Nippon Sheet Glass Company, Limited · TSE:5202
Nippon Sheet Glass — Q1 FY2024/3 Earnings Presentation
31 slides from Nippon Sheet Glass's earnings presentation, Aug 9, 2023
Slide 1: NSG Group FY2024/3 Quarter 1 Results
NSG Group FY2024/3 Quarter 1 Results (from 1 April 2023 to 30 June 2023) Nippon Sheet Glass Company, Limited Akihito Okochi, Senior Executive Officer & CFO 9 August 2023
Slide 2: Agenda
Agenda 1. Financial Year ending 31 March 2024 Quarter 1 Results 2. Forecast for Financial Year ending March 2024 3. Update of Transformation Initiatives under Revival Plan 24 (RP24) 4. Summary 9 August 2023 2024/3 Q1 Results Presentation 2
Slide 3: 1. Financial Year ending 31 March 2024 Quarter 1 Results
1．Financial Year ending 31 March 2024 Quarter 1 Results 9 August 2023 2024/3 Q1 Results Presentation 3
Slide 4: Consolidated Income Statement
Consolidated Income Statement Robust start with increased revenue and profits. Impairment reversals recorded following the disposal of Russia JV businesses Q1 (3 months) (JPY bn) Revenue increased in all SBUs with sales volumes FY2023/3 FY2024/3 Change and prices increase as a whole Group. Revenue 1
Slide 5: Change Analysis – Operating profit (Quarter 1 only)
Change Analysis – Operating profit (Quarter 1 only) Sales prices and volumes improvement absorbed the impact of material and other costs rise FY2023/3 FY2024/3 Q1 Sales prices improvement Q1 in all businesses Volumes recovery in 15 Energy costs Automotive and Architectural declined while material co
Slide 6: Energy Price Movement
Energy Price Movement German natural gas price: declined and remained stable Japanese heavy fuel oil price: in declining trend, but still in a high price range 9 August 2023 2024/3 Q1 Results Presentation 6
Slide 7: Glass Market Price Movement
Glass Market Price Movement German glass price decreased reflecting lower natural gas prices while remaining at a level absorbing the impact of higher material and other costs 9 August 2023 2024/3 Q1 Results Presentation 7
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet Shareholders’ equity ratio increased to 12.4% by 2.2pt. Maintaining above 10% of RP24 target 31 March 30 June Mainly due to increase in property, (JPY bn) Change plant and equipment reflecting 2023 2023 foreign exchange movements Total Assets 951.4 1,000.0 48.6 Mainly due
Slide 9: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Free cash outflow reflecting the seasonal increase of working capital. Aiming to achieve RP24 target of free cash inflow above JPY 10 bn in full-year Q1 (3 months) (JPY bn) FY2023/3 FY2024/3 Change Net cash flows from operating activities (3.2) (17.5) (14.3) Due
Slide 10: Segmental Information
Segmental Information FY2022/3 Q1 FY2023/3 Q1 FY2024/3 Q1 Change (JPY bn) Operating Operating Operating Operating Revenue ％ Revenue ％ Revenue ％ Revenue profit profit profit Profit Architectural 64.5 44% 6.1 85.6 48% 8.9 95.8 46% 11.9 10.1 3.0 Europe 27.8 19% 38.2 21% 38.1 18% (0.1) Asia 19.3 13% 22.
Slide 11: Architectural (Rev▲, Profit▲)
Architectural (Rev▲, Profit▲) Revenue increased with strong demand although sales volumes decreased in Europe. OP increased with sales prices and volumes improvement offsetting material and other costs rise FY2023/3 FY2024/3 Europe (Rev▼, Profit▼) JPY bn Q1 Q1 • Sales volumes declined reflecting eco
Slide 12: Automotive (Rev▲, Profit▲)
Automotive (Rev▲, Profit▲) Revenue and OP increased in all regions due to sales volumes increase reflecting ease of constrained vehicle build and sales prices improvement JPY bn FY2023/3 Q1 FY2024/3 Q1 Europe (Rev▲, Profit▲) 100.9 Asia (Rev▲, Profit▲) 81.6 Americas (Rev▲, Profit▲) Europe 42.5 Asia 3
Slide 13: Technical Glass (Rev▲, Profit▼)
Technical Glass (Rev▲, Profit▼) Revenue flat, though OP decreased due to input costs and other costs rise together with a worse sales mix FY2023/3 FY2024/3 JPY bn Q1 Q1 • Fine glass sales affected by IT market slowdown and also worsened product mix 9.9 10.0 • Demand for printer lenses declined due t
Slide 14: 2. Forecast for Financial Year ending March 2024
2．Forecast for Financial Year ending March 2024 9 August 2023 2024/3 Q1 Results Presentation 14
Slide 15: Assumptions for FY2024/3 Forecast
Assumptions for FY2024/3 Forecast Group H1 and full-year forecasts revised upward reflecting relatively strong Q1 performance. Continue to promote ‘Restoration of Financial Stability’ in the final year of RP24 • Weaker JPY than initial expectation • Recording of one-off non-operating gain due to dis
Slide 16: Forecast for Financial Year ending March 2024
