TO OUR SHAREHOLDERS
NIPPON SHEET GLASS CO., LTD.
158TH FISCAL PERIOD REPORT
1 APRIL 2023 - 31 MARCH 2024
Securities Code: 5202
On behalf of the NSG Group, I would like to express my sincere gratitude for your continued support. I would like to present Group's financial results for the 158th fiscal period (FY2024) (from 1st April 2023 to 31st March 2024) as follows.
Munehiro Hosonuma
Representative Executive Officer
President and CEO
Nippon Sheet Glass Co., Ltd.
During the fiscal year ended March 31, 2024 (FY2024), despite such favorable factors as the depreciation of our key currency yen and lower fuel prices, the Group's business was significantly affected by rising raw materials and labor costs along with global inflation, the economic slowdown in Europe and the rising interest rates in Europe and the United States especially in the second half of the year. In such business environment, the Group continued its efforts to reduce costs, expand VA product ranges, and increase selling prices in the final year of the "Revival Plan 24 (RP24)", resulting in a significant improvement of the OE business from the previous year.
Consequently, the Group delivered for FY2024 on a full-year basis, a revenue of 832.5 billion yen, an increase of 9% year- on-year (FY2023: 763.5 billion yen) and an operating profit of 35.9 billion yen, an increase of 3% year-on-year (FY2023: 34.8 billion yen). Also, the Group recorded a profit before taxation of 17.6 billion yen (FY2023: loss of 21.9 billion yen), a profit for the period of 10.9 billion yen (FY2023: loss of 31 billion yen) and a profit attributable to owners of the parent of 10.6 billion yen (FY2023: loss of 33.8 billion yen), a significant improvement from the previous year when impairment losses on goodwill and intangible assets were recognized as exceptional items. That said, as to financial KPIs set forth in RP24, while the Group attained the equity ratio and free cash flow targets, it failed to achieve ROS and net profit.
In the fiscal year ending March 31, 2025 (FY2025), challenging business conditions are expected to continue as in the latter half of FY2024. Despite that, in Architectural glass business, demand
Financial Performance Highlights
Revenue 832,537
(Million yen)
763,521 | 832,537 | |
600,568 | ||
156th | 157th | 158th |
Operating profit 35,860
(Million yen)
34,812 | 35,860 | |
19,980 | ||
156th | 157th | 158th |
Profit/(loss) 10,633 attributable to
owners of the parent
(Million yen)
4,134 | 10,633 | |
△33,761 | ||
156th | 157th | 158th |
Notes:・The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS). ・Operating Profit in the above table is operating profit before exceptional items.
NSG at a Glance
From 1st April 2023 to 31st March 2024
Technical
Glass
5%
●Major manufacturing sites located in Japan, by business China and Europe
●Number One/ Only One in niche markets
・Market conditions varied depending on the business and although demand for some products decreased, sales increased slightly.
・Operating profit declined mainly due to the slowdown in the IT market and higher input costs.
Revenue | Operating profit |
388 | 399 |
87 | 71 |
157th | 158th(FY2024) |
Automotive
Glass
50%
●Major manufacturing sites located in 14 countries
●One of the largest global service providers for Automotive glass replacement distribution and wholesale
・Higher sales volumes across Europe, Asia and the Americas, with an easing of supply chain constraints at the Group's customers.
・Revenue and Operating profit increased significantly reflecting further progress in negotiations for price increases despite higher input costs.
Revenue Operating profit
3,547 | 4,176 | |||
113 | 1,747 | |||
1,502 | ||||
783 | ||||
699 | ||||
1,645 | ||||
1,347 | 41 | |||
157th | 158th(FY2024) |
5% | ||
Americas | Europe 17% | |
20% | Asia 13% | |
Asia 9% | ||
Americas | ||
Europe 21% | 14% | |
Architectural
Glass
45%
●27 float furnaces around the world
●Leading supplier of Thin film solar energy glass
・Sales increased slightly despite a slowdown in Europe and other markets, driven by robust demand of solar energy glass as well as favourable markets in Japan and South America.
・Operating profit declined for the full year due to the significant impact of the e c o n o m i c s l o w d o w n i n Europe and other regions in the second half of the year.
