MIRA INFORM REPORT

Report No. :	337054
Report Date :	18.08.2015

IDENTIFICATION DETAILS

Name :	NIPPON ELECTRIC GLASS CO LTD
Registered Office :	2-7-1 Seiran Ohtsu City, Shiga, 520-0833
Country :	Japan
Financials (as on) :	31.12.2014
Date of Incorporation :	October 1944
Legal Form :	Limited Company
Line of Business :	Manufacturing/Selling of LCB & Plasma Display Glass, Other.
No. of Employees :	1,835

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

Maximum Credit Limit:	Yen 9,808.9 million
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
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 an 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. Scarce in many natural resources, Japan has long been dependent on imported raw materials. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than it was previously on imported fossil fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been impressive - 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 aftereffects 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. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008. 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 and the ensuing tsunami in March of that year disrupted manufacturing. The economy has largely recovered in the four years since the disaster, although reconstruction in the affected Tohoku region has lagged, in part due to a shortage of labor in the construction sector. Japan enjoyed a sharp uptick in growth in 2013 on the basis of Prime Minister Shinzo Abe’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Abe’s government has replaced the preceding administration’s plan to phase out nuclear power with a new policy of seeking to restart nuclear power plants that meet strict new safety standards, and emphasizing nuclear energy’s importance as a base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP) negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2014 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. While seeking to stimulate and reform the economy, the government must also devise a strategy for reining in Japan's huge government debt, which amounts to more than 230% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8% implemented in April 2014. That increase had a contractionary effect on GDP, however, so PM Abe in late 2014 decided to postpone the final phase of the increase until April 2017 to give the economy more time to recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making progress in ending deflation, but demographics - low birthrate and an aging, shrinking population - pose major long-term challenges for the economy.

