MIRA INFORM REPORT

 

 

Report No. :

347812

Report Date :

31.10.2015

 

IDENTIFICATION DETAILS

 

Name :

FANUC CORPORATION

 

 

Registered Office :

3580 Shibakusa Aza-Komanba Oshinomura Minamitsurugun Yamanashi-Pref 401-0597

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

May 1972

 

 

Com. Reg. No.:

0900-01-010053

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufactures NC Apparatus & Robots

 

 

No. of Employees :

5,261

 

 

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 :

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 – 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 second-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

 

FANUC CORPORATION

 

REGD NAME:    Fanuc KK

MAIN OFFICE:   3580 Shibakusa Aza-Komanba Oshinomura Minamitsurugun Yamanashi-Pref 401-0597 JAPAN

                                    Tel: 0555-84-5555     Fax: 0555-84-5512

 

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

E-Mail address: info@fanuc.co.jp

 

ACTIVITIES:     Mfr of NC equipment, industrial robots

BRANCHES:     Osaka, Nagoya, Tsukuba, Ebetsu (Hokkaido), Kumamoto, other (Tot 32);

OVERSEAS:     USA, Luxemburg, Australia, China, Korea, Taiwan, India, other (Tot 10)

FACTORIES:     At the caption address, Tsukuba, Kirishima (Kagoshima) (Tot 3)

 

CHIEF EXEC:    YOSHIHARU INABA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 729,760 M

PAYMENTS      REGULAR                     CAPITAL           Yen 69,014 M

TREND SLOW                          WORTH            Yen 1,386,595 M

STARTED         1972                             EMPLOYES      5,261

 

COMMENT:       MFR OF NC EQUIPMENT & INDUSTRIAL ROBOTS.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSI- NESS ENGAGEMENTS.

 

 

Unit: In Million Yen

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

 

 

HIGHLIGHTS

 

The subject company was established on the basis of the Computing Control Division separated from Fujitsu Ltd, nation’s largest computer mfr, Tokyo.  That year developed its first industrial robots.  This is the world’s largest mfr of NC equipment in use for machine tools.  Strong in-house production of servomotors.  Major maker of smart robots.  Also produces small machining centers.  Most exports on OEM basis.  Noted for debt-free financial position and strong earnings.  In 2009, Fanuc dissolved its JV with General Electric Company.  Accordingly, the firm established FANUC CNC America Inc and FANUC CNC Europe SA as wholly owned subsidiaries to conduct sales and maintenance service activities of CNCs in the Americas & Europe respectively.　　

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2015 fiscal term amounted to Yen 729,760 million, a 61.8% up from Yen 450,976 million in the previous term.  Small-scale machining centers continued to benefit from extraordinary demand for large-lot orders from smartphone mfrs in the second half.  The recurring profit was posted at Yen 311,951 million and the net profit at Yen 207,599 million, respectively, compared with Yen 174,360 million recurring profit and Yen 110,930 million net profit, respectively, a year ago.

 

For the current term ending Mar 2016 the recurring profit is projected at Yen 279,400 million and the net profit at yen 191,200 million, respectively, on a 6.8% fall in turnover, to Yen 680,100 million.  Extraordinary demand for small-scale machining centers will pause.  

 

Financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:          May 1972

Regd No.:                     0900-01-010053 (Yamanashi-Minamitsurugun-Oshinomura)

Legal Status:              Limited Company (Kabushiki Kaisha)

Authorized:                 400 million shares

Issued:                        239,508,317 shares

Sum:                            Yen 69,014 million

           

Major shareholders (%): Company’s Treasury Stock (18.3), Master Trust Bank of Japan T (6.8), Japan Trustee Services T (4.5), State Street Bank & Trust (3.3), State Street Bank & Trust (2) (3.2), Bank of New York Treaty Jasdec (2.1), CBNY Government of Norway (1.8), BNP Paribas Securities (1.5), CBNY for Depositary Share Holders (1.4), State Street Bank & Trust (1.1); foreign owners (32.8)

 

No. of shareholders: 34,546

 

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

 

Managements: Yoshiharu Inaba, pres & CEO; Kenji Yamaguchi, v pres; Hiroyuki Uchida, v pres; Yoshihiro Gonda, v pres; Kiyonori Inaba, s/mgn dir; Shunsuke Matsubara, s/mgn dir; Katsuo Kobari, s/mgn dir; Hiroshi Noda, s/mgn dir; Toshiya Okada, s/mgn dir

 

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

 

Related companies: Fanuc Robotics America, other


OPERATION

 

Activities: Manufactures NC apparatus & robots:

 

(Sales breakdown by divisions):

 

FA Div (35%): CNC series, power mater, Servo motors (including spindle motors, linear motors, DD motors), lasers, other;

 

Robotics Div (25%): robots;

 

Robot Machine Div (40%): electric injection molding machines, wire-cut EDMs, CNC drills, super 5 axis precision Nano machines, including maintenance, repairing, testing, and other services for the products.

