Nitto Boseki : Main Questions and Answers at the Financial Results Briefing (Fiscal Year Ended 2023/Mar) （367KB）

May 18, 2023

Nittobo

Main Questions and Answers at Financial Results Briefing

For the Fiscal Year Ended March 31, 2023

（Held on May 12, 2023）

Ｑ: What is the forecast of Special Glass for FY2023?

Ａ: Sales of Special Glass are expected to remain sluggish in T-glass for the semiconductor package substrates, however NE-glass for the motherboard application in data centers became active after the Golden Week holidays. T-glass is also expected to recover in the second half of the fiscal year. So far, there have been no major changes in the competitive environment for Special Glass.

Ｑ: What is the impact of energy prices in FY2023?

Ａ: Although hikes in fuel price have settled down, electricity prices will be a factor in cost increases, and energy costs will increase over the previous year.

Ｑ: Please tell me about future capital investment.

Ａ: Capital investment has run its course and no major capital investment is planned at this point of time. We will consider future investments as we discuss the next Mid-Term Business Plan.

1. Does the Company need to continue the composite materials business despite the expected fierce competition in the marketplace?

1. We expect a lot of needs for our glass fiber for the composite materials in fiber-reinforced plastic (FRP) in Japan. In addition, we strive to differentiate ourselves from our competitors by developing products to respond to an emerging need for the glass fiber for composite materials in fiber-reinforced thermoplastic (FRTP) such as environmental-friendly products.

Ｑ: Please tell me if you are considering the two pillars of electronic materials and Life Sciences in the consideration of the next Mid-Term Business Plan.

• : The two growth drivers include the glass fiber business for high-end electronic materials and the medical business. The expansion of growth

businesses will be considered from a perspective that is not an extension of the past.

In addition, in industrial materials, new needs are emerging, including the shift to EVs for automobiles, and we are proposing technologies such as the use of glass cloth for industrial materials.

1. Please tell us your view in light of the Next Mid-Term Business Plan on the Tokyo Stock Exchangeʼs request to companies with low P/B ratio to take

action.

1. We would like to formulate a Mid-Term Business Plan that incorporates the construction of a business portfolio based on improving capital productivity and capital profitability, rather than responding to short-term effects.

Ｑ: What is needed to achieve a stable ROE of at least 8%, as stated in the basic policy for the next Mid-Term Business Plan?

Ａ: Presently, we have not fully enjoyed the results of the up-front investment in Special Glass. We believe that stable earnings can be expected by promptly bringing the facilities in which we have made prior investments into full-scale operation.

※This document is provided for reference purposes only and is not a word-for-word transcript of the question-and-answer session at the briefing, but rather a concise summary based on our own judgment.

※The forecast figures and business environment forecasts contained in this document are based on information available to the Company at the time of publication. These statements include potential risks and uncertainties, and therefore do not imply a commitment or guarantee of future business performance and measures. Factors that may affect the Company's performance include, but are not limited to, economic conditions, demand trends, exchange rate fluctuations, and fuel price fluctuations.