MIRA INFORM REPORT
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Report No. : |
332773 |
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Report Date : |
20.07.2015 |
IDENTIFICATION DETAILS
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Name : |
OLYMPUS CORPORATION |
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Registered Office : |
2-3-1 Nishishinjuku Shinjukuku Tokyo 163-0914 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
October 1919 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures Precision Machineries & Instruments |
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No. of Employees : |
31,465 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 7,564.8 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
|
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 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. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to
contract during the 2nd and 3rd quarters of 2014. The economy has largely
recovered in the three years since the disaster, but reconstruction in the
Tohoku region has been uneven due to labor shortages. 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 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. The government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which
amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the
final phase of the increase until 2017 to give the economy time to recover from
the 2014 increase. 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
OLYMPUS CORPORATION
REGD
NAME
Olympus KK
MAIN
OFFICE
2-3-1 Nishishinjuku
Shinjukuku Tokyo 163-0914 JAPAN
Tel: 03-3340-2111
URL: http://www.olympus.co.jp/
E-Mail address: info@olympus.co.jp
ACTIVITIES: Mfg
of SRL cameras, precision machineries & instruments
BRANCHES: Sapporo,
Sendai, Nagano, Hachioji, Saitama, Yokohama, Shizuoka,
Nagoya, Osaka,
Fukuoka, other
OVERSEAS: Americas (18),
Europe (57), Asia/Oceania (37) (--subsidiaries)
FACTORIES: Nagano,
Ina, Okaya, Mishima
CHIEF EXEC: HIROYUKI
SASA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 764,671 M
PAYMENTS NO COMPLAINTS CAPITAL Yen
124,520 M
TREND STEADY WORTH Yen 351,254 M
STARTED 1919 EMPLOYES 31,465
COMMENT: MFR OF PRECISION MCHINERIES AND INSTRUMENTS. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
MAX CREDIT LIMIT:
YEN 7,564.8 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast (or estimated) figures for the 31/03/2016
fiscal term
HIGHLIGHTS
The subject company is the pioneer of lightweight SLR cameras. Also well known as a maker of gastrointestinal endoscopes, major profit earner, accounting for 70% of global market share. Fostering surgical instruments. Medium-size maker of digital cameras. Dependence on borrowings high. Has subsidiary ITX Corp engaging in IT field. Expanding into biotechnology field on basis of clinical analyzers. It intends to expand the market share for cameras through the release of new low-priced models and reinforcement of the sales network in China. Sony Corp is the top shareholder.
FINANCIAL
INFORMATION
The sales volume for Mar/2015 fiscal term amounted to Yen 764,671 million, a 7.2% up from Yen 713,286 million in the previous term. Sales of mainline medical equipment grew in overseas markets. The recurring profit was posted at Yen 72,782 million and the net losses at Yen 8,737 million, respectively, compared with Yen 50,913 million recurring profit and Yen 13,627 million net losses, respectively, a year ago.
For the current term ending Mar 2016 the recurring profit is projected at Yen 86,000 million and the net profit at Yen 56,000 million, on a 5.9% rise in turnover, to Yen 810,000 million. Sales of medical equipment will continue to drive earnings growth.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 7,564.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Oct 1919
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,000 million shares
Issued: 342,671,508
shares
Sum: Yen 125,520 million
Major shareholders (%): Sony Corp (10.0), Master Trust Bank of Japan T (4.8), State Street Bank & Trust 505223 (4.2), State Street Bank & Trust (3.9), Nippon Life Ins (3.8), MUFG (3.8), Japan Trustee Services T (3.4), JTSB (SMBC) (3.3), SMBC (2.4), Terumo Corp (1.6); foreign owners (42.2)
No.
of shareholders: 20,676
Listed on the S/Exchange (s) of: Tokyo
Managements: Yasuyuki Kimoto,
ch; Hiroyuki Sasa, pres; Hideaki Fujisawa, s/mgn dir; Yasuo Takeuchi, s/mgn
dir; Shigeo Hayashi, mgn dir
Nothing detrimental
is known as to the commercial morality of executives.
