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MIRA INFORM REPORT
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Report No. : |
498518 |
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Report Date : |
16.03.2018 |
IDENTIFICATION DETAILS
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Name : |
DAIKIN INDUSTRIES LTD |
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Registered Office : |
Umeda Center Bldg, 2-4-12
Nakazaki-Nishi Kitaku Osaka 530-8323 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
February 1934 |
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Com. Reg. No.: |
1200-01-1059660 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufactures air conditioners & freezers, chemicals,
hydraulic, defense systems, others |
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No. of Employees : |
6,891 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Maximum Credit Limit : |
Yen 55,762.5 million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC
OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable 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.
Japan enjoyed an 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. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the first country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP in January 2017, and in November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name and address
DAIKIN INDUSTRIES LTD
REGD NAME: Daikin Kogyo KK
MAIN OFFICE: Umeda Center Bldg, 2-4-12 Nakazaki-Nishi
Kitaku Osaka 530-8323 JAPAN
Tel:
06-6373-4312 Fax: 06-6373-4330
E-Mail
address: info@daikin.co.jp
ACTIVITIES: Mfg of commercial-use air conditioners
BRANCHES: Tokyo, Suita, other (Tot 10)
OVERSEAS: Europe, USA, Africa, Asia, China, S/E Asia,
Oceania, Latin America,
South
Asia, other (Tot 218 including subsidiaries)
FACTORIES: Sakai (2), Yodogawa, Shiga, Kashima
CHIEF EXEC: MASANORI TOGAWA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY: FINANCES FAIR A/SALES Yen 2,043,968 M
PAYMENTS REGULAR CAPITAL Yen 85,032 M
TREND UP WORTH Yen 1,111,637 M
STARTED 1934 EMPLOYES 6,891
COMMENT
MFR SPECIALIZING IN
COMMERCIAL-USE AIR CONDITIONERS FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 55,462.3 MILLION, 30 DAYS NORMAL TERMS.
HIGHLIGHTS
This
is the largest mfr of commercial-use air conditioners. Makes household-use air
conditioners,
too. Pioneer of application of CFC as
refrigerant for freezers. Diversified
business into hydraulic equipment, fluorine resins/gas, and shells/warheads for
Defense Agency. The company ranks in the
second in the global fluoride chemistry market.
Has succeeded in the domestic production of CFC to compete with DuPont
in the US. It is currently in
partnership with Green Electric Appliance of China in the areas of production
and procurement. Active in overseas
operations accounting for 74% of total sales.
FINANCIAL
INFORMATION:
The sales volume for Mar/2017 fiscal term amounted to Yen
2,043,568 million, a shade down from Yen 2,043,191 million in the previous
term. The recurring profit was posted at
Yen 231.013 million and the net profit at Yen 153,938 million, respectively, compared
with Yen 209,536 million recurring profit and Yen 136,986 million net profit,
respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is
projected at Yen 249,000 million and the net profit at Yen 165,000 million,
respectively, on an 8% rise in turnover, to Yen 2,200,000 million.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 55,762.5 million, on 30 days normal terms.
REGISTRATION
Date Registered: Feb 1934
Regd No.:
1200-01-1059660 (Osaka-Kitaku)
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
500 million shares
Issued:
293,113,973 shares
Sum: Yen 85,032 million
Major shareholders (%): Master Trust Bank of Japan
(9.2), Japan Trustee Services T (6.6), SMBC (3.0), JTSB (Nippon Steel &
Sumitomo Metal) (2.2), JTSB (Norin Chukin Bank) (1.7), MUFG (1.6), State Street
Bank & Trust 505225 (1.5), Japan Trustee Services T4 (1.4), BNP Paribas
Securities (1.2); foreign owners (36.2)
No. of shareholders: 21,905
Listed on the S/Exchange (s) of: Tokyo
Managements (Board of Directors):
Noriyuki Inoue, ch; Masanori Togawa, pres; Ken Tayano, v pres; Masatsugu
Minaka, v pres; Jito Tomita, v pres; Takashi Matsuzaki, s/mgn dir; Koichi
Takahashi, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies:
Daikin Europe, Daikin America, Daikin Consumer Marketing, other
OPERATION
Activities:
Manufactures air conditioners & freezers (90%), chemicals (8%), hydraulic, defense systems, others (2%).
Overseas sales ratio
(75%).
(Handling items by divisions):
Air Conditioning & Refrigerator
Div: Room air conditioners, room air cleaners,
Commercial-use
air conditioners, commercial-use air cleaners, large-scale
refrigerators,
marine-type container refrigeration units, container refrigeration, marine
vessel
air conditioners & refrigerators, water chillers;
Oil Hydraulic Div: oil
hydraulic products for industrial machinery, oil hydraulic products for mobile
equipment, centralized lubrication units & systems;
Defense Systems Div:
ammunition, precision components for aircrafts, warheads for
serial torpedoes; home oxygen
therapy equipment, veterinary equipment;
Chemical Div:
fluoro polymers, synthesized products, fluoro carbon gas, fluoro coatings,
fluoro elastomers, high performance chemicals;
New Operations Div:
computer graphics systems.
Clients:
[Wholesalers, government agencies] Daikin HVAC Solutions Tokyo, Daikin Consumer
Marketing, Daikin HVAC Solutions Kinki, Sumitomo Corp, Goodman Mfg, Daikin HVAC
Solutions Tokai, Daikin Europe, Daikin America Inc, Daikin HVAC Solutions
Kyushu, Ministry of Defense, Chisso Inc, Itochu Metals, other.
No. of
accounts: 1,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Daikin Trading, Daikin Industries (Thailand) Ltd, Daikin Rexxam
Electronics, Fuso Ind, Daikin Airconditioning (Suzhou) Co, UACJ Trading,
Takenaka Corp, Panasonic Industrial, other.
Payment record:
Regular
Location: Business
area in Osaka. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References:
SMBC (Osaka H/O)
MUFG (Osaka)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual Sales |
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2,200,000 |
2,043,568 |
2,043,691 |
1,915,013 |
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Recur. Profit |
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249,000 |
231,013 |
209,536 |
194,234 |
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Net Profit |
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165,000 |
153,938 |
136,986 |
119,674 |
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Total Assets |
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2,360,265 |
2,194,775 |
2,269,334 |
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Current Assets |
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1,159,884 |
1,066,768 |
1,082,674 |
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Current Liabs |
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626,676 |
563,727 |
525,624 |
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Net Worth |
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1,111,637 |
1,014,409 |
1,024,725 |
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Capital, Paid-Up |
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85,032 |
85,032 |
85,032 |
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Div.Ttl in Million (¥) |
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36,518 |
33,567 |
19,545 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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7.65 |
-0.01 |
6.72 |
7.40 |
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Current Ratio |
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185.09 |
189.23 |
205.98 |
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N.Worth Ratio |
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47.10 |
46.22 |
45.16 |
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R.Profit/Sales |
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11.32 |
11.30 |
10.25 |
10.14 |
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N.Profit/Sales |
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7.50 |
7.53 |
6.70 |
6.25 |
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Return On Equity |
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.. |
13.85 |
13.50 |
11.68 |
Notes:
Forecast (or estimated) figures for the 31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.94 |
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1 |
INR 90.72 |
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Euro |
1 |
INR 80.32 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.