INTRODUCTORY NOTE AND DEFINITIONS EXECUTIVE SUMMARY 1. THE FLAT GLASS INDUSTRY AND GLOBAL MARKET STRUCTURE 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 2. Total World Market for Flat Glass Routes to Market Industry Economics Global Players and Market Shares World Float/Sheet Glass Markets Automotive Markets
GLASS – A GROWTH INDUSTRY 2.1. Global Demand forFlat Glass 2.2. Building Products 2.3. Automotive Glazing Industry
PILKINGTON – A LEADING BRAND IN A GROWTH INDUSTRY 3.1. 3.2. 3.3. 3.4. 3.5. Corporate Overview Business Profile Building Products Overview Automotive Overview Social Responsibility
APPENDIX 1 – Glass Manufacture APPENDIX 2 – NSG Group and Associates' Float Lines
This document is intended as a briefing onthe glass industry and the position within it of NSG Group’s Flat Glass Business, trading under the brand ‘Pilkington’. The content of the paper is for general information only, and may contain non-audited figures. Every care has been taken in the preparation of this document, but Pilkington Group Limited accepts no liability for any inaccuracies or omissions in it. Pilkington Group Limited makesno representations or warranties about the information provided within the document and any decisions based on information contained in it are the sole responsibility of the user. No information contained in this document constitutes or shall be deemed to constitute an invitation to invest or otherwise deal in shares in Nippon Sheet Glass Co Ltd.
© 2009 Pilkington Group Limited
Pilkingtonand the Flat Glass Industry 2009
INTRODUCTORY NOTE AND DEFINITIONS
The objective of this publication is to provide background information on the world’s flat glass industry and, as an industry leader, the position within it of the NSG Group. In June 2006, Nippon Sheet Glass Co., Ltd acquired Pilkington plc through NSG UK Enterprises Limited; a wholly-owned subsidiary. The decision wassubsequently taken to brand the enlarged Group as ‘NSG Group’ and to use the ‘Pilkington’ brand for all of the Group’s Flat Glass businesses. Consequently, in this publication, all references to ‘Pilkington’, with the exception of a few historical allusions, relate to the Flat Glass businesses of the NSG Group. Where the operations of the whole Group are referred to collectively, the terms ‘NSG Group’ or‘the Group’ are used. The Group’s Flat Glass businesses comprise Building Products businesses in Europe, Japan, North America, South America, China and South East Asia, which are managed on a regional basis, and the Pilkington Automotive business, which is managed globally. It should be borne in mind that the Flat Glass businesses of the NSG Group account for around 90 per cent of the NSG Group’sbusiness by sales and that the Group also has a third business line, Specialty Glass, accounting for around 10 per cent of Group sales, which is not covered by this publication. As a result, any figures referring to ‘Pilkington’ or ‘NSG Group Flat Glass’ sales and operating income are lower than those for the NSG Group as a whole. The strategic direction of NSG Group itself is covered in Part Threeof this publication. Readers of this year’s report will be well aware that the financial year ended 31 March 2009 has been a very unusual one for the world’s Flat Glass industry, with a major disruption to normal trading patterns, particularly in the second half of the financial year. These factors have made the preparation of this year’s report particularly difficult. The unprecedented globaleconomic downturn has severely affected glass demand in both the building and automotive sectors, leading to major disruptions in global demand, capacity utilisation, capital investment and normal growth patterns. The impact on individual companies, which make up the industry’s customer base, has been well documented. The past year has seen an unprecedented level of corporate activity, with some...