MIRA INFORM REPORT

 

 

Report No. :

321712

Report Date :

11.05.2015

 

IDENTIFICATION DETAILS

 

Name :

TDK CORPORATION

 

 

Registered Office :

Shibaura Renasite Tower, 3-9-1 Shibaura Minatoku Tokyo 108-0023

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

December 1935

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufactures passive components, magnet-applied products, film-applied products

 

 

No. of Employee :

87,152

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 36,085.6 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

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

 

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 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

 

TDK CORPORATION

 

REGD NAME:   TDK KK

MAIN OFFICE:  Shibaura Renasite Tower, 3-9-1 Shibaura Minatoku Tokyo 108-0023 JAPAN

                                    Tel: 03-6852-7300    

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Mfg of electronic parts & devices

 

 

BRANCHES

 

Osaka, Sendai, Yokohama, Nagoya, Matsumoto, Hiroshima, Fukuoka

 

 

OVERSEAS

 

Europe (13), USA, China, Hong Kong, Thailand, Malaysia, other

 

 

FACTORIES

 

Akita (5), Chiba, Yamanashi, Shizuoka, Oita

 

 

OVERSEAS

 

Korea, China (4), Taiwan, Hong Kong, Thailand, USA (4), Germany, Hungary

 

 

CHIEF EXEC

 

TAKEHIRO KAMIGAMA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        GOOD                          A/SALES          Yen 1,082,560 M

PAYMENTSNO COMPLAINTS    CAPITAL           Yen 32,641 M

TREND STEADY                       WORTH            Yen 758,007 M

STARTED         1935                             EMPLOYES      87,152

 

 

COMMENT

 

MFR OF ELECTRONIC PARTS & DEVICES. 

FINANCIAL SITUATION COSIDERED GOOD TO EXCELLENT AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 36,085.6 MILLION, 30 DAYS NORMAL TERMS.

 

 

Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2016 fiscal term

 

 

HIGHLIGHTS

 

This is major mfr of electronic parts such as ferrite cores.  Tops in the world as maker of magnetic tapes & ferrites.  Also makes floppy disks.  Magnetic heads are the major profit earner.  Strength lies in components for cellular phones, personal computers and flat panel TVs in Japan & other Asian markets.  Operation consists of two major divisions: Electronic Materials & Parts with four sections: electronics materials, electronics devices, recording media, other electronic components; and Recording Media Products.  Operates many subsidiaries & offices worldwide.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 1,082,560 million, a 10.0% up from Yen 984,525 million in the previous term.  The recurring profit was posted at Yen 74,517 million and the net profit at Yen 49,440 million, respectively, compared with Yen 39,772 million recurring profit and Yen 16,288 million net profit, respectively, a year ago. 

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 95,000 million and the net profit at Yen 65,000 million, respectively, on a 9.0% rise in turnover, to Yen 1,180,000 million.  Sales of electronic parts will generally remain buoyant, led by strong demand for smartphones and automobiles.

 

The financial situation is considered GOOD to EXCELLENT and responsible for ORDINARY business engagements. Max credit limit is estimated at Yen 36,085.6 million, on 30 days normal terms.

 

REGISTRATION

 

Date Registered:　           Dec 1935　　　

Legal Status:    　     Limited Company (Kabushiki Kaisha)

Authorized:      　     480 million shares

Issued:             　     129,590,659 shares

Sum:                　     Yen 32,641 million

           

Major shareholders (%): Master Trust Bank of Japan T (11.5), Japan Trustee Services T (8.5), JP Morgan Chase Bank (4.8), Company’s Treasury Stock (2.8), BNP PARIBAS Services Inv. T (1.9), Trust & Custody Services Inv. T (1.8), Japan Trustee Services T9 (1.6), Nippon Life Ins (1.3); foreign owners (43.7).

 

No. of shareholders: 22,841

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

 

Managements: Takehiro Kamigama, pres & COO; Atsuo Kobayashi, v pres; Hiroyuki Uemura, v pres; Seiji Osaka, s/mgn dir; Shinya Yoshihara, s/mgn dir; Junji Yoneyama, s/mgn dir; Noboru Saito s/mgn dir; Robin Zeng, s/mgn dir; Takakazu Momozuka, dir; Mitsuru Nagata, dir;

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

 

Related companies: Iida TDK, TDK-MCC, other.

 

 

OPERATION

 

Activities: Manufactures passive components (48%), magnet-applied products (37%), film-applied products (13%), others (2%)

 

Overseas Sales Ratio (91%).

 

Clients: [Mfrs, wholesalers] TDK Electronics Europe, SAE Magnetics, TDK Hong Kong, TDK America, Izawa Metal, Sony Corp, Toshiba Corp, Samson Ltd, Fujitsu Ltd, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfr, wholesalers] Kyocera Corp, Nitto Denko Matecs, Toda Kogyo Corp, TDK Hong Kong, TDK China, other.

 

Payment record: No Complaints

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

           

Bank References:

Resona Bank (Muromachi)

MUFG (H/O)

Relations: Satisfactory

 

 

FINACIALS

 

(In Million Yen):

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

1,082,560

984,525

　

  Cost of Sales

802,225

763,572

　

      GROSS PROFIT

280,335

220,953

　

  Selling & Adm Costs

207,876

184,337

　

      OPERATING PROFIT

72,459

36,616

　

  Non-Operating P/L

2,058

3,156

　

      RECURRING PROFIT

74,517

39,772

　

      NET PROFIT

49,440

16,288

BALANCE SHEET

　

　

  Cash

　

265,104

250,848

　

  Receivables

238,089

206,472

　

  Inventory

　

　

　

  Securities, Marketable

1,301

　

　

  Other Current Assets

235,747

195,965

　

      TOTAL CURRENT ASSETS

740,241

653,285

　

  Property & Equipment

427,254

374,032

　

  Intangibles

45,733

38,401

　

  Investments, Other Fixed Assets

191,054

173,871

　

      TOTAL ASSETS

1,404,282

1,239,589

　

  Payables

111,591

95,688

　

  Short-Term Bank Loans

136,098

132,237

　

　

　

　

　

  Other Current Liabs

140,188

145,856

　

      TOTAL CURRENT LIABS

387,877

373,781

　

  Debentures

　

　

　

  Long-Term Bank Loans

131,483

97,623

　

  Reserve for Retirement Allw

105,687

93,777

　

  Other Debts

　

21,228

22,165

　

      TOTAL LIABILITIES

646,275

587,346

　

      MINORITY INTERESTS

　

　

Common stock

32,641

32,641

　

Additional paid-in capital

39,755

57,635

　

Retained earnings

661,159

624,919

　

Evaluation p/l on investments/securities

(5,882)

(87,134)

　

Others

48,831

43,567

　

Treasury stock, at cost

(18,497)

(19,385)

　

      TOTAL S/HOLDERS` EQUITY

758,007

652,243

　

      TOTAL EQUITIES

1,404,282

1,239,589

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

142,850

127,308

　

Cash Flows from Investment Activities

-127,312

-55,438

　

Cash Flows from Financing Activities

-35,243

-56,118

　

Cash, Bank Deposits at the Term End

　

265,104

250,848

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

758,007

652,243

　

Current Ratio (%)

190.84

174.78

　

Net Worth Ratio (%)

53.98

52.62

　

Recurring Profit Ratio (%)

6.88

4.04

　

Net Profit Ratio (%)

4.57

1.65

　

　

Return On Equity (%)

6.52

2.50

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.05

UK Pound

1

Rs.99.04

Euro

1

Rs.71.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

ANK

 

 

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.