HOME > About Us > Message from the Management
For Future Growth and Development
The Nippon Electric Glass (NEG) Group entered fiscal year 2010, which ended March 31, 2010, under extremely severe business conditions in the wake of the serious global economic contraction. At the end of the fiscal year, however, the Group reported the same level of sales as in the previous fiscal year and recorded increased profits. A major factor contributing to these results was rapid recovery in the flat panel display (FPD) business, its mainstay segment, mainly due to business pickup in China.
To better address issues that should be resolved to achieve business growth and development in the future, NEG formed a new administration by installing Yuzo Izutsu (former Vice Chairman) as Chairman of the Board together with President Masayuki Arioka (reappointed). Adhering to the basic policy of cash flow-based management, the Company aims to create a better-balanced business structure by both reinforcing the core businesses centering on the display field and expanding non-display businesses. Moreover, we will aggressively develop business in promising fields that offers growth potential.
Coping with Growing FPD Markets and Aiming to Create Better-Balanced Business Structure
The serious economic contraction has brought about changes in the global market structure, with market focus shifting from developed countries to China and other emerging economies. As for the market of our glass substrates for FPDs, demand is expected to increase in those emerging countries. Further growth in this segment is also expected with expanded use of FPD glass in more applications (e.g., small personal digital assistants, ultra-large digital signage, 3D TVs, etc.). Since demand growth and lower prices are inextricably linked, it is important to increase productivity to remain competitive. In fiscal year 2011, the Company is stepping up its efforts to enhance productivity of existing facilities and improve quality. At the same time, aiming to create a better-balanced business structure, NEG will also expand business in other segments such as glass fiber and glass for electronic devices.
Activities in Promising Fields
NEG has sown the seeds for future growth in key promising fields such as next-generation displays, new types of lighting, and energy. In the next-generation display field, development efforts have focused on organic light-emitting diode (OLED) displays. In the new-type lighting field, development is under way on glass for OLED lighting and on phosphor glass for light-emitting diodes. In the energy field, the Company is developing substrate glass for solar batteries, while commencing shipment of high efficient solar reflector for use in solar thermal energy power generation.
Meanwhile, NEG is also working toward manufacturing thinner sheet glass, which is considered to be a key technology for business development in these promising fields. The Company has successfully manufactured ultra-thin sheet glass with a thickness of several scores of micrometers that is thin enough to be rolled up. If roll-to-roll processing of sheet glass is made possible, like resin films it would bring various advantages, such as improved productivity, resources savings, and energy conservation.
While our existing businesses serve as the backbone of the Company’s stable business management, we continue our efforts toward steady development in these promising fields.
Responsibilities to All Stakeholders
Companies like ours engaged in manufacturing have a responsibility to offer useful products for the public, and also should comply with rules required by society and live in harmony with society as a corporate citizen. We at the NEG Group have established and implemented the Group’s Code of Conduct under the motto of Activities in Good Faith.
Moreover, we have also been vigorously engaged in corporate social responsibility (CSR) activities, placing emphasis on preserving the environment, contributing to local communities, and employing disabled persons. For environmental preservation, we are working to reduce CO2 emissions, promote glass recycling, and avoid the use of substances of concern. Activities for contributing to local communities focus on human resource development of local people who will lead the next generation. For example, we are carrying out collaborative projects with the University of Shiga Prefecture and conducting donated courses at the university. Regarding employment of disabled persons, the NEG Group achieved an employment rate of such persons of 3.4% in the previous fiscal year, far exceeding the statutory rate (1.8%). However, we are not merely pursuing a higher rate. We are also exploring possible workplaces in which disabled people can join us in the manufacturing of glass and thereby help improve the work environment so that we can share the joy of working with those who are disabled.
Returning profits to our shareholders is a key priority management issue at NEG. We provide stable and long-term return of profits to our shareholders, while we cope with securing needed funds for equipment investment and interest-bearing debt reduction and increasing retained earnings to prepare for future business activities. The NEG Group paid an increased dividend in fiscal 2009 for the sixth consecutive accounting period in real terms. Taking into consideration the financial conditions and business performance outlook, we intend to continue providing a steady profit return to our shareholders.
Yuzo Izutsu, Chairman of the Board
Masayuki Arioka, President