Source : CIA

Company name & address

	ENGLISH COMPANY NAME	NIPPON ELECTRIC GLASS CO LTD
	Japanese company name	Nippon Denki Glass KK
	Registered Office
	1. Street Number and District	2-7-1 Seiran Ohtsu city
	2. City and Perefecture	Shiga
	3. ZIP Code	520-0833
	4. Country	JAPAN
	TEL	077-537-1700
	FAX	077-534-4967
	URL	www.neg.co.jp
	Email Address	thru the URL
	Activities (Services & Products)	Mfg/Selling of LCD & plasma display glass, other.
SUMMARY OF REPORT
	Annual Sales (MM YEN)	192,692
	Capital Amount (MM YEN)	32,155
	Net Worth (MM YEN)	522,577
	FINANCES	FAIR
	TREND	SLOW
	EMPLOYEES	1,835
	CREDIT LIMIT PROPOSED(MM YEN)	9,808.9
	OTHER INFORMATION FOLLOWS
	Year Started	1944
	Year Registered	Oct. 1944
	Major Shareholders
	1	Nipro Corp (15.3%)
	2	Japan Master Trust (5.8%)
	3	Japan Trustee Service (5.3%)
	Number of Shareholders	14,417
	Authorized Shares (MM)	1,200 million shares
	Issued Shares (MM)	497,616,234 shares
	Executives
	PRESIDENT	MASAYUKI ARIOKA
	Chairman	Yuzo Izutsu
	Director	Shigeru Yamamoto
	Director	Koichi Inamasu
	Director	Motoharu Matsumoto
	Director	Masahiro Tomamoto
	Director	Hirokazu Takeuchi
	Director	Akhisa Saeki
	Main Banks
	1	SMBC (Kyoto)
	2	Mitsui Sumitomo Trust Bank (Kyoto)
	Relations	Satisfactory
	Clients
	1	NEG Taiwan
	2	NEG Korea
	3	Paju Electric Glass
	4	LG Japan
	5	Panasonic Corp
	Suppliers
	1	Newman Power Service
	2	NEG Taiwan
	3	NEG Butsuryu Service
	4	Nichiden Glass Processing
	5	Sumitomo Corp
	Branches
	1	Tokyo
	2	Osaka
	Factories
	1	Ohtsu
	2	Shiga-Takatsuki
	3	Other
	Overseas
	1	USA(2)
	2	Malaysia
	3	Other
	HIGHLIGHT and COMMENT
	The subject company was established originally by NEC Corp and later absorbed as NEC's glass section. And in 1949 separated as independent firm. Top-glass producer of CRT glass bulbs and plasma display glass. Produces and selles diverse high-tech products in electronic and optical areas, including LCD-use thin sheet glass. Also makes glass fibers for automobiles. Aggressive in production overseas.
	FINANCIAL INFORMATION
	The fiscal term of subject company has been changed from March to December from 2014. Please note analysis below is comparison of Dec/2014 to Mar/2013. The sales volume for Dec/2014 fiscal term amounted to Yen 192,692 million, a 23% down from Yen 252,548 million in the previous term. The recurring profit was posted at Yen 6,883 million and the net profit at Yen 5,938 million, respectively, compared with Yen 14,372 million recurring profit and Yen 12,431million net profit, respectively, a year ago. Major reason for financial shorage vs Mar 2013 is due to the fiscal term change. ( Dec/ 2014 consists of 9 months domestic figures and 12 months overseas figures.) For the current term ending December 2015 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 9,000 million, respectively, on a 34% fall in turnover, to Yen 260,000 million. Final results are yet to be released. The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 9,808.9 million, on 30 days normal terms.
	PLEASE ATTACH THE FINANCIALS BELOW.
	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
	31/03/2011	338,214	56,855	19,408	(%)	475,736
	31/03/2012	287,303	22,767	10,603	-15.05	495,294
	31/03/2013	252,548	14,372	12,431	-12.10	510,807
	31/12/2014	192,692	6,883	5,938	-23.70	522,577
	31/12/2015	260,000	10,000	9,000	34.93	531,577
	Forecast (or estimated) figures for 2015 term.				*..Unit: Million Yen
	Financials
	FINANCES: (Consolidated in million yen)
			Terms Ending:	31/12/2014	31-03-14
	INCOME STATEMENT
		Annual Sales		192,692	252,548
		Cost of Sales		164,694	208,065
		GROSS PROFIT		27,998	44,483
		Selling & Adm Costs		22,773	28,311
		OPERATING PROFIT		5,225	16,172
		Non-Operating P/L		1,658	-1,800
		RECURRING PROFIT		6,883	14,372
		NET PROFIT		5,938	12,431
	BALANCE SHEET
		Cash		149,742	134,149
		Receivables		48,026	44,317
		Inventory		33,603	35,807
		Securities, Marketable
		Other Current Assets		32,630	33,229
		TOTAL CURRENT ASSETS		264,001	247,502
		Property & Equipment		397,273	393,750
		Intangibles		2,948	2,659
		Investments, Other Fixed Assets		66,962	63,110
		TOTAL ASSETS		731,184	707,021
		Payables		32,180	28,143
		Short-Term Bank Loans		15,340	15,185
		Other Current Liabs		35,180	43,641
		TOTAL CURRENT LIABS		82,700	86,969
		Debentures		50,000	30,000
		Long-Term Bank Loans		40,800	41,306
		Reserve for Retirement Allw		1,217	1,012
		Other Debts		33,890	36,927
		TOTAL LIABILITIES		208,607	196,214
		MINORITY INTERESTS
		Common stock		32,155	32,155
		Additional paid-in capital		34,350	34,351
		Retained earnings		423,763	422,893
		Evaluation p/l on investments/securities
		Others		32,309	21,408
		Treasury stock, at cost
		TOTAL S/HOLDERS` EQUITY		522,577	510,807
		TOTAL EQUITIES		731,184	707,021
	CONSOLIDATED CASH FLOWS
			Terms ending:	31/12/2014	31/12/2013
		Cash Flows from Operating Activities		38,837	46,699
		Cash Flows from Investment Activities		-29,264	-33,842
		Cash Flows from Financing Activities		1,698	-11,189
		Cash, Bank Deposits at the Term End		129,823	123,887
	ANALYTICAL RATIOS Terms ending:			31/12/2014	31-03-14
			Net Worth (S/Holders' Equity)	522,577	510,807
			Current Ratio (%)	319.23	284.59
			Net Worth Ratio (%)	71.47	72.25
			Recurring Profit Ratio (%)	3.57	5.69
			Net Profit Ratio (%)	3.08	4.92
			Return On Equity (%)	1.14	2.43

