Investor Message
(1) Our management policy and long-term mission and strategy
The merger between Pilkington and NSG provides a unique opportunity to create a truly global leader in the glass manufacturing industry. This merger comes at a time when the industry faces a set of new challenges, and we can successfully address them by leveraging our scale, global scope and human capital.
The strategic intent of this merger is to take advantage of a growing and globalising glass industry. By joining forces we can better serve our customers across the globe, more effectively out-perform our competitors, and reduce our costs by combining technical competences.
We aim to leverage:
- combined scale to manage the increasing R&D investment and spending on business intelligence required by environmental regulations and demanding customers.
- complementary geographic coverage to better serve our globalising OE customers and more effectively outperform competitors.
- improved cost efficiencies through exploiting joint Pilkington-NSG technical competences.
We intend to become the Number 1 flat glass company globally, with very strong positions in terms of size and financial performance.
Our success will be measured in terms of being recognised by our customers as their preferred supplier, by our people as their preferred place to work, and by our shareholders as their preferred long-term investment.
The fundamental principles of the Company’s basic management policy are ensuring open and fair business dealings, adhering to corporate ethical standards, and contributing to the resolution of global environmental issues, all aimed at developing a company with a spirit of innovation and a global presence, with the aim of improving Group company value for all stakeholders.
The Company completed the acquisition of the UK-based company Pilkington in June 2006, and assimilation of Pilkington as a wholly-owned subsidiary has brought about major changes, not only in the Company’s business structure, but also in our operating environment and the issues we need to address.
Given a managerial environment characterized by growing global competition, rapidly changing business circumstances and expanding social responsibilities for companies, the enlarged NSG Group will seek to make the concept “People are the most important asset of our company.” a value shared throughout our worldwide operations.
The Company also intends to expand its business scope even further over the long term, extending its reach beyond architectural and automotive flat glass and sharpening its edge in the information and electronics and glass fiber sectors and in the Company’s market and technological assets.
Ten-year strategy, to be implemented in three stages
To achieve this business objective, the Company will be implementing a ten-year strategy from FY2008 to FY2017, to be implemented in three stages.
On 21 November 2006, we announced the launch of a four-year Medium-term Plan covering the period from April 2007 to March 2011. This represents the first phase in the implementation of our long-term vision.
The Medium-term Plan is designed to consolidate the Group’s strength and expand its performance by continuing efforts to restore financial soundness, placing emphasis on improving productivity and quality, and endeavoring to distinguish itself from its competitors.
Medium-Term Plan (FY2008-FY2011) (1.2MB/64pages)
(2) Policy of Earnings Appropriation and Reduction of Minimum Stock Dealing Unit
With regard to earnings appropriation, we intend to maintain a stable dividend payment with the priority of reducing the Group"s level of borrowing, which increased as a result of the acquisition.
We will carefully consider the possible reduction of minimum stock dealing unit, which we understand is one of sensible options to enhance liquidity of the stock, based on the “cost - benefit” viewpoint as well as our financial performance and the conditions of the market.
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