Revenue Operating profit
3,659 3,718
1,571 336 1,415
992 291 1,096
1,096 1,206
157th 158th(FY2024)
Medium Term Vision of NSG Group
2030 Vision: The Envisioned State of NSG Group
Focusing on our strengths, glass and related technologies, we aim to expand profits in high-value areas that contribute to the sustainable development of society.
Goal
Commitment
To shift our company's phase and become vital in advancing a sustainable society
- We commit to creating value that realizes a sustainable society for all stakeholders and with stakeholders.
- We commit to developing and providing glass and its related technologies and services that play a crucial role in our customers' solutions.
- We commit to deeply understanding our customers' potential needs and delivering solutions that are suitable for them by leveraging both tangible and intangible assets.
- We commit to continuing our investment in our people, taking pride in a global, diverse team passionate about glass and brimming with talent.
Review of the previous Medium-Term Plan "Revival Plan 24 (RP24)"
Key measures were implemented and we were able to achieve certain results in building a foundation for sustainable growth. As a result, we achieved the targets for equity ratio and free cash flow for three consecutive years but we failed to attain the targets for ROS and net profit.
●Policy Measures
Cost Structure Reform
Three Business Structure Reform
Reforms
Corporate Culture Reform
Two Key | Restoration of Financial Stability |
Measures | Transformation into More Profitable Business Portfolio |
●Status of Financial Goals Achievement
Financial Goals Achievement | FY2022/3 | FY2023 /3 | FY2024/3 | |||
Operating Profit Margin *1 | 4.6% | 4.3% | ||||
3.3% | ||||||
Net Profit *2 (billion yen) | 4.1 | (33.8) | 10.6 | |||
Shareholders' equity ratio | 15.5% | 10.2% | 12.3% | |||
Free cash flow (billion yen) | 22.3 | 13.9 | 15.3 | |||
RP24 (Targets)
8%
3-year cumulative total of 30 or more
10% or more
10 or more
*1 Operating margin after amortization of intangible assets *2 Profit/(loss) for the year attributable to owners of the parent
New Medium-Term Plan "2030 Vison:Shift the Phase"
By pursuing the strategy focused on the 4D's, we will transform into a profitable company, reduce debt drastically with enhanced cash generation capability, and bolster the equity capital.
●Strategic Direction
Shift the Phase
Business
Development
Decarbonization
Digital
Transformation
Diverse Talent
・We will create high added value by adapting to changes in society and developing new solutions and technologies together with our customers.
・With the goal of achieving carbon neutrality in 2050, we are dedicated to driving decarbonization across our entire supply chain, embodying our commitment to sustainable social development.
・We aim to transform our Group operations by leveraging digital technology to its fullest and thereby enhancing our value creation capabilities.
・By thoroughly standardizing data and processes, we will elevate the level of information integration and thereby accelerate the quality and efficiency of our global management practices.
・Aiming to build a robust and high-performing workforce and organization, we will invest based on a well-defined HR strategy.
・we will continue to promote the four "Fs" (Flat, Frank, Fast, and Fun) in communication within the organization.
●Financial Targets | FY2024/3 | FY2027/3 | |||
Profitability (P/L) | Operating Profit | 35.9 billion yen | 64.0 billion yen | ||
ROS | 4.3% | 7% | |||
Cash Generation (C/F) | Free cash flow | 15.3 billion yen | 27.0 billion yen | ||
Stabilization of Financial | Interest Bearing Debt | 506.5 billion yen | 442.0 billion yen | ||
Status (B/S) | Shareholders' equity ratio | 12.3% | 15% | ||
Capital and Investment | ROE | 9.6% | 20% | ||
Efficiency | |||||
※Nevertheless, ROE as capital and investment efficiency is monitored as a reference indicator |
Please scan this QR code with your smartphone or refer to following URL for details of our new Medium-Term Plan.
https://www.nsg.com/-/media/nsg/site-content/ir/ir-presentations/mtp2030presentation_e01.pdf
TOPIC Expansion of the Market for Solar Energy Glass 1
Amid the growing demand for solar panels in the world, a construction work for the production line of solar energy glass was completed at the Johor Baharu site in Malaysia in November 2023, and commenced operation in December. In response to the market expansion of solar glass, the second production line of solar glass has been in operation in Vietnam since 2020 and another new plant came on stream in Luckey, Ohio of the US. There is also a plan to build a new production facility in Rossford, Ohio of the US. We keep expanding our production capacity.
