MIRA INFORM REPORT

 

 

Report Date :

22.08.2007

 

IDENTIFICATION DETAILS

 

Name :

ASAHI GLASS CO LTD

 

 

Registered Office :

Shin Yurakucho Bldg, 1-12-1 Yurakucho Chiyodaku Tokyo 100-8405

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

Jun 1950

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of sheet glass, automobile glass, CRT glass, other

 

 

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 46816.5 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

name

 

ASAHI GLASS CO LTD

 

 

REGD NAME

 

Asahi Garasu KK

 

 

MAIN OFFICE

 

Shin Yurakucho Bldg, 1-12-1 Yurakucho Chiyodaku Tokyo 100-8405 JAPAN

Tel        : 03-3218-5096

Fax       : 03-3218-7815

URL      : http://www.agc.co.jp/

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

 

 

ACTIVITIES

 

Mfg of sheet glass, automobile glass, CRT glass, other

 

 

BRANCH(ES)

 

Yokohama, Kitakyushu, Chiba, other (Tot 9)

 

 

OVERSEAS

 

USA (12), Canada (2), Mexico, Belgium (4), Netherlands, UK (3), Czech, Russia, France, Italy, Spain, Indonesia (5), Thailand (6), Singapore (7), Philippines (2), Malaysia, India, Taiwan (2), China (10), Korea (3) (--subsidiaries/affiliates)

 

 

FACTORY(IES)

 

Yokohama, Amagasaki, Kitakyushu, Takasago, Chiba, Chita, Toyota, Kashima, Kanagawa

 

 

CHIEF EXEC

 

MASAHIRO KADOMATSU, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 1,620,540 M

PAYMENTS      REGULAR                     CAPITAL           Yen 90,480 M

TREND             STEADY                       WORTH            Yen 991,751 M

STARTED         1950                             EMPLOYES      54,228

 

 

COMMENT

 

MFR OF SHEET GLASS, OTHER.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

CREDIT LIMIT: YEN 46,816.5 MILLION, 30 DAYS NORMAL TERMS.

 

                   

                        Forecast (or estimated) figures for 31/03/2008 fiscal term

 

 

HIGHLIGHTS

 

This is the largest comprehensive glass mfr and tops in the field of sheet glass and auto      mobile glass.  The first Japanese company to produce sheet glass.  Diversifying into chemicals,       electronic parts & ceramics.  Close tied with Mitsubishi group.  Operates 59 overseas bases in 15 countries including US, China, Indonesia, Singapore, and Thailand.  Active in operations in Europe  Glass for LCDs and PDPs becoming major earnings source.

 

(Recent news):  Asahi India Glass Ltd, a JV between Asahi Blass, Suzuki local sub, Maruti Udyog Ltd & others, will build automotive glass plant on Delhi’s outskirts that will come online in Sept 2007.  The plant will be capable of chumming out enough glass for 400,000 vehicles a year.  It will supply Suzuki, Honda Motor Co, other.  The company’s total Indian output capacity is expected to reach enough to outfit 2.9 million cars, an increase of 16%.  (According to The Nikkei Shimbun).

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 1,620,540 million, a 6.2% up from Yen 1,526,660 million in the previous term.  Building-use glass was in good demand in Europe, while the domestic demand stagnant.  Glass for LCDs and PDPs were in robust demand following the expansion of demand for flat-panel TV’s.  The recurring profit was posted at Yen 134,496 million and the net profit at Yen 44,997 million, respectively, compared with Yen 118,884 million recurring profit and Yen 60,014 million net profit, respectively, a year ago.  The decreased net profit is referred to the employment of impairment accounting system.

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 170,000 million and the net profit at Yen 90,000 million, on a 3% rise in turnover, to Yen 1,670,000.  Building-use glass stagnating at home but continuing growth in Europe and Russia.  Sales of FPD-use glass expanding.  New kiln starting operation.

 

           

           

(Jan/Jun/2007 results): sales Yen 805,978 million, (up 2.2%), recurring profit Yen 94,782     million (up 45%), net profit Yen 52,862 million (up24.3%)  (% compared with the same period last year).  Demand for flat glass continued strong in Europe.  Chemicals market showed some            

recovery. 

 

The financial situation is considered maintained ^ and good for ^ business engagements.  Max credit limit is estimated at Yen 46,816.5 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Jun 1950

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    2,000 million shares

Issued:                          1,186,013,684 shares

Sum:                            Yen 90,480 million

Major shareholders (%): Master Trust Bank of Japan T (6.9), Japan Trustee Services Bank (5.3), Meiji Yasuda

                                    Life Ins (4.5), Chase Manhattan Bank (London) (4.2), Tokio Marine & Nichido Fire Ins

                                    (3.9), Nippon Life Ins (3.0),Mizuho Corporate Bank (2.5), State Street Bank & Trust (2.2),

                                    MUFG (2.1), Asahi Glass Foundation (1.9); foreign owners (29.1)

No. of shareholders:       46,406

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

Managements:               Shin’ya Ishizu, ch; Masahiro Kadomatsu, pres; Takashi Matsuzawa, v pres; Akira

                                    Toyama, s/mgn dir; Kakutaro Kitashiro, s/mgn dir; Takuya Goto, s/.mgn dir; Kunihiro

                                    Matsuo, s/mgn dir

           

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

 

 

Related companies

 

Asahi Techno Glass, Glaverbel SA (Belgium), other

 

 

OPERATION

           

Activities: Manufactures glass (50%), Electronic parts & display (29%), chemicals (19%),   others (2).

