GROUP
NSG Group FY2017 Quarter 1 Results(from 1 April 2016 to 30 June 2016)
Nippon Sheet Glass Co., Ltd.
29 July 2016
Kenichi MorookaChief Financial Officer
Clemens MillerChief Operating Officer
Iain SmithFinance Director - Global Finance
29 July 2016 FY2017 Quarter 1 Results 3
FY2017 Quarter 1 Results(from 1 April 2016 to 30 June 2016)
Key Points Financial Results Business Update Summary
Agenda
29 July 2016 FY2017 Quarter 1 Results 4
Key Points - April to June 2016Significant year on year improvement in trading profits
Cash flow continues to improve, reflecting the recovery
in the Group's profitability
Progress made in execution of business and financial improvement initiatives
29 July 2016 FY2017 Quarter 1 Results 5
FY2017 Quarter 1 Results(from 1 April 2016 to 30 June 2016)
Key Points Financial Results Business Update Summary
Agenda
29 July 2016 FY2017 Quarter 1 Results 6
Consolidated Income Statement(JPY bn)
FY2017 Q1 150.5 | FY2016 Q1 162.1 |
8.9 | 5.2 |
(1.8) | (2.1) |
7.1 | 3.1 |
7.8 | (0.6) |
(4.2) | (4.2) |
- | (0.1) |
10.7 | (1.8) |
4.4 | (0.5) |
3.9 | (1.4) |
16.2 | 13.7 |
Change from FY2016
Revenue
Trading profit
-7% 2
71% 3
Amortization 1
Operating profit Exceptional items Finance expenses (net)
Share of JVs and associates Profit/(loss) before taxation Profit/(loss) for the period
Profit/(loss) attributable to owners of the parent
EBITDA
Amortization arising from the acquisition of Pilkington plc only
Increase of 4.5% based on constant exchange rates
Increase of 97% based on constant exchange rates
18%
Improved profitability despite strengthened yen
29 July 2016 FY2017 Quarter 1 Results 7
Change AnalysisTrading profit
12
Q1 FY2016
10
8
6
4
2
Total | Sales Vol/Mix | Selling Prices | Input Costs | FX | Other | Total | |
JPY bn | 5.2 | 2.0 | 0.4 | 1.7 | (0.5) | 0.1 | 8.9 |
0
Q1 FY2017
Benefits from improved market conditions and lower input costs
29 July 2016 FY2017 Quarter 1 Results 8
FY2017 | FY2016 |
Q1 | Q1 |
7.7 | - |
0.9 | - |
0.7 | - |
- | 0.1 |
(0.7) | (0.3) |
(0.7) | - |
(0.1) | (0.4) |
7.8 | (0.6) |
(JPY bn)
Gain on disposal of non-current assets Gain from exit of business
Gain on disposal of investments in associates Gain on dilution in associate
Restructuring costs
Impairment of non-current assets Settlement of litigation matters
Exceptional gains from disposal of non-current assets
29 July 2016 FY2017 Quarter 1 Results 9
Consolidated Cash Flow Summary(JPY bn) | FY2017 | FY2016 |
Q1 | Q1 | |
Profit/(loss) for the period | 4.4 | (0.5) |
Depreciation and amortization | 9.1 | 10.6 |
Impairment | 0.7 | - |
Gain on disposal of assets and exit of business | (9.4) | - |
Tax paid | (1.9) | (1.2) |
Others | 6.2 | (5.5) |
Net operating cash flows before movement in working capital | 9.1 | 3.4 |
Net change in working capital Net cash outflows from operating activities Purchase of property, plant and equipment Disposal proceeds Others Net cash inflows/(outflows) from investing activities Cash flow before financing activities | (11.1) | (14.9) |
(2.0) | (11.5) | |
(7.8) | (8.6) | |
8.6 | - | |
(0.5) | (0.3) | |
0.3 | (8.9) | |
(1.7) | (20.4) |
Operating cash flow driven by improved profit
29 July 2016 FY2017 Quarter 1 Results 10
30-Jun-16
374
6.0x
5.4
FY2017 Q1
4.0x
5.9%
Key Performance IndicatorsNet Debt (JPY bn) Net Debt/EBITDA
Net Debt/Equity Ratio
EBITDA Interest Cover Operating Return* on Sales
* trading profit
31-Mar-16
381
6.3x
3.4
FY2016 Q1
3.7x
3.2%
Profit ratios improved, but equity affected by strengthened yen
29 July 2016 FY2017 Quarter 1 Results 11
FY2017 Quarter 1 Results(from 1 April 2016 to 30 June 2016)
Key Points Financial Results Business Update Summary
Agenda
29 July 2016 FY2017 Quarter 1 Results 12
External Revenue - Group Businesses¥ 150.5 billion
Auto
North America 14%
