|
Report No. : |
299795 |
|
Report Date : |
16.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
TAKATA CORPORATION |
|
|
|
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Registered Office : |
Ark Hills South Tower 11F., 1-4-5, Roppongi, Minato-ku, Tokyo 106-0032 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
30.01.2004 |
|
|
|
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Com. Reg. No.: |
0104-01-052766 |
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|
|
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Legal Form : |
Listed |
|
|
|
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Line of Business : |
Manufacturer of Auto Parts. |
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|
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No. of Employee : |
43,680 [As of March 31, 214, Consolidated] |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
US$ 45 Million |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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 |
TAKATA CORPORATION
========
Country: Japan
Company name: TAKATA CORPORATION
Name in local language: TAKATA K.K.
Office address: Ark Hills South Tower 11F., 1-4-5,
Roppongi, Minato-ku, Tokyo 106-0032
Office tel: 03-3582-3222
Office fax: 03-5561-9745
Website: www.takata.com
Business type: Manufacturer
Industry: Auto parts
Established: January 30, 2004
Capital: Jp. 41,862,008,250 yen
Employees: 43,680 (as of March 31, 2014,
consolidated)
Corporate formation: Listed
Corporation No.: 0104-01-052766
(Tokyo Legal Affairs Bureau)
=====================
As of March 31, 2014:
Paid in capital : Jp.
41,862,008,250 yen
Number of authorized shares : 325,473,600
shares
Shares issued : 83,161,700
shares
Number of shareholder : 7,755
Name of shareholders Number of thousand shares (%)
-----------------------------------------------------------------------------------------------------
TKJ Corporation 43,361(52.1)
Japan Trustee Services Bank, Ltd.(trust unit) 3,596 ( 4.3)
Mr. Shigehisa Takata, chairman 2,400 ( 2.9)
RBC IST 15 PCT NON LENDING ACC(Canada)
2,023 ( 2.4)
Master Trust Bank of Japan, Ltd.
2,015 ( 2.4)
Ms. Akiko Takata
1,711 ( 2.1)
Sumitomo Mitsui Banking Corp.
1,300 ( 1.6)
S. T. Corporation 1,250 ( 1.5)
Mellon Bank Treaty Clients (USA)
1,130 ( 1.4)
Honda Motor Co., Ltd. 1,000 ( 1.2)
--------------------------------------------------------------------------------------------------------
Total
59,788 (71.9)
Note: Mr. Shigehisa Takata, now the chairman & president appeared as
No. 3 largest shareholder as of March 31, 2014.
He was not listed in such a high ranking in terms of major shareholders
before that period.
===========================================
Activity Product/Service
Description
-------------------------------------------------------------------------------
Manufacturing Seat belt
Manufacturing Air bag
=======================
Chairman & President Mr.
Shigehisa Takada (*)
Nationality: Japan
Director Mr. Stefan Stocker
Nationality: Germany
Director Mr.
Yoshiyasu Kikuchi
Nationality: Japan
Director Mr.
Noriyuki Kosugi
Nationality: Japan
Director
Mr. Hiroshi Nishikoka
Nationality: Japan
Auditor Mr. Mitsugu Hamamura
Nationality: Japan
Auditor Mr. Kazuo Morita
Nationality: Japan
Auditor Mr. Chihaya Takada
Nationality: Japan
Auditor Masanori Sato
Nationality: Japan
Note: The names of director(s) and auditor(s) are phonetically spelt.
(*): Representative director
*Key Personnel*
==============
Mr. Shigehisa Takata
Director, chairman and president since December 24, 2014
Born on February 12, 1966
Business career:
Apr. 1988: Employed by the subject.
Jun. 1996: Director.
Jun. 2002: Representative director and senior managing director.
Jun. 2007: Representative director and president.
Jun. 2013: Representative director and chairman.
Dec. 24. 2014: Representative director, chairman and president in the
wake of airbag trouble
Former president, Mr.
Stefan Stocker resigned.
