468

-43,964

 

Cash Flows from Financing Activities

-31,929

-39,838

 

Cash, Bank Deposits at the Term End

 

823,669

727,751

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

1,199,863

1,094,129

 

 

Current Ratio (%)

1033.50

974.95

 

 

Net Worth Ratio (%)

89.28

89.75

 

 

Recurring Profit Ratio (%)

38.66

38.37

 

 

Net Profit Ratio (%)

24.60

24.17

 

 

Return On Equity (%)

9.25

11.01

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.84

UK Pound

1

Rs.98.41

Euro

1

Rs.80.03

 

 

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.