Related companies: Olympus Medical Systems, other
OPERATION
Activities: Manufactures
precision machineries & instruments:
(Sales
Breakdown by Divisions):
Imaging
Equipment (13%): digital cameras, IC recorders, other peripherals;
Medical
Lines (69%): gastrointestinal endoscopes, & medical equipment for diagnoses &
treatments;
Life
Science (14%): microscopes and diagnostic systems;
Others
(4%); industrial endoscopes, non-destructive testing devices, printers, bar
code scanners, system development;
Overseas
Sales Ratio (76%)
Clients: [Mfrs,
wholesalers] KS Olympus, Olympus Medical Systems, Olympus Medical Science
Sales, Olympus America Inc (--subsidiaries), other
No. of accounts: 2,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Ks Olympus, Nagano Olympus, AVS, Olympus Engineering
(--subsidiaries), other
Payment record: No Complaints
Location: Business area in Tokyo.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References:
SMBC
(Shinjuku-Nishiguchi)
MUFG (Shinjuku)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
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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764,671 |
713,286 |
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Cost of Sales |
274,820 |
272,830 |
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GROSS PROFIT |
489,851 |
440,456 |
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Selling & Adm Costs |
398,889 |
367,011 |
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OPERATING PROFIT |
90,962 |
73,445 |
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Non-Operating P/L |
-18,180 |
-22,532 |
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RECURRING PROFIT |
72,782 |
50,913 |
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NET PROFIT |
-8,737 |
13,627 |
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BALANCE SHEET |
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Cash |
|
209,875 |
252,121 |
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Receivables |
148,127 |
132,233 |
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Inventory |
107,387 |
98,595 |
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Securities, Marketable |
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Other Current Assets |
112,139 |
93,563 |
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TOTAL CURRENT ASSETS |
577,528 |
576,512 |
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Property & Equipment |
150,145 |
135,440 |
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Intangibles |
180,647 |
173,559 |
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Investments, Other Fixed Assets |
173,231 |
141,964 |
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TOTAL ASSETS |
1,081,551 |
1,027,475 |
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Payables |
39,155 |
45,409 |
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Short-Term Bank Loans |
89,118 |
69,017 |
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Other Current Liabs |
234,503 |
161,880 |
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TOTAL CURRENT LIABS |
362,776 |
276,306 |
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Debentures |
55,000 |
55,000 |
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Long-Term Bank Loans |
210,303 |
291,814 |
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Reserve for Retirement Allw |
38,429 |
27,291 |
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Other Debts |
|
57,789 |
45,780 |
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TOTAL LIABILITIES |
724,297 |
696,191 |
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MINORITY INTERESTS |
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Common
stock |
124,520 |
124,520 |
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Additional
paid-in capital |
90,940 |
131,871 |
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Retained
earnings |
113,817 |
81,534 |
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Evaluation
p/l on investments/securities |
24,764 |
11,836 |
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Others |
4,324 |
(17,379) |
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Treasury
stock, at cost |
(1,111) |
(1,098) |
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TOTAL S/HOLDERS` EQUITY |
357,254 |
331,284 |
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TOTAL EQUITIES |
1,081,551 |
1,027,475 |
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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 |
|
66,811 |
72,388 |
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Cash
Flows from Investment Activities |
-39,612 |
-20,273 |
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Cash
Flows from Financing Activities |
-70,185 |
-39,693 |
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Cash,
Bank Deposits at the Term End |
|
209,809 |
251,344 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
357,254 |
331,284 |
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Current
Ratio (%) |
159.20 |
208.65 |
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Net
Worth Ratio (%) |
33.03 |
32.24 |
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Recurring
Profit Ratio (%) |
9.52 |
7.14 |
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Net
Profit Ratio (%) |
-1.14 |
1.91 |
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Return
On Equity (%) |
-2.45 |
4.11 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.49 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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.