Translation

Notice: This English version is a translation of the original disclosure in Japanese released on July 29, 2022 at 15:00 (GMT+9) and is only for reference purposes. In the case where any differences occur between the English version and the original Japanese version, the Japanese version will prevail.

Member of the Financial Accounting Standards Foundation

July 29, 2022

CONSOLIDATED FINANCIAL RESULTS

for the Second Quarter of the Year Ending December 31, 2022 (Unaudited)

Company name:

Nippon Electric Glass Co., Ltd.

Listing:

Prime Market of the Tokyo Stock Exchange

Securities identification code:

5214

URL:

https://www.neg.co.jp/

Representative:

Motoharu Matsumoto, President and Representative Director

Inquiries:

Mamoru Morii, Director and Senior Vice President

TEL: +81-77-537-1700 (from overseas)

Scheduled date to file quarterly report:

August 12, 2022

Scheduled date to commence dividend payments:

August 31, 2022

Supplementary material on quarterly financial results:

Yes

Quarterly financial results presentation meeting:

Yes (conference call for institutional

investors and analysts)

(in millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the second quarter of the year ending December 31, 2022 (From January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

For the six months ended

%

%

%

%

June 30, 2022

172,771

21.4

19,157

25.0

29,734

30.4

24,417

80.4

June 30, 2021

142,344

23.4

15,332

97.4

22,811

231.1

13,533

98.3

Note: Comprehensive income:

For the six months ended June 30, 2022:

46,680 million yen [108.6%]

For the six months ended June 30, 2021:

22,378 million yen [

-%]

Earnings

Diluted Earnings

per share

per share

For the six months ended

yen

yen

June 30, 2022

262.46

-

June 30, 2021

140.03

-

Note: "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations has been applied from the beginning of the first quarter of the fiscal year ending December 31, 2022, and relevant figures for the six months ended June 30, 2022 are after the application of said accounting standards and others.

- 1 -

  1. Consolidated financial position

Total assets

Net assets

Equity ratio

As of

%

June 30, 2022

759,514

540,420

70.6

December 31, 2021

698,129

499,742

70.9

Reference: Equity:

As of June 30, 2022:

536,038 million yen

As of December 31, 2021: 495,070 million yen

Note: "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations has been applied from the beginning of the first quarter of the fiscal year ending December 31, 2022, and relevant figures for the six months ended June 30, 2022 are after the application of said accounting standards and others.

2. Cash dividends

Annual dividends

First quarter-end

Second quarter-end

Third quarter-end

Year-end

Total

For the year ended

yen

yen

yen

yen

yen

-

50.00

-

60.00

110.00

December 31, 2021

For the year ending

-

60.00

---

---

---

December 31, 2022

For the year ending

---

---

-

60.00

120.00

December 31, 2022

(Forecasts)

Note: Revision of the forecasts most recently announced: None

3. Consolidated earnings forecasts for the year ending December 31, 2022 (From January 1, 2022 to December 31, 2022)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable

Earnings

to owners of parent

per share

%

%

%

%

yen

For the year

330,000

13.0

37,000

12.9

37,000

(17.7)

30,000

7.5

322.43

ending December 31, 2022

Note: Revision of the forecasts most recently announced: None

- 2 -

* Notes

  1. Changes in significant subsidiaries during the six months under review (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Application of special accounting for preparing the quarterly consolidated financial statements: Yes
  3. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
    1. Changes in accounting policies due to revisions to accounting standards: Yes
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
    4. Restatement of prior period financial statements after error corrections: None
  4. Number of issued shares (common stock)
    1. Total number of issued shares at the end of the period (including treasury stock)

As of June 30, 2022

99,523,246 shares

As of December 31, 2021

99,523,246 shares

  1. Number of treasury shares at the end of the period

As of June 30, 2022

6,480,328 shares

As of December 31, 2021

6,495,982 shares

  1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

For the six months ended June 30, 2022

93,033,919 shares

For the six months ended June 30, 2021

96,648,184 shares

  • This quarterly financial results report is exempt from quarterly review by Certified Public Accountants or Audit firm.
  • Proper use of earnings forecasts, and other special directions

The forward-looking statements, including earnings forecasts, contained in these materials are based on certain assumptions deemed to be reasonable by the Company and its subsidiaries ("the Company Group") and include risks and contingencies. Actual business results may differ substantially due to a number of factors. For more details, please refer to the section of "(2) Information regarding consolidated earnings forecasts and other forward-looking statements in Qualitative Information Regarding Consolidated Results for the Six Months" on page 5.

