Nippon Sheet Glass Company, Limited Business report FY2007

Business Highlights

Financial Overview
(in million
FY2007 FY2006 Rate of
Main factors
Sales 865,587 681,547 27.0 -Increase in sales and income is due to the fact that the full-year achievement of Pilkington was incorporated into the figures; three-months more compared to the nine months of the previous fiscal year. 

-The Company enjoyed strong sales in all three divisions; The glass and building materials division, the automotive glass division and the functional glass division.
Operating income 46,462 23,822 95.0
Ordinary income 30,437 8,001 280.4
Current net income 50,416 12,095 316.8
Automotive Glass Business
Sales 364,818 268,229 36.0 -Sales and operating income increased in almost all regions due to continued growth over the previous fiscal year.
Operating income 23,939 13,039 83.6

Automotive Glass Business


-Sales breakdown by geographic region is as follows: About 53% in Europe, about 15% in Japan,  about 22% in North America, and the remaining 10% in other areas.


-The Company's sales volume exceeded the market average and its own performance in the previous fiscal year. This was thanks to brisk sales of vehicle models for which the Company supplies its products. 


-The Company improved its profitability as a result of improved efficiency and reduced costs, despite the fall in income due to a lack of new vehicle model launches in this period.  

North America

-Annual sales of glass for new model assemblies was increased in spite of the fact that production volumes for new passenger cars decreased by 4% year-on-year. However, this sales increase was offset by unfavorable rates of foreign currency translation.

South America

-Demand for passenger cars increased by 29% year-on-year, and Group sales also rose.


-China continued to see rapid market growth. Under these conditions, the Company improved its sales and income by enhancing cost and production efficiencies.


The Company established a new "Global Flat Glass Business" division on April 1, 2007, to merge sheet glass divisions of the Company and Pilkington, which were engaged in automotive and building glass areas. It also established  the "Global Headquarters" to serve as the Group's headquarters for both companies. (Press release January 15, 2007)

Business strategy

The Company revealed its brand strategy in October 2007. At the top level, the Company will in future adopt the brand 'NSG Group'. NSG is the abbreviation for Nippon Sheet Glass. The Company also decided to adopt the 'Pilkington' brand for its global Flat Glass Business (which makes glass for buildings and vehicles worldwide). (Press release October 15, 2007)

Recent developments outside Japan


In August 2007, the Company's wholly owned subsidiary, Pilkington, started constructing a plant for manufacturing automotive glass in Vishakhapatnam, India.

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Restructuring business

The Company decided to sell the sheet glass business in Australia and New Zealand. The Company entered into a sale agreement for all the shares of Pilkington (Australia) Limited and Pilkington (New Zealand) Limited, wholly owned by Pilkington Group Limited, to CSR Limited. CSR Limited is a manufacturer of building, sugar and aluminum products, and is based in New South Wales, Australia. Sales price was about 70 billion yen. (Press release June 29, 2007)


R&D Structure

-The Company conducts research of automotive glass at its technology research center in Itami city, Hyogo prefecture.

-In the automotive glass business, the Company aims to manage the business more efficiently by integrating the R&D organization of Pilkington with its own. 

R&D Expense
(in million JPY) FY2007 FY2006 FY2005
Overall 15,500 13,660 7,623
Automotive Glass Division 5,200 3,519 -
Glass and Building Material Division - - 2,590
* Starting from FY2006 (ended march 2007), "Glass and Building Material Division" and "Automotive Glass Division", which were included in "Glass and Building Material Division" are indicated separately.

R&D activities (Automotive Glass Division)

-The Company develops automotive glass and antennas.

-Amongst other things, the Company works to develop new products aiming at improving comfort and safety in the vehicle compartment, reducing noise in the vehicle compartment, and decreasing environmental impacts.

Investment Activities