Nippon Electric Glass : CONSOLIDATED FINANCIAL RESULTS for the First Quarter of the Year Ending December 31, 2021 (Unaudited)

Translation

Notice: This English version is a translation of the original disclosure in Japanese released on April 28, 2021 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.

April 28, 2021

CONSOLIDATED FINANCIAL RESULTS

for the First Quarter of the Year Ending December 31, 2021 (Unaudited)

Company name:	Nippon Electric Glass Co., Ltd.
Listing:	First Section of the Tokyo Stock Exchange
Securities identification code:	5214
URL:	https://www.neg.co.jp/
Representative:	Motoharu Matsumoto, President and Representative Director
Inquiries:	Koichi Tsuda, Director and Senior Vice President
	TEL: [phone] (from overseas)
Scheduled date to file quarterly report:	May 14, 2021
Scheduled date to commence dividend payments:	-
Supplementary material on quarterly financial results:	None
Quarterly financial results presentation meeting:	None

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

1. Consolidated performance for the first quarter of the year ending December 31, 2021 (From January 1, 2021 to March 31, 2021)

(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 three months ended		%		%		%		%
March 31, 2021	68,599	5.7	6,929	73.0	11,998	236.8	6,804	204.6
March 31, 2020	64,903	(4.4)	4,004	(20.2)	3,562	(43.7)	2,234	(42.4)
Note: Comprehensive income:
For the three months ended March 31, 2021:	15,197 million yen [	-%]
For the three months ended March 31, 2020:	(7,192) million yen [	-%]
	Earnings		Diluted Earnings
	per share		per share
For the three months ended		yen		yen
March 31, 2021		70.41		-
March 31, 2020		23.12		-

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1. Consolidated financial position

		Total assets		Net assets	Equity ratio
As of					%
March 31, 2021		666,792		486,906	72.4
December 31, 2020		658,139		476,920	71.7
Reference: Equity:
As of March 31, 2021:	482,479 million yen
As of December 31, 2020:	472,198 million yen

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	-	50.00	100.00
December 31, 2020
For the year ending	-	---	---	---	---
December 31, 2021
For the year ending	---	50.00	-	50.00	100.00
December 31, 2021
(Forecasts)

Note: Revision of the forecasts most recently announced: None

3. Consolidated earnings forecasts for the year ending December 31, 2021 (From January 1, 2021 to December 31, 2021)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit attributable	Earnings
		to owners of parent	per share
For the six months		%		%		%		%	yen
140,000	21.3	15,000	93.1	19,000	175.8	11,000	61.2	113.82
ending June 30, 2021
For the year	280,000	15.3	28,000	58.5	32,000	67.5	21,000	37.7	217.30
ending December 31, 2021

Note: 1. Revision of the forecasts most recently announced: Yes

2. For the revision to consolidated earnings forecasts, please refer to "Notice Concerning Revision of Consolidated

Earnings Forecasts for the Six Months Ending June 30, 2021 and the Year Ending December 31, 2021," which was announced today (April 28, 2021).

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* Notes

1. Changes in significant subsidiaries during the three 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
4. 1. Changes in accounting policies due to revisions to accounting standards: None
   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
5. Number of issued shares (common stock)
6. 1. Total number of issued shares at the end of the period (including treasury stock)

As of March 31, 2021	99,523,246 shares
As of December 31, 2020	99,523,246 shares

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

As of March 31, 2021	2,882,260 shares
As of December 31, 2020	2,882,008 shares

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

For the three months ended March 31, 2021	96,641,160 shares
For the three months ended March 31, 2020	96,618,602 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

(Proper use of earnings forecasts)

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 Three Months" on page 5.

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Qualitative Information Regarding Consolidated Results for the Three Months

1. Information regarding operating results (Three months ended March 31, 2021)

1. Overview

The global economy has been showing signs of recovery, although the spread of the novel coronavirus disease (hereinafter called COVID-19) continues to affect economic activity. In the domestic economy, capital investment and production are showing signs of recovery, despite a weak employment situation and personal consumption.

Under these circumstances, net sales in the first quarter of the fiscal year (from January 1 to March 31, 2021) exceeded those of the same period of the previous fiscal year (from January 1 to March 31, 2020) due to an increase in shipments of our mainstay products, glass for flat panel displays (FPDs) and glass fiber, against a backdrop of strong demand in the display and automobile-related markets, and also due to generally strong performance of other products.

