MIRA INFORM REPORT

 

 

Report Date :

31.08.2007

 

IDENTIFICATION DETAILS

 

Name :

NIPPON SHEET GLASS CO LTD

 

 

Registered Office :

Sumitomo Fudosan Mita Twin Bldg West, 3-5-27 Mita Minatoku Tokyo 108-6321

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

Nov 1918

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of flat glass, construction materials

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 9927 millions

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

NIPPON SHEET GLASS CO LTD

 

 

REGD NAME

 

Nihon Itagarasu KK

 

 

MAIN OFFICE

 

Sumitomo Fudosan Mita Twin Bldg West, 3-5-27 Mita Minatoku Tokyo 108-6321 JAPAN

Tel        : 03-5443-9522

Fax       : 03-5443-9554

URL      : http://www.nsg.co.jp/

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

 

 

ACTIVITIES

 

Mfg of flat glass, construction materials

 

 

BRANCHES

 

Tokyo, Osaka, Nagoya, Sapporo, Sendai, Hiroshima, Fukuoka, Kyoto, Tsukuba, Toyoda, Ichihara, other (Tot 17)

 

 

OVERSEAS

 

UK (3), Malaysia (1), USA (6), China (6), Taiwan (2), Vietnam, Singapore (2), Philippines (3), Korea, Belgium (--subsidiaries)

 

 

FACTORY(IES)

 

Tsukuba, Chiba, Sagamihara, Yokkaichi, Tsu, Tarui, Kyoto, Maizuru

 

 

CHIEF EXEC

 

KATSUJI FUJIMOTO, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        EXCLNT                        A/SALES          Yen 681,547 M

PAYMENTS      REGULAR                     CAPITAL           Yen 96,147 M

TREND             STEADY                       WORTH            Yen 350,625 M

STARTED         1918                             EMPLOYES      35,811

 

 

COMMENT

 

MFR SPECIALIZING IN FLAT GLASS AND BUILDING MATERIASL FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 9,927.0 MILLION, 30 DAYS NORMAL TERMS.

 

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

 

 

HIGHLIGHTS

           

The subject company was established in 1918 to engage in domestic production of flat glass.  Produced float sheet glass for first time in Japan in 1965.  Top-ranked in fields of flat glass, CRTs & automobile glass.  Glass & construction materials are mainstays.  Also focusing on information & electronics-related products for HDDs and optical communications equipment.  Glass for LCDs & PDPs becoming major earnings source.  The firm bought in 2006 all shares in Pilkington in a friendly takeover deal that valued the UK glass market at around GBP2.25 billion.  Pilkington became a member of the NSG Group June 16, 2006.  Annual portion of the write-off of the goodwill estimated at Yen 220,000 million over the next 20 years.  By the takeover, the group’s share of the global automotive glass market to roughly 30%.

 

(Recent news): The firm plans producing automotive glass in India thru joint effort with Pilkington Group.  New plant will be built in Andhra Pradesh by next summer.  Initial production will be 500,000 windshields a year for repair use, some exporting to USA & Europe.  The plant will be            operated by Pilkington and the subject will market the products to Japanese automakers.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2007 fiscal term amounted to Yen 681,547 million, a 156.3% leap from Yen 265,888 million in the previous term.  The takeover of Pilkington Group contributed greatly.  Demand for building-use glass was brisk in Europe.  By divisions, Construction-use Glass was up 78% to Yen 320,357 billion; Automotive Glass Div was independently set up combined with Pilkington’s automotive glass business, which scored Yen 268,229 billion, Other Div (previous Glass Fiber and IT-related products combined) up 7% to Yen 92,960 million.  The recurring profit was posted at Yen 8,001 million (down 23.3% from Yen 10,425 million), and the net profit at Yen 12,095 million (up 55.8% from Yen 7,764 million).  (Parenthesis compared with last term).  The recurring profit deterioration is referred to mainly interest payments in Europe.  Net profits include extraordinary income from securities sales (Yen 44,828 million).  

 

First Quarter results ending Jun/2007: Sales Yen 217,804 million (up 244.9%), operating profit Yen 12,149 million (up 851.3%), recurring profit Yen 8,006 million, net profit Yen 46,915 million (up 94.5%).  (% compared with the same period last year).  Sales boosted by earnings at its Pilkington acquisition and asset sales.

 

Based on the results, the firm revised its forecast for Mar/2008 fiscal term as follows:

           

For the current term ending Mar 2008 the recurring profit is projected at Yen 27,000 million (previously Yen 26,000 million) and the net profit at Yen 53,000 million (previously Yen 45,000 million), on a 24.7% rise in turnover, to Yen 850,000 million (previously Yen 830,000 million).  Sales at Pilkington in UK will contribute on full-time basis.  Demand for building-use glass will be stronger in Europe.  Delivery volume of auto-use glass will also expand.

