MIRA INFORM REPORT

 

 

Report No. :

321242

Report Date :

06.05.2015

 

IDENTIFICATION DETAILS

 

Name :

FUJIKURA LTD

 

 

Registered Office :

1-5-1 Kiba Kotoku Tokyo 135-8512

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

March 1910

 

 

Com. Reg. No.:

007861

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of electric wires & cables

 

 

No of Employees :

55,634

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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

 

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 4)

 

 

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 590,980 M

PAYMENTSREGULAR   CAPITAL           Yen 53,075 M

TREND UP                    WORTH            Yen 207,242 M

STARTED         1910                 EMPLOYES      55,634

 

 

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 31/03/2015 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/2014 fiscal term amounted to Yen 590,980 million, a 20.3% up from Yen 491,116 million in the previous term.  Business relating to flexible print circuits for smartphones fared stronger than expected.  The recurring profit was posted at Yen 13,839 million and the net profit at Yen 3,328 million, respectively, compared with Yen 1,279 million recurring profit and Yen 3,049 million net losses, respectively, a year ago. 

 

            (Apr/Dec/2014 results): Sales Yen 491,950 million (up 11.9%), operating profit Yen 19,678 million (up 23.9%), recurring profit Yen 18,019 million (up 30.1%), net profit Yen 9,786 million (up 209.3%).  (% as compared with the corresponding period a year ago).

           

            For the term that ended Mar 2015 the recurring profit was projected at Yen 21,000 million and the net profit at Yen 11,000 million, on a 10% rise in turnover, to Yen 650,000 million.  Final results are yet to be released. 

 

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 (10.0), Master Trust Bank of Japan T (6.9), Japan Trustee Services T (5.1), Mitsui Life Ins (2.8), CBNYDPA Int’l Small Cap Value P (2.6), SMBC (2.3), DOWA Material & Marketing Co (1.8), other; foreign owners (21.5)

           

No. of shareholders: 21,890

 

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

 

Managements: Yoichi Nagahama, pres & CEO; Takashi Satoh, v pres; Akio Miyagi, s/mgn dir; Hideo Shiwa, s/mgn dir; Akira Wada, s/mgn dir; Hideo Naruse, mgn dir; Yoshikazu Nomura, mgn dir; Masato Sugo, mgn dir; Ken’ichiro Abe, mgn 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 (59%): 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 (17%): 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 (3%);

Overseas Sales Ratio (54%)

 

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)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

　

　

  Annual Sales

　

590,980

491,118

　

  Cost of Sales

493,056

415,082

　

      GROSS PROFIT

97,923

76,036

　

  Selling & Adm Costs

77,578

69,536

　

      OPERATING PROFIT

20,345

6,499

　

  Non-Operating P/L

-6,506

-5,220

　

      RECURRING PROFIT

13,839

1,279

　

      NET PROFIT

3,328

3,049

BALANCE SHEET

　

　

  Cash

　

39,902

43,178

　

  Receivables

140,260

122,459

　

  Inventory

64,869

60,399

　

  Securities, Marketable

　

　

　

  Other Current Assets

22,422

21,226

　

      TOTAL CURRENT ASSETS

267,453

247,262

　

  Property & Equipment

179,858

182,343

　

  Intangibles

15,919

14,091

　

  Investments, Other Fixed Assets

74,051

85,204

　

      TOTAL ASSETS

537,281

528,900

　

  Payables

77,740

67,581

　

  Short-Term Bank Loans

56,844

65,360

　

　

　

　

　

  Other Current Liabs

38,690

42,354

　

      TOTAL CURRENT LIABS

173,274

175,295

　

  Debentures

50,000

50,000

　

  Long-Term Bank Loans

85,583

74,054

　

  Reserve for Retirement Allw

7,714

7,336

　

  Other Debts

　

13,467

17,443

　

      TOTAL LIABILITIES

330,038

324,128

　

      MINORITY INTERESTS

　

　

Common stock

53,075

53,075

　

Additional paid-in capital

55,036

54,957

　

Retained earnings

88,298

85,914

　

Evaluation p/l on investments/securities

6,582

4,361

　

Others

15,253

11,571

　

Treasury stock, at cost

(11,002)

(5,107)

　

      TOTAL S/HOLDERS` EQUITY

207,242

204,771

　

      TOTAL EQUITIES

537,281

528,900

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2014

31/03/2013

　

Cash Flows from Operating Activities

　

31,020

22,554

　

Cash Flows from Investment Activities

-28,881

-56,077

　

Cash Flows from Financing Activities

-8,833

12,204

　

Cash, Bank Deposits at the Term End

　

39,336

42,250

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

　

Net Worth (S/Holders' Equity)

207,242

204,771

　

Current Ratio (%)

154.35

141.05

　

Net Worth Ratio (%)

38.57

38.72

　

Recurring Profit Ratio (%)

2.34

0.26

　

Net Profit Ratio (%)

0.56

0.62

　

　

Return On Equity (%)

1.61

1.49

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.51

UK Pound

1

Rs. 95.95

Euro

1

Rs. 70.53

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.