MIRA INFORM REPORT
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Report No. : |
353445 |
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Report Date : |
03.12.2015 |
IDENTIFICATION DETAILS
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Name : |
DAIKIN INDUSTRIES LTD |
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Registered Office : |
Umeda Center Bldg, 2-4-12 Nakazaki-Nishi Kitaku Osaka 530-8323 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Feb., 1934 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Commercial-Use Air Conditioners. |
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No. of Employees : |
59,179 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 an
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. Scarce in many
natural resources, Japan has long been dependent on imported raw materials.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become even more
dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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 four times
since 2008. 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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s
“Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out
nuclear power with a new policy of seeking to restart nuclear power plants that
meet strict new safety standards, and emphasizing nuclear energy’s importance
as a base-load electricity source. Japan joined the Trans-Pacific Partnership
(TPP) 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 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary effect on GDP,
however, so PM Abe in late 2014 decided to postpone the final phase of the
increase until April 2017 to give the economy more time to recover. Led by the
Bank of Japan’s aggressive monetary easing, Japan is making progress in ending
deflation, but demographics - low birthrate and an aging, shrinking population
- pose major long-term challenges for the economy.
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Source
: CIA |
Company
name and Address
DAIKIN INDUSTRIES LTD
REGD NAME: Daikin
Kogyo KK
MAIN OFFICE: Umeda
Center Bldg, 2-4-12 Nakazaki-Nishi Kitaku Osaka 530-8323 JAPAN
Tel: 06-6373-4312 Fax: 06-6373-4330
E-Mail address: info@daikin.co.jp
ACTIVITIES
Mfg of
commercial-use air conditioners
BRANCHES
Tokyo (3), Suita,
other (Tot 13)
OVERSEAS
Europe, USA,
Africa, Asia, China, S/E Asia, Oceania, Latin America, South Asia, other (Tot 76)
FACTORIES
Sakai (2),
Yodogawa, Shiga, Kashima
CHIEF
EXEC
MASANORI TOGAWA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,915,013 M
PAYMENTSREGULAR CAPITAL Yen 85,032 M
TREND UP WORTH Yen 1,048,311 M
STARTED 1934 EMPLOYES 59,179
COMMENT
MFR SPECIALIZING
IN COMMERCIAL-USE AIR CONDITIONERS
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2016
fiscal term
HIGHLIGHTS
This is the largest mfr of commercial-use air conditioners. Makes household-use air conditioners,
too. Pioneer of application of CFC as refrigerant for
freezers. Diversified business into
hydraulic equipment, fluorine resins/gas, and shells/warheads for Defense
Agency. The company ranks in the second
in the global fluoride chemistry market.
Has succeeded in the domestic production of CFC to compete with DuPont
in the US. It is currently in
partnership with Green Electric Appliance of China in the areas of production
and procurement. Active in overseas operations
accounting for 74% of total sales.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 1,915,013 million, a 7.1% up from Yen
1,787,679 million in the previous term.
The recurring profit was posted at Yen 194,234 million and the net
profit at Yen 119,674 million, respectively, compared with Yen 155,570 million
recurring profit and Yen 92,787 million net profit, respectively, a year
ago.
(Apr/Sept/2015
results): Sales Yen 1,078,707 million (up 10.7%), operating profit Yen 124,194
million (up 9.5%), recurring profit Yen 122,970 million (up 7.1%), net profit
Yen 80,138 million (up 5.9%). (% as
compared with the corresponding period a year ago).
For the current
term ending Mar 2016 the recurring profit is projected at Yen 210,000 million
and the net profit at Yen 130,000 million, respectively, on a 9.1% rise in
turnover, to Yen 2,090,000 million.
Sales will rebound in Japan from a reactionary fall after the
consumption tax hike. Orders for
home-use HVA air-conditioners will rise in China, supported by expansion of
sales network. Demand will also perk up
in Europe.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Feb 1934
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
500 million shares
Issued:
293,113,973 shares
Sum:
Yen 85,032 million
Major shareholders
(%):
Master Trust Bank of Japan (6.6), Japan Trustee Services T (5.3), SMBC (3.0),
JTSB (Nippon Steel & Sumitomo Metal) (2.2), JTSB (Norin Chukin Bank) (1.7),
MUFG (1.6), State Street Bank & Trust 505225 (1.5), Japan Trustee Services
T4 (1.4), BNP Paribas Securities (1.2); foreign owners (35.9)
No.
of shareholders: 28,231
Listed on the S/Exchange (s) of: Tokyo
Managements
(Board of Directors): Noriyuki Inoue, ch; Guntaro Kawamura, dir; Ken
Tayano, dir; Masatsugu Minaka, dir; Jito Tomita, dir; Takashi Matsuzaki, dir;
Koichi Takahashi, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Daikin Europe,
Daikin America, Daikin Consumer Marketing, other
OPERATION
Activities:
Manufactures air conditioners & freezers (89%), chemicals (8%), hydraulic, defense systems, others (3%).