 

Overseas sales ratio (83.0%)

 

Clients: [Mfrs, wholesalers] Mitsui & Co, Makino Milling Machine, Murata Machinery, Amada Co, Yamazen Corp, Yuasa Trading, Tsugami Corp, Mori Seiki Co, Star Seiki Co, Foxconn Precision Electronics, Hon Hai Precision Ind, other

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers [Mfrs, wholesalers]: Fujitsu Ltd, Panasonic Corp, Nabtesco Corp, Fuji Electric Devise Technology, Umetoku Inc, Fanuc Pertronics, THK, Hitachi Metal Ind, Furukawa Electric Co, NSK Ltd, other

 

Payment record: Regular

 

Location: Light industrial area in Yamanashi-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Tokyo)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

31/03/2015

31/03/2014

INCOME STATEMENT

 

　

　

  Annual Sales

　

729,760

450,976

　

  Cost of Sales

350,746

227,189

　

      GROSS PROFIT

379,014

223,787

　

  Selling & Adm Costs

81,175

59,653

　

      OPERATING PROFIT

297,839

164,134

　

  Non-Operating P/L

14,112

10,226

　

      RECURRING PROFIT

311,951

174,360

　

      NET PROFIT

207,599

110,930

BALANCE SHEET

 

 

　

　

  Cash

　

871,236

823,670

　

  Receivables

 

135,127

91,698

　

  Inventory

 

108,801

87,495

　

  Securities, Marketable

120,000

93

　

  Other Current Assets

38,191

24,845

　

      TOTAL CURRENT ASSETS

1,273,355

1,027,801

　

  Property & Equipment

265,925

262,473

　

  Intangibles

 

950

4,213

　

  Investments, Other Fixed Assets

71,396

49,417

　

      TOTAL ASSETS

1,611,626

1,343,904

　

  Payables

 

　

　

　

  Short-Term Bank Loans

40,572

26,192

　

　

 

　

　

　

  Other Current Liabs

132,039

73,257

　

      TOTAL CURRENT LIABS

172,611

99,449

　

  Debentures

 

　

　

　

  Long-Term Bank Loans

　

　

　

  Reserve for Retirement Allw

47,534

40,456

　

  Other Debts

　

4,786

4,136

　

      TOTAL LIABILITIES

224,931

144,041

　

      MINORITY INTERESTS

 

　

　

Common stock

69,014

69,014

　

Additional paid-in capital

96,277

96,270

　

Retained earnings

1,500,635

1,340,809

　

Evaluation p/l on investments/securities

7,482

5,112

　

Others

 

26,142

957

　

Treasury stock, at cost

(312,855)

(312,299)

　

      TOTAL S/HOLDERS` EQUITY

1,386,695

1,199,863

　

      TOTAL EQUITIES

1,611,626

1,343,904

CONSOLIDATED CASH FLOWS

 

　

　

 

Terms ending:

31/03/2015

31/03/2014

　

Cash Flows from Operating Activities

　

222,912

125,559

　

Cash Flows from Investment Activities

-24,926

-16,468

　

Cash Flows from Financing Activities

-47,314

-31,929

　

Cash, Bank Deposits at the Term End

　

991,236

823,669

ANALYTICAL RATIOS            Terms ending:

31/03/2015

31/03/2014

　

 

Net Worth (S/Holders' Equity)

1,386,695

1,199,863

　

 

Current Ratio (%)

737.70

1033.50

　

 

Net Worth Ratio (%)

86.04

89.28

　

 

Recurring Profit Ratio (%)

42.75

38.66

　

 

Net Profit Ratio (%)

28.45

24.60

　

　

Return On Equity (%)

14.97

9.25

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.65.22

UK Pound

1

Rs.99.93

Euro

1

Rs.71.67

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TRU

 

               

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.