MIRA INFORM REPORT

 

 

Report No. :

304701

Report Date :

23.01.2015

 

IDENTIFICATION DETAILS

 

Name :

FANUC CORPORATION 

 

 

Registered Office :

3580, Shibokusa, Oshino-mura, Minami-tsuru-gun, Yamanashi pref. 401-0597

 

 

Country :

Japan

 

 

Financials (as on) :

30.09.2014 (Estimated)

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

22.11.1950

 

 

Com. Reg. No.:

0900-01-010053 (Kofu)

 

 

Legal Form :

Private Company

 

 

Line of Business :

Engaged in Development, Manufacture, Exports, Imports and Sales of FA Equipment, Robot  & Robo-Machine

 

Subject product lines includes:

·         Fanuc Products Lineup Includes;

·         Cnc Series

·         Servo Motor

·         Laser

·         Robot

·         Robodrill

·         Roboshot (Electric Injection Molding Machine)

·         Robocut (Wire-Cut Electric Discharge Machine)

·         Robonano (Super Nano Machine)

 

 

No of Employees :

5,469

 

 

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 – 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

 

 

COMPANY NAME

 

FANUC CORPORATION

 

 

Company OUTLINE

 

Company name:            FANUC CORPORATION

Name in local language: FANUC K.K.   

Office address:             3580, Shibokusa, Oshino-mura, Minami-tsuru-gun, Yamanashi pref. 401-0597

Country:                        Japan

Office tel:                     0555-84-5555

Website:                       www.fanuc.co.jp  

Business type:              Manufacturer 

Industry:                       FA equipment, robot, robotic-machine

Established:                  November 22, 1950

Capital:                        Jp. 69,014,459,450 yen

Employees:                  5,469

Corporate formation:     Listed

Corporation No.:           0900-01-010053 (Kofu Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

As of March 31, 2014:

Paid in capital :                         Jp. 69,014,459,450 yen

Number of authorized shares :   400,000,000 shares

Shares issued :                         239,508,317 shares

Number of shareholder :                        35,120

 

Name of shareholders                           Number of thousand shares (%)

-----------------------------------------------------------------------------------------------------------

Master Trust Bank of Japan, Ltd.                        15,930 ( 6.65)

Japan Trustee Services Bank, Ltd.                      12,165 ( 5.08)

State Street Bank And Co.#1(U.S.A.)                   7,528 ( 3.14)

Chase Manhattan Bank NA London(U.K.)             6,392 ( 2.67)

Citi Bank NA NY (U.S.A.)                                    3,950 ( 1.65)

BNP Paribas Securities, Inc.                               3,546 ( 1.48)

State Street Bank And Trust Co.#2(U.S.A.)           2,675 ( 1.12)

Mellon Bank NA(U.S.A.)                                     2,568 ( 1.07)

Trust & Custody & Services Bank, Ltd.                2,494 ( 1.04)

----------------------------------------------------------------------------------------------------------

Total                                                                 67,484 (28.17)

 

The subject holds 43,836 thousand shares as treasury stock.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

·         Fanuc Products Lineup Includes;

·         Cnc Series

·         Servo Motor

·         Laser

·         Robot

·         Robodrill

·         Roboshot (Electric Injection Molding Machine)

·         Robocut (Wire-Cut Electric Discharge Machine)

·         Robonano (Super Nano Machine)

 

COMPANY MANAGEMENT

 

President                                  Mr. Yoshiharu Inaba (*)

Nationality:                                Japan

 

Vice President                           Mr. Kenji Yamaguchi (*)

Nationality:                                Japan

 

Vice President                              Mr. Hiroyuki Uchida (*)

Nationality:                                Japan

 

Vice President                           Mr. Yoshihiro Gonda (*)

Nationality:                                Japan

 

Senior Managing Director          Mr. Kiyonori Inaba

Nationality:                                Japan

 

Senior Managing Director          Mr. Shunsuke Matsubara

Nationality:                                Japan

 

Senior Managing Director          Mr. Hiroshi Noda

Nationality:                                Japan

 

Senior Managing Director          Mr. Katsuo Kohari

Nationality:                                Japan

 

Managing Director                     Mr. Toshiya Okada

Nationality:                                Japan

           

Director                                    Mr. Richard E. Schneider

Nationality:                                n. a.

