GROUP
(from 1 April 2015 to 30 September 2015)
Nippon Sheet Glass Co., Ltd.
29 October 2015
29 October 2015
FY2016 Quarter 2 Results 3
FY2016 Q2 Results (from 1 April 2015 to 30 September 2015)Key Points Financial Results Business Update
Agenda
Forecast and Summary
29 October 2015
FY2016 Quarter 2 Results 4
Key Points - April to September 2015Trading profit remains at same level as previous year
Indications of improving outlook in Europe
Improved performance in Japan
Performance in North America and South East Asia
remains strong
Difficult market conditions persist in South America
Display business continues to face challenging competitive environment
29 October 2015
FY2016 Quarter 2 Results 55
FY2016 Q2 Results (from 1 April 2015 to 30 September 2015)Key Points Financial Results Business Update
Agenda
Forecast and Summary
29 October 2015
FY2016 Quarter 2 Results 6
Cum Q2 FY2016 321.7 | Cum Q2 FY2015 309.5 |
10.1 | 10.3 |
(4.0) | (4.2) |
6.1 | 6.1 |
(1.5) | 13.2 |
(8.8) | (8.8) |
(0.5) | 0.4 |
(4.7) | 10.9 |
(1.6) | 8.3 |
(2.7) | 7.9 |
27.1 | 26.3 |
(JPY bn)
Revenue
Trading profit
Amortization* 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
Profit reflects mixed market conditions
29 October 2015
FY2016 Quarter 2 Results 7
Trading profit
Q2
12 FY2015
10
8
6
4
2
Q2 FY2016
0
JPY bn
Total
10.3
Sales Vol/Mix
(2.9)
Selling Prices
0.1
Input Costs
2.4
Other
0.2
Total
10.1
29 October 2015
FY2016 Quarter 2 Results 8
Q1 | Q2 | Cum Q2 |
FY2016 | FY2016 | FY2016 |
(0.5) | (1.1) | (1.6) |
10.6 | 10.4 | 21.0 |
(14.9) | 3.9 | (11.0) |
(2.1) | (6.5) | (8.6) |
(1.2) | (0.6) | (1.8) |
(3.4) | 2.4 | (1.0) |
(11.5) | 8.5 | (3.0) |
(8.6) | (8.4) | (17.0) |
(0.3) | (0.2) | (0.5) |
(8.9) | (8.6) | (17.5) |
(20.4) | (0.1) | (20.5) |
(JPY bn)
Loss for the period Depreciation and amortization Net change in working capital Net interest paid
Tax paid Others
Net cash outflow from operating activities
Purchase of property, plant and equipment Others
Net cash outflow from investing activities Cash flow before financing activities
29 October 2015
FY2016 Quarter 2 Results 9
30-Sep-15 31-Mar-15
Net Debt (JPY bn) | 398 | 374 |
Net Debt/EBITDA | 6.8x | 6.5x |
Net Debt/Equity Ratio | 2.2 | 2.0 |
Q2 FY2016 Q2 FY2015
EBITDA Interest Cover Operating Return* on Sales | 3.4x 3.2% | 3.4x 3.3% |
* trading profit |
29 October 2015
FY2016 Quarter 2 Results 10
FY2016 Q2 Results (from 1 April 2015 to 30 September 2015)Key Points Financial Results Business Update
Agenda
Forecast and Summary
29 October 2015
FY2016 Quarter 2 Results 11
External Revenue - Group Businesses¥ 321.7 billion
Auto
North America 14%
Auto Japan
9%
Auto - ROW 6%
Technical
8%
Architectural Europe
15%
Architectural Japan 11%
Architectural North America 6%
Auto Europe
22%
Architectural - ROW 9%
Cumulative Q2 FY2016
29 October 2015
FY2016 Quarter 2 Results 12
Europe Q2 FY2015 v Q2 FY2016€m €m
1,000
800
Q2 FY2015
Q2
FY2016 40
Architectural
Profits were negatively affected by a cold repair, offsetting the positive impact of lower input costs
600
400
200
0
351 35330
20
16 15
514 527 10
0
Arch Auto Trading profit
Signs of market improvement in some regions
Automotive
Local currency revenues and profits improved slightly from previous year
Growth in Western Europe indicating a sustainable market recovery
29 October 2015
FY2016 Quarter 2 Results 13
Japan Q2 FY2015 v Q2 FY2016JPY bn JPY bn
Q2
70 FY2015
60
50
40 33
30
20
1.1
2.5
Q2 FY2016
35
4.0
3.0
