MIRA INFORM REPORT

 

 

Report No. :

310516

Report Date :

28.02.2015

 

IDENTIFICATION DETAILS

 

Name :

RYOBI LTD

 

 

Registered Office :

762 Mesakicho Fuchu City Hiroshima-Pref

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

December 1943

 

 

Com. Reg. No.:

034478

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Subject is manufactures die castings, printing press, power tools.

 

 

No. of Employee :

8,663

 

 

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 :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

RYOBI LTD

 

REGD NAME:   Ryobi KK

MAIN OFFICE:  762 Mesakicho Fuchu City Hiroshima-Pref JAPAN

                                    Tel: 0847-41-1111     Fax: 0847-43-6111

 

* The is its Toranomon (Tokyo) Office

                       

URL:                 http://www.ryobi-group.co.p/

E-Mail address: (thru URL to each division)

 

 

ACTIVITIES

 

Mfg of die castings, printing press, power tools

 

 

BRANCHES

 

Tokyo (2), Osaka, Sapporo, Sendai, Hamamatsu, Nagoya, Toyama, Hiroshima, Fukuoka (Tot 10)

 

 

OVERSEAS

 

Ryobi Die Casting (USA) Inc; Ryobi Aluminum (UK) Ltd; Ryobi Die Casting Dalian Co Ltd.

 

 

FACTORIES

 

Hiroshima (2), Shizuoka

 

 

OVERSEAS

 

UK, USA, China, & Mexico

 

CHIEF EXEC:   AKIRA URAKAMI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 199,697 M

                        PAYMENTS      NO COMPLAINTS          CAPITAL           Yen 18,472 M

                        TREND             UP                                WORTH            Yen 96,433 M

                        STARTED         1943                             EMPLOYES      8,663

 

 

COMMENT

 

                        LARGEST MFR OF DIE CASTINGS. 

                        FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY

                        BUSINESS ENGAGEMENTS.

                       

                       

                        Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

This is the largest mfr of die castings mainly for automakers.  Originally set up in 1943 as die cast airplane parts maker for Mitsubishi Electric Hiroshima plant.  After 1960, expanded into finished products using die cast pasts: power tools, printing machining and fishing tackle.  Printing machines are now major income sources.  It will boost sales in China to Yen 14 billion in March 2015 term, from the projected (Yen 4 billion sales for the current term).  It aims to increase sales of printing machines by expanding energy-saving products.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2014 fiscal term amounted to Yen 199,697 million, a 19.9% up from Yen 166,566 million in the previous term.  Sales of housing appliances mfr’d in China perked up thanks to the weaker than expected Chinese Yuan.  The recurring profit was posted at Yen 7,264 million and the net profit at Yen 4,132 million, respectively, compared with Yen 2,980 million recurring profit and Yen 2,009 million net profit, respectively, a year ago.

           

(Apr/Dec/2014 results): Sales Yen 164,108 million (up 13.3%), operating profit yen 6,085 million (up 5.0%), recurring profit Yen 5,618 million (up 6.5%), net profit Yen 2,728 million (down 37.3%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Mar 2015 the recurring profit is projected at Yen 8,000 million and the net profit at Yen 3,700 million, respectively, on a 12.7% rise in turnover, to Yen 225,000 million.  Production of die-castings at new base in China & Thailand will get rolling one after the other.  Sales of large printing machines will fare well abroad.

 

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

 

 

REGISTRATION

 

            Date Registered: Dec 1943

            Regd No.:       (Hiroshima-Fuchu) 034478

            Legal Status:    Limited Company (Kabushiki Kaisha)

            Authorized:      500 million shares

            Issued:             171,230,715 shares

            Sum:                 Yen 18,472 million

           

Major shareholders (%): Japan Trustee Services T (9.4), Company’s Treasury Stock (5.4), Meiji Yasuda Life Ins(5.4), Dai-ichi Life Ins (4.7), Nippon Life Ins (4.5), Ryokokai’s S/Holding Assn (3.9), Master Trust Bank of Japan T (3.7), Urakami Foundation (3.2), MFCG (3.0), Sumitomo Trust Bank (2.0); foreign owners (11.0) .