Nippon Electric Glass#314953
FINANCES: (Consolidated in million yen)
		Terms Ending:	31/12/2014	31-03-14	IND/12/2014
INCOME STATEMENT
	Annual Sales		192,692	252,548
	Cost of Sales		164,694	208,065
	GROSS PROFIT		27,998	44,483	0
	Selling & Adm Costs		22,773	28,311
	OPERATING PROFIT		5,225	16,172	0
	Non-Operating P/L		1,658	-1,800
	RECURRING PROFIT		6,883	14,372	0
	NET PROFIT		5,938	12,431
BALANCE SHEET
	Cash		149,742	134,149
	Receivables		48,026	44,317
	Inventory		33,603	35,807
	Securities, Marketable
	Other Current Assets		32,630	33,229	0
	TOTAL CURRENT ASSETS		264,001	247,502
	Property & Equipment		397,273	393,750
	Intangibles		2,948	2,659
	Investments, Other Fixed Assets		66,962	63,110	0
	TOTAL ASSETS		731,184	707,021
	Payables		32,180	28,143
	Short-Term Bank Loans		15,340	15,185
	Other Current Liabs		35,180	43,641	0
	TOTAL CURRENT LIABS		82,700	86,969
	Debentures		50,000	30,000
	Long-Term Bank Loans		40,800	41,306
	Reserve for Retirement Allw		1,217	1,012
	Other Debts		33,890	36,927	0
	TOTAL LIABILITIES		208,607	196,214
	MINORITY INTERESTS				..
	Common stock		32,155	32,155
	Additional paid-in capital		34,350	34,351
	Retained earnings		423,763	422,893
	Evaluation p/l on investments/securities
	Others		32,309	21,408	0
	Treasury stock, at cost
	TOTAL S/HOLDERS` EQUITY		522,577	510,807
	TOTAL EQUITIES		731,184	707,021	0
CONSOLIDATED CASH FLOWS
		Terms ending:	31/12/2014	31/12/2013	31/12/2012
	Cash Flows from Operating Activities		38,837	46,699
	Cash Flows from Investment Activities		-29,264	-33,842
	Cash Flows from Financing Activities		1,698	-11,189
	Cash, Bank Deposits at the Term End		129,823	123,887
ANALYTICAL RATIOS Terms ending:			31/12/2014	31-03-14	IND/12/2014
		Net Worth (S/Holders' Equity)	522,577	510,807	0
		Current Ratio (%)	319.23	284.59	#DIV/0!
		Net Worth Ratio (%)	71.47	72.25	#DIV/0!
		Recurring Profit Ratio (%)	3.57	5.69	#DIV/0!
		Net Profit Ratio (%)	3.08	4.92	#DIV/0!
		Return On Equity (%)	1.14	2.43	#DIV/0!
Notes: Audited by CPA. IND/xx/yyyy.. Non-consolidated figures for (xx month)/(yyyy year) term.
		Current Sales	192,692

Nippon Electric Glass#314953
Business	Terms Ending	Annual Sales*	R.Profit*	N.Profit*	S.Growth	Net Worth*
Results:	31-03-2012	338,214	56,855	19,408	(%)	475,736
(Consolidated)	31-03-2013	287,303	22,767	10,603	-15.05	495,294
	31-03-2014	252,548	14,372	12,431	-12.10	510,807
	31-12-2014	192,692	6,883	5,938	-23.70	522,577
	31-12-2015	260,000	10,000	9,000	34.93	531,577
	Forecast (or estimated) figures for 2015 term.				*..Unit: Million Yen

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.22
UK Pound	1	Rs.102.23
Euro	1	Rs.72.39

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	SDA

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%)

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