Overseas trading ratio 60.3%: Asia (25.8%), N America (12.4%), Europe (20.9%), other (1.2%)

 

(Products manufactured):

           

Flat Glass: sheet glass, figured glass, heat-absorbing glass, mesh & wired glass, heat-reflective glass, tempered glass, laminated glass, double-glazed pair glass, high-transparent glass, mirrors, polycarbonate resin sheet, composite multi-layer glass, coating glass;

Automotive Glass: laminated glass, tempered glass, functional laminated automotive glass, IR cut glass, low reflective glass, laminated door glass, electrically heated wind shields, functional tempered automotive glass, anti-fogging glass, diesel particulate filter;

Display (Glass bulbs for CRTs): glass bulbs (panels), glass bulbs (funnels), glass bulbs (neck tubes), glass frit, multiform glass, display surface coatings;

Commodity Chemicals: soda ash, caustic soda, sodium bicarbonate, potassium hydroxide. Potassium carbonate, liquid chlorine, sodium hypochlorite, hydrochloric acid, vinyl chloride monomer & polymer, trichloroethylene, perchloroethylene, methyl & methylene chloride, chloroform, micro-sphere fine silica, ion-exchange membranes;

Performance Chemicals: Fluoropolymers, fluoro elastomers & fluoropolymer films, transparent fluoropolymers, fluorinated gases & solvents, fluorinated water & oil repellents, propylene oxide, other.

                       

Clients: [Mfrs, wholesalers] Asahi Fine Techno Taiwan, Sharp Corp, Asahi Fine Techno Korea, Mitsubishi Corp, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] AG Finance, Asahi Glass Fine Techno, Maruzen Petro chemical Ind, Nippon Oil, Keiyo Monomer, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

MUFG (H/O)

Mizuho Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/12/2006

31/12/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,620,540

1,526,660

 

  Cost of Sales

1,217,654

1,152,164

 

      GROSS PROFIT

402,885

374,496

 

  Selling & Adm Costs

266,274

256,302

 

      OPERATING PROFIT

136,611

118,194

 

  Non-Operating P/L

-2,113

690

 

      RECURRING PROFIT

134,498

118,884

　

      NET PROFIT

44,997

60,014

BALANCE SHEET

 

 

 

 

  Cash

　

80,610

73,811

 

  Receivables

 

295,078

309,432

 

  Inventory

 

248,231

238,022

 

  Securities, Marketable

　

　

 

  Other Current Assets

98,905

67,167

 

      TOTAL CURRENT ASSETS

722,824

688,432

 

  Property & Equipment

1,008,116

922,630

 

  Intangibles

 

57,573

100,026

 

  Investments, Other Fixed Assets

361,033

370,838

 

      TOTAL ASSETS

2,149,546

2,081,926

 

  Payables

 

180,129

206,350

 

  Short-Term Bank Loans

105,202

110,517

 

　

 

　

　

 

  Other Current Liabs

332,710

270,278

 

      TOTAL CURRENT LIABS

618,041

587,145

 

  Debentures

 

224,649

254,635

 

  Long-Term Bank Loans

138,086

122,154

 

  Reserve for Retirement Allw

69,856

65,979

 

  Other Debts

　

107,163

100,009

 

      TOTAL LIABILITIES

1,157,795

1,129,922

 

      MINORITY INTERESTS

 

99,319

 

Common stock

90,480

90,472

 

Additional paid-in capital

96,569

96,561

 

Retained earnings

583,176

556,424

 

Evaluation p/l on investments/securities

154,062

124,262

 

Others

 

81,266

(1,326)

 

Treasury stock, at cost

(13,802)

(13,709)

 

      TOTAL S/HOLDERS` EQUITY

991,751

852,684

　

      TOTAL EQUITIES

2,149,546

2,081,926

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/12/2006

31/12/2005

 

Cash Flows from Operating Activities

　

173,997

185,505

 

Cash Flows from Investment Activities

-212,477

-135,796

 

Cash Flows from Financing Activities

35,880

-67,436

　

Cash, Bank Deposits at the Term End

　

52,627

54,006

ANALYTICAL RATIOS            Terms ending:

31/12/2006

31/12/2005

 

 

Net Worth (S/Holders' Equity)

991,751

852,684

 

 

Current Ratio (%)

116.95

117.25

 

 

Net Worth Ratio (%)

46.14

40.96

 

 

Recurring Profit Ratio (%)

8.30

7.79

 

 

Net Profit Ratio (%)

2.78

3.93

 

 

Return On Equity (%)

4.54

7.04

 

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. 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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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