The Group announced its new management principle "Our Vision" at the company's 100th anniversary in 2018. "Our Vision" comprises the Mission (core purpose), Aspiration (desired future position) and Core Values (the basis on which work and conduct ourselves).
With "Our Vision," The NSG Group is striving to realize a sustainable society by offering new values and services with glass swiftly and appropriately to meet the growing needs of our customers and society.
NSG Group's Medium Term Vision
Medium Term Vision:
A global glass supplier contributing to the world with high value-added glass products and services
Three focus areas the Group aims to contribute to
Our aspiration for the future direction of the Group
- To never fail to take up challenges and follow through to deliver results
- To continue to provide employees with opportunities to grow and find joy in working
Roadmap to Achieve Medium Term Vision
On 13th May 2021, the Group publicly announced “Revival Plan 24 (RP24)” as its new Medium Term Plan covering a three-year period from FY2022 to FY2024 aiming at building robust business for sustained growth and preparing the Group for the next disruption in the business environment.
In order to achieve Medium Term Vision, we will take actions in two steps, namely, Step I (RP24: FY2022 to FY2024) for business transformation and Step II (FY2025 and beyond) for sustained cycle of growth. RP24 is deemed as the period for business transformation during which time the Group will focus on drastic reform of profit structure, restoration of financial stability, and transformation of business portfolio so as to accomplish drastic and fundamental initiatives as a basic policy.
Main Initiatives and Financial Targets of RP24
1. Main Initiatives of RP24
In RP24, we will execute the following "Three Reforms" and "Two Key Initiatives" decisively and build business strength to sustain the cycle of growth
|(1) Cost structure reform
||Fundamental cost structure reform including headcount reduction, fixed cost reduction and procurement cost reduction will be executed to lower the cost base further
|(2) Business structure reform
||Expansion of value-added business, development of new growth businesses, and emphasis on investment and asset efficiency to transform business structure and sustain the cycle of growth
|(3) Corporate culture reform
||Value "customer focus", "swift decision making and action" and "overcoming difficulties," and transform into a company group that never fails to take up challenges and follow through to deliver results
Two Key Initiatives:
|(1) Restoration of financial stability
- Focus of growth investment on strategically core businesses and selectively allocate and prioritize other capital expenditure
- Thorough review of cost and improvement of productivity to build a robust business that can generate profit and free cash flow constantly
- Generation of free cashflow and net profit aiming to enhance equity, while proactively reviewing further enhancement of equity from a longer term viewpoint
|(2) Transformation into more profitable business portfolio
- Bold strategic review of shrinking or exiting non-core businesses
- Focus of management resources on growth and high value-added areas, considering investment and asset efficiency
- Business profitability improvement and management cost reduction to establish the cycle of sustained growth
2. Financial targets for the final year of RP24 (FY2024) are as follows:
Approach to Sustainability
Tackling climate change is a global challenge today and we also consider that it is the top priority management issue for the Group. While products indispensable for promoting energy creation and energy saving are expected to become more important in the future, the Group has the strength in providing such products that can contribute to the advancement of Eco Society as solar energy glass and energy saving glass for ZEB/ZEH and thus, will focus on further expansion of their sales.
Moreover, we will mobilize our all-out efforts to attain our 2030 goal of reducing our production process greenhouse gas emissions by 21 percent compared to the 2018 level and this target is certified as SBT* initiative. In order to achieve this target, we will reduce CO2 emission by 2 percent p.a. during the RP24 period by optimizing glass making process, developing energy saving technologies, and expanding the use of renewable energy. We will set feasible targets for the immediate future and concentrate on achieving them. After that, we will pave the way towards carbon neutrality by means of disruptive innovation. Specific steps to this end should be laid out soon.
In parallel, as a token of endorsing TCFD (Task Force on Climate-related Financial Disclosures) recommendations, the Group will conduct internal evaluation and analysis from the four perspectives of "governance", "strategy", "risk management", and "metrics and targets" at an early date so as to solidify its management foundation.
* SBT (Science Based Targets) are a set of greenhouse gas reduction targets consistent with scientific knowledge