MIRA INFORM REPORT
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Report No. : |
326706 |
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Report Date : |
15.06.2015 |
IDENTIFICATION DETAILS
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Name : |
SEIKO EPSON CORPORATION |
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Registered Office : |
3-3-5 Owa Suwa City Nagano-Pref 392-8502 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Sept., 1959 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of ink jet printers, LCD modules for mobile phones, other electronic devices. |
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No. of Employees : |
70,632 |
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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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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Source
: CIA |
Company
Name and address
SEIKO EPSON CORPORATION
REGD NAME: Seiko
Epson KK
MAIN OFFICE: 3-3-5
Owa Suwa City Nagano-Pref 392-8502 JAPAN
Tel: 0263-52-3131 Fax: 0263-58-8216
E-Mail address: info@epson.co.jp
ACTIVITIES
Mfg of ink jet
printers, LCD modules for mobile phones, other electronic devices
BRANCHES
Nagano, Tokyo,
Yamagata, Hokkaido, other (Tot 14)
OVERSEAS
USA (5), China
(5), Taiwan (3), Canada, Mexico, UK, Germany, France, Korea, India, other (Tot
59 locations) (-- marketing/sales/servicing operations)
FACTORIES
At the caption
address, Nagano (13)
OVERSEAS
USA (3), China (11),
Malaysia (2), Indonesia (2), UK, Singapore, other (Tot 23)
CHIEF
EXEC
MINORU USUI, PRES
& CEO
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,086,341 M
PAYMENTS REGULAR CAPITAL Yen 53,204 M
TREND STEADY WORTH Yen
497,308 M
STARTED 1959 EMPLOYES 70,632
COMMENT:
MFR SPECIALIZING IN INK JET PRINTERS.
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
This is leading printer
mfr, based in Nagano-Pref, ranked top domestically with strength in ink jet printers (IJT). In LCD projector
& electronics devices, highly competitive in small & medium-sized LCD
modules for mobile phones and
other products. Mainline printers pursue “super high resolution equal to
photographs”. The firm started
outsourcing IJT production to Thailand in Oct 2005 (Muramoto Industry Co, subsidiary maker). The Thai plant
will be joining Seiko Epson’s own facilities in China, Philippines, Indonesia,
etc in supplying products to Japan,
US and Europe. The outsourcing is aimed to meet short-term changes in demand. The worldwide operations cover 33 locations
in development/mfg (including outsourcing), and 59 locations in
marketing/sales/servicing. Ink consumables as a lucrative product. Earnings concentrate in the 2nd
half of each term.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 1,086,341 million, a 7.7% up from Yen
1,008,407 million in the previous term.
The recurring profit was posted at Yen 132,536 million and the net
profit at Yen 112,785 million, respectively, compared with Yen 77,977 million
recurring profit and Yen 84,442 million net profit, respectively, a year
ago.
.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 100,000 million
and net profit at Yen 70,000 million, respectively, on a 4.0% rise in turnover,
to Yen 1,130,000 million. Sales volume
of ink jet printers with large capacity tanks will make a contribution to
earnings fully in Europe, and those of business-use ink jet printers will grow.
The financials
situation is considered FAIR and GOOD for ORDINARY business engagements.
REGISTRATION
Date Registered: Sept 1959
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 607,458,368 shares
Issued:
196,364,592 shares
Sum: Yen 53,204 million
Major shareholders
(%): Company’s Treasury Stock (10.4), Sanko Kigyo (5.7), Japan Services
Trustees T (5.2), Master Trust Bank of Japan T (4.8), Seiko Holdings (3.9),
Yasuo Hattori (2.9), Noboru Hattori (2.8), Employees’ S/Holding Assn (2.4),
Dai-ichi Life Ins (2.1), TCSB (Mizuho Bank) (2.0); foreign owners (27.9)
No. of shareholders: 26,296
Listed on the S/Exchange (s) of: Tokyo
Managements: Minoru Usui,
pres; Noriyuki Hama, s/mgn dir; Shigeki Inoue, mgn dir; Yoneharu Fukushima,
dir; Koichi Kubota, dir; Motonori Okumura, dir; Jun’ichi Watanabe, dir;
Masayuki Kawana, dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Epson Sales
Japan Corp, Tohoku Epson, other (Tot 94: Japan 21, overseas 73)
OPERATION
Activities: Development,
manufacturing, sales, marketing and servicing of:
(Sales
Breakdown by Divisions):
Information-related
Equipment (84.0%)
Electronic
Devices & Precision Equipment (14.0%)
Sensing
System & Industrial Solutions (2%)
Overseas
sales ratio (72%)
Clients: [Mfrs,
wholesalers] Epson Sales Japan Corp (subsidiary) for marketing/distribution in
Japan market, Seiko Watch, other.