Overseas
sales ratio (74%).
(Handling items by divisions):
Air Conditioning & Refrigerator Div: Room air
conditioners, room air cleaners, Commercial-use air conditioners,
commercial-use air cleaners, large-scale refrigerators, marine-type container
refrigeration units, container refrigeration, marine vessel air conditioners
& refrigerators, water chillers;
Oil Hydraulic Div: oil hydraulic products for industrial
machinery, oil hydraulic products for mobile equipment, centralized lubrication
units & systems;
Defense Systems Div: ammunition, precision
components for aircrafts, warheads for
serial torpedoes; home oxygen therapy equipment, veterinary equipment;
Chemical Div: fluoro polymers, synthesized products,
fluoro carbon gas, fluoro coatings, fluoro
elastomers, high performance chemicals;
New Operations Div: computer graphics
systems.
Clients: [Wholesalers,
government agencies] Daikin HVAC Solutions Tokyo, Daikin Consumer
Marketing, Daikin HVAC Solutions Kinki, Sumitomo Corp, Goodman Mfg, Daikin HVAC
Solutions Tokai, Daikin Europe, Daikin America Inc, Daikin HVAC Solutions Kyushu, Ministry of
Defense, other.
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs, wholesalers] Daikin Trading, Daikin
Industries (Thailand) Ltd, Daikin Rexxam Electronics, Fuso Ind, Daikin Airconditioning (Suzhou) Co, UACJ
Trading, Takenaka Corp, Panasonic Industrial, other.
Payment record: Regular
Location: Business area in
Osaka. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (Osaka H/O)
MUFG (Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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1,915,013 |
1,787,679 |
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Cost of Sales |
1,265,112 |
1,219,356 |
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GROSS PROFIT |
649,901 |
568,323 |
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Selling & Adm Costs |
459,313 |
411,785 |
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OPERATING PROFIT |
190,587 |
156,537 |
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Non-Operating P/L |
3,647 |
-967 |
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RECURRING PROFIT |
194,234 |
155,570 |
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NET PROFIT |
119,674 |
92,787 |
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BALANCE SHEET |
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Cash |
|
286,949 |
257,295 |
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Receivables |
354,480 |
317,584 |
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Inventory |
354,158 |
317,559 |
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Securities, Marketable |
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Other Current Assets |
87,027 |
74,773 |
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TOTAL CURRENT ASSETS |
1,082,614 |
967,211 |
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Property & Equipment |
347,755 |
299,716 |
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Intangibles |
576,724 |
545,756 |
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Investments, Other Fixed Assets |
256,896 |
199,187 |
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TOTAL ASSETS |
2,263,989 |
2,011,870 |
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Payables |
153,937 |
162,084 |
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Short-Term Bank Loans |
41,897 |
43,325 |
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Other Current Liabs |
329,790 |
328,058 |
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TOTAL CURRENT LIABS |
525,624 |
533,467 |
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Debentures |
140,000 |
120,000 |
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Long-Term Bank Loans |
420,874 |
430,475 |
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Reserve for Retirement Allw |
10,709 |
9,975 |
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Other Debts |
|
118,471 |
94,095 |
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TOTAL LIABILITIES |
1,215,678 |
1,188,012 |
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MINORITY INTERESTS |
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Common
stock |
85,032 |
85,032 |
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Additional
paid-in capital |
83,443 |
83,549 |
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Retained
earnings |
617,128 |
514,093 |
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Evaluation
p/l on investments/securities |
67,818 |
40,065 |
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Others |
200,110 |
105,668 |
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Treasury
stock, at cost |
(5,220) |
(4,549) |
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TOTAL S/HOLDERS` EQUITY |
1,048,311 |
823,858 |
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TOTAL EQUITIES |
2,263,989 |
2,011,870 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
|
160,423 |
179,713 |
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Cash
Flows from Investment Activities |
-77,330 |
-80,834 |
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Cash
Flows from Financing Activities |
-83,073 |
-38,249 |
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Cash,
Bank Deposits at the Term End |
|
286,949 |
257,295 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
1,048,311 |
823,858 |
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Current
Ratio (%) |
205.97 |
181.31 |
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Net
Worth Ratio (%) |
46.30 |
40.95 |
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Recurring
Profit Ratio (%) |
10.14 |
8.70 |
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Net
Profit Ratio (%) |
6.25 |
5.19 |
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Return
On Equity (%) |
11.42 |
11.26 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.62 |
|
|
1 |
Rs.100.34 |
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Euro |
1 |
Rs.70.67 |
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Yen |
1 |
Rs.0.54 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
HEE |
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Report Prepared
by : |
NIT |
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
-- |
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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.