MIRA INFORM REPORT
|
Report Date : |
05.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUZUKI MOTOR CORPORATION |
|
|
|
|
Registered Office : |
300 Takatsukacho Minamiku Hamamatsu City Shizuoka-Pref 432-8611 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
March 1920 |
|
|
|
|
Com. Reg. No.: |
0804-01-002431 (Hamamatsu-Minamiku) |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturing of minicars, motorcycles |
|
|
|
|
No of Employees : |
57,782 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Yen 92,842.6 million |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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.
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 & ADDRESS
SUZUKI MOTOR CORPORATION
REGD NAME: Suzuki
KK
MAIN OFFICE: 300
Takatsukacho Minamiku Hamamatsu City Shizuoka-Pref 432-8611 JAPAN
Tel:
053-440-2061 Fax: 053-440-2061
E-Mail address: info@suzuki.co.jp
ACTIVITIES
Mfg of minicars, motorcycles
BRANCHES
Tokyo
OVERSEAS
Europe (9), USA
(2), Canada, Asia & Oceania (10), S America (--subsidiaries)
FACTORIES
Takatsuka, Kosai,
Iwata, Toyokawa, Osuga, Sagara (--Shizuoka);
Asia (12),
Americas (6), Europe/Africa (3)
CHIEF
EXEC
OSAMU SUZUKI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 2,938,314 M
PAYMENTSREGULAR CAPITAL Yen
138,014 M
TREND STEADY WORTH Yen 1,494,357 M
STARTED 1920 EMPLOYES 57,782
COMMENT
MFR SPECIALIZING IN
MINICARS & MOTORCYCLES.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 92,842.6 MILLION, 30 DAYS NORMAL TERMS.
Unit:
In Million Yen
Forecast (or estimated) figures for
31/03/2015 fiscal term
HIGHLIGHTS
This is the
second-ranked minicar mfr and 3rd largest maker of motorcycles. Active in overseas, producing 4-wheelers in
Asia including India, and Eastern Europe.
GM’s capital participation started in 1981, but canceled in 2006. Dissolved with comprehensive tie-up with
Volkswagen AG, Germany. The company
launched production of the new model “Wagon R” in Indonesia in Sept 2013. It acquired local tax reduction
certification, and will target sales to middle-income earners. On the domestic market, it will improve fuel
efficiency of the “Solio” compact passenger car in a bid to shore up sales. Has business alliance with Kawasaki Heavy Ind
in field of motorcycles.
FINANCIAL
INFORMATION
The sales volume
for Mar/2014 fiscal term amounted to Yen 2,938,314 million, a 14.0% up from Yen
2,578,317 million in the previous term.
Automobile sales were up, backed by sales in Japan and Southeast Asia,
despite showing signs of slowing in mainstay India. The weaker Yen contributed strongly to
earnings. Net profit hit a consecutive
new high, even with swelling R&D costs.
The recurring profit was posted at Yen 197,842 million and the net
profit at Yen 107,484 million, respectively, compared with Yen 155,593 million
recurring profit and Yen 80,389 million net profit, respectively, a year ago.
(Apr/Jun/2014
results): Sales Yen 710,402 million (up 5.1%), operating profit Yen 50,919
million (up 15.5%), recurring profit Yen 59,309 million (up 25.7%), net profit
Yen 37,525 million (up 38.9%). (% as
compared with the corresponding period a year ago).
For the current term
ending Mar 2015 the recurring profit is projected at Yen 198,000 million and
net profit at Yen 115,000 million, respectively, on a 2.1% rise in turnover, to
Yen 3,000,000 million. Sales in India,
accounting for the majority of annual sales volume totally, will increase
steadily on the strength of new model launches.
Sales in Europe will also expand steadily. Operating profit will increase, despite
higher payroll costs. The company’s
operating profit projection is conservative.