Auto Japan
8%
Auto - ROW 5%
Technical 8%
Architectural
Europe
15%
Architectural Japan 10%
Architectural
North America 6%
Auto Europe 25%
Architectural - ROW 9%
FY2017 Quarter 1
Diversified geographical coverage
29 July 2016 FY2017 Quarter 1 Results 13
EuropeQ1 FY2016 v Q1 FY2017
Revenues
Trading profit
€m €m
500
400
300
Q1 FY2016
176
10
Q1 FY2017
183
31
Architectural
40 • Volumes and prices improved due
to increased market demand
Profits benefitted from lower
30 energy costs
20 Automotive
OE volumes benefitted from
200
100
0
276 303
10
0
Arch Auto Trading profit
continued recovery of light-vehicle sales in the region
Improved operational performance
Robust volumes in AGR
Businesses benefitted from improved market conditions
29 July 2016 FY2017 Quarter 1 Results 14
JapanQ1 FY2016 v Q1 FY2017
Revenues
Trading profit
JPY bn JPY bn
Q1
35 FY2016
30
25 17
20
15
10 14
5
0
0.9
0.4
Q1 FY2017
15
13
4.0
3.0
2.0
1.0
0.0
Architectural
Volumes below the previous year
Automotive
Revenues and profits fell from the previous year, reflecting lower light-vehicle sales
Arch Auto Trading profit
Profitability affected by softened market conditions
29 July 2016 FY2017 Quarter 1 Results 15
North AmericaQ1 FY2016 v Q1 FY2017
Revenues
Trading profit
$m $m
300
200
Q1 FY2016
80
18
Q1 FY2017
88
30
Architectural
40 • Revenues and profits improved, as selling prices continue to be strong
30 • Further growth in value-added volumes
20
Automotive
100
0
190197
10
0
Arch Auto Trading profit
Improved OE revenues and profits reflects increased NSG volumes
Improved operational efficiency
AGR results similar to the previous year
Profitability improved as markets continue to show strength
29 July 2016 FY2017 Quarter 1 Results 16
Rest of WorldQ1 FY2016 v Q1 FY2017
Revenues
Trading profit
$m $m
250
200
Q1 FY2016
Q1 FY2017
Architectural
50 • Previous year's results included the effect of a cold repair in Argentina
40 • Demand continues to be robust in South East Asia
150
100
50
0
122 119
30
26
13 20
10
79 69
0
Arch Auto Trading profit
Automotive
Weak market conditions persist in South America
Mixed market conditions among regions
29 July 2016 FY2017 Quarter 1 Results 17
Technical GlassQ1 FY2016 v Q1 FY2017
Revenues
Trading profit
JPY bn JPY bn
Q1
15 FY2016
10 14
5
0
0.2 0.1
Q1 FY2017
12
2.0
1.5
1.0
0.5
0.0
Technical Glass
Losses in the Display business narrowed following the mothballing of the thin glass float line in Vietnam
Volumes of components used in
multi-function printers declined
Volumes of glass cord used in engine timing belts were robust, reflecting strengthening automotive markets
Battery separator segment
enjoying strong demand
Revenue Trading profit
Pressured by challenging market conditions
29 July 2016 FY2017 Quarter 1 Results 18
Joint Ventures and AssociatesQ1 FY2017 v Q1 FY2016
(JPY bn)
FY2017 Q1 FY2016 Q1
Share of post-tax losses - (0.1)
Profits were below the previous year at Cebrace, the Group's joint
venture in Brazil
Previous year losses in China and Russia Joint Ventures not repeated following March 2016 impairments
Previous year impairments removed effects of loss-making entities
29 July 2016 FY2017 Quarter 1 Results 19
FY2017 Quarter 1 Results(from 1 April 2016 to 30 June 2016)
Key Points Financial Results Business Update Summary
Agenda
29 July 2016 FY2017 Quarter 1 Results 20
SummarySignificant year on year improvement in trading profits
Cash flow continues to improve, reflecting the recovery
in the Group's profitability
Progress made in execution of business and financial improvement initiatives
FY2017 forecast unchanged
29 July 2016 FY2017 Quarter 1 Results 21
NoticeThe 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 Europe, Japan, the U.S. and Asia), product supply/demand shifts, and currency exchange fluctuations.