In terms of profit/loss, operating profit, ordinary profit, and profit attributable to owners of parent all exceeded respective results in the same period of the previous fiscal year due to factors such as the increase in net sales and productivity gains.

B. Operating results				(Billions of yen)
			Three months ended	Three months ended	Change (%)
			March 31, 2020	March 31, 2021
	Net sales		64.9	68.5	6
	Operating profit		4.0	6.9	73
	Ordinary profit		3.5	11.9	237
	Profit attributable	to	2.2	6.8	205
	owners of parent

Note: Amounts less than 100 million yen are omitted.

(Sales by products)

			Three months ended	Three months ended	Change
Reporting			March 31, 2020	March 31, 2021
	Segment
segment		billions	(%)	billions	(%)	billions	(%)
			of yen	of yen	of yen
		Electronics
		and	34.0	52	34.9	51	0.9	3
Glass		Information
	Technology
Business
	Performance
		Materials and	30.8	48	33.6	49	2.7	9
		Others
	Total	64.9	100	68.5	100	3.6	6

Note: Amounts less than 100 million yen are omitted.

(Net sales)

Electronics and Information Technology:

Shipments of glass for FPDs increased compared to the same period of the previous fiscal year amid persistently strong demand, due to steady gains in productivity with the Company having been able to successively start up production facilities sooner than planned subsequent to their suspension due to a power outage at a domestic plant. Shipments of glass for optical and electronic devices were at the same level as in the same period of the previous fiscal year due to firm performance in applications for home appliances and auto parts, and despite a downturn in shipments of glass for optical devices.

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Performance Materials and Others:

Shipments of glass fiber increased compared to the same period of the previous fiscal year, amid mounting demand mainly with respect to glass fiber for auto parts, due to progress made in restarting previously suspended production facilities and also as a result of our having fulfilled shipments using inventories. Shipments of glass tubing for pharmaceutical and medical use increased compared to the same period of the previous fiscal year, with such results facilitated by production of our new Malaysian facilities upon having been started up last year in order to address global market expansion. Shipments of heat-resistant glass increased compared to the same period of the previous fiscal year and shipments of glass for building materials were at the same level as in the same period of the previous fiscal year.

(Profit/loss)

Operating profit exceeded that of the same period of the previous fiscal year due to factors that include the increase in net sales and gains in productivity with respect to glass for FPDs.

Ordinary profit substantially exceeded that of the same period of the previous fiscal year largely as a result of having recorded significant foreign exchange gains attributable to revaluation of receivables and payables related to loans for overseas subsidiaries, in addition to the increase in operating profit.

Profit attributable to owners of parent rose significantly from the same period of the previous fiscal year due to factors that include the increases in operating profit and ordinary profit, along with extraordinary income recorded in association with a gain on sales of investment securities and insurance income related to damage incurred by domestic production facilities caused by a typhoon that struck in 2019, and despite extraordinary loss recorded due to expenses incurred with respect to temporary suspension of operations associated with the aforementioned power outage and facility repairs.

1. Information regarding consolidated earnings forecasts and other forward-looking statements (Consolidated earnings forecasts for the six months ending June 30, 2021)

					(Billions of yen)
	Six months ending June 30, 2021		Change		Change
	Previous forecast (A)	Revised forecast (B)		(B - A)		(%)
Net sales	135.0	140.0		5.0		4
Operating income	11.0	15.0		4.0		36
Ordinary income	15.0	19.0		4.0		27
Profit attributable to	8.0	11.0		3.0		38
owners of parent
Note: Amounts less than 100	million yen are omitted.
(Consolidated earnings forecasts for the year ending December 31, 2021)		(Billions of yen)
	Year ending December 31, 2021		Change		Change
	Previous forecast (A)	Revised forecast (B)	(B - A)	(%)
Net sales	270.0	280.0		10.0	4
Operating income	22.0	28.0		6.0	27
Ordinary income	26.0	32.0		6.0	23
Profit attributable to	16.0	21.0		5.0	31
owners of parent

Note: Amounts less than 100 million yen are omitted.

Although there are still no signs of the COVID-19 pandemic coming under control, the global economy is expected to mount a moderate recovery. On the other hand, the markets related to the Company could be affected by factors that include resurgences of COVID-19, the global semiconductor shortage, and developments involving international logistics.

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