Nippon Sheet Glass Company, Limited · TSE:5202
Nippon Sheet Glass — Q2 FY2015 Earnings Presentation
27 slides from Nippon Sheet Glass's earnings presentation, Nov 6, 2014
Slide 1: NSG Group
Slide 2: NSG Group FY2015 Quarter 2 Results
NSG Group FY2015 Quarter 2 Results (from 1 April 2014 to 30 September 2014) Nippon Sheet Glass Co., Ltd. 6 November 2014
Slide 3: Presenters
Keiji Yoshikawa Chief Executive Officer Clemens Miller Chief Operating Officer Mark Lyons Chief Financial Officer Kenichi Morooka Executive Vice President 3 6 November 2014 FY2015 Quarter 2 Results
Slide 4: Agenda: Key Points
FY2015 Quarter 2 Results (from 1 April to 30 September 2014) Agenda Key Points Financial Results Business Update Summary 4 6 November 2014 FY2015 Quarter 2 Results
Slide 5: Key Points - April to September 2014
Key Points - April to September 2014 • Q2 results show improvement over previous year • Market conditions mixed, with improvements in some regions and reductions in others • Exceptional items benefitted from one-off gains recognized during the period 5 6 November 2014 FY2015 Quarter 2 Results
Slide 6: Agenda: Financial Results
FY2015 Quarter 2 Results (from 1 April to 30 September 2014) Agenda Key Points Financial Results Business Update Summary 6 6 November 2014 FY2015 Quarter 2 Results
Slide 7: Consolidated Income Statement
Consolidated Income Statement Change Cum Q2 Cum Q2 (JPY bn) from Cum FY2015 FY2014 Q2 FY2014 Revenue 309.5 302.2 2%** Trading profit 10.3 9.2 Amortization* (4.2) (4.3) Operating profit before exceptional items 6.1 4.9 Exceptional items 13.2 (6.0) Operating profit/(loss) 19.3 (1.1) Finance expenses (
Slide 8: Exceptional items
Exceptional items Cum Q2 (JPY bn) FY2015 Gain on reclassification of investments 13.3 Gain on disposal of non-current assets 4.5 Restructuring costs (4.2) Other items (0.4) 13.2 8 6 November 2014 FY2015 Quarter 2 Results
Slide 9: Change Analysis
Change Analysis Trading profit 15 Q2 Q2 FY2014 FY2015 10 5 0 Total Sales Selling Input Cost Other Total Vol/Mix Prices Costs Savings JPY bn 9.2 (0.9) (0.3) (0.3) 4.5 (1.9) 10.3 Cost savings driving profit improvement 9 6 November 2014 FY2015 Quarter 2 Results
Slide 10: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Q1 Q2 Cum Q2 (JPY bn) FY2015 FY2015 FY2015 Profit/(Loss) for the period (4.7) 12.6 7.9 Depreciation and amortization 10.3 10.3 20.6 Net change in working capital (7.3) 5.1 (2.2) Tax paid (1.4) (0.6) (2.0) Gain on sale of property, plant and equipment - (4.4) (4.4) Gain
Slide 11: Key Performance Indicators
Key Performance Indicators 30-Sep-14 31-Mar-14 Net Debt (JPY bn) 390 379 Net Debt/EBITDA 7.0x 7.0x Net Debt/Equity Ratio 2.1 2.2 Q2 FY2015 Q2 FY2014 EBITDA Interest Cover 3.4x 3.3x Operating Return* on Sales 3.3% 3.0% * Trading profit 11 6 November 2014 FY2015 Quarter 2 Results
Slide 12: Market Outlook
Market Outlook • Market conditions mixed, with improvements in some regions and reductions in others Significant market recovery not yet materialized in Europe Some volume reduction after consumption tax increase in Japan South American markets weak Improving Architectural volumes and Solar
Slide 13: Agenda: Business Update
FY2015 Quarter 2 Results (from 1 April to 30 September 2014) Agenda Key Points Financial Results Business Update Summary 13 6 November 2014 FY2015 Quarter 2 Results
Slide 14: External Revenue – Group Businesses
