Nippon Electric Glass : Integrated Report 2020（1/2）

Integrated Report

For the year ended December 31, 2020

About Nippon Electric Glass

Corporate Philosophy

At Nippon Electric Glass, our corporate philosophy is

a reflection of our founding mission, a statement of our devotion

to creating products infused with the very best of human

civilization for the betterment of society.

Our corporate philosophy

We strive to build a brighter future for the world by uncovering the unlimited possibilities of glass for more advanced creative manufacturing.

Firmly rooted in the traditions of our founding mission, the NEG corporate philosophy plots

a path for our quest for sustainable growth.

Thanks to material design, melting, forming, and processing technologies, glass can be infused with different properties for a broad range of functions. We are dedicated to unlocking glass's potential to make life better and more comfortable for people and communities the world over.

Contents

About Nippon Electric Glass		Value Creation Strategies	The Foundation of Value Creation
2	Message from the Chairman	18	Message from the President	34	Corporate Governance
4	Business and Product					37	Messages from Outside Directors
	Development		Value Creation in Practice	38	Directors, Corporate Auditors,
6	Global Operations
		Executive Ofcers
8	Financial and Non-nancial					40	Compliance
22	Responding to COVID-19
	Highlights	43	Risk Management
	24	Research and Development
		44	CSR Foundation
Our Value Creation Story	26	Business Overview
46	Environment
				Electronics and Information Technology
10	The Transformations and			Display-related Business	52	Diversity and Inclusion
		Optical and Electronic Device-related
	Advances of Nippon Electric Glass			56	Community Contribution
			Business
12	Strengths of Nippon Electric Glass	30	Business Overview	58	Communicating with Stakeholders
14	Value Creating Process			Performance Materials and Others
16	The Value Chain and Sustainable			Glass Fiber-related Business
		Medical Care, Heat Resistance, and

Development Goals	Building Material-related Business

About	Our Value Creation	Value Creation	Value Creation	The Foundation of	Financial &
Nippon Electric Glass	Story	Strategies	in Practice	Value Creation	Corporate Information

Our slogan

Our vision

The world's leading manufacturer of special glass

Our goal is to become the world's leading manufacturer of special glass, with the best talent, the best technology,

and the best creative manufacturing ability. At the same time, we strive to run our Company in a way that inspires pride

among our workers and enables us to make a genuine contribution to the community. The way we see it, creative manufacturing

is achieved through state-of-the-art technological development, the highest quality standards, efcient production,

and a steady supply of products, all underpinned by a fundamental dedication to environmental sustainability.

		Our values
Customer rst:	Everything is based on accurate understanding and complete satisfaction of customers'
	requirements.
Get the job done:	We are dedicated to completing every task properly.
Broad minds and open communication: We think beyond existing norms and encourage frank communication among all
	departments and generations.
High ethical standards:	We are bound to act ethically and in good faith in all situations.
Consideration for the environment:	We are constantly aware of the need to be considerate of the environment, and strive to
	reduce our footprint.

Financial & Corporate Information

60 Analysis of Operating Results and Financial Situation

62 Nippon Electric Glass Co., Ltd. and Consolidated Subsidiaries for the Ten Most Recent Years

1. Consolidated Financial Statements

1. Corporate Information

Editorial Policy

Organizations Covered

The Nippon Electric Glass Group's 11 companies in Japan and 15 companies outside Japan are covered in this report. In cases where the coverage area of the data differs, we have indicated the appropriate coverage areas respectively.

Period of Reporting

Fiscal 2020 (January 2020 to December 2020). Some qualitative information regarding fiscal 2021 has also been included in this report.

Publication, Next Scheduled Publication

Issued in May 2021. Next scheduled issue in May 2022.

Editorial Guidelines

IIRC International Integrated Reporting Framework, GRI Standards, and others. The GRI Content Index can be found at https://www.neg.co.jp/en/ir/archive/annual/

Disclosure Policy

The Group Code of Conduct stipulates that our Group will disclose necessary corporate information in a timely and appropriate manner to enhance communication with concerned parties. Following this policy, we will continue to disclose important information related to our Group's activities to all stakeholders, including shareholders and investors, in a timely and appropriate manner.

Caution Concerning Forward-Looking Statements

Statements in this Integrated Report with respect to our Group's plans, outlooks, strategies, and other statements that are not historical facts, are forward-looking statements involving risks and uncertainties.

Integrated Report 2020

1

About Nippon Electric Glass

Message from the Chairman

Our Vision

Focused on becoming

the world's leading manufacturer

of special glass

In 2020, after the WHO revealed the emergence of the COVID-19 virus, individual countries were delayed in responding, resulting in the widening spread of the pandemic. The subsequent imposition of lockdowns in an effort to contain the pandemic led to a widespread decline in economic activity. The past year has been characterized by instability as society has alternated between periods of lockdown and periods of economic activity.

In the first half of 2020, our Company, as a supplier of glass products, was also deeply affected by the emergence of the COVID-19 pandemic. Soon after, however, demand for glass, a product essential to the functioning of society, remained strong. In response to this situation, our Group focused on maintaining our planned levels of production despite the difficulties posed by the pandemic.

2 Nippon Electric Glass

About	Our Value Creation	Value Creation	Value Creation	The Foundation of	Financial &
Nippon Electric Glass	Story	Strategies	in Practice	Value Creation	Corporate Information

This effort was supported by our strong company-wide commitment not to allow COVID-19 to impact the sites where we continuously melt glass at a minimum temperature of 1,000°C. In addition, we opened a new manufacturing facility for glass tubing for pharmaceutical and medical use, for which demand has remained quite high, in Malaysia, a country that had also suffered significant impacts from the COVID-19 pandemic. We were fortunate that our productivity in manufacturing display substrate glass, another product that enjoyed strong demand, exceeded our expectations.

We have the resilience to demonstrate our abilities without submitting to the crisis presented by the COVID-19 pandemic. We developed this fortitude by overcoming the many hardships we have encountered since our founding.

One of the biggest crises in our corporate history was the flooding of our Notogawa Plant in 1990. The embankments of the Echi River, which borders the plant site, were breached one night at 1:30 a.m., and our plant was severely damaged by the floodwaters. Before the water had even subsided, our president, supported on each arm by colleagues, entered the premises. By 5:00 a.m. he had established a disaster-response headquarters and launched early recovery efforts. With a strong desire to minimize inconvenience to customers, our employees fired the furnace that evening after a nonstop effort. We will never forget the joy and relief we experienced by overcoming that almost insurmountable challenge.

Masayuki Arioka

Chairman of the Board

By the fourth day we had restarted the press forming operation to produce glass for cathode ray tubes, and by the fifth day we had started spinning glass fiber. It took several more days to return fully to normal, but our customers praised our efforts as a remarkable recovery effort, and the sense of accomplishment we felt at that time remains deeply imprinted in our DNA.

I would also like to take this opportunity to express my heartfelt appreciation and respect to all the medical professionals who have remained so dedicated to the battle against COVID-19. We are pleased to have been able to contribute to their efforts by providing a large amount of relief supplies.

Looking ahead, we recognize that our greatest mission is to continue supplying the glass products on which society depends. We intend to demonstrate our strengths at overcoming all adversity, even in midst of the pandemic, as we continue to focus on our goal of becoming the world's leading manufacturer of special glass.

Integrated Report 2020

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