Nippon Sheet Glass Co., Ltd.
29 July 2016 FY2017 Quarter 1 Results 22
Appendices29 July 2016 FY2017 Quarter 1 Results 23
Revenue by BusinessFY2017 Q1 v FY2016 Q1
(JPY bn)
FY2017 Q1
FY2016 Q1
Change
Architectural
59.9
64.7
(4.8)
Europe
22.3
23.5
(1.2)
Japan
15.1
16.6
(1.5)
North America
9.6
9.7
(0.1)
Rest of World
12.9
14.9
(2.0)
Automotive
78.5
83.1
(4.6)
Europe
37.0
36.9
0.1
Japan
12.6
13.6
(1.0)
North America
21.4
23.1
(1.7)
Rest of World
7.5
9.5
(2.0)
Technical Glass
12.0
14.2
(2.2)
Europe
1.8
2.1
(0.3)
Japan
6.2
7.0
(0.8)
North America
0.3
0.3
0.0
Rest of World
3.7
4.8
(1.1)
Other Operations
0.1
0.1
0.0
Europe
0.0
0.0
0.0
Japan
0.1
0.1
0.0
North America
0.0
0.0
0.0
Rest of World
0.0
0.0
0.0
Total
150.5
162.1
(11.6)
29 July 2016 FY2017 Quarter 1 Results 24
Trading profitFY2017 Q1 v FY2016 Q1
(JPY bn)
FY2017 Q1
FY2016 Q1
Change
by SBU
Architectural
6.5
3.3
3.2
Automotive
3.7
2.6
1.1
Technical Glass
0.1
0.2
(0.1)
Other Operations
(1.4)
(0.9)
(0.5)
Total
8.9
5.2
3.7
by Region
3.5
1.4
2.1
Europe
Japan
(0.6)
0.7
(1.3)
North America
3.1
2.1
1.0
Rest of World
2.9
1.0
1.9
Total
8.9
5.2
3.7
29 July 2016 FY2017 Quarter 1 Results 25
Consolidated Balance Sheet30-Jun-16
31-Mar-16
Change
742.7
812.1
(69.4)
501.3
571.4
(70.1)
154.3
176.4
(22.1)
236.2
258.9
(22.7)
110.8
136.1
(25.3)
241.4
240.7
0.7
55.9
55.1
0.8
185.5
185.6
(0.1)
674.0
700.1
(26.1)
284.9
285.9
(1.0)
156.2
143.5
12.7
128.7
142.4
(13.7)
389.1
414.2
(25.1)
278.1
293.4
(15.3)
111.0
120.8
(9.8)
68.7
112.0
(43.3)
60.4
103.1
(42.7)
8.3
8.9
(0.6)
742.7
812.1
(69.4)
(JPY bn)
Assets
Non-current assets Goodwill & intangible assets Property, plant and equipment Other
Current assets
Cash and cash equivalents Other
Liabilities
Current liabilities Financial liabilities Other
Non-current liabilities
Financial liabilities Other
Equity
Shareholders' equity Non-controlling interests
Total liabilities and equity
29 July 2016 FY2017 Quarter 1 Results 26
Exchange RatesFY2016 Q1
FY2016
Full-year
FY2017 Q1
Average rates used:
JPY/GBP
186
181
155
JPY/USD
122
120
108
JPY/EUR
134
132
122
Closing rates used:
JPY/GBP
192
161
138
JPY/USD
122
113
103
JPY/EUR
136
127
114
29 July 2016
FY2017 Quarter 1 Results
27
NSG Group Revenues by Geographical Destination (FY2016)Americas
30%
36%
Europe
Asia
32%
Revenues include:
Group revenues: JPY 629 bn; and
Group share of Joint Ventures & associates revenues: JPY 48bn
(Fiscal year ended 31 March 2016)
Balanced presence in Europe, Asia and Americas
29 July 2016 FY2017 Quarter 1 Results 28
Depreciation & Amortization, CAPEXQ1
Depreciation and Amortization
38.7
36.6
40.4
41.7
40.9
9.1
Capital expenditures
34.7
26.0
31.6
36.6
28.2
8.1
R&D expenditures
8.0
7.3
7.9
8.2
9.8
2.2
(JPYbn) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY2017
29 July 2016
FY2017 Quarter 1 Results 29
EU Economic Indices - Architectural130
125
120
115
110
105
100
95
90
85
80
2010 = 100
Euro
Euro
area (18 cou
2006 Q1
2006 Q2
29 July 2016
2006 Q3
2006 Q4
Production Statistic - Construction Sector Output
2007 Q1
2007 Q2
2007 Q3
2007 Q4
FY2017 Quarter 1 Results
2008 Q1
2008 Q2
2008 Q3
2008 Q4
2009 Q1
2009 Q2
2009 Q3
2009 Q4