The Johor Baharu site (Malaysia)
TOPIC | Europe's First Carbon Capture Trial Started (UK) | ||
2 | |||
We announced that Europe's first carbon capture trial in the flat glass | |||
industry started at the Company's float furnace in the UK. CO2 capturing | |||
is an extremely important measure to achieve carbon neutrality. This trial | |||
forms part of a national project and be conducted to demonstrate Carbon | |||
Capture Solvent Compatibility Units (CCSCUs) deployed at the float furnace | |||
can separate CO2 from the waste flue gas emitted in the process of glass | |||
manufacturing. | With project partners | ||
TOPIC | Realizing Safer and More Secure Glass Cord |
3 | -Development of hazardous substance-free adhesive- |
Glass Cord is a specially treated reinforcing material for rubber and plastic products made of glass fiber and is widely used in the fields such as automobiles, machinery, and office automation equipment. NSG Group has developed an adhesive used in the
Glass Cord manufacturing process that does not contain resorcinol and formaldehyde, chemical substances of concern for the environment, thereby realizing safer and more secure Glass Cords.
Winning "Rookie of the Year"
TOPIC at NIKKEI Integrated Report
4 Award 2023
Among the total 475 companies and organizations' applications, winners of each award were selected after multiple rounds of judging which lasted for more than three months. NSG Group applied for the Award for the first time and received the "Rookie of the Year". The judges highly evaluated our Integrated Report,
noting that "the Report is outstanding particularly in its environmental and social disclosures and
also provides s u b s t a n t i a l information on governance".
Shareholder Information
Fiscal Period | 1 April to 31 March of the following year |
Ordinary General | Held annually in June |
Meeting of Shareholders | |
Record Dates | Ordinary General Meeting of |
Shareholders: 31 March | |
Dividends: 30 September and 31 March | |
Transfer Agent | Sumitomo Mitsui Trust Bank, Limited |
4-1, Marunouchi 1-chome, | |
Chiyoda-ku, Tokyo, Japan | |
(Mail Address) | Stock Transfer Agency Department, |
Sumitomo Mitsui Trust Bank, Limited | |
8-4, Izumi 2-chome,Suginami-ku, | |
Tokyo 168-0063, Japan | |
(Telephone Number) | 0120-782-031 (toll free in Japan) |
- For notification of any change in your record such as your address or for any inquiry,
Please contact our transfer agent as shown above.
We contribute to the realization of a sustainable society through our sustainability efforts.
Universal design fonts that are easy to understand and easy to read are used.
Corporate Data (as at 31 March 2024)
Company Name | Nippon Sheet Glass Co., Ltd. |
Head Office | Sumitomo Fudosan Mita Twin Building |
West Wing, 5-27, Mita 3-chome, | |
Minato-ku, Tokyo 108-6321 Japan | |
Established | 22 November 1918 |
Number of Permanent | 25,356 |
Employees (consolidated) | |
Paid-in Capital | JPY116,853 million |
Accounting Auditor | Ernst & Young ShinNihon LLC |
Stock Listing | Tokyo Prime market (Code: 5202) |
Contact | https://www.nsg.com/en/contact-us |
- Notice to shareholders holding odd-lot shares
If you hold an odd-lot of shares (1 to 99 shares), which is less than a trading unit of shares (100 shares), you can require the Company to:
- purchase these shares or
- sell such exact number of the shares as would constitute one trading unit when added together with your shareholding.
For details on the procedures, please contact either the securities company or our transfer agent as indicated on the left.
Our Website
Our website provides a variety of information for investors, including financial results and latest news. Please access our website.
https://www.nsg.com/en
Facebook X(Formerly Twitter) | Follow |
me! |
Official SNS character of NSG Group
NSG Badger (Japanese name: N-Guma-Kun)
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
NSG - Nippon Sheet Glass Co. Ltd. published this content on 04 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 June 2024 05:18:03 UTC.