MIRA INFORM REPORT
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Report Date : |
17.10.2014 |
IDENTIFICATION DETAILS
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Name : |
TOPCON CORPORATION |
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Registered Office : |
75-1 Hasunumacho Itabashiku Tokyo 174-0052 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
September 1932 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures surveying machinery & medical optical instruments: |
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No of Employees : |
3,977 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 2,034.5 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
TOPCON CORPORATION
REGD
NAME
KK Topcon
MAIN
OFFICE
75-1 Hasunumacho Itabashiku Tokyo 174-0052 JAPAN
Tel: 03-3966-3141
Fax: 03-3556-9141 -
URL: http://www.topcon.co.jp
E-Mail address: (thru the URL)
ACTIVITIES: Mfg of surveying
machinery
BRANCHES: Sapporo, Sendai,
Osaka, Nagoya, Fukuoka, other (Tot 10)
OVERSEAS: USA, Europe,
Singapore, India, Korea, China, Middle East, other
FACTORIES: At the caption
address & subsidiaries
CHIEF EXEC: SATOSHI HIRANO, PRES
Yen Amount: In million Yen,
unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 116,685 M
PAYMENTS NO COMPLAINTS CAPITAL Yen 16,638 M
TREND UP WORTH Yen
54,328 M
STARTED 1932 EMPLOYES 3,977
COMMENT
MFR OF SURVEYING MACHINERY
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,034.5 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This is the major mfr of surveying machinery and medical optical
instruments, mainly for ophthalmic use.
Noted for the leading-edge technology.
Downsizing optical and electronic measuring equipment business. The firm is divided into three in-house
companies: Positioning, Smart Infrastructure and Eye Care (See OPERATION). Stressing GPS business targeted at
construction and agricultural machinery.
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen 116,685
million, a 19.9% up from Yen 97,345 million in the previous term. Automatic operating system sales for
construction and agricultural machinery in North America were robust to the
extent of surpassing growth forecasts.
Surveying equipment benefitted from demand in China. Launches of ophthalmic treatment equipment
offset sales slump in Europe. The weaker
Yen boosted earnings and operating profits grew. The recurring profit was posted at Yen 1,300
million and the net profit at Yen 5,963 million, respectively, compared with
Yen 3,471 million recurring profit and Yen 511 million net profit,
respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen
26,354 million (up 9.5%), operating profit Yen 1,735 million (up 145.0%),
recurring profit Yen 1,452 million (up 122.1%), net profit Yen 1,015 million
(Up from Yen 55 million). (% and figures
as compared with the corresponding period a year ago).
For the current term ending Mar 2015 the recurring profit is projected
at Yen 14,500 million and the net profit at Yen 8,300 million, respectively, on
an 11.4% rise in turnover, to Yen 130,000 million. Operating profits will rise, thanks to
overseas expansion and reconstruction demand.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 2,034.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sept 1932
Legal Status: Limited Company (Kabushiki
Kaisha
Authorized: 160
million shares
Issued:
108,085,342 shares
Sum: Yen
16,638 million
Major shareholders
(%): Toshiba Corp (30.1), Taiyo Fund LP (8.7), State Street Bank & Trust
(5.3), Master Trust Bank of Japan T (4.9), Japan Trustee Services T (4.8),
Dai-ichi Life Ins (3.7), Japan Trustee Services T9 (2.6), Chase London SL
Omnibus Acct (1.9), Trust & Custody Services Inv T (1.5), SMBC (1.3);
foreign owners (30.3)
No. of
shareholders: 11,579
Listed on the S/Exchange
(s) of: Tokyo
Managements: Satoshi Hirano,
pres; Takayuki Ogawa, s/mgn dir; Shigeyuki Sawaguchi, mgn dir; Shinji Iwasaki,
dir; Yasufumi Fukuma, dir; Makoto Iwasaki, dir; Kazuyuki Matsumoto dir; Tohru
Sudo, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Sokia Topcon,
Topcon Positioning System, other (Tot 61
subsidiaries & 6 affiliates).
