Financial Results For FY2022
Ended December 31, 2022

Investor Meeting
February 6, 2023

Nippon Electric Glass Co., Ltd.

©Nippon Electric Glass Co., Ltd.

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Contents• Financial Results for FY2022• Forecasts of FY2023 and Progress on

the Medium-term Business Plan
“EGP2026”©Nippon Electric Glass Co., Ltd.

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Financial Results for FY2022©Nippon Electric Glass Co., Ltd.

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Summary of Consolidated Financial Results
Net sales
Net sales exceeded the previous fiscal year supported by product pricerevisions, Japanese yen depreciation, and surcharges⚫ Sales volume fell below expectations due to worsening market conditions⚫ Glass for FPDs* slowed down due to production adjustments by customers⚫

Operating profit
Costs were rising due to soaring raw material and fuel prices, logistics costs,
and the ongoing depreciation of the Japanese yen⚫ Operating profit was lower than the previous fiscal year, because higher costs
due to lower operating rates centered on glass for FPDs had a major impact,
despite efforts to recover by price revisions and surcharges⚫

External circumstances and the impacts on our performance
Conflict between Russia and Ukraine had no direct impact, but had somesignificant indirect impacts, such as a rise in energy costs⚫ China's zero-Covid policy restricted operations, but no significant impact onbusiness performance⚫ Japanese yen depreciation pushed up sales, but operating profit margin
declined due to rising costs⚫

*FPDs : Flat Panel Displays©Nippon Electric Glass Co., Ltd.

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Summary of Financial Results（Billions of JPY）

FY2021
Net sales

FY2022

Change (%)

292.0

324.6

11.2

32.7(11.2%)

26.1(8.1%)(20.1)

Non-operating income / expenses

12.17.8(35.4)

Ordinary profit

44.9

34.0(24.3)

Extraordinary income / losses(5.8)

5.4-Profit attributable to owners of parent

27.9

28.1

0.9

Earnings per share (JPY)¥290.98¥302.76

4.0

Dividends per share (JPY)

¥110

¥120

‐

Operating profit（Operating margin）

Main topics of FY2022
Non-operating
income / expenses
Extraordinary
income / losses

Foreign exchange gains (+6.3 billions):revaluation of receivables and payables
related to borrowings of overseas subsidiaries
Insurance claim income (+4.8 billions):related to power outage at plants inJapan in 2020
©Nippon Electric Glass Co., Ltd.

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Consolidated Balance Sheet(Billions of JPY)

Dec 31, 2021

Dec 31, 2022

800

747.9
698.1

698.1
42.5

600

134.9

60.6
400

200

96.8

Notes and accounts
receivable-trade

53.7

59.0

Inventories

102.3

62.0
6.8

433.6

107.1

Cash and deposits

499.7

Other current assets

8.3

Non-current assets

476.2

Equity ratio

Total assets

Total liability& net asets

52.1

Notes and accountpayable-trade

105.5

Interest bearingdebts

61.4

Other liabilities

528.9

Net assets

Equity ratio

70.9%0747.9

70.1%

Total assets

Total liability& net asets

Inventory assets：Increased the product stock by the shipment decrease andsecured safety stock mainly for raw materials
Non-current assets：Increased due to progress in capital investment©Nippon Electric Glass Co., Ltd.

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Sales – Electronics & Information Technology
Glass for FPDs

（Billions of JPY）

⚫ Shipment volume decreased since 2Q due tocustomers’ production adjustments⚫ Production in line with demand trends⚫ Constructed an integrated production system
for G10.5 in Xiamen, China to meet growing
demand50.0

43.8

Sales Trend39.7
32.8 32.2

25.0

0.0
1Q

Glass for electronic devices

2Q

3Q

4Q

2022

⚫ Strong demand for semiconductors and image sensors⚫ Demand worsened since 3Q, mainly for electrical andelectronic applications⚫ Strong sales of products for communication base stations anddata centers, mainly in Europe and the United States⚫ Progress in commercialization of developed products in theautomotive, medical, and semiconductor fields(In-vehicle sensor glass, glass for supporting semiconductor wafer, etc.)©Nippon Electric Glass Co., Ltd.

