MIRA INFORM REPORT
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Report No. : |
331842 |
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Report Date : |
11.07.2015 |
IDENTIFICATION DETAILS
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Name : |
FUJIKURA LTD |
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Registered Office : |
1-5-1 Kiba Kotoku Tokyo 135-8512 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
March, 1910 |
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Com. Reg. No.: |
(Tokyo-Kotoku) 007861 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electric Wires & Cables. |
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No. of Employees : |
52,452 |
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 : |
Good |
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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 second-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
FUJIKURA LTD
REGD NAME: KK
Fujikura
MAIN OFFICE: 1-5-1
Kiba Kotoku Tokyo 135-8512 JAPAN
Tel: 03-5606-1030 Fax: 03-5606-1539
URL: http://www.fujikura.co.jp
E-Mail address: info@fujikura.co.jp
ACTIVITIES
Mfg of electric
wires & cables
BRANCH
(ES)
Osaka, Nagoya,
Fukuoka, Sendai (Miyagi) (Tot 5)
OVERSEAS
USA (3), Europe (5), Russia, Malaysia (2), Singapore, China (8), Taiwan, Korea, Thailand (3), Vietnam (4), Mexico, Morocco
(--subsidiaries/affiliates)
FACTORIES
Sakura (Chiba), Suzuka, Numazu (Overseas): USA, UK, Singapore, Malaysia, Thailand, China, Vietnam,
India, Russia
CHIEF
EXEC
YOICHI NAGAHAMA,
PRES & CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 661,510 M
PAYMENTSREGULAR CAPITAL Yen 53,075 M
TREND UP WORTH Yen 234,527 M
STARTED 1910 EMPLOYES 52,452
COMMENT
MFR SPECIALIZING IN ELECTRIC WIRES & CABLES, OTHER.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast
(or estimated) figures for 31/03/2016 fiscal term
HIGHLIGHTS
The subject
company was established on the basis of electric cable division spun off from
Fujikura Electric Cables & Rubber in 1910 as Fujikura Cable Works (renamed as captioned in 1992). Later diversified
into optical cables,
communications systems, etc. One of big 3 wire suppliers for NTT. World’s second largest maker of flexible printed wiring boards. Optical cables
& optical parts at high level at home and in US. Operates overseas mfg plants in US, Europe,
Asia, other. Anticipating an expansion
in demand for OPWs in South America, the company set up a JV in Brazil in Aug
2013. Mass production of automobile-use harnesses started in India in summer
2014.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 661,510 million, an 11.9% up from Yen
590,980 million in the previous term.
The recurring profit was posted at Yen 21,082 million and the net profit
at Yen 12,201 million, respectively, compared with Yen 13,839 million recurring
profit and Yen 3,328 million net losses, respectively, a year ago.
For the current
term ending ended Mar 2016 the recurring profit is projected at Yen 25,000
million and the net profit at Yen 15,000 million, on a 2.8% rise in turnover,
to Yen 680,000 million. Export of
optical fiber preforms and optical heat scalers to China will be supported by a
lower Yen.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
REGISTRATION
Date Registered: Mar 1910
Regd No.:
(Tokyo-Kotoku) 007861
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
1,190 million shares
Issued:
360,863,421 shares
Sum: Yen 53,075 million
Major
shareholders (%): Company’s Treasury Stock (14.3), Master Trust Bank of Japan T (5.5), Japan
Trustee Services T (3.7), Mitsui Life Ins (2.8), CBNYDPA Int’l Small Cap Value
P (2.6), SMBC (2.3), Shizuoka Bank (2.1), JTSB (Sumitomo Mitsui Trust Bank
(1.8), DOWA Material & Marketing Co (1.8), RBC ISB DUB Non Resident TR
(1.7); foreign owners (23.6)
No. of shareholders: 21,055
Listed on the S/Exchange (s) of: Tokyo
Managements: Yoichi Nagahama,
pres & CEO; Takashi Satoh, v pres; Hideo Naruse, mgn dir; Masato Sugao, mgn
dir; Akio Miyagi, mgn dir; Yoshikazu Nomura, mgn dir; Hideo Shiwa, mgn dir;
Akira Wada, mgn dir; Ken’ichiro Abe, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Yonezawa Electric
Wire, Fujikura America Inc, Nishi Nippon Electric Wire & Cable, DDK Ltd, Tohoku Fujikura Ltd, other.
