MIRA INFORM REPORT

Report No. :	505986
Report Date :	26.04.2018

IDENTIFICATION DETAILS

Name :	NIPPON ELECTRIC GLASS CO LTD
Registered Office :	2-7-1 Seiran Ohtsu City Shiga-Pref 520-8639
Country :	Japan
Financials (as on) :	31.12.2017
Date of Incorporation :	October 1944
Com. Reg. No.:	1600-01-001498 (Shiga-Otsu)
Legal Form :	Limited Company (Kabushiki Kaisha)
Line of Business :	Manufactures LCD & Plasma Display Glass, Glass Fibers, Building Materials, Others; Electronic & Information Glass (53%), Other Glass Products (47%)
No. of Employees :	1,644

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Maximum Credit Limit :	Yen 13,387.7 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Japan	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

JAPAN - ECONOMIC OVERVIEW

Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II 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 have significantly eroded under the dual pressures of global competition and domestic demographic change.

Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2017 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. For three postwar decades, overall real economic growth was impressive - averaging 10% in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which resulted in several years of economic stagnation as firms sought to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008.

Japan enjoyed an uptick in growth since 2013, supported by Prime Minister Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the need to address its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to a sharp contraction, so Prime Minister ABE has twice postponed the next increase, which is now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.

Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.

Under the Abe Administration, Japan’s government sought to open the country’s economy to greater foreign competition and create new export opportunities for Japanese businesses, including by joining 11 trading partners in the Trans-Pacific Partnership (TPP). Japan became the first country to ratify the TPP in December 2016, but the United States signaled its withdrawal from the agreement in January 2017. In November 2017 the remaining 11 countries agreed on the core elements of a modified agreement, which they renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Japan also reached agreement with the European Union on an Economic Partnership Agreement in July 2017, and is likely seek to ratify both agreements in the Diet this year.

Source : CIA

Company name & address

NIPPON ELECTRIC GLASS CO LTD

REGD NAME: Nippon Denki Garasu KK

MAIN OFFICE: 2-7-1 Seiran Ohtsu City Shiga-Pref 520-8639 JAPAN

Tel: 077-537-1700 Fax: 077-534-4967

URL: http://www.neg.co.jp/

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

ACTIVITIES: Mfg of LCD & plasma display glass

BRANCHES: Tokyo, Osaka

OVERSEAS: USA, Malaysia, Indonesia, China, Taiwan, Korea, Germany

(--subsidiaries)

FACTORIES: Ohtsu, Shiga-Takatsuki, Notogawa, Wakasa-Kaminaka, Fujisawa

OFFICERS: MOTOHARU MATSUMOTO, PRES

Masayuki Arioka, ch Hirokazu Takeuchi, s/mgn dir

Masaharu Tochimoto, mgn dir Akihisa Saeki, mgn dir

Yen Amount: In million Yen, unless otherwise stated

SUMMARY

FINANCES FAIR A/SALES Yen 282,477 M

PAYMENTS REGULAR CAPITAL Yen 32,155 M

TREND STEADY WORTH Yen 538,820 M

STARTED 1944 EMPLOYES 1,644

COMMENT: MFR OF LCD & PLASMA DISPLAY GLASS. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

MAX CREDIT LIMIT: YEN 13,387.7 MILLION, 30 DAYS NORMAL TERMS.

HIGHLIGHTS

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-class producer of CRT glass bulbs and plasma display glass. Produces 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. The company is fostering automobile glass fibers & photovoltaic cell-related glass products.

FNANCIAL INFORMATION

The sales volume for Dec/2017 fiscal term amounted to Yen 282,477 million, a 17.98% up from Yen 239,411 in the previous term. The recurring profit was posted at Yen 34,130 million and the net profit at Yen 17,184 million, respectively, compared with Yen 13,967 million recurring profit and Yen 4,968 million net profit, respectively, a year ago.

For the current term ending Dec 2018 the recurring profit is projected at Yen 29,000 million and the net profit at Yen 20,000 million, on a 6.21% rise in turnover, to Yen 300,000 million.

The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 13,387.7 million, on 30 days normal terms.

REGISTRATION

Date Registered: Oct 1944

Regd No.: 1600-01-001498 (Shiga-Otsu)

Legal Status: Limited Company (Kabushiki Kaisha)

Authorized: 1,200 million shares

Issued: 497,616,234 shares

Sum: Yen 32,155 million

Major shareholders (%): Nipro Corp (12.1), Master Trust Bank of Japan T (8.8), Japan Trustee Services T (5.8), Bank of New York 133524 (1.8), Shiga Bank (1.6), other; foreign owners (36.1)

No. of shareholders: 10,356

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

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

Related companies: NEG Malaysia, NEG Korea, Techneglas Inc, other

OPERATION

Activities: Manufactures LCD & plasma display glass, glass fibers, building materials, others; electronic & information glass (53%), other glass products (47%)

Overseas Sales Ratio (82%):

Clients: [Electronic mfrs, wholesalers] Matsushita Electric Ind, NEG Taiwan, NEG Korea, Paju Electric (Korea), Maeda Glass Co, Panasonic Liquid Display, other.

No. of accounts: 1,000

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Newman Power Service, NEG Taiwan, SGS Engineering, NEG Butsuryu Service, Nichiden Glass Processing, Chori, Kinki Air Water, other..

Payment record: Regular

Location: Business area in Ohtsu City, Shiga-Pref. Office premises at the caption address are owned and maintained satisfactorily.

Bank References:

SMBC (Kyoto)

Mitsui Sumitomo Trust Bank (Kyoto)

Relations: Satisfactory

FINANCES

(In Million Yen)

Terms Ending:		31/12/2018	31/12/2017	31/12/2016	31/12/2015
Annual Sales		300,000	282,447	239,411	251,177
Recur. Profit		29,000	34,130	13,967	14,272
Net Profit		20,000	17,184	4,968	9,636
Total Assets			754,471	693,953	727,047
Current Assets			262,932	254,870	267,429
Current Liabs			103,835	86,024	105,399
Net Worth			538,820	504,288	513,219
Capital, Paid-Up			32,155	32,155	32,155
Div.P.Share(¥)			90.00	16.00	16.00
<Analytical Data>		(%)	(%)	(%)	(%)
S.Growth Rate		6.21	17.98	-4.68	30.35
Current Ratio		..	253.22	296.28	253.73
N.Worth Ratio		..	71.42	72.67	70.59
R.Profit/Sales		9.67	12.08	5.83	5.68
N.Profit/Sales		6.67	6.08	2.08	3.84
Return On Equity		..	3.19	0.99	1.88

Notes: Forecast (or estimated) figures for the 31/12/2018 fiscal term

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.70
UK Pound	1	INR 93.14
Euro	1	INR 81.43
YEN	1	INR 0.61

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.