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Sales – Performance Materials & Others
Glass fiber（Billions of JPY）

⚫ Shipment volume for automotive parts
decreased after 3Q⚫ Sales for housing equipment in North America
remained firm

50.0

Sales Trend
46.9 45.5
41.1
42.1

25.0

⚫ Japanese yen depreciation, price revisions
and surcharges supported sales
0.0
1Q

2Q

3Q

4Q

2022

Medical, heat-resistant, building materials⚫ Medical : Although demand for COVID-19 vaccine containers decreased,
Japanese yen depreciation contributed to sales

Strong sales for radiation shielding applications⚫ Heat-resistant : Significant increase in demand for stoves and cookers
in Europe⚫ Building materials : Weak demand for fire rated glass©Nippon Electric Glass Co., Ltd.

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Forecasts of FY2023 and Progresson the Medium-term Business Plan
“EGP2026”©Nippon Electric Glass Co., Ltd.

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Forecasts of FY2023
FY2023(Billions of JPY)
For reference

2Q(accum)Full year

Net sales

160.0

Operating Profit

FY2022

Change(%)

EGP2026

340.0

324.6

4.7

400.0

3.0

10.0

26.1(61.8)

45.0

Operating margin

1.9％

2.9%

8.1%

－11%

Ordinary profit

3.0

10.0

34.0(70.6)－Profit attributable toowners of parent

2.0

8.0

28.1(71.6)－60120120－－

Dividends forecast(JPY/share)※Assumption：1USD＝135JPY, 1EUR＝135JPY

The global economy is expected to remain uncertain, including anacceleration in inflation.
Steadily advance measures such as the development of new products,
manufacturing processes and investment in human resources for thefuture without loosening a handle.
©Nippon Electric Glass Co., Ltd.

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Impact of raw material and fuel prices
FY2022（Billions of JPY）

Originally
expectedResults

Causes(2/2/22 Publication)

Operatingprofit37.0

26.1

FY2022

FY2023(－) Soaring raw material and fuelprices(＋) Revision of product prices(＋) Increased sales due toJapanese yen depreciation(＋) Surcharge(＋) Productivity improvement(－) Decrease of sales quantity(－) Lowering capacity utilization rates(approx.
19.0)+approx.
8.0

FY2023Operatingprofit26.1

10.0

Causes(－) Soaring raw material and fuelprices(＋) Revision of product prices(＋) Surcharge(＋) Productivity improvement©Nippon Electric Glass Co., Ltd.

(approx.
40.0)+approx.
24.0
11Forecasts by Business⚫

FPDs⚫

⚫

Electronicdevices⚫
⚫

⚫

Glass fiber

MedicalHeat-resistant
Building materials⚫

⚫
⚫
⚫

Decrease in shipment volume due to production adjustments bycustomers
Utilize manufacturing bases in China to capture demand that isexpected to recover and to expand sales of G10.5 substrate glass
Strong sales for semiconductors
In optical-related fields, China's 5G communication infrastructure
investment slump is protracted
Promoting commercialization of developed products in focus
markets such as semiconductors and automobiles
Gradual recovery in demand centered on automotive-related
markets
Promoting product development with enhanced functionality andadded value
Glass tubing for medical use: Demand recovery expected in thesecond half of the year
Heat-resistant: Demand is expected to run its course, but sales
are expected to remain firm
Building Materials: Continuing sales promotion for fire rated glass©Nippon Electric Glass Co., Ltd.

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CAPEX and Depreciation
Planned 35.0 billion in FY2023
Investment in new markets, efforts toward carbon neutrality,and equipment regular repairs

CAPEX

Depreciation（Billions of JPY）

100

Planned 34.0 billion in FY2023

CAPEX

Depreciation

8060
40

68.0
49.3

29.7

20

44.8
28.5
20.1

35.0 34.0
24.9
23.4

26.7

28.9

0
18/12

19/12

20/12

21/12

©Nippon Electric Glass Co., Ltd.