OPERATION
Activities: Manufactures electric wires, optical
transmission systems, network systems, power systems, coated wires, others:
(Sales Breakdown by Divisions):
Telecommunication Products Div (53%): optical fiber
& optical fiber cables, optical con- nectors & connection components, optical devices, optical fusion
splicers, optical network monitoring systems, optical transmission equipment,
optical wiring systems, telecommuni- cations-related installation products;
Electronic
& Electric Equipment Div (21%): flexible printed circuit boards (FPC),
con-nectors, automotive wire harnesses,
automotive components, sensors, electronic wiring, hard disk drive components,
micro heat pipes & heat sinks;
Metal Cables & Systems Div (21%): industrial cables,
metal telecommunications cables, overhead power
transmission cables, distribution wires, magnet wires, electrical wires,
all kinds of cable accessory products, and cable laying works;
Real Estate, others (2%);
Others (1%),
Overseas Sales Ratio (57%)
Clients: [Electric powers,
telecommunications carriers] Fujikura
Dia Cable, Fujikura Shoji Co, Watanabe Dengyo Corp, Inaba Denki Sangyo, Tokyo Electric Power, Fuji Heavy Ind, Kansai
Electric Power, NTT East, NTT West, Mazda Motor, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsui Bussan Metals,
Pan Pacific Copper, JSR, Dowa Mining, SWCC Showa Holdings, Mitsui & Co, Viscas Corp,
Fujikura Automotive Asia, Fujikura Dia Cable, Unimac Ltd, DDK Ltd, A Priori
Inc, JCU, other. .
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
SMBC (H/O)
MUFG (Tokyo)
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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661,510 |
590,980 |
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Cost of Sales |
547,359 |
493,056 |
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GROSS PROFIT |
114,150 |
97,923 |
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Selling & Adm Costs |
89,075 |
77,578 |
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OPERATING PROFIT |
25,075 |
20,345 |
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Non-Operating P/L |
-3,993 |
-6,506 |
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RECURRING PROFIT |
21,082 |
13,839 |
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NET PROFIT |
12,201 |
3,328 |
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BALANCE SHEET |
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Cash |
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35,745 |
39,902 |
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Receivables |
157,027 |
140,260 |
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Inventory |
78,539 |
64,869 |
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Securities, Marketable |
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Other Current Assets |
23,366 |
22,422 |
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TOTAL CURRENT ASSETS |
294,677 |
267,453 |
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Property & Equipment |
185,940 |
179,858 |
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Intangibles |
14,444 |
15,919 |
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Investments, Other Fixed Assets |
82,506 |
74,051 |
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TOTAL ASSETS |
577,567 |
537,281 |
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Payables |
78,691 |
77,740 |
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Short-Term Bank Loans |
81,489 |
56,844 |
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Other Current Liabs |
41,096 |
38,690 |
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TOTAL CURRENT LIABS |
201,276 |
173,274 |
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Debentures |
50,000 |
50,000 |
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Long-Term Bank Loans |
69,620 |
85,583 |
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Reserve for Retirement Allw |
8,402 |
7,714 |
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Other Debts |
|
13,742 |
13,467 |
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TOTAL LIABILITIES |
343,040 |
330,038 |
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MINORITY INTERESTS |
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Common
stock |
53,075 |
53,075 |
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Additional
paid-in capital |
55,035 |
55,035 |
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Retained
earnings |
99,539 |
88,298 |
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Evaluation
p/l on investments/securities |
11,078 |
6,582 |
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Others |
35,562 |
15,254 |
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Treasury
stock, at cost |
(19,762) |
(11,002) |
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TOTAL S/HOLDERS` EQUITY |
234,527 |
207,242 |
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TOTAL EQUITIES |
577,567 |
537,281 |
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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 |
|
20,643 |
31,020 |
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Cash
Flows from Investment Activities |
-26,071 |
-28,881 |
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Cash
Flows from Financing Activities |
-4,366 |
-6,833 |
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Cash,
Bank Deposits at the Term End |
|
33,336 |
39,336 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
234,527 |
207,242 |
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Current
Ratio (%) |
146.40 |
154.35 |
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Net Worth
Ratio (%) |
40.61 |
38.57 |
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Recurring
Profit Ratio (%) |
3.19 |
2.34 |
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Net
Profit Ratio (%) |
1.84 |
0.56 |
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Return
On Equity (%) |
5.20 |
1.61 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.38 |
|
|
1 |
Rs.97.65 |
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Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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.