Forecast for Financial Year ending March 2024 Upward revision of H1 and full-year forecasts reflecting relatively solid Q1 results and recognition of impairment reversal related to Russian JV disposal FY2024/3 Forecast FY2024/3 Forecast FY2023/3 Change (JPY bn) (Previous) (Revised) Full-year Act H1
Slide 17: 3. Update of Transformation Initiatives under Revival Plan 24 (RP24)
3．Update of Transformation Initiatives under Revival Plan 24 (RP24) 9 August 2023 2024/3 Q1 Results Presentation 17
Slide 18: Transformation Initiatives under Revival Plan 24
Transformation Initiatives under Revival Plan 24 Continued RP24 initiatives to create business structure for sustainable growth Three Reforms ⚫ Cost structure reform • Continued focus on cost savings underpinning improvement in margin ⚫ Business structure reform • 2nd new float furnace in Argentina
Slide 19: Transformation Initiatives under Revival Plan 24
Transformation Initiatives under Revival Plan 24 Continue to promote ‘Restoration of Financial Stability’ in the final year of RP24 Two Key Initiatives ⚫ Restoration of financial stability • Return on sales: recovered to 7% with cost reduction effort, expansion of VA sales and sales price improvemen
Slide 20: 4. Summary
4．Summary 9 August 2023 2024/3 Q1 Results Presentation 20
Slide 21: Summary
Summary 1. Financial Year ending 31 March 2024 Quarter 1 Results • Robust start with revenue and profits increase. Recorded impairment reversal related to a disposal of Russian JV • Higher materials and other costs offset by sales price and volume improvements • Continuous strong performance in Arch
Slide 22: Notice
Notice The projections contained in this document are based on information currently available to us and certain assumptions that we consider to be reasonable. Hence the actual results may differ. The major factors that may affect the results are the economic and competitive environment in major mar
Slide 23: Appendices
Appendices Financial Year ending 31 March 2024 Quarter 1 Results • Consolidated Income Statement – Quarterly Trend • Revenue & Operating Profit – Quarterly Trend • Segmental Information by Quarter • Revenue & Operating Profit – by Region • Exceptional Items • Foreign Currency Exchange Rates and Sens
Slide 24: Consolidated Income Statement – Quarterly Trend
Consolidated Income Statement – Quarterly Trend FY2022/3 FY2023/3 FY2024/3 （JPY bn） Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Revenue 147.7 143.0 152.3 157.6 177.9 197.7 190.6 197.3 208.0 Operating profit/(loss) 7.2 5.5 1.8 5.5 8.3 6.2 9.7 10.7 14.6 ROS: Return on sales 4.8% 3.9% 1.2% 3.5% 4.6% 3.1% 5.1% 5.4% 7.0%
Slide 25: Revenue & Operating Profit – Quarterly Trend
Revenue & Operating Profit – Quarterly Trend Architectural (JPY bn) 96.5 93.6 95.8 85.6 90.3 10.7 11.9 74.8 75.0 8.9 Americas 64.5 67.5 29.8 28.7 26.7 30.8 7.5 24.5 21.0 21.6 7.7 7.4 Asia 19.5 6.8 6.6 17.4 6.1 26.1 25.8 24.5 26.8 22.9 Europe 24.5 21.5 19.3 21.0 Operating profit 40.6 39.1 39.1 27.8 2
Slide 26: Segmental Information by Quarter
Segmental Information by Quarter FY2022/3 FY2023/3 FY2024/3 (JPY bn) Q1 Q2 Q3 Q4 Cum. Q1 Q2 Q3 Q4 Cum. Q1 Revenue: Architectural 64.5 67.5 74.8 75.0 281.8 85.6 96.5 93.6 90.3 365.9 95.8 Europe 27.8 27.1 29.3 31.8 116.0 38.2 40.6 39.1 39.1 157.1 38.1 Asia 19.3 21.0 24.5 21.5 86.2 22.9 26.1 25.8 24.5
Slide 27: Revenue & Operating Profit – by Region
Revenue & Operating Profit – by Region FY2023/3 Q1 FY2024/3 Q1 Change (JPY bn) Operating Operating Operating Revenue ％ Revenue ％ Revenue profit/(loss) profit profit/(loss) Europe 74.0 42% 2.4 83.1 40% 2.5 9.1 0.1 Asia 44.9 25% 5.0 51.8 25% 8.2 6.9 3.1 Americas 58.2 33% 4.0 71.8 35% 6.6 13.5 2.7 Othe
Slide 28: Exceptional Items
Exceptional Items (JPY bn) FY2023/3 FY2024/3 Q1 Q1 Impairment of non-current assets (0.2) (0.5) Write down of inventories - (0.2) Settlement of litigation matters - net 2.6 (0.0) Restructuring costs, including employee termination (0.0) (0.0) payments Others (0.0) 0.0 Exceptional items - net 2.3 (0.
Slide 29: Foreign Currency Exchange Rates and Sensitivity
Foreign Currency Exchange Rates and Sensitivity Average rates used FY2022/3 FY2023/3 FY2024/3 FY2024/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Original Forecast GBP 153 152 153 153 163 163 164 163 172 160 EUR 132 131 131 130 138 139 140 141 150 134 USD 109 109 112 112 129 134 137 135 138 134 BRR 20.6 20.8 20.7 2
Slide 30: Depreciation & Amortization, Capital Expenditures, R&D Expenditures
Depreciation & Amortization, Capital Expenditures, R&D Expenditures FY2023/3 FY2024/3 FY2024/3 (JPY bn) Q1 Q1 Full-year Forecast Depreciation & 9.8 10.8 44.0 Amortization Capital expenditures 6.2 11.0 47.7 Ordinary 5.4 8.0 Strategic projects 0.8 3.0 R&D expenditures 2.2 2.2 10.0 Architectural 0.7 0.
Slide 31: GROUP
GROUP
Nippon Sheet Glass Company — Q1 FY2024/3 Earnings Presentation on 6ix