Net profit will hit a new high.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 92,842.6
million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1920
Regd No.:
0804-01-002431
(Hamamatsu-Minamiku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,500
million shares
Issued: 561,047,304
shares
Sum: Yen
138,014 million
Major
shareholders (%): Volkswagen (19.8), Master Trust Bank of Japan T (4.0), Japan Trustee
Services T (3.4), Tokio Marine & Nichido Fire Ins (3.2), MUFG (2.8),
Shizuoka Bank (2.5), Resona Bank (2.3), Bank of New York Jasdec Non Treaty
(1.9), Sompo Japan Nipponkoa Ins (1.3), Nippon Steel & Sumitomo metal
(1.3); foreign owners (49.6)
No. of shareholders: 36,826
Listed on the S/Exchange (s) of: Tokyo
Managements: Osamu Suzuki, ch
& pres; Minoru Tamura, v pres; Osamu Honda, v pres; Toshihiro Suzuki, v
pres; Yasuhito Harayama, v pres; Naoki Aizawa, s/mgn dir; Eiji Mochizuki, s/mgn
dir; Ken’ichi Ayukawa, s/mgn dir; Ichizo Aoyama, s/mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Suzuki Jihan Kinki, American Suzuki Motors, Multi Suzuki India, other
OPERATION
Activities: Manufactures
motorcycles (9%), four-wheeled cars, mini-cars (89%), outboard motors, boats,
electro-scooters, industrial equipment, specialty machines, others (--2%).
Overseas Sales Ratio (61 %)
Clients: [Dealerships,
wholesalers] Suzuki Jihan Kinki, Hamamatsu, other (subsidiary dealerships),
American Suzuki Motor Corp, Multi Suzuki India, Magyar Suzuki Corp (Hungary), Suzuki International Europe,
other.
No. of accounts: 2,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Denso Corp, Jatco, Aisin AW, Metal One, Ryowa Corp, other.
Payment record: Regular
Location: Business area in
Hamamatsu City, Shizuoka-Pref. Office
premises at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG (Hamamatsu)
Shizuoka Bank
(Hamamatsu)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
31/03/2014 |
31/03/2013 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
2,938,314 |
2,578,317 |
|
|
Cost of Sales |
2,142,754 |
1,919,218 |
||
|
GROSS PROFIT |
795,559 |
659,098 |
||
|
Selling & Adm Costs |
607,812 |
514,534 |
||
|
OPERATING PROFIT |
187,747 |
144,564 |
||
|
Non-Operating P/L |
10,095 |
11,029 |
||
|
RECURRING PROFIT |
197,842 |
155,593 |
||
|
|
NET PROFIT |
107,484 |
80,389 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
358,851 |
279,009 |
|
|
Receivables |
310,694 |
253,237 |
||
|
Inventory |
276,284 |
261,379 |
||
|
Securities, Marketable |
612,489 |
559,609 |
||
|
Other Current Assets |
232,514 |
206,984 |
||
|
TOTAL CURRENT ASSETS |
1,790,832 |
1,560,218 |
||
|
Property & Equipment |
694,420 |
608,460 |
||
|
Intangibles |
7,243 |
10,618 |
||
|
Investments, Other Fixed Assets |
381,579 |
308,339 |
||
|
TOTAL ASSETS |
2,874,074 |
2,487,635 |
||
|
Payables |
433,819 |
350,472 |
||
|
Short-Term Bank Loans |
197,413 |
171,790 |
||
|
|
|
|
||
|
Other Current Liabs |
425,701 |
362,354 |
||
|
TOTAL CURRENT LIABS |
1,056,933 |
884,616 |
||
|
Debentures |
|
|
||
|
Long-Term Bank Loans |
209,166 |
220,392 |
||
|
Reserve for Retirement Allw |
36,918 |
37,903 |
||
|
Other Debts |
|
76,700 |
46,170 |
|
|
TOTAL LIABILITIES |
1,379,717 |
1,189,081 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
138,014 |
138,014 |
||
|
Additional
paid-in capital |
144,364 |
144,364 |
||
|
Retained
earnings |
1,008,555 |
912,304 |
||
|
Evaluation
p/l on investments/securities |
104,745 |
58,888 |
||
|
Others |
98,736 |
45,069 |
||
|
Treasury
stock, at cost |
(57) |
(86) |
||
|
TOTAL S/HOLDERS` EQUITY |
1,494,357 |
1,298,553 |
||
|
|
TOTAL EQUITIES |
2,874,074 |
2,487,635 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Cash
Flows from Operating Activities |
|
322,915 |
190,057 |
|
|
Cash
Flows from Investment Activities |
-286,559 |
-210,559 |
||
|
Cash
Flows from Financing Activities |
2,809 |
-33,632 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
710,611 |
661,102 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
||
|
Net
Worth (S/Holders' Equity) |
1,494,357 |
1,298,553 |
||
|
Current
Ratio (%) |
169.44 |
176.37 |
||
|
Net
Worth Ratio (%) |
51.99 |
52.20 |
||
|
Recurring
Profit Ratio (%) |
6.73 |
6.03 |
||
|
Net
Profit Ratio (%) |
3.66 |
3.12 |
||
|
Return
On Equity (%) |
7.19 |
6.19 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.