22/12

23/12

Estimate
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Progress on “EGP2026”①Flexible investment
Glass for FPDs
Built an integrated production system for G10.5 substrate glass in Xiamen, China, and started
operation in 2Q 2022
⚫ Strengthen business foundation to meet increasing demand in the Chinese market⚫ Response for carbon neutrality and quality improvement through the introduction ofinnovative manufacturing processes

Glass for electronic devices
Capital investment in anticipation of growing demand for products for semiconductors isunderway

Glass Fiber
Introduced innovative manufacturing processes in Japan
Expanded manufacturing facilities in Malaysia, and started operationin 4Q 2022
⇒Respond to growing demand for automobiles, mainly in Asia, andglobal demand related to wind turbine blades for wind power
generation

Medical, heat-resistant, building materials
In anticipation of growing demand for glass tubing for medical use, capacity expansion isunderway©Nippon Electric Glass Co., Ltd.

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Progress on “EGP2026”②Promote new businesses
All-solid-state sodium-ion secondary battery is under development aiming forcommercialization in 2025

Glass ceramic
Positive
electrode
Glass ceramic
電源Electrolyte

Glass ceramic
Negative
electrodeNew(1) Features of our all-solid-state battery⚫ Oxides = nonflammable, atmospherically stable substances,high safety⚫ Sodium use = abundant resources without uneven distribution⚫ Wide operating temperature = stable operation in variousenvironments⚫ Easy to enlarge area = applicable to various applications(2) Development progress in 2022
Developed a glass ceramic electrolyte and realized an all-solidstate sodium-ion secondary battery made entirely of glass ceramic.
⇒ Contributes to improved performance and productivity

Business of jewelry glass infiora™ starts in the wedding industry⚫ Infiora™ has brilliance and transparency comparable to diamonds

and a fire that even exceeds them
⚫ Created a tiara using infiora™ beads and started rental business
Details : https://www.neg.co.jp/en/infiora/©Nippon Electric Glass Co., Ltd.

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Reference Material©Nippon Electric Glass Co., Ltd.

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Financial Results Trends
Net sales

Operating profit

Operating margin（Billions of JPY）
350

35%

324.6
300.3

292.0

300

257.5

30%

242.8

250

25%

20020%

15010050

15%

11.2%
8.3%
6.3%
24.8

16.2

8.1%

7.3%
17.6

32.7

26.1

0

10%
5%
0%

2018

2019

2020

©Nippon Electric Glass Co., Ltd.

2021

2022

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Sales by Region / Business

Trend of sales by region
EU, US, etc.

Asia

Japan

Trend of sales by business（Billions of JPY）
Electronics & Information Technology
Perfromance Materials & Others

324.6
300.3
90.3
（30%）

100%

292.0
257.5

242.8

71.7
60.4
（28%） （25%）

117.9
83.4
（36%）
（29%）

46%

51%

52%

56%

53%

49%

48%

44%

47%

2018

2019

2020

2021

148.7
Billions ofJPY

50%
160.2
（53%）

163.7
166.0
143.3
144.2 （57%） （51%）（56%） （59%）

49.6
42.5
42.9
42.3
38.1
（17%） （16%） （16%） （15%） （13%）
2018

2019

2020

2021

2022

54%
175.8
Billions ofJPY0%©Nippon Electric Glass Co., Ltd.

2022

18Cash Flows
CF from operation(Billions of JPY)

CF from investments
69.8

80
60
40

Free CF

52.0

47.8
32.4

28.1

21.6

20

38.1

31.5

7.3

0
-20
-40

-19.5

-14.3

-19.7
-31.7

-60

-25.5
-57.1

-80
2018

2019

2020

2021

©Nippon Electric Glass Co., Ltd.

