MIRA INFORM REPORT

 

 

Report No. :

332431

Report Date :

16.07.2015

 

IDENTIFICATION DETAILS

 

Name :

KOMATSU LTD

 

 

Registered Office :

2-3-6 Akasaka Minatoku Tokyo 107-8414

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May, 1921

 

 

Com. Reg. No.:

0104-01-010465 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Construction & Mining Equipment, Forest Machines, Industrial Machinery.

 

 

No. of Employees :

47,417

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Excellent Company 

 

 

Payment Behaviour :

Regular

 

 

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

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 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.

 

Source : CIA

 

Company Name and address

 

KOMATSU LTD

 

REGD NAME:               Komatsu Seisakusho KK (as registered)

 

MAIN OFFICE:              2-3-6 Akasaka Minatoku Tokyo 107-8414 JAPAN

                                                Tel: 03-5561-2616     Fax: 033505-9662-

 

URL:                             http://www.komatsu.co.jp

E-Mail address:                        info@komatsu.co.jp

 

 

ACTIVITIES

 

Mfg of construction & mining equipment, forest machines, industrial machinery

 

 

BRANCHES

 

Komatsu, Osaka, other

 

 

OVERSEAS

 

China (33), USA (73), Mid/South America (17), Europe (13), Mid East (10), Africa (15), Asia (15), Oceania (2)

 

 

FACTORIES

 

Japan (8), America (12), Europe (5), Asia (7), other

 

 

CHIEF EXEC

 

TETSUJI OHHASHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 1,978,676 M

PAYMENTS      REGULAR         　CAPITAL        Yen 67,870 M

TREND UP                    　WORTH         Yen 1,598,500 M

STARTED         1921                 　EMPLOYES   47,417

 

 

COMMENT

 

LARGEST MFR OF CONSTRUCTION MACHINERY & EQUIPMENT 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

 

 

Unit: In Million Yen

Forecast figures for the 31/03/2016 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of construction machinery, including hydraulic power shovels. Top-ranked in Asia including China. Also produces semiconductor-making machines and other industrial machinery such as automobile-related presses, diesel power generators, and press brakes. Aggressively involved in global operations, focusing on China, Europe & America, with 25 factories in 10 countries. In the mining equipment business, the firm will strengthen marketing of labor-saving unmanned dump trucks to its loyal customers, so as to secure a profit source even in slumping market. In 1993, the company entered a joint development agreement with the engine mfr Commins Inc of the US. It will reorganize agency networks in North America in line with increasing rental demand. The company a total 176 subsidiaries: 138 consolidated subsidiaries and 38 equity-method subsidiaries.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 1,978,676 million, a 1.3% up from Yen 1,953,657 million in the previous term.  Sales of hydraulic shovels and other general construction machinery went favorably in developed countries.  The recurring profit was posted at Yen 236,074 million and the net profit at Yen 154,009 million, respectively, compared with Yen 242,056 million recurring profit and Yen 159,518 million net profit, respectively, a year ago.　. 

           

For the current term ending Mar 2016 the recurring profit is projected at Yen 214,000 million and the net profit at Yen 138,000 million, respectively, on a 5.0% down in turnover, to Yen 1,880,000 million.  Sales to mining equipment will remain flat. 

 

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

 

 

REGISTRATION

           

Date Registered:　                   May 1921

Regd No.:                                 0104-01-010465 (Tokyo-Minatoku)

Legal Status:                Limited Company (Kabushiki Kaisha)

Authorized:                              3.955 million shares

Issued:                         983,130,260 shares

Sum:                            Yen 67,870 million

 

Major shareholders (%): Japan Trustee Services T (3.7), Master Trust Bank of Japan T (3.7), Taiyo Life Ins (3.4), Company’s Treasury Stock (2.9), Nippon Life Ins (2.7), State Street Bank & Trust (2.6), SMBC (1.8), BONY Mellon for Depositary RH (1.7), Bank of New York Melon SANV 10 (1.6), State Street Bank West Treaty 505234 (1.2); foreign owners (44.1)

 

No. of shareholders: 186,623

 

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

 

Managements: Kunio Noji, ch; Tetsuji Ohhashi, pres; Mikio Fujitsuka, s/mgn dir; Fujitoshi Takamura, s/mgn dir; Hisashi Shinozuka, mgn dir; Kazunori Kuromoto, mgn dir; Masanao Mori, mgn dir

 

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

 

Related companies: Komatsu America, other. (Total 138 consolidated subsidiaries).

 

 

OPERATION

           

Activities: Manufactures construction machinery:

(Sales Breakdown by Divisions): construction & mining machinery, vehicles (89%), Industrial machinery & others (11%).

Overseas Sales Ratio (79%)

 

Clients: [Mfrs, wholesalers] Sumitomo Corp, United Tractors, Komatsu group firms,                                Sumitomo Nacco Materials Handling, Muroto Tekkosho, Morooka Co, other

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Komatsu group firms, Nagatsu Kogyo group, 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 (H/O)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

1,978,676

1,953,657

　

  Cost of Sales

1,401,193

1,393,048

　

      GROSS PROFIT

578,568

558,899

　

  Selling & Adm Costs

336,506

318,404

　

      OPERATING PROFIT

242,062

240,495

　

  Non-Operating P/L

-5,988

1,561

　

      RECURRING PROFIT

236,074

242,056

　

      NET PROFIT

154,009

15,958

BALANCE SHEET

　

　

  Cash

　

105,905

90,872

　

  Receivables

620,076

617,334

　

  Inventory

622,876

625,077

　

  Securities, Marketable

　

　

　

  Other Current Assets

172,578

160,149

　

      TOTAL CURRENT ASSETS

1,521,435

1,493,432

　

  Property & Equipment

743,919

667,347

　

  Intangibles

58,715

58,532

　

  Investments, Other Fixed Assets

5,474,338

432,245

　

      TOTAL ASSETS

7,798,407

2,651,556

　

  Payables

225,093

234,231

　

  Short-Term Bank Loans

191,937

176,515

　

　

　

　

　

  Other Current Liabs

387,881

381,485

　

      TOTAL CURRENT LIABS

804,911

792,231

　

  Debentures

　

　

　

  Long-Term Bank Loans

279,270

311,067

　

  Reserve for Retirement Allw

55,396

49,428

　

  Other Debts

　

60,330

57,719

　

      TOTAL LIABILITIES

1,199,907

1,210,445

　

      MINORITY INTERESTS

　

　

Common stock

67,870

67,870

　

Additional paid-in capital

138,696

138,984

　

Retained earnings

1,261,368

1,261,368

　

Evaluation p/l on investments/securities

113,018

30,035

　

Others

429,484

(14,935)

　

Treasury stock, at cost

(51,936)

(42,211)

　

      TOTAL S/HOLDERS` EQUITY

1,958,500

1,441,111

　

      TOTAL EQUITIES

3,158,407

2,651,556

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

343,654

319,424

　

Cash Flows from Investment Activities

-181,793

-167,439

　

Cash Flows from Financing Activities

-143,983

-155,349

　

Cash, Bank Deposits at the Term End

　

105,905

90,872

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

1,958,500

1,441,111

　

Current Ratio (%)

189.02

188.51

　

Net Worth Ratio (%)

62.01

54.35

　

Recurring Profit Ratio (%)

11.93

12.39

　

Net Profit Ratio (%)

7.78

0.82

　

　

Return On Equity (%)

7.86

1.11

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.38

UK Pound

1

Rs.99.13

Euro

1

Rs.69.69

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NIT

 

 

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.