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

9 February 2023

3rd Quarter results of Financial Year ending 31 March 2023

• Continued revenue and operating profit increase with improved price and volume, partly helped by weaker JPY. Sales price improvements absorbed continuous impact of input costs rise
• Maintaining shareholder's equity ratio above 10% which is mid-term management plan RP24 target
• Full-yearforecast revised upward reflecting relatively strong cumulative performance
• As an initiative of business structure reform in RP24, construction started to install online coating capacity for solar energy glass to an existing float furnace in Malaysia
  (Aiming at start of production from 2024/3 Q3).
  Solar energy glass expansion also under consideration in USA

1. 3rd Quarter results of Financial Year ending March 2023

• Group revenue in Q3 of JPY 190.6 billion (+38.3 bn, +25.2% YoY), and operating profit of JPY 9.7 billion (+7.9 bn, +432.8% YoY). The Automotive glass business returned to the black for the first time since Q1 of the previous fiscal year due to progress in price improvement and a gradual recovery from the impact of semiconductor shortages
• The cumulative revenue of JPY 566.2 billion (+123.3 bn, +27.8% YoY), and operating profit of JPY 24.2 billion (+9.6 bn, +66.3% YoY). Continued revenue and operating profit increase YoY in all businesses with price and volume improvement, toward the "restoration of financial stability", key initiative of RP24
• Shareholder's equity ratio of 11.6% (-3.9 pt vs PY end), maintaining above 10% of RP24 target
• Consolidated Income Statement>

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

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Architectural Glass	Remarkable revenue increase due to solid demand in all regions, partly helped by weaker
	JPY. OP improved with price increase mitigating input cost rises, particularly energy.
	Demand softened during Q3 in Europe. Continued robust demand for solar energy glass
Automotive Glass	Further progress in price improvement resulted in Q3 quarterly profit for the first time since
	Q1 of the previous fiscal year. Constrained vehicle build due to parts shortage continues but
	being resolved gradually
Technical Glass	Cumulative revenue and OP increase maintained with stable demand and cost reduction efforts
	(like-for-like basis without battery separator business disposed in September 2021). Sales
	volume decline due to lockdown in China and costs rise leading to less profitability in Q3

2. Forecast for Financial Year ending 31 March 2023

• Full-yearrevenue, operating profit, loss before taxation, loss for the period and net loss forecast revised upward reflecting strong cumulative performance
• Assume continuous input cost increases, with higher energy costs and worldwide inflation trend. Uncertain business environment is still anticipated with potential economic slowdown caused by rising interest rates
• Focusing on profitability improvement through continuous cost reduction, expansion of VA products and price increase across the whole Group to achieve full-year forecast

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

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3. Update of Transformation Initiatives under Revival Plan 24

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