MIRA INFORM REPORT

 

 

Report No. :

324932

Report Date :

29.05.2015

 

IDENTIFICATION DETAILS

 

Name :

EBARA CORPORATION

 

 

Registered Office :

11-1 Haneda-Asahicho Ohtaku Tokyo 144-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May 1920

 

 

Com. Reg. No.:

0108-01-001748

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Mfg of industrial pumps, freezers, garbage incinerators, semiconductor equipment

 

 

No of Employees :

16,030

 

 

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

 

Maximum Credit Limit :

Yen 12,890.8 Million

 

 

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

 

EBARA CORPORATION

 

 

REGD NAME 

 

Ebara KK

 

 

MAIN OFFICE

 

11-1 Haneda-Asahicho Ohtaku Tokyo 144-8510 JAPAN

Tel: 03-3743-6111     Fax: 03-3745-3356

                       

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

E-Mail address: webmaster@ebara.co.jp

 

 

ACTIVITIES  

 

Mfg of industrial pumps, freezers, garbage incinerators, semiconductor equipment

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sapporo, Sendai, Saitama, Chiba, Yokohama, Niigata, Kanazawa, Hiroshima, Takamatsu, Fukuoka, other (Tot 35)

 

OVERSEAS

 

USA (5), Europe (3), Mid East (1), Asia/Oceania (20)

 

 

FACTORIES

 

Haneda (at the caption address & vicinities), Fujisawa, Sodegaura (Chiba), Suzuka (Mie)

 

 

OVERSEAS

 

China (4), Korea, Taiwan, Vietnam, Indonesia, and Malaysia

 

 

CHIEF EXEC 

 

TOICHI MAEDA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 482,699 M

PAYMENTSREGULAR   CAPITAL           Yen 68,697 M

TREND UP                    WORTH            Yen 247,553 M

STARTED         1920                 EMPLOYES      16,030

 

 

COMMENT    

 

MFR SPECIALIZING IN INDUSTRIAL PUMPS & AIR BLOWERS. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 12,890.8 MILLION, 30 DAYS NORMAL TERMS

 

                     Unit: In Million Yen

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

 

HIGHLIGHTS

 

This is a time-honored mfr of industrial pumps and air blowers, dating back to1912 when started making centrifugal pumps, by a local entrepreneur, on his account.  Since incorporated, the firm has grown rapidly to mfg various types of industrial pumps, freezers, garbage incinerators and semiconductor equipment.  Ranked 1st in both large & mass-produced industrial pumps.  Heavily depends upon public demand.  Top class in in-house technologies for environment-related lines including garbage incinerators and smoke desulfurizers, as well as semiconductor polishing systems.  The company established a base in Dubai, UAE in fiscal 2013 in a bid to strengthen its support system in the overseas market including Middle East and Southeast Asia.  Shale gas-related facilities in North America will start up in 2017. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 482,699 million, a 7.6% up from Yen 448,657 million in the previous term.  The recurring profit was posted at Yen 36,258 million and the net profit at Yen 23,580 million, respectively, compared with Yen 31,311 million recurring profit and Yen 18,973 million net profit, respectively, a year ago.

 

 For the current term ending Mar 2016 the recurring profit is projected at Yen 37,000 million and the net profit at Yen 24,000 million, respectively, on a 5.0% rise in turnover, to Yen 507,000 million.  Sales of pumps will hold steady, boosted by strong demand in both domestic and overseas.  Orders for waste incinerators will remain steady. 

 

The financial situation is considered FAIR and should be good for ORDINARY business engagements.  Max credit limit is estimated at Yen 12,890.8 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:                                   May 1920

Regd No.:                                             0108-01-001748 (Tokyo-Ohtaku)

Legal Status:                            Limited Company (Kabushiki Kaisha)

Authorized:                              1,000 million shares

Issued:                                     465,187,829 shares

Sum:                                        Yen 68,697 million

           

Major shareholders (%): Master Trust Bank of Japan T (10.8), Japan Trustee Services T (10.3), Mizuho Bank (2.1), Pictet & Cie (Europe) (2.0), Chase London SL Omnibus Acct (1.8), State Street Bank & Trust (1.5), MUFG (1.5), Nomura Trust Inv T (1.3), Trust & Custody Services Inv T (1.3), BBH BBHTSIA Nomura F Ireland SVF (1.3); foreign owners (32.1)                

 

No. of shareholders: 27,456

 

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

 

Managements: Natsunosuke Yago, ch; Toichi Maeda, pres; Tetsuji Fujimoto, s/mgn dir; Manabu Tsujimura, s/mgn dir; Atsuo Ohi, s/mgn dir; Akira Ogata, mgn dir; Masaru Shibuya, mgn dir; Nobuharu Noji, mgn dir;