Exports to Epson Europe BV (Netherlands),
Epson America Inc, Epson Hong Kong Ltd, Epson Europe Electronics GmbH
(Germany), other.
No. of accounts:
3,000 (through subsidiary agent dealers)
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Imports from Epson Precision Ltd (Hong Kong, Malaysia,
Philippines), PT Indonesia Epson Industry (Indonesia), Suzhou Epson Co (China),
other. Also supplied from: Konica
Minolta Business Technologies, Fuji Xerox System Service, other
Payment record: Regular
Location: Business area in
Suwa City, Nagano-Pref. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
Mizuho
Bank (Shinjuku)
MUFG (Shinjuku)
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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1,086,341 |
1,008,407 |
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Cost of Sales |
690,416 |
645,818 |
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GROSS PROFIT |
395,924 |
362,589 |
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Selling & Adm Costs |
264,544 |
283,040 |
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OPERATING PROFIT |
131,380 |
79,549 |
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Non-Operating P/L |
1,156 |
-1,572 |
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RECURRING PROFIT |
132,536 |
77,977 |
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NET PROFIT |
112,785 |
84,442 |
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BALANCE SHEET |
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Cash |
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245,330 |
211,510 |
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Receivables |
167,482 |
154,309 |
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Inventory |
220,426 |
181,581 |
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Securities, Marketable |
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Other Current Assets |
17,145 |
13,245 |
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TOTAL CURRENT ASSETS |
650,383 |
560,645 |
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Property & Equipment |
227,257 |
222,556 |
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Intangibles |
19,170 |
18,947 |
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Investments, Other Fixed Assets |
109,472 |
106,742 |
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TOTAL ASSETS |
1,006,282 |
908,890 |
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Payables |
140,047 |
123,463 |
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Short-Term Bank Loans |
75,745 |
82,471 |
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Other Current Liabs |
139,650 |
130,153 |
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TOTAL CURRENT LIABS |
355,442 |
336,087 |
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Debentures |
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Long-Term Bank Loans |
112,466 |
141,942 |
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Reserve for Retirement Allw |
31,234 |
56,362 |
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Other Debts |
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9,831 |
9,741 |
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TOTAL LIABILITIES |
508,973 |
544,132 |
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MINORITY INTERESTS |
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Common
stock |
53,204 |
53,204 |
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Additional
paid-in capital |
84,321 |
84,321 |
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Retained
earnings |
294,191 |
195,587 |
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Evaluation
p/l on investments/securities |
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Others |
86,056 |
52,109 |
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Treasury
stock, at cost |
(20,464) |
(20,464) |
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TOTAL S/HOLDERS` EQUITY |
497,308 |
364,757 |
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TOTAL EQUITIES |
1,006,282 |
908,890 |
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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 |
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108,828 |
114,859 |
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Cash
Flows from Investment Activities |
-32,735 |
-41,244 |
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Cash
Flows from Financing Activities |
-55,392 |
-56,567 |
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Cash,
Bank Deposits at the Term End |
|
245,330 |
211,510 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
497,308 |
364,757 |
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Current
Ratio (%) |
182.98 |
166.82 |
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Net Worth
Ratio (%) |
49.42 |
40.13 |
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Recurring
Profit Ratio (%) |
12.20 |
7.73 |
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Net
Profit Ratio (%) |
10.38 |
8.37 |
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Return
On Equity (%) |
22.68 |
23.15 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.64.03 |
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|
1 |
Rs.99.27 |
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Euro |
1 |
Rs.71.90 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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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.