Nippon Sheet Glass Company, Limited · TSE:5202
Nippon Sheet Glass — Investor Presentation (May 2024)
41 slides from Nippon Sheet Glass's investor presentation, May 13, 2024
Slide 1: 2030 Vision: Shift the Phase
2030 Vision Shift the Phase NSG Group
Slide 2: Table of contents
Table of contents 1. Executive Summary 2. Revival Plan 24 (RP24) review 3. 2030 Vision and Strategic Pillar 4. Financial Policy 5. Materiality 13 May 2024 / 2030 Vision 2
Slide 3: Table of contents
Table of contents 1. Executive Summary 2. Revival Plan 24 (RP24) review 3. 2030 Vision and Strategic Pillar 4. Financial Policy 5. Materiality 13 May 2024 / 2030 Vision 3
Slide 4: Executive Summary of the Medium-Term Plan
Executive Summary of the Medium-Term Plan • Through Revival Plan 24 (RP24), we've seen consistent improvements in profitability. However, our profit margins are still on the lower side. We will persist in our journey to transform ourselves into a highly profitable business group. • We will drive for
Slide 5: Table of contents
Table of contents 1. Executive Summary 2. Revival Plan 24 (RP24) review 3. 2030 Vision and Strategic Pillar 4. Financial Policy 5. Materiality 13 May 2024 / 2030 Vision 5
Slide 6: Post-Acquisition Performance
Post-Acquisition Performance In Revival Plan 24 (RP24), we achieved steady improvements in profitability, but did not reach our targeted 8% return on sales (ROS). Halfway through our journey, we remain committed to becoming highly profitable without loosening our grip. ■ Since the acquisition of Pil
Slide 7: RP24 in Review: Status of Financial Goals Achievement
RP24 in Review: Status of Financial Goals Achievement In RP24, reforms were promoted in response to the critical business environment. As a result, we achieved our targets for shareholders’ equity ratio and free cash flow, while the earnings target was significantly missed. FY2022/3 FY2023/3 FY2024/
Slide 8: RP24 in Review: Results of Policy Measures
RP24 in Review: Results of Policy Measures We addressed our challenges and achieved significant milestones. While there are still many issues to tackle in the medium-term plan, we have made substantial progress in building an organization that works together as one team on reforms, a result that wil
Slide 9: Table of contents
Table of contents 1. Executive Summary 2. Revival Plan 24 (RP24) review 3. 2030 Vision and Strategic Pillar 4. Financial Policy 5. Materiality 13 May 2024 / 2030 Vision 9
Slide 10: Our Approach to Formulating the Medium-Term Plan
Our Approach to Formulating the Medium-Term Plan Backcasting from the envisioned state we aim to achieve by 2030, we developed the strategies and activity plans to become an attractive company for both internal and external stakeholders. Present-forward thinking Where/How do we play today? 1 3 What
Slide 11: 2030 Vision: The Envisioned State of NSG Group
2030 Vision: The Envisioned State of NSG Group After one year of discussions, we formulated our 2030 Vision. 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. To shift our company's phase
Slide 12: Financial Targets
Financial Targets Throughout this medium-term period, NSG Group is focused on enhancing profitability and increasing cash generation to improve its financial status. FY2024/3 FY2027/3 Operating Profit 35.9 billion yen 64.0 billion yen • Clear profit growth targets Profitability (P/L) • Disciplined b
Slide 13: Profitability Improvement
Profitability Improvement Improve profitability through portfolio transformation by investing in enhanced manufacturing capacity for high value- added products, continuous cost reduction, and strategic replacement and conversion of manufacturing facilities. NSG Group Targets ROS Targets by Business
Slide 14: Group-Wide Strategic Direction
Group-Wide Strategic Direction Positioning the four Ds as the strategic pillars of the NSG Group, we aim to achieve our strategic goals in each pillar. • To strengthen new product and business Business development efforts Development • As part of our contribution to societal Decarbonization decarbon
Slide 15: Business Development
2030 Vision: Strategic 4D Business Development 15
Slide 16: Business Development
Business Development Adapting to societal changes, we will develop new solutions and technologies with our customers to create high added value. We will enhance our business creation capabilities by continuing to invest in R&D and fostering the skills of our personnel in business development within
Slide 17: Examples of Strategic Products to be Strengthened
Examples of Strategic Products to be Strengthened through Business Development • Products that contribute to • Solar Panel • Low E (On-line/Off-line/Laminated) Architectural the decarbonization of • Triple Glass Units buildings • Coated IGU • Products that enhance the potential of solar technology C
Slide 18: Business Environment Outlook
Business Environment Outlook Architectural • While near-term demand may see a downturn, the medium- to long-term demand is set to witness a surge in renovation activities aimed at boosting energy efficiency. This trend is expected to catalyze growth in the building glass market. • The demand for car
Slide 19: Business Development: Architectural
Business Development: Architectural We will aim to be a leading supplier of architectural glass that contributes to sustainability, with a focus on decarbonization. Key strategic measures: Capability Enhancements for Decarbonization of Our Continuous Reviews on the Development of Sustainability Solu
Slide 20: Business Development: Advanced Coating Technology
Business Development: Advanced Coating Technology Leveraging our proprietary advanced coating technologies, we aim to become the development and supply partner for key components crucial for achieving the performance of customer products in renewable energy and similar sectors. Key strategic measure
Slide 21: Business Development: Automotive
