Nippon Sheet Glass : 2023/3 2nd Quarter Results Key Points [

10 November 2022

2nd Quarter results of Financial Year ending 31 March 2023

• Increased revenue and operating profit YoY, ahead of H1 forecast
• Continued strong performance in Architectural and Technical Glass. Partially realized price pass- through in Automotive. Higher energy, materials and other costs offset by sales price and volume improvements
• Recording impairment loss in Automotive business Europe mainly due to interest rate rises. Reducing financial risk since the acquisition of Pilkington, toward the restoration of a strong financial base
• Maintaining shareholder's equity ratio above 15% more than RP24 target
• Full-yearrevenue forecast revised upward reflecting relatively strong performance in H1 and weaker JPY. Full-year operating profit forecast remained considering H2 business environment uncertainty

1. 2nd Quarter results of Financial Year ending 31 March 2023

• Group revenue in Q2 of JPY 197.7 billion (+54.7 bn, +38.3% YoY), and operating profit of JPY 6.2 billion (+0.6 bn, +11.4% YoY)
• The cumulative revenue of JPY 375.7 billion (+85.0 bn, +29.2% YoY), and operating profit of JPY 14.4 billion (+1.7 bn, +13.7% YoY)
• JPY 48.8 billion of impairment of goodwill and intangible assets related to Automotive business in Europe recorded as exceptional loss, originally arising on the acquisition of Pilkington in 2006, leading to net loss. However, reducing financial risk since the acquisition of Pilkington, toward the "restoration of financial stability", key initiative of RP24
• Shareholder's equity ratio of 15.1% (-0.4 pt vs PY end), more than RP24 target of 10%
• Consolidated Income Statement>

*Profit/(loss) attributable to owners of the parent

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Architectural Glass	Continued favourable demand in all regions. Revenue increase partly due to depreciated JPY.
	Profit increase for H1 with price improvement and cost saving efforts offsetting input cost
	rises particularly energy though profit declined in Q2 according to weaking demand in EU.
	Continued robust demand for solar energy glass
Automotive Glass	Revenue increased in H1 partly due to depreciated JPY, while operating loss recorded with
	constrained vehicle build due to the shortage of semiconductor and other parts, and also
	higher input costs, despite cost saving efforts. Operating loss shrank with the realization of
	incremental selling price for vehicle manufacturers in Q2
Technical Glass	Improved revenue and profit, with stable demand and cost reduction efforts (like-for-like
	basis without battery separator business disposed in September 2021).
	Overall maintaining high profitability

2. Forecast for Financial Year ending 31 March 2023

• Full-yearrevenue forecast revised upward reflecting strong performance in H1 and weaker JPY
• Full-yearoperating profit forecast remained considering H2 business environment uncertainty
• Continuous impact of input cost increases anticipated, with higher energy costs and worldwide inflation trend
• Focusing on profitability improvement through continuous cost reduction, expansion of VA products and price increase across the whole Group
• Net loss forecasted, however, reducing financial risk since the acquisition of Pilkington, toward the
  "restoration of financial stability", key initiative of RP24

*Profit/(loss) attributable to owners of the parent

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3. Update of Transformation Initiatives under Revival Plan 24

(Reference) Impairment of Goodwill and Intangible Assets Related to Automotive Business in Europe

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