MIRA INFORM REPORT

 

 

Report No. :

324617

Report Date :

28.05.2015

 

IDENTIFICATION DETAILS

 

Name :

NACHI-FUJIKOSHI CORP.

 

 

Registered Office :

Shiodome Sumitomo Bldg. 17F., 1-9-2, Higashi-Shinbashi, Minato-Ku, Tokyo 105-0021

 

 

Country :

Japan

 

 

Financials (as on) :

30.11.2013

 

 

Date of Incorporation :

21.12.1928

 

 

Com. Reg. No.:

2300-01-002687

 

 

Legal Form :

Listed

 

 

Line of Business :

Manufacturer of Machining Tools, Robotic Equipment, Functional Parts and Materials

 

 

No of Employees :

6,071

 

 

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

 

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. Japan's industrial sector is 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 three 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. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. 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 2013 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 new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% 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 the year 2015. 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

 

 NACHI-FUJIKOSHI CORP.

 

 

OUTLINE

========

Country:                                    Japan

Company Name:                       Nachi-Fujikoshi Corp.

Name In Local Language:           Fujikoshi, K.K. 

Office Address:                        Shiodome Sumitomo Bldg. 17f., 1-9-2, Higashi-Shinbashi, Minato-Ku,

Tokyo 105-0021

Office Tel:                                 03-5568-5111

Website:                                   Www.Nachi-Fujikoshi.Co.Jp

Business Type:                         Manufacturer

Industry:                                               Machining Tools, Robotic Equipment, Functional Parts And Materials

Established:                              December 21, 1928

Capital:                                                 Jp. 16,074,871,800 Yen

Employees:                              6,071

Corporate Formation:                Listed   

Corporation No.:                       2300-01-002687 (Toyama Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

=====================

Paid in capital :                         Jp. 16,074,871,800 yen

Number of authorized shares :   600,000,000 shares

Shares issued :                         249,193,436 shares

Number of shareholder :                        16,581

 

Name of shareholders                                       Number of thousand shares (%)

------------------------------------------------------------------------------------------------------------

 Business partners shareholders fund                 18,715 ( 7.51)

 Employees shareholders fund                           13,396 ( 5.37)

 Toyota Motor Corp.                                          13,182 ( 5.29)

 Japan Trustee Services Bank, Ltd.                     12,011 ( 4.82)

 Bank of Tokyo-Mitsubishi UFJ, Ltd.                   11,888 ( 4.77)

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

===========================================

Activity                         Product/Service Description

-------------------------------------------------------------------------------

Manufacturing                           Machining tools

Manufacturing                           Robotic equipment

Manufacturing                           Bearings

Manufacturing                           Machinery

Manufacturing                           Special steel

 

 

COMPANY MANAGEMENT

=======================

President                                  Mr. Hiroo Honma

Nationality:                                Japan

 

Managing Director                     Mr. Yukihiko Tanaka

Nationality:                                Japan

 

Managing Director                     Mr. Noriyasu Shiba

Nationality:                                Japan

 

Managing Director                     Mr. Naoshi Katayama

Nationality:                                Japan

 

Managing Director                     Mr. Kenji Susukida

Nationality:                                Japan

 

Managing Director                     Mr. Kazuhito Yoshida

Nationality:                                Japan

 

Managing Director                     Mr. Isao Hori

Nationality                                 Japan

 

Managing Director                     Mr. Hidenori Hayashi

Nationality                                 Japan

 

Director                                    Mr. Hideo Oba

Nationality                                 Japan

 

Director                                    Mr. Masayuki Kobayashi

Nationality                                 Japan

 

Director                                    Mr. Katsumi Nishijima

Nationality                                 Japan

 

Director                                    Mr. Toru Inoue

Nationality                                 Japan

 

Director                                    Mr. Tetsu Furusawa

Nationality                                 Japan

 

Auditor                                                 Mr. Nobuo Okada

Nationality:                                Japan

 

Auditor                                                 Mr. Atsushi Saguchi

Nationality:                                Japan

 

Auditor                                                 Mr. Hiroshi Yamada

Nationality:                                Japan

 

Auditor                                                 Mr. Eiichi Fukushima

Nationality:                                Japan

 

 

Note: The names of director(s) and auditor(s) are phonetically spelt.

 

 

*Key Personnel*

==============

Mr. Hiroo Honma

President and representative director

Born on July 29, 1945

Business career:

Apr. 1970: Employed by the subject.

