MIRA INFORM REPORT

 

 

Report No. :

343205

Report Date :

01.10.2015

 

IDENTIFICATION DETAILS

 

Name :

HORIBA LTD

 

 

Registered Office :

2 Miyanohigashi Kisshoin Minamiku Kyoto 601-8510

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

Jan., 1953

 

 

Com. Reg. No.:

1300-01-011676 (Kyoto-Minamiku)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer of Measuring Instruments, Analyzers.

 

 

No. of Employees :

6,050

 

 

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 Limits :

Yen 4,391.1 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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil 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 impressive - 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 aftereffects 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. 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 of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) 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 first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

 

Source : CIA

 

Company Name and address

 

HORIBA Ltd

 

REGD NAME:               KK Horiba Seisakusho

 

MAIN OFFICE:              2 Miyanohigashi Kisshoin Minamiku Kyoto 601-8510 JAPAN

                                                Tel: 075-313-8121     Fax: 075-321-8312-

 

URL:                             http://www.horiba.com

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of measuring instruments, analyzers

 

 

BRANCHES

 

Tokyo, Sendai, Tsukuba, Yokohama, Nagoya, Osaka, other (Tot 15)

 

 

OVERSEAS

 

USA, UK (4), Italy (2), India, Austria, Netherlands, Canada, Korea (3), Singapore, Sweden, Spain, Thailand, China (3), Czech, Germany (3), Turkey, Brazil, France (3), Vietnam, Belgium (2), Poland, Portugal, Russia (--subsidiaries)

 

 

FACTORIES

 

At the caption address

 

 

CHIEF EXEC

 

ATSUSHI HORIBA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 153,065 M

PAYMENTSNO COMPLAINTS    CAPITAL                       Yen 12,011 M

TREND UP                                WORTH                        Yen 124,314 M

STARTED         1953                             EMPLOYES                  6,050

 

 

COMMENT

 

MFR OF MEASURING INSTRUMENTS, ANALYZERS, OTHER 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 4,391.1 MILLION, 30 DAYS NORMAL TERMS

 

         Unit: In Million Yen

Forecast figures for the 31/12/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is the leading mfr of measuring instruments and analyzers for environmental pollution. Independent of corporate affiliation. Expanding analyzers for research on semiconductors. Holds 80% global market share in engine measurement equipment. Aggressively involved in M&A activities overseas. The company has totally changed large-sized exhaust gas measuring equipment for automobiles for the first time in 17 years, and aims to promote them to government organizations in various countries. The firm will establish an R&D and production base for exhaust gas measuring equipment in Otsu, Shiga at a cost of Yen 10 billion, a highest level in the past, with full-scale startup slated for the end of 2015. It acquired an optical analyzer maker in the US with sales at about Yen 800 million in Feb 2014, to obtain new technologies for bio-based medical products. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2014 fiscal term amounted to Yen 153,065 million, a 10.8% up from Yen 138,136 million in the previous term.  The recurring profit was posted at Yen 16,454 million and the net profit at Yen 10,589 million, respectively, compared with Yen 13,056 million recurring profit and Yen 8,999 million net profit, respectively, a year ago. 

 

(Jan/Jun/2015 results): Sales Yen 77,616 million (up 14.3%), operating profit Yen 9,059 (up 60.0%), recurring profit Yen 8,737 million (up 70.0%), net profit Yen 5,217 million (up 101.3%).  (% as compared with the corresponding period a year ago).

 

For the current term ending Dec 2015 the recurring profit is projected at Yen 18,500 million and the net profit at Yen 12,000 million, on a 14.3% rise in turnover, to Yen 175,000 million. In the automobile business, sales of measuring instruments will grow, boosted by large-lot orders.  Orders for semiconductor devices will remain at a high level.  In the science business, the new subsidiary bought in 2014 will show results.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 4,391.1 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:　Jan 1953

Regd No.:         1300-01-011676 (Kyoto-Minamiku)

            Legal Status:          Limited Company (Kabushiki Kaisha)

            Authorized:          100 million shares

            Issued:                   42,532,752 shares

            Sum:                      Yen 12,011 million

 

Major shareholders (%): Japan Trustee Services T (7.4), Master Trust Bank of Japan T (4.6), Taiyo Fund LP (4.1), Zenkyoren (3.0), Masuo Horiba (2.7), Nomura Lux Multi Currency 1818517 (2.1), Bank of Kyoto (1.9), Atsushi Horiba (1.9), Horiba Rakurakukai Invest (1.8), Japan Re Fidelity (1.6); foreign owners (37.0)

 

No. of shareholders: 5,520

 

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

 

Managements: Atsushi Horiba, ch & pres; Kozo Ishida, v ch; Juichi Saito, v pres; Fumitoshi Sato, mgn dir; Masayuki Adachi, dir; Masahiro Sugita, dir

 

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

 

Related companies: Horiba Stec, Horiba ABX, Horiba Techno Services, other.