OPERATION
Activities: Manufactures
surveying machinery & medical optical instruments:
(Sales Breakdown
by Intra-Companies):
Positioning
Company (40%): GNSS (global navigation satellite systems) receiver
(GPS/GLONASS/Galileo), GIS, GPS＋Reference Plus
station system, machine control system, precision agriculture, asset management
systems;
Smart
Infrastructure Company (22%): total station, layout navigator, MILLIMETER GPS,
mobile mapping, 3D laser scanner, monitoring, field controller, level,
theodolite, rotating laser, pipe laser;
Eye Care Company
(33%): 3D OCT, retinal camera, photocoagulator, tonometer, slip lamps,
operating microscope, specular microscope, ophthalmic data system IMAGEnet,
lens edger, vision tester, auto refractometer, auto kerato-refractometer,
lensmeter, chart projector;
Others (5%);
Overseas Sales
Ratio (76%)
Clients: [Mfrs,
wholesalers] Topcon Positioning Systems, Topcon Medical Systems, Topcon Sokia
Positioning Japan, other
Exports to: USA, Europe, China, Asia/Oceania, Mid East, other
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sokia Topcon, Topcon Yamagata, Topcon
Beijing, Opto
Electronics Development, Topcon Optical, other
Payment record: No Complaints
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
SMBC
(Nihombashi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
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Annual Sales |
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116,685 |
97,345 |
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Cost of Sales |
61,034 |
54,517 |
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GROSS PROFIT |
55,651 |
42,828 |
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Selling & Adm Costs |
43,920 |
37,613 |
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OPERATING PROFIT |
11,730 |
5,214 |
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Non-Operating P/L |
-430 |
-3,743 |
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RECURRING PROFIT |
11,300 |
3,471 |
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NET PROFIT |
5,963 |
511 |
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BALANCE
SHEET |
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Cash |
|
15,187 |
17,213 |
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Receivables |
41,875 |
36,912 |
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Inventory |
29,420 |
26,363 |
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Securities, Marketable |
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Other Current Assets |
9,909 |
8,622 |
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TOTAL CURRENT ASSETS |
96,391 |
89,110 |
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Property & Equipment |
11,188 |
11,277 |
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Intangibles |
18,132 |
18,892 |
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Investments, Other Fixed Assets |
10,107 |
10,224 |
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TOTAL ASSETS |
135,818 |
129,503 |
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Payables |
11,107 |
9,903 |
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Short-Term Bank Loans |
25,044 |
31,627 |
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Other Current Liabs |
13,859 |
13,132 |
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TOTAL CURRENT LIABS |
50,010 |
54,662 |
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Debentures |
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Long-Term Bank Loans |
22,689 |
19,002 |
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Reserve for Retirement Allw |
7,292 |
5,331 |
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Other Debts |
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1,498 |
1,485 |
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TOTAL LIABILITIES |
81,489 |
80,480 |
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MINORITY INTERESTS |
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Common stock |
16,638 |
16,638 |
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Additional paid-in capital |
20,950 |
21,051 |
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Retained earnings |
17,804 |
12,843 |
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Evaluation p/l on investments/securities |
468 |
298 |
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Others |
(1,474) |
(1,751) |
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Treasury stock, at cost |
(58) |
(57) |
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TOTAL S/HOLDERS` EQUITY |
54,328 |
49,022 |
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TOTAL EQUITIES |
135,818 |
129,503 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows from Operating Activities |
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8,132 |
3,474 |
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Cash Flows from Investment
Activities |
-3,532 |
-1,611 |
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Cash Flows from Financing Activities |
-6,877 |
976 |
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Cash, Bank Deposits at the Term End |
|
15,029 |
16,883 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net Worth (S/Holders' Equity) |
54,328 |
49,022 |
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Current Ratio (%) |
192.74 |
163.02 |
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Net Worth Ratio (%) |
40.00 |
37.85 |
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Recurring Profit Ratio (%) |
9.68 |
3.57 |
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Net Profit Ratio (%) |
5.11 |
0.52 |
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Return On Equity (%) |
10.98 |
1.04 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.48 |
|
|
1 |
Rs.98.24 |
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Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
SMN |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.