           

The financial situation is considered maintained EXCELLENT and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 9,927.0, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Nov 1918

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    1,775 million shares

Issued:                          669,550,999 shares

Sum:                            Yen 96,147 million

Major shareholders (%): Japan Trustee Services Bank T (5.9), Master Trust Bank of Japan T (5.0), Pictet & Cie

                                    (Europe) (2.5), Japan Trustee Services T4 (2.4), CBNY 3rd Avenue Int’l Value-Fund (2.0),

                                    Morgan Stanley Int’l (1.9), Goldman Sachs Int’l (1.9), Mitsui Asset Trust (1.7), Toyota

                                    Motor (1.4), Sumitomo Life Ins (1.3); foreign owners (34.7)

No. of shareholders:       58,300

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

Managements: Yozo Izuhara, ch; Tomoaki Abe, v ch; Katsuji Fujimoto, pres; Stuart Chambers, v pres, Masakuni Nita, v pres; Kazuyuki Izumi, s/mgn dir; Hiroyoshi Koshiba, s/mgn dir; Toshikazu Kondo, s/mgn dir; Pat Zito, s/mgn dir; Mike Powell, s/mgn dir                    

 

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

 

 

Related companies

 

Nippon Muki Co, Nanox, Thanks Corp, NSG Europe Ltd, NSG America Inc, other

           

 

OPERATION

           

Activities: Manufactures sheet glass; construction-use glass, automotive glass, others:

 

By the acquisition of Pilkington Group, the firm newly set up the business operations into the following three Divisions:

           

(Sales breakdown by divisions)

           

Construction-use Glass Div (47%%); glazing glass, thermal-insulation double glazing glass, wire-reinforced glass, wireless fire-resistive glass, polished glass, heat reflecting       glass, reinforced glass, double reinforced glass, vacuum glass, figured glass, polished glass, ornamental glass, other;

           

Automotive Glass Div (39%): a wide range of automotive glazings for new vehicles & replacement markets: solar control glazing, security glazing & glazing systems, laminated side-glazings, integrated antennas, acoustic glazing, roof-lights, glass heating systems, encapsulations, other;

           

Others (formerly IT-related & Glass Fiber Div’s) (14%):

It-related: lenses, selfoc lens array, other optical products); display glass (ITO coated glass, other); fine glass products (ultra fine, glazing flat glass for use in electronic substrates, other); glass ware for Industrial-use, LCD products, parabolic refractive index, other;

Glass Fiber: functional filter products; glass fiber products for industrial application; glass fiber products for battery application; air filter & equipment.

           

Others (14%); engineering works for facilities, tests & analysis, other.

 

Overseas sales ratio: 67.9% (up from 20.2%): Europe 42.5%; N America 12.5%; Asia 7.3%; others 5.6%.  (Previously Europe was included in the other regions)

           

Clients: [Automakers, mfrs, wholesalers] Toyota Motor, Nissan Motors, Honda Motor, Mazda, IBM, Thanks Corporation, Nippon Tokushu Sangyo, Ishizaki Honten, Matex Glass, Wintec, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers, construction firms] Tostem Corp, Ishizaki Honten, Nippon Tokushu Sangyo, NSG Kanto, NSG Kansai, Sankyo Tateyam Aluminum Inc, Nanox Corp, Nishinippon Itagarasu Center, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

SMBC (H/O)

Sumitomo Trust Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2007

31/03/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

681,547

265,888

 

  Cost of Sales

478,700

196,948

 

      GROSS PROFIT

202,846

68,940

 

  Selling & Adm Costs

179,024

60,510

 

      OPERATING PROFIT

23,822

8,429

 

  Non-Operating P/L

-15,821

1,996

 

      RECURRING PROFIT

8,001

10,425

　

      NET PROFIT

12,095

7,764

BALANCE SHEET

 

 

 

 

  Cash

　

160,914

180,670

 

  Receivables

 

148,584

59,072

 

  Inventory

 

113,259

37,749

 

  Securities, Marketable

　

　

 

  Other Current Assets

43,079

11,241

 

      TOTAL CURRENT ASSETS

465,836

288,732

 

  Property & Equipment

396,586

119,396

 

  Intangibles

 

399,498

6,989

 

  Investments, Other Fixed Assets

147,063

180,846

 

      TOTAL ASSETS

1,408,983

595,963

 

  Payables

 

96,291

37,357

 

  Short-Term Bank Loans

107,316

46,703

 

　

 

　

　

 

  Other Current Liabs

854,751

270,303

 

      TOTAL CURRENT LIABS

1,058,358

354,363

 

  Debentures

 

43,000

153,000

 

  Long-Term Bank Loans

410,800

37,220

 

  Reserve for Retirement Allw

87,597

13,209

 

  Other Debts

　

(541,397)

(203,429)

 

      TOTAL LIABILITIES

1,058,358

354,363

 

      MINORITY INTERESTS

 

3,315

 

Common stock

96,147

41,060

 

Additional paid-in capital

105,289

50,374

 

Retained earnings

105,914

95,791

 

Evaluation p/l on investments/securities

25,881

50,338

 

Others

 

17,844

1,056

 

Treasury stock, at cost

(450)

(335)

 

      TOTAL S/HOLDERS` EQUITY

350,625

238,284

　

      TOTAL EQUITIES

1,408,983

595,963

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2007

31/03/2006

 

Cash Flows from Operating Activities

　

75,389

15,455

 

Cash Flows from Investment Activities

-297,644

-12,149

 

Cash Flows from Financing Activities

190,068

111,225

　

Cash, Bank Deposits at the Term End

　

159,762

179,158

ANALYTICAL RATIOS            Terms ending:

31/03/2007

31/03/2006

 

 

Net Worth (S/Holders' Equity)

350,625

238,284

 

 

Current Ratio (%)

44.01

81.48

 

 

Net Worth Ratio (%)

24.88

39.98

 

 

Recurring Profit Ratio (%)

1.17

3.92

 

 

Net Profit Ratio (%)

1.77

2.92

 

 

Return On Equity (%)

3.45

3.26

 

 

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