- 3 -

Qualitative Information Regarding Consolidated Results for the Six Months

  1. Information regarding operating results (Six months ended June 30, 2022)
  1. Overview

The global economy made progress toward the normalization of socioeconomic activities in major countries amid the spread of the novel coronavirus disease. At the same time, the risk of an economic downturn has been increasing due to rising raw material and fuel prices, supply constraints, etc., and the outlook has become increasingly uncertain. In the domestic economy, although there were signs of improvement in corporate earnings and personal consumption, there was a rapid weakening of the yen, in addition to the rise in raw material and fuel prices, leading to an increase in the prices of commodities.

Under these circumstances, net sales for the first half of the fiscal year (from January 1 to June 30, 2022) exceeded those of the same period of the previous fiscal year (from January 1 to June 30, 2021) due to strong performance of glass fiber, heat-resistant glass and other products despite a significant slowdown for glass for flat panel displays (FPDs) due to the impact of inventory adjustments by customers in the second quarter of the fiscal year (from April 1 to June 30, 2022).

In terms of profit/loss, both operating profit and ordinary profit exceeded those of the same period of the previous fiscal year. Profit attributable to owners of parent was significantly higher than that of the same period of the previous fiscal year due to an increase in ordinary profit, along with the recording of insurance claim income, etc.

As a change in accounting policy, "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations has been applied from the beginning of the first quarter of the fiscal year ending December 31, 2022. As a result, year on year comparisons are based on figures calculated using different standards.

B. Operating results

(Billions of yen)

Six months ended

Six months ended

Change (%)

June 30, 2021

June 30, 2022

Net sales

142.3

172.7

21

Operating profit

15.3

19.1

25

Ordinary profit

22.8

29.7

30

Profit attributable

to

13.5

24.4

80

owners of parent

Note: Amounts less than 100 million yen are omitted.

(Sales by products)

Six months ended

Six months ended

Change

Reporting

June 30, 2021

June 30, 2022

Segment

segment

billions

(%)

billions

(%)

billions

(%)

of yen

of yen

of yen

Electronics

and

73.6

52

83.6

48

9.9

14

Glass

Information

Technology

Business

Performance

Materials and

68.6

48

89.1

52

20.4

30

Others

Total

142.3

100

172.7

100

30.4

21

Note: Amounts less than 100 million yen are omitted.

- 4 -

(Net sales)

Electronic and Information Technology:

Although sales of glass for FPDs, mainly for 10.5 generation size glass, were strong in the first quarter of the fiscal year (from January 1 to March 31, 2022), sales were sluggish in the second quarter due to the impact of inventory adjustments by customers. Demand for glass for optical and electronic devices remained strong for use in home appliances, semiconductors, and auto parts. As a result, net sales of Electronics and Information Technology increased from the same period of the previous fiscal year.

Performance Materials and Others:

For glass fiber, product price revisions progressed amid firm demand mainly for high- performance resin used in auto parts. Heat-resistant glass continued to enjoy robust demand overseas, and domestic demand also recovered in the second quarter. Sales of glass tubing for pharmaceutical and medical use and glass for building materials were also firm. As a result, sales of Performance Materials and Others exceeded those of the same period of the previous fiscal year.

(Profit/loss)

In addition to the increase in net sales, operating profit exceeded that of the same period of the previous fiscal year as a result of the Company's ability to limit the impact of increased costs, primarily for raw materials and fuel, mainly by reflecting some of the cost increases in product prices. Ordinary profit was also higher than that of the same period of the previous fiscal year mainly due to an increase in foreign exchange gains attributable to revaluation of receivables and payables related to borrowings of overseas subsidiaries in non-operating income. Profit attributable to owners of parent was significantly higher than that of the same period of the previous fiscal year mainly due to the above factors contributing to increased profits as well as the recording of extraordinary income on insurance claim income related to power outages at domestic plants in 2020.

  1. Information regarding consolidated earnings forecasts and other forward-looking statements (Consolidated earnings forecasts for the year ending December 31, 2022)

(Billions of yen)

Year ending

December 31, 2022

Net sales

330.0

Operating profit

37.0

Ordinary profit

37.0

Profit attributable

to owners

30.0

of parent

Note: Amounts less than 100 million yen are omitted.

The outlook for the global economy is expected to remain uncertain mainly due to the impact of accelerating inflation and geopolitical risks. For glass for FPDs, it is expected to take some time for capacity utilization rates of customers to recover. For glass fiber, demand for high-performance resin used in auto parts is forecast to weaken in the latter part of the second half of the fiscal year, but shipments for wind turbine blades for wind power generation and for household equipment and building material applications are expected to be strong. In terms of profit/loss, although we will need to closely monitor raw material and fuel prices, logistics costs, exchange rate trends and other factors, we will strive to maintain profitability by matching production to demand trends and through initiatives such as improvements in productivity and cost reductions.

In light of the above outlook, the full-year consolidated earnings forecast for the fiscal

- 5 -

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Nippon Electric Glass Co. Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 06:13:08 UTC.