           

            No. of shareholders: 9,431

 

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

 

Managements: Hiroshi Urakami, ch & CEO; Akira Urakami, pres; Takashi Yokoyama, mgn dir; Kenjiro Suzuki, dir; Satoshi Oooka, dir; Taro Katoh, dir; Hiroyuki Kawaguchi, dir

                       

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

 

 

OPERATION

           

            Activities: Manufactures die castings, printing press, power tools, other:

 

            (Sales breakdown by divisions):

           

            Die Castings (77%): die casting products, including cylinder blocks & transmission cases,                       aluminum castings;

            Printing Machines (10%): offset printing presses & peripherals;

            Housing Appliances (13%): electrical power tools, door closers, air-conditioning

            Controllers, lawn & gardening equipment, hinges, architecture’s hardware, other;

            Overseas sales ratio (40%).

 

            Clients: [Automakers, other makers] Ryobi Hambai, Fuji Heavy Ind, Suzuki Motor,                                    Mitsubishi Motors, Sanwa Shutter Corp, other

            No. of accounts: 1,000

            Domestic areas of activities: Nationwide

            Suppliers: [Mfrs, wholesalers] Chugoku Bank, Global Factoring, Mitsubishi Corporation               RtM Japan, Toyota Tsusho Corp, Nikkei MC Aluminum, Gion Co, Fuji Industrial, other

 

Payment record: No Complaints

 

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

 

            Bank References:

                        MUFG (Marunouchi)

                        SMBC (Nihombashi)

                        Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

199,697

166,566

　

  Cost of Sales

169,539

141,620

　

      GROSS PROFIT

30,158

24,946

　

  Selling & Adm Costs

22,493

21,639

　

      OPERATING PROFIT

7,665

3,307

　

  Non-Operating P/L

-401

-327

　

      RECURRING PROFIT

7,264

2,980

　

      NET PROFIT

4,132

2,009

BALANCE SHEET

　

　

  Cash

　

18,419

17,846

　

  Receivables

48,096

39,689

　

  Inventory

39,470

31,891

　

  Securities, Marketable

1,493

6,197

　

  Other Current Assets

6,148

7,123

　

      TOTAL CURRENT ASSETS

113,626

102,746

　

  Property & Equipment

111,253

96,880

　

  Intangibles

2,467

1,642

　

  Investments, Other Fixed Assets

17,630

13,457

　

      TOTAL ASSETS

244,976

214,725

　

  Payables

35,171

30,539

　

  Short-Term Bank Loans

37,277

32,210

　

　

　

　

　

  Other Current Liabs

27,179

24,839

　

      TOTAL CURRENT LIABS

99,627

87,588

　

  Debentures

　

　

　

  Long-Term Bank Loans

35,920

38,165

　

  Reserve for Retirement Allw

7,567

5,876

　

  Other Debts

　

5,428

3,329

　

      TOTAL LIABILITIES

148,542

134,958

　

      MINORITY INTERESTS

　

　

Common stock

18,472

18,472

　

Additional paid-in capital

23,757

23,757

　

Retained earnings

46,661

43,364

　

Evaluation p/l on investments/securities

4,160

2,880

　

Others

5,717

(6,373)

　

Treasury stock, at cost

(2,334)

(2,333)

　

      TOTAL S/HOLDERS` EQUITY

96,433

79,767

　

      TOTAL EQUITIES

244,976

214,725

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

16,404

6,766

　

Cash Flows from Investment Activities

-21,096

-24,308

　

Cash Flows from Financing Activities

-934

16,599

　

Cash, Bank Deposits at the Term End

　

17,711

21,844

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

96,433

79,767

　

Current Ratio (%)

114.05

117.31

　

Net Worth Ratio (%)

39.36

37.15

　

Recurring Profit Ratio (%)

3.64

1.79

　

Net Profit Ratio (%)

2.07

1.21

　

　

Return On Equity (%)

4.28

2.52

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.79

UK Pound

1

Rs.95.42

Euro

1

Rs.69.28

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ASH

 

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.