MIRA INFORM REPORT

 

 

Report Date :

15.05.2012

 

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) :

31.03.2012

 

 

Date of Incorporation :

November  1918

 

 

Com. Reg. No.:

0104-01-054474 (Tokyo-Minatoku)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of flat glass, construction materials

 

 

No. of Employees :

29,340

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

--

 

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

 

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: 03-5443-9500     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, Itami, Tsukuba, Ichihara, Sagamihara, Yokkaichi, Kyoto, Maizuru,

Tsu, Gifu (Tot 10)

 

OVERSEAS

 

UK (3), Malaysia (1), USA (6), China (6), Taiwan (2), Vietnam, Singapore (2),

Philippines (3), Korea, Belgium (--subsidiaries)

 

FACTORIES

 

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

 

 

CHIEF EXEC

 

KENJI YOSHIKAWA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 552,223 M

PAYMENTS NO COMPLAINTS   CAPITAL           Yen 116,449 M

TREND SLOW                          WORTH            Yen 170,535 M

STARTED         1918                             EMPLOYES      29,340

 

 

COMMENT

 

MFR SPECIALIZING IN FLAT GLASS AND BUILDING MATERIASL

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY                                                BUSINESS ENGAGEMENTS.

                       

           

                        Unit: In Million Yen

Forecast (or estimated) figures for 31/03/2013 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.  Glass products for autos and buildings account for 90% of total sales.  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 PLC (UK) 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 grew to roughly 30%.  The firm’s global operations account for 75% of total sales, with mfg operations in 29 countries on five continents and sales offices in 130 countries.  The firm aims to reduce 3,500 employees, some 10% of worldwide employees, during the term.  It intends to curb capital investment, including postponement of solar cell glass production in Vietnam. 

President Craig Naylor stepped down in Apr 2012.

 

 

FINANCIAL INFORMATION

 

            The sales volume for Mar/2012 fiscal term amounted to Yen 552,223 million, a 4.3% down from Yen 577,069 million in the previous term.  This is referred to the impact of Europe’s economic weakness on its core construction and auto glass operations.  Sales of sheet glass were in slump in Europe, major business area, and China.  The unexpected departure of Pres Craig Naylor triggered a sharp drop in the company’s share price as investors fretted over the company’s future direction.  Sales declined in all segments.  Operating profit plunged, hit by cost related to workforce reductions.  By Divisions, Construction-use Glasses Div down 3.7% to Yen 239,440 million, Automotive Glass Div down 4.8% to Yen 251,229 million; Specialty Glass Div down 5.3% to Yen 1,387 million.  The operations plunged into the red to register Yen 1,749 million recurring loss and Yen 2,815 million net losses, respectively, compared with Yen 15,815 million recurring profit and Yen 12,430 million net profit, respectively, a year ago..

 

            For the current term ending Mar 2013 the operations are projected to continue in the deficit to post Yen 14,000 million recurring loss and Yen 10,000 million net losses, respectively, on a 1.4% recovery in turnover, to Yen 560,000 million.  Sales of glass products mainly for automobiles will show a solid growth in Brazil and rapidly growing nations.  Domestic sales of products for housings will grow steadily. 

           

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

 

 

REGISTRATION

 

Date Registered:  Nov 1918

Regd No.:              0104-01-054474 (Tokyo-Minatoku)

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         1,775 million shares

Issued:                672,550,999 shares

Sum:                   Yen 96,147 million

 

Major shareholders (%): Japan Trustee Services Bank T (7.0), Master Trust Bank of Japan (6.2), Japan Trustee Services T9 (4.4), Nomura Trust, Inv T (1.7), Chase London SL Omnibus Acct (1.7), Lux Offshore Jasdec Lending (1.5), Trust & Custody Services (1.5), State Street Bank & Trust 505225 (1.3), Trust & Custody Services T (1.2), Japan Trustee Services T4 (1.1); foreign owners (34.1)

 

No. of shareholders: 58,983

 

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

 

Managements: Katsuji Fujimoto, ch; Tomoaki Abe, v ch; Keiji Yoshikawa, pres; Clemens Miller, s/mgn dir; Mark Lyons, s/mgn dir; Craig Naylor, mgn dir; Mike Fallon, mgn dir; George Olcott, mgn dir; Sumitake Fujita, mgn dir; Seiichi Asaka, mgn dir; Hiroshi Komiya, 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:

 

(Sales Breakdown by Divisions)

Construction-use Glass Div (43%); 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 (46%): 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;

High Performance Glass Div (11%): 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.

Overseas sales ratio (75.1%): Europe 41.8%; N America 12.5%; Asia 11.7%, others 9.0%                       

           

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

 

Payment record: No Complaints

 

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

 (In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2012

31/03/2011

INCOME STATEMENT

 

 

 

  Annual Sales

　

552,223

577,069

 

  Cost of Sales

420,033

423,508

 

      GROSS PROFIT

132,190

153,561

 

  Selling & Adm Costs

127,804

130,694

 

      OPERATING PROFIT

4,386

22,867

 

  Non-Operating P/L

-436

-7,561

 

      RECURRING PROFIT

-4,822

15,306

　

      NET PROFIT

-1,749

15,815

BALANCE SHEET

 

 

 

 

  Cash

　

　

　

 

  Receivables

 

109,493

107,345

 

  Inventory

 

106,112

100,345

 

  Securities, Marketable

　

　

 

  Other Current Assets

48,369

68,147

 

      TOTAL CURRENT ASSETS

263,974

275,837

 

  Property & Equipment

260,597

272,177

 

  Intangibles

 

105,018

114,432

 

  Investments, Other Fixed Assets

219,163

226,974

 

      TOTAL ASSETS

848,752

889,420

 

  Payables

 

109,289

119,896

 

  Short-Term Bank Loans

110,375

56,375

 

　

 

　

　

 

  Other Current Liabs

23,209

28,487

 

      TOTAL CURRENT LIABS

242,873

204,758

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

283,565

318,678

 

  Reserve for Retirement Allw

87,306

70,899

 

  Other Debts

　

64,473

68,508

 

      TOTAL LIABILITIES

678,217

662,843

 

      MINORITY INTERESTS

 

 

 

Common stock

116,449

116,449

 

Additional paid-in capital

127,511

127,510

 

Retained earnings

30,793

63,475

 

Evaluation p/l on investments/securities

　

　

 

Others

 

(104,218)

(80,857)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

170,535

226,577

　

      TOTAL EQUITIES

848,752

889,420

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2012

31/03/2011

 

Cash Flows from Operating Activities

　

-9,914

25,715

 

Cash Flows from Investment Activities

-26,327

-25,106

 

Cash Flows from Financing Activities

35,862

-7,245

　

Cash, Bank Deposits at the Term End

　

24,797

46,491

ANALYTICAL RATIOS            Terms ending:

31/03/2012

31/03/2011

 

 

Net Worth (S/Holders' Equity)

170,535

226,577

 

 

Current Ratio (%)

108.69

134.71

 

 

Net Worth Ratio (%)

20.09

25.47

 

 

Recurring Profit Ratio (%)

-0.87

2.65

 

 

Net Profit Ratio (%)

-0.32

2.74

 

 

Return On Equity (%)

-1.03

6.98

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.71

UK Pound

1

Rs.86.34

Euro

1

Rs.69.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

 

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.