Business Development: Automotive We will accelerate manufacturing technologies to enable our global customers shift to safer, connected, greener vehicles, while shifting to a sustainably profitable business as key strategic global supplier. Key strategic measures: Capability Enhancements Strengtheni
Slide 22: Business Development: Technical Glass
Business Development: Technical Glass We will establish a new revenue pillar by developing proprietary materials that play a pivotal role in advancing our customers' product offerings. Key strategy measures: Expansion of Business in Commercialization of New Selection of Technological Adjacent Market
Slide 23: Decarbonization
2030 Vision: Strategic 4D Decarbonization 23
Slide 24: Decarbonization: Roadmap to Carbon Neutrality for 2050
Decarbonization We are dedicated to driving decarbonization across our entire supply chain, embodying our commitment to sustainable social development. Roadmap to Carbon Neutrality for 2050 2021 – RP24 – 2024 2030 2050 Achieve 2 percent reduction of 2030 targets (vs 2018) Achieve Targets CO2 p. a. d
Slide 25: Overview of Decarbonization Efforts
Decarbonization Overview of Decarbonization Efforts [Third-Party Evaluation] Collaboration with suppliers 1 Use of hydrogen, biofuels, e.g., Review of raw materials HyNet PJ, electric melting, etc. Green Transformation 3 CCUS Ranked #19 CO2 CO2 Storage Utilzationi Climate Change Emissions related to
Slide 26: Examples of Recent Initiatives
Decarbonization Examples of Recent Initiatives 1 2 3 HyNet Project Cullet Recycling Carbon Capture • The HyNet project is a large-scale • NSG is increasing cullet ratio by • NSG has announced the successful 'blue' hydrogen production and sourcing them not only from launch of Europe's first carbon di
Slide 27: Digital Transformation
2030 Vision: Strategic 4D Digital Transformation 27
Slide 28: Digital Transformation
Digital Transformation In the Medium-Term Plan period, viewed as a second phase of post-merger integration (PMI), we aim to transform our group operations by leveraging digital technology to its fullest, thereby enhancing our value creation capabilities. Group Management Capital Markets & Communitie
Slide 29: Digital Transformation
Digital Transformation By thoroughly standardizing data and processes, we will elevate the level of information integration, thereby accelerating the quality and efficiency of our global management practices. • Standardization and Information Integration Promoting standardization and information int
Slide 30: Diverse Talent
2030 Vision: Strategic 4D Diverse Talent 30
Slide 31: Diverse Talent
Diverse Talent Building a robust and high-performing workforce and organization is pivotal to our strategy. We will invest based on a well-defined HR strategy, globally demonstrating our attractiveness as a workplace that offers opportunities for professional development for those who work with genu
Slide 32: Table of contents
Table of contents 1. Executive Summary 2. Revival Plan 24 (RP24) review 3. 2030 Vision and Strategic Pillar 4. Financial Policy 5. Materiality 13 May 2024 / 2030 Vision 32
Slide 33: Financial Policy
Financial Policy Our financial policy is to enhance the profitability of our operations and restore a virtuous cycle, as outlined below, that does not rely on borrowings. Cash generation is the key to creating a virtuous cycle. The 4Ds will boost earnings Cash inflow will rise. in core operations. T
Slide 34: Boost cash generation
Boost cash generation We will bolster cash generation by reducing financing costs through better management of working capital and reduction of interest-bearing debt, while making appropriate capital expenditure to improve profitability. Free cash flow target Directions for cash generation (billion
Slide 35: Resource Allocation for Normalizing Capital Flow
Resource Allocation for Normalizing Capital Flow In the first half of this medium-term period, NSG Group will prioritize normalizing cash flow, directing our resource allocation towards strengthening the business and repaying borrowings. Cash Allocation for the First Half of this MT (FY25-27) Breakd
Slide 36: Managing with Focus on Capital Cost and Share Price (PBR > 1)
Managing with Focus on Capital Cost and Share Price (PBR > 1) Throughout this medium-term plan period, we are focusing on optimizing financial leverage and enhancing valuation multiples through improved asset efficiency and reduced interest-bearing liabilities. ▪ Enhance profitability and growth by
Slide 37: Table of contents
Table of contents 1. Executive Summary 2. Revival Plan 24 (RP24) review 3. 2030 Vision and Strategic Pillar 4. Financial Policy 5. Materiality 13 May 2024 / 2030 Vision 37
Slide 38: Materiality and MTP strategic pillars
Materiality and MTP strategic pillars We have reviewed Materiality and divided it into (1) elements that are fundamental to management and (2) sources of competitiveness. Materiality Management policy Health and Safety As a fundamental management matter that must be achieved in the conduct of busine
Slide 39: Materiality Targets (Fundamental Management Matter)
Materiality Targets (Fundamental Management Matter) Materiality FY30 Aspirations FY27 New Targets FY27 KPIs Under the strong leadership, a safety culture has been fostered in which all consider safety Fatality Fatality and life-changing disability 0 as a value and work together to build a safe Healt
Slide 40: Materiality Targets (Sources of Competitiveness)
Materiality Targets (Sources of Competitiveness) Materiality FY30 Aspirations FY27 New Targets FY27 KPIs CO2 intensity 3% YoY reduction Carbon emission Renewable energy electricity ratio 65％ To exceed stakeholder expectations by implementing sustainable processes to produce Absolute Scope1+2 Reducti
Slide 41: 13 May 2024 / 2030 Vision
13 May 2024 / 2030 Vision GROUP 41
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