Feb. 2001: Director.

Feb. 2009: Representative director and president.

Home address: 1-26-3, Kami-saginomiya, Nakano-ku, Tokyo

 

 

FINANCIALS

===========

Currency: (local currency - Jp. yen)

-------------------------------------------------------------------------------------

 Year |         Sales            |       Net Income    

-------------------------------------------------------------------------------------

2008

204,844,000,000

8,347,000,000

2009

107,586,000,000

loss 7,449,000,000

2010

134,807,000,000

5,562,000,000

2011

166,023,000,000

10,016,000,000

2012

172,259,000,000

4,585,000,000

2013

175,697,000,000

6,706,000,000

 

 

FINANCIAL DESCRIPTION

=======================

*Book Closing*

============

November 30th

 

*Financials*

==========

Consolidated Balance Sheet

Unit: millions of JP yen

                          

11/30/2011

11/30/2012

11/30/2013

Current assets  

89,443

92,704

101,135

 Cash & deposits      

13,118

15,901

18,591

 Account receivables   

38,192

38,612

39,896

 Inventories          

32,789

33,611

35,447

 Others

5,344

4,580

7,201

 

 

Fixed assets           

90,347

94,476

106,780

 Tangible assets      

76,235

78,295

82,354

 Intangible assets    

391

448

716

 Investments & others  

13,720

15,732

23,709

Total Assets       

179,791

187,181

207,916

 

 

 

 

Current liabilities     

75,377

66,154

79,292

 Account payables  

36,758

33,979

38,918

 Short term loans    

10,118

1,946

2,104

 Bonds payable due

1,160

60

4,450

 Long term loans due   

13,937

16,589

17,240

 Outstanding taxes    

1,376

2,075

2,850

 Others

12,028

11,505

13,730

Fixed liabilities      

43,456

55,802

47,263

 Bonds payable

7,530

7,470

20

 Long term loans      

23,026

34,719

31,308

 Retirement benefits    

6,568

6,482

6,652

 Others

6,332

7,131

9,283

Shareholders' equity    

67,664

70,756

75,964

 Paid up capital      

16,074

16,074

16,074

 Capital reserves      

11,560

11,561

11,561

 Retained earnings    

40,218

43,312

48,527

 Treasury stock        

-189

-192

-199

Valuation & adjustment 

-9,465

-8,855

1,157

Minority Interest    

2,758

3,324

4,238

Total Net Assets        

60,957

65,224

81,360

Total Liabilities & Net Assets     

179,791

187,181

207,916

Consolidated Income Statement

Unit : millions of JP yen

                          

11/30/2011

11/30/2012

11/30/2013

Sales          

166,023

172,259

175,697

Cost of goods sold      

128,992

137,459

137,560

Gross profit(loss)    

37,030

34,800

38,136

Sales/administrative expenses  

22,387

24,161

25,797

Operating profit(loss)    

14,643

10,639

12,338

Non operating income        

741

776

1,760

Non operating expenses       

2,471

2,304

2,400

Ordinary profit(loss)      

12,913

9,111

11,698

Special profits                 

45

36

400

Special losses             

734

365

1,240

Pretax profit                

12,223

8,782

10,858

Taxes & adjustment           

1,901

3,837

3,894

 

 

Minority interest   

305

359

257

Net profit      

10,016

4,585

6,706

 

 

*Latest Financials *

================

On October 2, 2014, the subject released the following business results an forecast:

As of August 31, 2014(3Q 2014 term)

Unit: millions of JPY

Year term  

Sales

Operating profit

Ordinary profit   

Net profit

3Q 2013      

128,351

8,159

7,544

3,409

3Q 2014     

163,292

14,446

13,798

7,617

FY 2014(P)  

215,000

19,500

18,500

10 500

 

 

Current assets;

116,863

Fixed assets;

112,750

Total assets;

229,614

Current liabilities;

96,585

Fixed liabilities;

43,607

Shareholders’ equity;

82,076

  Retained earnings;

54,527

Total net assets;

89,421

Total liabilities and net assets;

229,614

 

 

*Bank Details*

============

Bank Name :     Bank of Tokyo-Mitsubishi UFJ, Ltd.

Branch :            Tokyo business banking department

 

Bank Name :     Hokiriku Bank, Ltd.

Branch :            Head office

 

Bank Name :     Sumitomo Mitsui Trust Bank, Ltd.

