MIRA INFORM REPORT

 

 

Report Date :

22.12.2012

 

IDENTIFICATION DETAILS

 

Name :

ASAHI GLASS CO LTD

 

 

Registered Office :

1-5-1 Marunouchi Chiyodaku Tokyo 100-8405

 

 

Country :

Japan

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

June 1950

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of sheet glass, automobile glass, crt glass

 

 

No. of Employees :

50,957 employees

 

 

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

 

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 – June 30th, 2012

                                                   

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 a technologically 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. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. For three decades, overall real economic growth had been spectacular - 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 after effects 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

 

Source : CIA


Company name

 

ASAHI GLASS CO LTD

 

 

REGD NAME

 

Asahi Garasu KK

 

 

MAIN OFFICE

 

1-5-1 Marunouchi 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)

 

 

FACTORIES

 

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


 

CHIEF EXEC

 

KAZUHIKO ISHIMURA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 1,214,672 M

PAYMENTSREGULAR   CAPITAL           Yen 90,480 M

TREND SLOW               WORTH            Yen 850,460 M

STARTED         1950                 EMPLOYES      50,957

 

 

COMMENT

 

MFR OF FLAT GLASS, SHEET GLASS, AUTOMOTIVE GLASS, OTHER. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

             

 

HIGHLIGHTS

 

This is the largest comprehensive glass mfr and tops in the field of sheet glass and automobile glass.  The first Japanese company to produce sheet glass.  Diversifying into chemicals, electronic parts & ceramics.  Closely 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.  The company plans to double production of active pharmaceutical ingredients for glaucoma, developed jointly with Santen Pharmaceutical, in March 2013.  It aims to supply the ingredients to Merck & Co in the US.  The number of world’s glaucoma patients totals 60 million.

 

 

FINANCIAL INFORMATION

 

The sales volume for Dec/2011 fiscal term amounted to Yen 1,214,672 million, a 5.8% up from Yen 1,288,947 million in the previous term.  Sales of major profit source for LCD panels dropped sharply in the first half, dragged down by falling unit prices.  Operating profit deceased  consecutively, burdened by expanding depreciation costs, in line larger capital investment larger capital investment in the newly emerging nations..  The recurring profit was posted at Yen 166,739 million and the net profit at Yen 95,280 million, respectively, compared with Yen 226,806 million recurring profit and Yen 123,184 million net profit, respectively, a year ago.

 

(Jan/Sept/2012 results): Sales Yen 877,518 million (down 4.2%), operating profit Yen 73,368 million (down 45.8%), recurring profit Yen 71,605 million (down47.5%), net profit Yen 44,867 million (down 41.0%).  (% compared with the corresponding period a year ago).

           

For the current term ending Dec 2012 the recurring profit is projected at Yen 95,000 million and the net profit at Yen 50,000 million, on a 1.2% fall in turnover, to Yen 1,200 million.  Sales of chemical products are growing solidly.  Sales of electronic devices remain slack, hit by faster than-expected fall in sales prices

                       

The financial situation is considered maintained FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

 

Date Registered:              Jun 1950

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         2,000 million shares

Issued:                1,186,013,684 shares

Sum:                   Yen 90,873 million

 

Major shareholders (%): Master Trust Bank of Japan T (5.8), Japan Trustee Services Bank (4.9), Meiji Yasuda Life Ins (4.0), Chase Manhattan Bank (London) (4.2), Tokio Marine &     Nichido Fire Ins (3.1), Company’s Treasury Stock(2.5), SSBT OD05 omnibus account treaty  (2.0), Asahi Glass Foundation (1.9), Mitsubishi Estate (1.9), Mizuho Corporate Bank (1.7); foreign owners (2.4)

           

No. of shareholders: 58,252

 

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

 

Managements: Kazuhiko Ishimura, pres; Yuji Nishizawa, rep dir; Kazuhisa Kato, rep 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 (40%), Electronic parts & display (32%), chemicals (20%), specialty glass (11%)others (2).

 

Overseas trading ratio 70%

 

(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 windshields, 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, trans           parent 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, Toyota Motors, AGC Display Glass Taiwan, Asahi Glass Fine Techno Korea, other.

 

No. of accounts: 2,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] AGC 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

 

 

FINANCE

(IN Million Yen)

 

FINANCES: (Consolidated in million yen)

 

 

Terms Ending:

31/12/2011

31/12/2010

INCOME STATEMENT

  Annual Sales

 

1,214,672

1,288,947

  Cost of Sales

823,955

838,022

      GROSS PROFIT

390,716

450,924

  Selling & Adm Costs

235,053

221,719

      OPERATING PROFIT

155,663

229,205

  Non-Operating P/L

11,078

-2,399

      RECURRING PROFIT

166,739

226,806

 

      NET PROFIT

85,290

123,184

BALANCE SHEET

  Cash

 

98,789

91,497

  Receivables

233,675

2,337,962

  Inventory

194,323

176,352

  Securities, Marketable

25,000

68,000

  Other Current Assets

54,987

(2,046,895)

      TOTAL CURRENT ASSETS

606,774

626,916

  Property & Equipment

842,563

861,395

  Intangibles

37,108

39,482

  Investments, Other Fixed Assets

205,111

237,145

      TOTAL ASSETS

1,691,556

1,764,938

  Payables

112,449

124,350

  Short-Term Bank Loans

47,552

60,388

 

 

 

  Other Current Liabs

259,409

217,499

      TOTAL CURRENT LIABS

419,410

402,237

  Debentures

92,014

132,250

  Long-Term Bank Loans

50,000

100,000

  Reserve for Retirement Allw

58,591

59,283

  Other Debts

 

221,080

220,453

      TOTAL LIABILITIES

841,095

914,223

      MINORITY INTERESTS

Common stock

90,873

90,873

Additional paid-in capital

96,961

96,961

Retained earnings

812,333

748,751

Evaluation p/l on investments/securities

19,911

38,555

Others

(139,730)

(103,659)

Treasury stock, at cost

(29,888)

(21,666)

      TOTAL S/HOLDERS` EQUITY

850,460

849,815

 

      TOTAL EQUITIES

1,691,556

1,764,038

CONSOLIDATED CASH FLOWS

Terms ending:

31/12/2011

31/12/2010

Cash Flows from Operating Activities

 

152,223

285,669

Cash Flows from Investment Activities

-123,581

-124,644

Cash Flows from Financing Activities

-60,833

-100,797

 

Cash, Bank Deposits at the Term End

 

117,558

152,792

ANALYTICAL RATIOS            Terms ending:

31/12/2011

31/12/2010

Net Worth (S/Holders' Equity)

850,460

849,815

Current Ratio (%)

144.67

155.86

Net Worth Ratio (%)

50.28

48.17

Recurring Profit Ratio (%)

13.73

17.60

Net Profit Ratio (%)

7.02

9.56

Return On Equity (%)

10.03

14.50

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.07

UK Pound

1

Rs.89.54

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.