Home address: 7-3-17, Oyama, Shinagawa-ku, Tokyo
===========
Currency: (local currency - Jp. yen)
-------------------------------------------------------------------------------------
Year | Sales | Net Income
-------------------------------------------------------------------------------------
|
2009 |
385,499,000,000 |
loss 7,319,000,000 |
|
2010 |
350,914,000,000 |
6,942,000,000 |
|
2011 |
390,876,000,000 |
18,237,000,000 |
|
2012 |
382,737,000,000 |
11,937,000,000 |
|
2013 |
415,521,000,000 |
loss 21,122,000,000 |
|
2014 |
556,998,000,000 |
11,144,000,000 |
=====================
*Book Closing*
============
March 31st
*Financials*
==========
|
Consolidated Balance Sheet |
|
|
|
|
Unit: millions of JP yen |
|
|
|
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Current Assets |
221,995 |
263,299 |
309,860 |
|
Cash & deposits |
69,600 |
88,217 |
103,099 |
|
Account receivables |
75,454 |
86,763 |
109,684 |
|
Securities marketable |
4,546 |
5,494 |
5,106 |
|
Inventories |
47,152 |
57,724 |
59,216 |
|
Others |
33,592 |
25,099 |
32,755 |
|
Fixed assets |
107,723 |
122,472 |
136,885 |
|
Tangible assets |
75,323 |
87,822 |
93,583 |
|
Intangible assets |
4,594 |
5,753 |
5,515 |
|
Investments & others |
27,805 |
28,896 |
37,786 |
|
Total Assets |
329,718 |
385,772 |
446,745 |
|
|
|
|
|
|
Current liabilities |
105,064 |
152,740 |
171,991 |
|
Account payables |
28,817 |
34,194 |
55,112 |
|
Short term loans |
15,517 |
22,608 |
15,701 |
|
Commercial paper |
2,000 |
2,000 |
2,000 |
|
Long term loans due |
15,045 |
11,538 |
7,783 |
|
Outstanding expenses |
12,877 |
15,160 |
19,387 |
|
Outstanding taxes |
1,905 |
3,227 |
5,984 |
|
Allowance for quality assurance |
14,607 |
46,909 |
46,253 |
|
Others |
14,293 |
17,101 |
19,771 |
|
Fixed liabilities |
63,468 |
78,946 |
97,865 |
|
Bonds |
20,000 |
20,000 |
30,000 |
|
Long term loans |
23,687 |
32,132 |
35,477 |
|
Retirement benefits |
8,581 |
11,009 |
13,211 |
|
Others |
11,198 |
15,803 |
19,177 |
|
Shareholders' equity |
197,470 |
173,853 |
182,502 |
|
Paid up capital |
41,862 |
41,862 |
41,862 |
|
Capital reserves |
42,328 |
42,328 |
42,328 |
|
Retained earnings |
113,280 |
89,663 |
98,313 |
|
Valuation & adjustment |
-37,401 |
-21,493 |
-7,138 |
|
Minority Interest |
1,117 |
1,725 |
1,524 |
|
Total Net Assets |
161,186 |
154,085 |
176,888 |
|
Total Liabilities & Net
Assets |
329,718 |
385,772 |
446,745 |
|
Consolidated Income Statement |
|
|
|
|
Unit : millions of JP yen |
|
|
|
|
|
3/31/2012 |
3/31/2013 |
3/31/2014 |
|
Sales |
382,737 |
415,521 |
556,998 |
|
Cost of goods sold |
318,466 |
345,169 |
466,552 |
|
Gross profit(loss) |
64,270 |
70,351 |
90,445 |
|
Sales/administrative expenses |
50,652 |
55,858 |
64,169 |
|
Operating profit(loss) |
13,618 |
14,493 |
26,275 |
|
Non operating income |
2,622 |
4,264 |
3,350 |
|
Non operating expenses |
2,740 |
1,708 |
3,970 |
|
Ordinary profit(loss) |
13,499 |
17,050 |
25,656 |
|
Special profits |
0 |
0 |
0 |
|
Special losses |
0 |
30,178 |
8,282 |
|
Pretax profit |
13,499 |
-13,128 |
17,374 |
|
Taxes & adjustment |
1,835 |
7,947 |
6,455 |
|
Minority interest |
-273 |
46 |
-225 |
|
Net profit |
11,937 |
-21,122 |
11,144 |
Out of JPY 30,178 million of special losses for Mar. 2013, JPY 29,975
million was counted as allowance for quality assurance.
*Latest Financials *
================
On November 6, 2014, the subject released the following business results
and forecast:
As of September 30, 2014 (2Q Mar. 2015 term):
Unit: millions of JPY
|
Year term |
Sales |
Operating profit |
Ordinary profit |
Net profit(loss) |
|
2Q 2014 |
262,988 |
13,197 |
11,718 |
769 |
|
2Q 2015 |
302,021 |
14,725 |
18,177 |
loss(35,244) |
|
FY 2015(F) |
600,000 |
28,000 |
31,500 |
loss(25,000) |
Note: Due to further development of the airbag issue, it is hard for any
analysts to believe the above forecast since it was released on November 6,
2014.
Current assets; 316,596
Fixed assets; 144,752
Total assets; 461,348
Current liabilities; 221,580
Fixed liabilities;
95,635
Shareholders’ equity; 146,010
Retained earnings; 61,821
Total net assets; 144,132
Total liabilities and net assets; 461,348
*Bank Details*
============
Bank Name : Sumitomo Mitsui
Banking Corp.
Branch : Hibiya
Bank Name : Bank of
Tokyo-Mitsubishi UFJ, Ltd.
Branch : Head office
Bank Name : Mizuho Bank, Ltd.
