Nitto Boseki : Main Questions and Answers at the Financial Results Briefing (Fiscal Year Ending 2024/Mar 1Q) （366KB）

Aug 10, 2023

Nittobo

Main Questions and Answers at Financial Results Briefing For the First Quarter of the Fiscal Year Ending March 31, 2024

（Held on August 3, 2023）

Ｑ︓Please tell me about the background and sales trends of the rapid recovery in demand for Special Glass in the last three months.

Ａ︓We have taken a view that growth in demand for low-dielectric glasses came from increased demand for data centers related to generative artificial intelligence. Movements have been active since the end of the Golden Week holiday, and sales volume in the second quarter is expected to exceed than the first quarter sales. Meanwhile, sales volume for semiconductor packages is growing more than the expectation at the beginning of the fiscal year, but overall sales volume is expected to be harsh and grow only moderately.

Ｑ︓Rising energy prices are calming down, but what about the impact of improved earnings due to lower energy costs on your earnings forecasts?

Ａ︓Lower energy prices are a positive factor for earnings, but we had factored this into our forecasts to some extent at the previous forecast announced in May. The revised profit forecast is more impacted by the increase in sales volume of Special Glass.

Ｑ︓Why have not you changed your forecasts for the second half of the fiscal year?

Ａ︓The previous forecasts incorporated a high sales level due to the rapid recovery of Special Glass sales in the second half of the fiscal year. In the current business environment, we are uncertain about the sales trend of Special Glass in the second half of the fiscal year. In addition, the situation for general-purpose products remains tough compared to our initial plan. As a result, we have not revised our forecasts for the second half of the fiscal year, taking those factors into account.

Q︓Please tell me about Nittobo's supply capacity and competition for the rapidly increasing demand for low-dielectric glasses.

A︓Under the current tight supply and demand situation, low-dielectric glasses

are being supplied from two bases: a factory in Fukushima Prefecture in Japan and a new factory which was set up in Taiwan in 2021. Preparations are underway to expand Special Glass production capacity at the Taiwan factory, which we believe will help us to meet the growing demand.

Although there are competitors in the low-dielectric glass market, we intend to place priority on increasing profits by increasing sales volume and expanding market share.

Ｑ︓Please tell me about the trend of next-generationlow-dielectric glass such as NER and NEZ (DX I).

Ａ︓As for NER, we will facilitate our efforts for mass production to ensure that we can meet the demand for data center equipment that will be in full swing in FY2024. As for NEZ, we will accelerate the development speed and promote early certification from customers in order to meet the demand for the next generation of data center equipment in FY2024 and onward.

※This document is provided for reference purposes only and is not a word-for-word transcript of the question-and-answer session at the briefing, but rather a concise summary based on our own judgment.

※The forecast figures and business environment forecasts contained in this document are based on information available to the Company at the time of publication. These statements include potential risks and uncertainties, and therefore do not imply a commitment or guarantee of future business performance and measures. Factors that may affect the Company's performance include, but are not limited to, economic conditions, demand trends, exchange rate fluctuations, and fuel price fluctuations.