CEO Message

On behalf of the NSG Group, I would like to express my sincere gratitude for your continued support.

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.

Prospects for Fiscal Year ending March 31, 2025 (FY2025)

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 for solar energy glass remains positive and the new facility in Malaysia, which came on stream in December 2023, is expected to contribute to business improvement throughout the year while the existing facility in North America will be converted for production of solar glass. In Automotive glass business, sales volume is expected to recover as vehicle production constraints are resolved although at a slower pace, and we will also continue negotiations to increase selling prices. Technical glass business is expected to remain highly profitable.

The Group strives to mitigate the impact of fluctuations in the business environment on its performance further, and based on the new Medium Term Plan “2030 Vision: Shift the Phase” announced in May this year, we will transform into a profitable company, reduce debt drastically with enhanced cash generation capability, and bolster the equity capital by pursuing the strategy focused on the 4D’s (Business Development, Decarbonisation, Digital Transformation, Diverse Talent).

Dividends

The Group’s basic policy regarding the distribution of profit to shareholders is to declare stable dividends on common shares based on sustainable business results.

Regretfully, however, the Group decided not to declare dividends on common shares for the fiscal year to 31st March 2024, taking into consideration its financial situations comprehensively. I am deeply sorry and sincerely apologize to our shareholders. The Group recognizes the importance of dividends to its shareholders and will concentrate its efforts to improve profitability and shore up its financial base with a view to the resumption of dividend payment as early as possible.

I would like to ask your continued understanding and support.

June 2024
Munehiro Hosonuma
Representative Executive Officer
President and CEO
Nippon Sheet Glass Co., Ltd.