External Revenue – Group Businesses ¥ 309.5 billion Technical Auto - ROW 10% Architectural 6% Europe 16% Auto North America Architectural 13% Japan 11% Auto Japan 8% Architectural North America 5% Auto Europe Architectural - ROW 23% 8% Cumulative Q2 FY2015 14 6 November 2014 FY2015 Quarter 2 Results
Slide 15: Europe
Europe Q2 FY2014 v Q2 FY2015 €m €m Q2 Q2 Architectural FY2014 FY2015 1,000 50 • Stable market conditions • Profitability similar to the previous 800 40 year 600 30 Automotive 358 351 • OE market recovery slowing down 19 16 • Lower AGR volumes following mild 400 20 winter 200 10 532 514 0 0 Auto Arch
Slide 16: Japan
Japan Q2 FY2014 v Q2 FY2015 JPY bn JPY bn Q2 Q2 Architectural FY2014 FY2015 60 5.0 • Volumes fell following consumption tax increase 4.0 • Profits impacted by cost push 45 • Long-term prospects continue to 36 33 3.0 be positive 30 2.5 Automotive 1.1 2.0 • OE volumes robust despite 15 consumption tax
Slide 17: North America
North America Q2 FY2014 v Q2 FY2015 $m $m Q2 Q2 Architectural FY2014 FY2015 600 50 • Revenues and profits improved from the previous year 500 40 • Volumes increased, improved 116 149 domestic and Solar demand 400 • Domestic price levels above the 33 30 previous year 300 12 20 200 Automotive • OE mar
Slide 18: Rest of World
Rest of World Q2 FY2014 v Q2 FY2015 $m $m Q2 Q2 Architectural FY2014 FY2015 500 40 • South East Asia markets strong with improving domestic demand 400 and increased Solar Energy 28 27 30 dispatches 300 254 256 • Weak market conditions in Argentina 20 200 Automotive 221 10 • Weak market conditions pe
Slide 19: Technical Glass
Technical Glass Q2 FY2014 v Q2 FY2015 JPY bn JPY bn Q1 Q1 Technical Glass FY2014 FY2015 40 6 • Improving demand in office printer market 5 • Glass cord volumes similar to 30 previous year 30 29 4 • Display glass impacted by 3.0 increased competition 20 2.4 3 2 10 1 0 0 Revenue Trading profit 19 6 No
Slide 20: Agenda: Summary
FY2015 Quarter 2 Results (from 1 April 2014 to 30 September 2014) Agenda Key Points Financial Results Business Update Summary 20 6 November 2014 FY2015 Quarter 2 Results
Slide 21: Summary
Summary • Q2 results show improvement over previous year • Market conditions mixed, with improvements in some regions and reductions in others • Exceptional items benefitted from one-off gains recognized during the period • FY2015 full-year forecast remains unchanged 21 6 November 2014 FY2015 Quarte
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 environment in major markets (such as Eu
Slide 23: Appendices
Appendices 23 6 November 2014 FY2015 Quarter 2 Results
Slide 24: Revenue by Business
Revenue by Business Q2 FY2015 North Rest of (JPY bn) Japan Europe America World Total Architectural 33.2 49.0 15.3 26.4 123.9 Automotive 25.9 71.7 40.1 18.0 155.7 Technical Glass 15.3 4.1 0.6 9.2 29.2 Others 0.6 0.1 0.0 0.0 0.7 Total 75.0 124.9 56.0 53.6 309.5 24 6 November 2014 FY2015 Quarter 2 Res
Slide 25: Trading profit
Trading profit Q2 FY2015 Technical (JPY bn) Architectural Automotive Other Total Glass Trading profit 5.7 3.9 2.4 (1.7) 10.3 North Rest of (JPY bn) Japan Europe America World Total Trading profit 1.5 2.6 3.1 3.1 10.3 25 6 November 2014 FY2015 Quarter 2 Results
Slide 26: Assumptions
Assumptions Q2 Q2 FY2014 FY2015 Average rates used: JPY/GBP 153 173 JPY/EUR 131 140 JPY/USD 99 103 Closing rates used: JPY/GBP 158 178 JPY/EUR 132 139 JPY/USD 98 109 26 6 November 2014 FY2015 Quarter 2 Results
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