 

Director                                    Mr. Olaf C. Gehrels

Nationality:                                n. a.

 

Director                                    Mr. Masato Ono

Nationality:                                Japan

 

Auditor                                     Mr. Shunsuke Kimura

Nationality:                                Japan

 

Auditor                                    Mr. Naoki Shimizu

Nationality:                                Japan

 

Auditor                                     Mr. Hajime Harada

Nationality:                                Japan

           

Auditor                                     Mr. Takeo Nakagawa

Nationality:                                Japan

           

Auditor                                     Mr. Masaharu Sumikawa

Nationality:                                Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

      (*): Representative directors

 

 

*Key Personnel*

==============

Mr. Yoshiharu Inaba

President and representative director since June 2003

Born on July 23, 1948

Business career:

Apr. 1973: Employed by Isuzu Motors.

Sep. 1983: Employed by the subject.

Jun. 1989: Director.

Oct. 2013: Concurrently General Manager of FA Division.

Home address: 8-17-22, Ikuta, Tama-ku, Kawasaki city, Kanagawa pref.

 

 

FINANCIALS

 

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2009

388,271,000,000

97,162,000,000

2010

253,393,000,000

37,511,000,000

2011

446,201,000,000

120,155,000,000

2012

538,492,000,000

138,819,000,000

2013

498,395,000,000

120,484,000,000

2014

450,976,000,000

110,930,000,000

 

FINANCIAL DESCRIPTION

 

*Book Closing*

============

March 31st

 

*Financials*

==========

Consolidated Balance Sheet

Unit: millions of JP yen

                          

3/31/2012

3/31/2013

3/31/2014

Current assets  

848,669

906,440

1,027,801

 Cash & deposits      

637,076

727,753

823,670

 Account receivables   

98,717

81,318

91,698

 Inventories          

86,599

72,184

87,495

 Others

26,277

25,185

24,938

Fixed assets           

281,956

312,673

316,103

 Tangible assets      

235,763

264,821

262,473

 Intangible assets    

12,758

8,747

4,213

 Investments & others  

33,435

39,105

49,417

Total Assets       

1,130,625

1,219,113

1,343,904

 

 

 

 

Current liabilities     

115,270

92,973

99,449

 Account payables  

30,196

22,044

26,192

 Outstanding taxes    

50,155

30,637

30,787

 Others

34,919

40,292

42,470

Fixed liabilities      

30,033

32,011

44,592

 Retirement benefits    

26,499

28,172

40,456

 Others

3,534

3,839

4,136

Shareholders' equity    

1,034,441

1,115,218

1,193,794

 Paid up capital      

69,014

69,014

69,014

 Capital reserves      

96,265

96,268

96,270

 Retained earnings    

1,180,556

1,261,572

1,340,809

 Treasury stock         

-311,394

-311,636

-312,299

Valuation & adjustment 

-53,118

-25,958

238

Minority Interest    

3,999

4,869

5,831

Total Net Assets       

985,322

1,094,129

1,199,863

Total Liabilities & Net Assets     

1,130,625

1,219,113

1,343,904

 

Consolidated Income Statement

Unit : millions of JP yen

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

538,492

498,395

450,976

Cost of goods sold      

262,120

258,670

227,189

Gross profit(loss)    

276,372

239,725

223,787

Sales/administrative expenses  

54,538

54,904

59,653

Operating profit(loss)    

221,834

184,821

164,134

Non operating income        

8,010

7,437

11,312

Non operating expenses       

1,266

1,016

1,086

Ordinary profit(loss)      

228,578

191,242

174,360

Pretax profit                

228,578

191,242

174,360

Taxes & adjustment           

89,136

70,253

62,848

Minority interest   

623

505

582

Net profit      

138,819

120,484

110,930

 

*Latest Financials *

===============

On October 24 2014, the subject released the following business results and forecast:

As of September 30, 2014:

Unit: millions of JPY

 

Year term

Sales

Operating profit

Ordinary profit

Net profit

2Q 2014      

216,125

74,862

79,121

50,096

2Q 2015   

342,815

138,319

145,002

94,366

FY 2015(F)   

688,200

268,000

280,900

185,100

 

 

Current assets;

1,144,765

Non-current assets;

317,549

Total assets;

1,462,314

Current liabilities;

129,597

Non-current liabilities;

46,997

Shareholders’ equity;

1,268,536

  Retained earnings;

1,415,713

Total net assets;

1,285,720

Total liabilities and net assets;

1,462,314

 


Bank Details

 

Bank Name :     Mizuho Bank, Ltd.