Branch : Tokyo business
banking department
*Credit Opinion*
=============
Our best suggestion is “Wait and See” for the time being.
Many analysts warn that the things are getting worse and it would take
longer time than many people predicted. One of the reasons is wrong and
incomplete initial action to cope with this issue.
Subject is the second largest manufacturer of car safety parts in the
world.
A global operations had been successfully conducted thanks to
well-balanced customer network worldwide until last fall.
Theoretically our standard suggestion would be up to US$ 45 million on
terms of 90 days if we use the latest available figures. However, it no longer
makes sense for rating the subject.
Needless to say, American consumers and governments are tough enough to
pursue the issue, which may cause some class actions, let alone a possible
total recall. Such moves could adversely affect the other countries worldwide.
The only hope might be that the Mar. 2016 term may not be seriously
affected unless the safety of its airbags are completely denied by the authorities.
================================
Branch name: Nagoya business office
Branch address: Anjo city, Aichi pref.
----------------------------------------------------------------------------------------------------
Branch name: Hiroshima business office
Branch address: Higashi-ku, Hiroshima city, Hiroshima
pref.
----------------------------------------------------------------------------------------------------
Branch name: Hamamatsu business office
Branch address: Naka-ku, Hamamatsu city, Shizuoka pref.
Two other domestic business offices are located in Utsunomiya and
Isehara cities.
========================================
*Main Products & Services*
======================
Manufacture of the following auto parts:
For Mar. 2014:
Seat belt (32%)
Air bag (39%)
Other auto parts (29%) such as steering wheel, trim, child seat etc.
Overseas business accounts for 87 percent.
===============================================
A total of 56 plants in 20 countries.
Major domestic plants are;
Hikone facility: Hikone city, Shiga pref.
Nagahama facility: Nagahama city, Shiga pref.
Echigawa facility: Echi-gun, Shiga pref.
Aisho facility: ditto
Suzuka facility: Suzuka city, Mie pref.
======================
*Address*
=========
Registered address : 2-12-31, Akasaka, Minato-ku, Tokyo
Operational address: Ark Hills South Tower 11F., 1-4-5, Roppongi,
Minato-ku, Tokyo
*Company History*
================
Date Development
-----------------------------------------------------------------------------------------------
November 1956 Founded “Takata Kojo(Plant) K.K.” in Hikone
city, Shiga pref.
December 1960 Started manufacturing seat belt.
November 1969 Relocated the head office to Tokyo.
December 1983 Renamed as “Takata Corporation.”
June 1984 Founded the first operation in the U.S.
September 1987 Started manufacturing air bag module.
March 1988 Acquired the business assets of industrial
materials from
Burlington
Inc., N.C., U.S.A.(now Highland Industries, Inc.)
October 1988 Invested into European Components Co., Ltd.
in the U.K.(later
KECC
Ltd.)
March 1989 Acquired Gateway Industrial, Inc.(USA)
May 1989 Acquired Irvin Industries Inc.(USA)
January 30, 2004 The current company was incorporated through
a method of
company
split., and the former Takata Corporation was renamed
as
“TKJ Corporation,” the largest shareholder of the subject.
February 17, 2014 Relocated the head office to the current address
in Tokyo.
November 2014 The accumulated number of recall of the
airbags topped 17 million
pieces, of which initial recall began in November 2008.
November 27, 2014 The subject announced “No Dividends” for the
upcoming end of the
fiscal year.
December 24, 2014 The subject announced the following decision:
To give up reward to be paid to the board members by up to 50% for four
months.
Mr. Stefan Stocker resigned as the representative director, president
and COO on this day.
Mr. Shigehisa Takata came back as the chairman and president to take
best actions for this issues.
===================
*Suppliers*
==========
Taito Industries Co., Ltd.
San Oh Industries Co., Ltd.
Higuchi Manufacturing Co., Ltd.
Katsuyama Fine Tech Co., Ltd.
Shimamoto Die-cast Co., Ltd.
*Customers*
==========
Toyota Motor Corp.
Honda Motor Co., Ltd.
Mazda Corp.
Nissan Motor Co., Ltd.
Fuji Heavy Industries, Ltd.
Mitsubishi Motors Corp.
================================================
Company name: Takata Kyushu Co., Ltd.
Country: Japan
Status: Subsidiary
----------------------------------------------------------------------------------------------------
Company name: Takata AG
Country: Germany
Status: Subsidiary
----------------------------------------------------------------------------------------------------
Company name: TK Holdings Inc.
Country: U.S.A.
Status: Subsidiary
----------------------------------------------------------------------------------------------------
===========================
*Subsidiaries & Affiliates*
=====================
As of March 31, 2014 the subject owns and controls a total of 63
subsidiaries at home and abroad.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.76 |
|
|
1 |
Rs.94.02 |
|
Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.