Branch :            Shiba business banking department

 

 

*Credit Opinion*

=============

The subject is a reputed major manufacturer of machine tools, bearings and industrial robot.

Blessed with robust demands for the bearings from auto makers in China and North America, its mainstay products are boosting the whole performance.

Hydraulic machines are also growing in the domestic markets backed by increasing demands from construction industry.

Further growth is expected in the sphere of machine tools and robot for Nov. 2015 term.

A new plant in Mexico is to start its operation in 2015.

Unmanned production lines have been promoted in major plants at home and abroad.

Negative factors are not observed in particular at present.

 

 

LOCAL BRANCHES & MANAGEMENT

================================

Branch name:                Higashi-Nippon branch

Branch address:            Shiodome Sumitomo Bldg., 1-9-2, Higashi-shinbashi, Minato-ku,

Tokyo

----------------------------------------------------------------------------------------------------

Branch name:                Naka-Nippon branch

Branch address:            Takayashiro, Meito-ku, Nagoya-shi, Aichi pref.

----------------------------------------------------------------------------------------------------

Branch name:                Nishi-Nippon branch

Branch address:            Nakanoshima, Kita-ku, Osaka-shi, Osaka pref.

------------------------------------------------------------------------------------------------------

 

Ten other local sales offices are located in Sapporo, Yamagata, Koriyama, Ota, Uead, Hamamatsu, Toyama, Hiroshima and Fukuoka cities.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

========================================

*Main Products & Services*

======================

Development, manufacture, import, export and sales of the following products:

For Nov. 2013 term:

Machines and machine tools (36%)

Parts including bearings (56%)

Other products (8%)

 

Overseas business (40%)

 

 

FACTORY FACILITIES & MANUFACTURING CAPABILITIES

===============================================

Toyama facility: Fujikoshi-honmachi, Toyama-shi

Higashi-Toyama facility: Yoneda-cho, Toyama-shi

Namerikawa facility: Namerikawa-shi, Toyama pref.

Mizuhashi facility: Mizuhashi-iseya, Toyama-shi

Nagaresugi facility: Nagaresugi, Toyama-shi

 

 

ORGANIZATION STRUCTURE

======================

*Address*

=========

Registered address:

1-1-1, Fujikoshi-honmachi, Toyama-shi, Toyama pref. 930-8511

 

Operational head office:

Shiodome Sumitomo Bldg. 17F., 1-9-2, Higashi-shinbashi, Minato-ku, Tokyo 105-0021

 

 

The quoted address belongs to Higashi-Nippon branch.

 

 

*Company History*

================

Date                             Development

-----------------------------------------------------------------------------------------------

December 21, 1928        Incorporated under the name of “Fujikoshi Kozai (Steel Materials) K.K.” in Toyama-shi.

January 1939                 Started manufacturing bearings.

May 1949                                  Listed on the TSE(6474).

August 1963                  Took the current company name.

May 1969                                  Started manufacturing industrial robots.

June 2007                    Acquired “Tokiwa Industry Co., Ltd.”

April 2012                     Merged “Nachi Thermotech Inc.”

June 2013                     Merged “Nachi Sanyo Co., Ltd.” and “Nachi Kyushu Co., Ltd.”

 

 

TRADE REFERENCES

================

*Suppliers*

==========

Mitsubishi Steel Mfg. Co., Ltd.

Tsubaki Nakashima Co., Ltd.

Amatsuji Kokyu(Steel Ball) Seisakusho Co., Ltd.

Daido Special Steel Co., Ltd.

Sanyo Special Steel Co., Ltd.

 

*Customers*

==========

Toyota Motor Corp.

Honda Motor Co., Ltd.

Aisin A.W. Co., Ltd.

JTEKT Corp.

Denso Corp.

 

 

MAJOR SUBSIDIARIES, JOINT-VENTURES & AFFILIATES

=========================================

Company name:            Nachi Tohoku Seiko Co., Ltd.

Country:                        Japan

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Nachi America Inc.

Country:                        U.S.A.

Status:                                      Subsidiary  

----------------------------------------------------------------------------------------------------

Company name:            Nachi Czech s.r.o.

Country:                        Czech

Status:                                      Subsidiary 

 

 

RELATED PARTIES DESCRIPTION

===========================

*Subsidiaries & Affiliates*

=====================

As of November 30, 2013 the subject owns and controls a total of 48 subsidiaries and four affiliates at home and abroad.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.94

UK Pound

1

Rs.98.63

Euro

1

Rs.69.85

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.