Branch :            Uchisaiwai-cho business banking department

 

 

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Head office

 

 

Credit Opinion

 

The subject is nation’s first inventor and now world’s leading manufacturer of NC equipment for machine tools, and also reputed for its industrial robot and small-sized machining center.

The subject used to be less interested in disclosing the information of its business, but it is changing now. A school is open to the customers.

The mainstay, NC equipment, has been growing domestically and in China as machine tools grow.

Shipment of robot has been keeping a high pace in North America.

A big demands from smart phone-related industries are boosting the performance.

Small-sized machining center is now picking up after a lull of shipment last year.

 

The subject acquired a sizable land in Tochigi Prefecture to meet the increasing demands for its mainstay products at home and abroad.

Another all-time high performance is likely posted for Mar. 2015 term.

The President became concurrently the General Manager of FA Business Division and the number of the directors was reduced from 18 to 12 in June in order to make further fast decision.

 

 

LOCAL BRANCHES & MANAGEMENT

 

Branch name:                Hino branch

Branch address:            Hino city, Tokyo

----------------------------------------------------------------------------------------------------

Branch name:                Nagoya branch

Branch address:            Komaki city, Aichi pref.

----------------------------------------------------------------------------------------------------

Branch name:                Osaka branch

Branch address:            Osaka city, Osaka pref.

 

Nine other branches are in Ebetsu(Hokkaido), Sendai, Tsukuba, Maebashi, Mitsuke(Niigata), Hakusan, Okayama, Hiroshima and Kumamoto.

 

 

 

 

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

*Main Products & Services*

======================

Development, manufacture, exports, imports and sales of the following products:

For Mar. 2014 term:

-       FA equipment (49%)

-       Robot (33%)

-       Robo-machine (18%)

 

Overseas business (77%)

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

 

Head plant: At the location of the head office

Tsukuba plant: Chikusei city, Ibaraki pref.

Hayato plant: Kirishima city, Kagoshima pref.

 

 

ORGANIZATION STRUCTURE

 

*Address*

=========

Registered address is the same as the operational address.

 

 

Company History

 

Date                             Development

-----------------------------------------------------------------------------------------------

November 22, 1950       Incorporated in documents in Hino city, Tokyo.

May 1972                      Founded its operation with an investment of JPY 2 billion by

separating the NC division from Fujitsu Ltd. The company name was

“Fujitsu Fanuc Ltd.”

November 1976            Went public.(#6954)

November 1977             Founded the first overseas operation, “Fanuc America Corp.”

May 1981                      Acquired “Fanuc Partronics Co., Ltd.”

July 1982                                  Took the current company name.

October 1984                Relocated the head office to the current address.

December 1989             Founded Tsukuba plant.

December 1991             Founded Hayato plant.

 

 

October 1992                Acquired GMFanauc Robotics Corp.(U.S.A.)

December 2009             Terminated the joint venture with General Electric.

 

 

TRADE REFERENCES

 

*Suppliers*

==========

Local subcontractors (names not disclosed)

 

*Customers*

==========

Authorized agents

Trading firms

Major manufacturers

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

 

Company name:            FANUC America Corporation

Country:                        U.S.A.

Status:                         Subsidiary   

----------------------------------------------------------------------------------------------------

Company name:            FANUC Europe Corporation

Country:                        Luxembourg

Status:                         Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            KOREA FANUC CORPORATION

Country:                        R. O. K.

Status:                         Subsidiary  

 

 

RELATED PARTIES DESCRIPTION

 

*Subsidiaries & Affiliates*

=====================

As of March 31, 2014 the subject owns and controls a total of 29 subsidiaries and two affiliates at home and abroad.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.93.33

Euro

1

Rs.71.49

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

MNL

 

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.