2010 Q1
2010 Q2
2010 Q3
2010 Q4
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
pean Union (28 countries)
2012 Q4
2013 Q1
2013 Q2
2013 Q3
ntries)
2013 Q4
2014 Q1
2014 Q2
Source: Eurostat
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
2015 Q4
30
2016 Q1
EU Economic Indices - AutomotiveWestern Europe Light Vehicle Build
Millions
16.00
15.00
14.00
13.00
12.00
11.00
10.00
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Calendar Year
Source: : IHS Jul 2016, LMC Jun 2016
29 July 2016
FY2017 Quarter 1 Results 31
Brief Guide to NSG Group29 July 2016
FY2017 Quarter 1 Results 32
NSG TodayOne of the world's largest manufacturers of glass and glazing products for the Architectural, Automotive and Technical Glass sectors
World leader in float glass technology and coatings
Supplying the world's leading vehicle manufacturers
Leading player in thin glass for displays, lenses and light guides for printers and glasscord, etc.
Principal operations in 28 countries, with sales in over 130 countries
26 float lines worldwide
Approximately 27,000 employees globally
(Reference) Consolidated revenue: JPY 629 billion (FY2016)
29 July 2016
FY2017 Quarter 1 Results 33
Company History29 July 2016
Nov 1918 | Obtained the flat glass technology (Colburn process) rom Libbey-Owens-Ford Glass Corporation of the United States. Established as America Japan Sheet Glass Co., Ltd. with its head office in Osaka. |
Jan 1931 | Changed the company name to Nippon Sheet Glass Co., Ltd. |
Feb 1965 | Installed a new float glass manufacturing process at the Maizuru Plant in Kyoto, Japan. |
Nov 1968 | Developed "SELFOC®" (Joint Development with NEC Corporation). |
Nov 1971 | Established Malaysian Sheet Glass Sdn Bhd in Malaysia. |
Mar 1995 | Established Vietnam Float Glass Co., Ltd. |
Oct 1997 | Developed "Spacia™" vacuum glazing. |
Oct 2001 | Affiliated with Pilkington Plc. under the equity method. |
Jul 2004 | Changed the registered address of head office from Osaka to Kaigain, Minato-ku, Tokyo. |
Jun 2006 | Acquired the remaining 80% equity of Pilkington Plc. and made it a subsidiary. |
Feb 2007 | Changed the registered address of head office to Mita, Minato-ku, Tokyo. |
Jun 2008 | Changed the Board to the "Company with Committees" structure. |
Apr 2011 | Adopted the International Financial Reporting Standards (IFRS). |
FY2017 Quarter 1 Results 34
Global Float OperationsUK 1
1 St Helens
Poland 1
1 Sandomierz
USA 5
2 Rossford
1 Ottawa
2 Laurinburg
Germany 4
2 Gladbeck
2 Weiherhammer
Italy 2
2 San Salvo
Japan 4
2 Chiba
2 Maizuru
Vietnam 3
1 VFG (Bac Ninh)
2 VGI (Ba Ria Vung Tau)
Chile 1
1 Concepcion
Brazil 2
1 Caçapava
Barra Velha
Malaysia 2
MSG (Johore Bahru)
Argentina 1
1 Llavallol
Operated by NSG Group 26 (Data : as at FY2016)
29 July 2016 FY2017 Quarter 1 Results 35
Global Automotive OperationsTampere Laitila
Collingwood Rossford Shelbyville Versailles Mexicali
San Salvo Sagunto
Witten
Aken
Sandomierz
Chimielow
Maizuru Tochigi Kyoto
Tianjin
Caçapava
Guilin Sungai Buloh
Vizag
Munro
29 July 2016 FY2017 Quarter 1 Results 36
GROUP
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