 

 

OPERATION

           

Activities: Manufactures measuring instruments & analyzers:

 

(Sales Breakdown by Divisions):

Automotive Test Systems (36%): analytical emissions systems, on-board emissions systems, portable emissions systems, dilution/sampling systems, engine test systems, driveline test systems, vehicle test systems, brake test systems, wind tunnel balances, automation systems;

Process & environmental Instruments Systems (11%): environmental radiation monitor, water quality measurement, water treatment & environment, gloss checker, thermometry, other;

Medical-Diagnostic Instruments Systems (18%): produces near 7,500 analyzers per year and over 8,000 tons of reagents;

Semiconductor Instruments Systems (19%): high performance mass flow controllers, reticule/mask particle detection systems, in-line chemical solution concentration monitors, direct injection vaporizers, automatic spectroscopic ellipsometers, other;

Scientific Instruments Systems (16%): scientific’s fluorometer, other;

Overseas Sales Ratio (69%)

 

Clients: [Mfrs, wholesalers] Horiba Techno Services, Hitachi Hitec Trading, Horiba Europe, Horiba Advances Techno, Horiba Instruments, Hitachi High Technologies, Yanmar Co, Fukuda Denshi, Honda Motor Co, Denso Corp, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Horiba Techno Service, Horiba Advanced Techno, Horiba Korea, Hitachi Metals Admet Inc, Horiba Stec, Oxford Instruments, Mikasa Shoji co, other

 

Payment record: No Complaints

 

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

 

Bank References:

            MUFG (Kyoto)

            Mizuho Bank (Kyoto)

            Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/12/2014

31/12/2013

INCOME STATEMENT

　

　

  Annual Sales

　

153,065

138,136

　

  Cost of Sales

87,884

80,625

　

      GROSS PROFIT

65,181

57,510

　

  Selling & Adm Costs

47,966

43,777

　

      OPERATING PROFIT

17,214

13,733

　

  Non-Operating P/L

-760

-677

　

      RECURRING PROFIT

16,454

13,056

　

      NET PROFIT

10,589

8,999

BALANCE SHEET

　

　

  Cash

　

43,255

42,228

　

  Receivables

52,246

47,412

　

  Inventory

34,836

33,084

　

  Securities, Marketable

11,380

10,271

　

  Other Current Assets

7,963

7,240

　

      TOTAL CURRENT ASSETS

149,680

140,235

　

  Property & Equipment

39,441

33,326

　

  Intangibles

6,353

5,110

　

  Investments, Other Fixed Assets

11,861

10,598

　

      TOTAL ASSETS

207,335

189,269

　

  Payables

15,406

16,409

　

  Short-Term Bank Loans

10,832

6,606

　

　

　

　

　

  Other Current Liabs

32,765

29,123

　

      TOTAL CURRENT LIABS

59,003

52,138

　

  Debentures

15,000

15,000

　

  Long-Term Bank Loans

2,209

2,576

　

  Reserve for Retirement Allw

2,264

2,406

　

  Other Debts

　

4,544

2,603

　

      TOTAL LIABILITIES

83,020

74,723

　

      MINORITY INTERESTS

　

　

Common stock

12,011

12,011

　

Additional paid-in capital

18,717

18,717

　

Retained earnings

86,218

78,177

　

Evaluation p/l on investments/securities

2,041

2,296

　

Others

6,057

4,109

　

Treasury stock, at cost

(730)

(765)

　

      TOTAL S/HOLDERS` EQUITY

124,314

114,545

　

      TOTAL EQUITIES

207,335

189,269

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

31/12/2014

31/12/2013

　

Cash Flows from Operating Activities

　

11,455

15,076

　

Cash Flows from Investment Activities

-9,875

-8,111

　

Cash Flows from Financing Activities

-273

2,324

　

Cash, Bank Deposits at the Term End

　

51,109

49,246

ANALYTICAL RATIOS            Terms ending:

31/12/2014

31/12/2013

　

Net Worth (S/Holders' Equity)

124,314

114,545

　

Current Ratio (%)

253.68

268.97

　

Net Worth Ratio (%)

59.96

60.52

　

Recurring Profit Ratio (%)

10.75

9.45

　

Net Profit Ratio (%)

6.92

6.51

　

　

Return On Equity (%)

8.52

7.86

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.74

UK Pound

1

Rs.99.53

Euro

1

Rs.73.80

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIT

 

               

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.