2.0
1.0
Architectural
Results improved with increased volumes and prices, but market conditions prevented any significant upward price pressure
Automotive
Revenues and profits ahead of previous year, despite the fall of light-vehicles sales after the
2628
10
0
Arch Auto Trading profit
0.0
revised eco-car incentives
29 October 2015
FY2016 Quarter 2 Results 14
North America Q2 FY2015 v Q2 FY2016$m $m
Q2
600 FY2015
Q2
FY2016 60
Architectural
Revenues and profits improved, as architectural markets continue to show growth
400
200
0
149 163
33 3640
389 37120
0
Arch Auto Trading profit
Automotive
Revenues were slightly below the previous year
29 October 2015
FY2016 Quarter 2 Results 15
Rest of World Q2 FY2015 v Q2 FY2016$m $m
500
400
300
200
Q2 FY2015
256 27
Q2
FY2016 50
40
36
254
30
20
Architectural
Robust demand in South East Asia
Profits in Argentina affected by impact of cold repair
Automotive
Weak market conditions persist in South America
100
0
175 14910
0
Arch Auto Trading profit
29 October 2015
FY2016 Quarter 2 Results 16
Technical Glass Q2 FY2015 v Q2 FY2016JPY bn JPY bn
Q2
30 FY2015
20
2.4
Q2 FY2016
4.0
3.0
Technical Glass
Revenues and profits fell due to challenging competitive environment and production issues in Display
Robust demand for components
used in office printers
29 26
100.2
0
Revenue Trading profit
2.0
1.0
0.0
Volumes of glass cord used in engine timing belts were similar to the previous year
29 October 2015
FY2016 Quarter 2 Results 17
FY2016 Q2 Results (from 1 April 2015 to 30 September 2015)Key Points Financial Results Business Update
Agenda
Forecast and Summary
29 October 2015
FY2016 Quarter 2 Results 18
Revised ForecastOriginal Forecast FY2016
655
New Forecast FY2016
650
Movement
(5)
24
19
(5)
(JPY bn)
Revenue Operating profit
Challenging market conditions expected to persist in display glass business
Other businesses performing as expected
29 October 2015
FY2016 Quarter 2 Results 19
Trading profit remains at same level as previous year
Indications of improving outlook in Europe
Improved performance in Japan
Performance in North America and South East Asia
remains strong
Difficult market conditions persist in South America
FY16 revenue and operating profit forecast revised to reflect challenging market conditions in Display glass business
29 October 2015
FY2016 Quarter 2 Results 20
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 October 2015
FY2016 Quarter 2 Results 21
29 October 2015 FY2016 Quarter 2 Results 22
Revenue by Business(JPY bn) | Europe | Japan | North America | Rest of World | Total |
Architectural | 47.7 | 34.5 | 19.9 | 31.0 | 133.1 |
Automotive | 71.2 | 27.8 | 45.3 | 18.1 | 162.4 |
Technical Glass | 4.1 | 11.4 | 0.6 | 9.7 | 25.8 |
Others | 0.1 | 0.3 | 0.0 | 0.0 | 0.4 |
Total | 123.1 | 74.0 | 65.8 | 58.8 | 321.7 |
29 October 2015
FY2016 Quarter 2 Results 23
(JPY bn) | Architectural | Automotive | Technical Glass | Other | Total |
Trading profit | 9.1 | 4.1 | 0.2 | (3.3) | 10.1 |
(JPY bn) | Europe | Japan | North America | Rest of World | Total |
Trading profit | 2.1 | 0.1 | 4.2 | 3.7 | 10.1 |
29 October 2015
FY2016 Quarter 2 Results 24
Average rates used: | Q2 FY2015 | Q2 FY2016 |
JPY/GBP | 173 | 188 |
JPY/EUR | 140 | 135 |
JPY/USD | 103 | 122 |
Closing rates used: JPY/GBP | 178 | 182 |
JPY/EUR | 139 | 135 |
JPY/USD | 109 | 121 |
29 October 2015 | FY2016 Quarter 2 Results |
25
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