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MIRA INFORM REPORT
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Report No. : |
509366 |
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Report Date : |
15.05.2018 |
IDENTIFICATION DETAILS
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Name : |
OMRON CORPORATION |
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Registered Office : |
Omron Kyoto Center Bldg, Horikawa-Higashiiru Shiokojidori Shimogyoku Kyoto 600-7000 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
May 1948 |
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Com. Reg. No.: |
1300-01-016824 (Kyoto-Shimogyoku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures FA (factory automation) equipment & control devices:
sales ratio: industrial automation div (42%), electronic components div
(12%), automotive (17%), social systems div (8%), healthcare products (13%),
others (8%) |
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No. of Employees : |
4,443 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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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 - averaging 10% 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 resulted in several years of
economic stagnation as firms sought 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 since 2013, supported by 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 need to address 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 a sharp
contraction, so Prime Minister ABE has twice postponed the next increase, which
is 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.
Under the Abe Administration, Japan’s government sought to open the
country’s economy to greater foreign competition and create new export
opportunities for Japanese businesses, including by joining 11 trading partners
in the Trans-Pacific Partnership (TPP). Japan became the first country to
ratify the TPP in December 2016, but the United States signaled its withdrawal
from the agreement in January 2017. 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).
Japan also reached agreement with the European Union on an Economic Partnership
Agreement in July 2017, and is likely seek to ratify both agreements in the
Diet this year.
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Source
: CIA |
Company
name & address
OMRON CORPORATION
REGD NAME: Omron
KK
MAIN OFFICE: Omron Kyoto Center Bldg, Horikawa-Higashiiru Shiokojidori Shimogyoku Kyoto 600-
7000 Japan
Tel:
075-344-7000 Fax: 075-344-7001 -
URL: http://www.omron.oo.jp
E-Mail address: (thru
the URL)
ACTIVITIES: Mfg of FA equipment, control device,
other
BRANCHES: Kyoto, Nagoya, other (Tot 5)
OVERSEAS: Europe,
Africa, China, Asia Pacific, Americas (--overseas offices)
FACTORIES: Kyoto, Shiga (Tot 3)
OFFICERS: YOSHIHITO
YAMADA, PRES Kiichiro Miyata, s/mgn
dir
Fumio Tateishi, ch Koji Hido, s/mg dir
Satoshi
Ando, dir Eizo
Kobayashi, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 794,201 M
PAYMENTS REGULAR CAPITAL Yen 64,100 M
TREND SLOW WORTH Yen 469,029 M
STARTED 1948 EMPLOYES 4,443
COMMENT: MFR OF FA EQUIPMENT, CONTROL DEVICE, OTHER
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
HIGHLIGHTS
This is the leading mfr of FA (factory automation) equipment & control devices, other, and one of the Kyoto-based major firms. It is well-known for its developmental capabilities to create globally-pioneering & creative products including automatic traffic signal control systems & automatic teller machines (ATM). The company’s overseas sales ratio is as high as around 60%. .
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 794,201 million, a 4.73% fall from Yen 833,604 million in the previous term. The recurring profit was posted at Yen 65,492 million and the net profit at Yen 45,987 million, respectively, compared with Yen 65,686 million recurring profit and Yen 37,290 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 71,500 million and the net profit at Yen 53,000 million, respectively, on a 4.51% rise in turnover, to Yen 830,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: May 1948
Regd
No.: 1300-01-016824 (Kyoto-Shimogyoku)
Listed
company: Tokyo, France S/E s
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized:
487 million
shares
Issued: 213,958,172
shares
Sum: Yen
64,100 million
Major
shareholders (%): Japan Trustee Services T (5.6), State Street Bank & Trust 505223
(5.3), Master Trust Bank of Japan T (3.6), MUFG (3.6), Bank of Kyoto (3.3),
other; foreign owners (47.4)
No.
of shareholders: 32,350
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Manufactures FA
(factory automation) equipment & control devices: sales ratio: industrial
automation div (42%), electronic components div (12%), automotive (17%), social
systems div (8%), healthcare products (13%), others (8%)
Overseas
Sales Ratio (57%)
Clients: [Mfrs,
wholesalers] Omron Europe, Kyocera Solar Corp, Toshiba Corp, Omron Asia Pacific, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Omron Finance, Omron Aso, Omron Relay & Device, Omron Shanghai, Omron Stitch & Device, other
Payment record: Regular
Location: Business area in Kyoto. Office premises at the caption address are owned and maintained satisfactorily.
Bank
References:
MUFG (H/O)
Bank of Kyoto
(H/O)
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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830,000 |
794,201 |
833,604 |
847,252 |
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Recur.
Profit |
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71,500 |
65,492 |
65,686 |
87,388 |
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Net
Profit |
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53,000 |
45,987 |
37,290 |
62,170 |
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Total
Assets |
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697,701 |
683,325 |
711,011 |
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Current
Assets |
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435,904 |
389,609 |
434,096 |
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Current
Liabs |
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172,081 |
162,663 |
176,762 |
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Net
Worth |
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469,029 |
444,718 |
489,769 |
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Capital,
Paid-Up |
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64,100 |
64,100 |
64,100 |
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Div.Ttl
in Million (¥) |
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14,539 |
16,077 |
12,985 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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4.51 |
-4.73 |
-1.61 |
9.61 |
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Current Ratio |
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.. |
253.31 |
239.52 |
245.58 |
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N.Worth Ratio |
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.. |
67.22 |
65.08 |
68.88 |
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R.Profit/Sales |
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8.61 |
8.25 |
7.88 |
10.31 |
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N.Profit/Sales |
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6.39 |
5.79 |
4.47 |
7.34 |
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Return On Equity |
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.. |
9.80 |
8.39 |
12.69 |
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 67.32 |
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1 |
INR 91.25 |
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Euro |
1 |
INR 80.50 |
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YEN |
1 |
INR 0.62 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIY |
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Report Prepared
by : |
TPT |
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.