 

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

 

Related companies: Ebara Engineering Service Corp, Ebara Techno-Serve Co, other.  (78 subsidiaries – 49 of those are consolidated subsidiaries – and 11 affiliated companies)

           

 

OPERATION

 

Activities: Manufactures industrial pumps, freezers, garbage incinerators, semiconductor equipment, etc:

 

(Sales Breakdown by Divisions):

Fluid Machinery & System Company (72%): fluid machinery & systems, various types of industrial pumps, blowers, gas & steam turbines, sewage collection systems, others;

 

Environmental Engineering Company (12%): solid waste incinerators, waste water treatment plants, wind power generation systems, fuel cell cogeneration systems, inorganic chemicals, thermal energy systems, soil & groundwater remediation systems, others;

 

Precision Machinery Company (16%): vacuum pumps, clean ozonizers for semiconductor device fabrication, pure-water pumps, chemical mechanical polishers, waste gas treatment equip, automated water carriers, other.   

 

Overseas sales ratio (53%)

 

Clients: [Government agencies, municipal offices, wholesalers] Ebara Field Tech Corp, Taiwan Semiconductor Mfg Co, Japanese Red Cross Society, IHI Plant Engineering, Kitasato Daiichi Vaccine Corp, Tokyo Univ, Keio Univ, Chiyoda Corp, Shimadzu Corp, Donated Blood Distribution Foundation, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Toshiba Industrial Products & Systems Corp,

Yoshidagumi, Hitachi Plant Engineering & Construction, Tsukishima Kikai, Ebara Jitsugyo (subsidiary), Nippon Glass Building Materials, Ebara Eliot, Ebara Hamada Blower Co, Sanso Electro Co, Ebara Refrigeration & Systems Co, TSG, Kumagai-Tekkosho Co, other.

 

Payment record: Regular

 

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

 

Bank References:

                        Mizuho Bank (H/O)

                        MUFG (Kyobashi)

                        Relations: Satisfactory

 

FINANCES

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

　

　

  Annual Sales

　

482,699

448,657

　

  Cost of Sales

356,424

329,059

　

      GROSS PROFIT

126,275

119,597

　

  Selling & Adm Costs

91,708

87,403

　

      OPERATING PROFIT

34,567

32,194

　

  Non-Operating P/L

1,691

-883

　

      RECURRING PROFIT

36,258

31,311

　

      NET PROFIT

23,580

18,973

BALANCE SHEET

　

　

  Cash

　

94,323

97,839

　

  Receivables

209,864

184,077

　

  Inventory

80,190

70,343

　

  Securities, Marketable

5,186

5,514

　

  Other Current Assets

25,517

22,355

　

      TOTAL CURRENT ASSETS

415,080

380,128

　

  Property & Equipment

102,270

96,582

　

  Intangibles

9,596

9,894

　

  Investments, Other Fixed Assets

43,446

43,607

　

      TOTAL ASSETS

570,392

530,211

　

  Payables

81,121

103,339

　

  Short-Term Bank Loans

64,906

62,917

　

　

　

　

　

  Other Current Liabs

98,201

71,144

　

      TOTAL CURRENT LIABS

244,228

237,400

　

  Debentures

10,000

10,000

　

  Long-Term Bank Loans

24,644

24,954

　

  Reserve for Retirement Allw

17,197

16,440

　

  Other Debts

　

26,769

26,369

　

      TOTAL LIABILITIES

322,838

315,163

　

      MINORITY INTERESTS

　

　

Common stock

68,697

68,625

　

Additional paid-in capital

72,627

72,555

　

Retained earnings

91,815

70,629

　

Evaluation p/l on investments/securities

5,324

2,418

　

Others

9,487

1,207

　

Treasury stock, at cost

(397)

(386)

　

      TOTAL S/HOLDERS` EQUITY

247,553

215,048

　

      TOTAL EQUITIES

570,392

530,211

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

11,296

26,615

　

Cash Flows from Investment Activities

-15,894

3,540

　

Cash Flows from Financing Activities

-7,044

-25,336

　

Cash, Bank Deposits at the Term End

　

95,604

102,341

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

Net Worth (S/Holders' Equity)

247,553

215,048

　

Current Ratio (%)

169.96

160.12

　

Net Worth Ratio (%)

43.40

40.56

　

Recurring Profit Ratio (%)

7.51

6.98

　

Net Profit Ratio (%)

4.89

4.23

　

　

Return On Equity (%)

9.53

8.82

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.90

UK Pound

1

Rs. 98.16

Euro

1

Rs. 69.73

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.