MIRA INFORM REPORT
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Report No. : |
326950 |
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Report Date : |
16.06.2015 |
IDENTIFICATION DETAILS
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Name : |
NIDEC CORPORATION |
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Registered Office : |
338 Kuze Tonoshirocho Minamiku Kyoto 601-8205 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
July, 1973 |
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Com. Reg. No.: |
(Kyoto-Minamiku) 002387 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Precision Motors. |
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No. of Employees : |
98,494 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limits : |
YEN 36,419.9 MILLION |
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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.
|
Source
: CIA |
Company
Name and address
NIDEC CORPORATION
REGD NAME: Nihon Densan KK
MAIN OFFICE: 338 Kuze
Tonoshirocho Minamiku Kyoto 601-8205 JAPAN
Tel: 075-922-1111 Fax: 075-316-2563
URL: http://www.nidec.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of precision
motors
BRANCHES
Tokyo (3), Osaka,
Kyoto, Shiga, Nagano, Nagoya, Fukuoka
OVERSEAS
USA (14), Singapore,
Vietnam, China, Taiwan, Germany, Netherlands
FACTORIES
Kyoto, Shiga,
Tokyo
OVERSEAS
Thailand (8),
China (4), Vietnam (4), Singapore, Philippines, Malaysia
CHIEF
EXEC
SHIGENOBU
NAGAMORI, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,028,385 M
PAYMENTSREGULAR CAPITAL Yen 77,071 M
TREND STEADY WORTH Yen 753,298 M
STARTED 1973 EMPLOYES 98,494
COMMENT
MFR OF PRECISION MOTORS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 36,419.9 MILLION, 30 DAYS NORMAL TERMS
Unit: in Million Yen
Forecast figures for the 31/03/2016 fiscal term.
HIGHLIGHTS
This is the
specialized mfr of precision motors, boasting world’s largest share in small
motors for HDDs. Pioneer in DC
brushless motors. Shifting medium-large motors stressing car-mounted motors and commercial products. Aggressive in
M&A activities, both domestic and overseas.
.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 1,028,385 million, a 17.5% up from Yen
875,109 million in the previous
term. Sales
of car-mounted products increased, with modularized models showing
results. Precision small motors enjoyed solid demand. The recurring
profit was posted at Yen 107,371 million and the net profit at Yen 76,216
million, respectively, compared with Yen 84,460 million recurring profit and
Yen 56,272 million net profit, respectively, a year ago. .
For
the current term ending Mar 2016 the recurring profit is projected at Yen
126,000 million and the net profit at Yen 90,000 million, on an 11.8% rise in turnover, to Yen 1,150,000 million. Demand for
car-mounted products will remain
strong. Recovery in sales of precision small motors for HDDs will
accelerate.
The financial
situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
36,419.9 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Jul 1973
Regd
No.: (Kyoto-Minamiku) 002387
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
480 million shares
Issued: 154,142,000
shares
Sum: Yen
77,071 million
Major
shareholders (%): Shigenobu Nagamori (8.7), Japan Trustee Services T (5.3), State Street
Bank & Trust (5.2), Master Trust Bank of Japan T (4.9), Company’s Treasury
Stock (4.9), Bank of Kyoto (4.2), SN Kosan (3.8), MUFG (2.5), Dai-ichi Life Ins
(2.3), Nippon Life Ins (2.2); foreign owners (31.9)
No. of shareholders: 32,051
Listed on the S/Exchange (s) of: Tokyo, New York
Managements: Shigenobu Nagamori,
pres; Bunsei Go, v pres; Hiroshi Obe, v pres; Akira Sato, v pres; Tadaaki
Hamada, s/mgn dir; Takao Yoshimatsu, s/mgn dir; Toshihiko Miyabe, s/mgn dir;
Kazuya Hayamatsu, s/mgn dir; Toshiaki Otani, s/mgn dir; Mutsuo Tahara, dir;
Kiyoto Ido, dir; Noriko Ishida, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Nidec Sankyo, Nidec Copal Electronics, Nidec Tosoku, other.
OPERATION
Activities: Manufactures
precision motors: precision small motors (41%), automotive, appliance,
commercials and industrial products (39%), machinery (10%), electronic &
optical parts (8%), others (1%)
Overseas
Sales Ratio (82%)
Clients: [Mfrs,
wholesalers] Nidec Hong Kong, Nidec Philippines, Western Digital (Malaysia) Sdn
Bhd, Nidec Thailand, Nidec Singapore, other.
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Nidec Thailand, Nidec Philippines, Nidec Dalian, Nidec Vietnam,
other
Payment record: Regular
Location: Business area in
Kyoto. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Bank of Kyoto (H/O)
MUFG (Kyoto-Chuo)
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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1,028,385 |
875,109 |
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Cost of Sales |
786,207 |
674,903 |
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GROSS PROFIT |
242,178 |
200,206 |
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Selling & Adm Costs |
130,960 |
115,342 |
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OPERATING PROFIT |
111,218 |
84,864 |
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Non-Operating P/L |
-3,847 |
-404 |
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RECURRING PROFIT |
107,371 |
84,460 |
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NET PROFIT |
76,216 |
56,272 |
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BALANCE SHEET |
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Cash |
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269,902 |
247,740 |
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Receivables |
222,396 |
184,096 |
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Inventory |
165,904 |
120,656 |
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Securities, Marketable |
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Other Current Assets |
72,312 |
63,924 |
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TOTAL CURRENT ASSETS |
730,514 |
616,416 |
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Property & Equipment |
338,978 |
298,673 |
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Intangibles |
172,430 |
152,368 |
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Investments, Other Fixed Assets |
113,217 |
99,481 |
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TOTAL ASSETS |
1,355,139 |
1,166,938 |
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Payables |
194,998 |
11,166,383 |
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Short-Term Bank Loans |
52,401 |
22,600 |
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Other Current Liabs |
116,750 |
(10,906,425) |
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TOTAL CURRENT LIABS |
364,149 |
282,558 |
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Debentures |
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Long-Term Bank Loans |
184,612 |
299,411 |
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Reserve for Retirement Allw |
19,576 |
17,912 |
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Other Debts |
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33,504 |
26,264 |
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TOTAL LIABILITIES |
601,841 |
626,145 |
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MINORITY INTERESTS |
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Common
stock |
77,071 |
66,551 |
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Additional
paid-in capital |
105,459 |
65,197 |
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Retained
earnings |
472,842 |
367,485 |
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Evaluation
p/l on investments/securities |
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Others |
97,953 |
81,200 |
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Treasury
stock, at cost |
(27) |
(39,640) |
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TOTAL S/HOLDERS` EQUITY |
753,298 |
540,793 |
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TOTAL EQUITIES |
1,355,139 |
1,166,938 |
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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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91,875 |
87,219 |
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Cash
Flows from Investment Activities |
-81,230 |
-63,178 |
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Cash
Flows from Financing Activities |
-19,508 |
13,471 |
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Cash,
Bank Deposits at the Term End |
|
269,902 |
247,740 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
753,298 |
540,793 |
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Current
Ratio (%) |
200.61 |
218.16 |
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Net
Worth Ratio (%) |
55.59 |
46.34 |
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Recurring
Profit Ratio (%) |
10.44 |
9.65 |
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Net
Profit Ratio (%) |
7.41 |
6.43 |
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Return
On Equity (%) |
10.12 |
10.41 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.64.09 |
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|
1 |
Rs.99.57 |
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Euro |
1 |
Rs.71.84 |
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.