2022

2023

Estimate

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Profit allocation policy
Continued and stable payment of dividends(maintaining or increasing dividends without reducing for over 20 years)▶ Dividends on equity ratio (DOE) :2% and upwards▶ Flexible acquisition of treasury stock
Dividend forecast for FY2023
Interim dividends:
JPY60/share
Year-end dividends: JPY60/share（Billions of JPY）
14.0（JPY）
140

Total amount

12.0

110
Dividends per share

10.0

100

The same as FY2013
on a 12 months basis

100

120

120

100

9080

8.0

120
10080

6.060

4.040

2.020

0.00
10/3

11/3

12/3

13/3

14/3 14/12 15/12 16/12 17/12 18/12 19/12 20/12 21/12 22/12 23/12
Estimate(9months)*Amounts of dividends per share are retroactively adjusted for the share consolidation.
©Nippon Electric Glass Co., Ltd.

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Major Announcements in 2022
DateTitle

March 15

The First Exhibit of All-Oxide All-Solid-State Sodium Ion Secondary Battery

April 6

Renewal of Certification for the Highest Three-Star Rating under the FY2021 Shiga
Biodiversity Initiative Certification System

April 19

Succeeds in Melting Glass with Combustion Technology Using a Hydrogen-Oxygen Burner

June 17

Agreement with the University of Shiga Prefecture to Extend the Period of theComprehensive Agreement on Promotion of Industry-Academia Collaboration and toContinue to Endow Chair

June 23Development of New Products Expanding 5G Wireless Communication Area

October 19

Business of Jewelry Glass infiora™ Starts in the Wedding Industry

November 7

Agreed with Kyoto University to Establish Endowed Chair for Basic Glass Research Using
the Trust Method

November 8

Presented the Development Results of All-Solid-State Sodium-Ion Secondary Battery atBattery Symposium

November 22

Implementation of Green Loan Financing

November 28

Announced the Establishment of a CSR Committee（Established on January 1, 2023）©Nippon Electric Glass Co., Ltd.

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Corporate Information
Main businessCorporate information

Electronics & Information TechnologyFPD

Glass for Liquid Crystal Displays (LCD)
Glass for Organic Light-Emitting Diode (OLED) Displays

Cover Glass“Dinorex” Specialty Glass for Chemical Strengthening

Optical
Devices

Capillary and Ferrule for Optical Communication Devices
Lens for Optical Communication Devices
Micro Prism

Electronic
Devices

Functional Powdered Glass
Sheet Glass for Image Sensors
Glass Tube for Small Electronic Products“Lumiphous” Phosphor-Glass Composites

Name:

Nippon Electric Glass Co., Ltd.

Head Office:7-1, Seiran 2-chome, Otsu, Shiga 520-8639,
JapanFounded:Dec 1, 1949

Representative:

Motoharu Matsumoto, Chairman of the Board
Akira Kishimoto, President

Capital:32.1 billion JPY

Employees:

6,349 (Group total as of Dec. 31, 2022)

Business:

Production and sales of special glass products,
and manufacture and sales of glass making
machinery

Plants:Otsu, Shiga-Takatsuki, Notogawa,Precision Glass Center

Sales Office:Osaka and Tokyo

Consolidated
Companies:

10 in Japan
15 overseas(Malaysia, Korea, China, Taiwan, Europe, US)

Performance Materials & Others

Glass Fiber

Chopped Strands for Function Plastic Reinforcement
Wet Chopped Strands for Building Materials
Roving for Plastics Reinforcement
Chopped-Strand Mats for Automobiles
Alkali-Resistant Glass Fiber for Cement Reinforcement

BuildingMaterials

Glass Blocks“Neoparies” Glass Ceramics Building Materials“FireLite” Fire Rated Glass“Lamion” Ultra-thin Glass Laminated on Resin“Invisible Glass” Ultra-Low Reflection GlassHeatResistant“Neoceram” Super Heat-Resistant Glass Ceramic“StellaShine” Super Heat-Resistant Glass-Ceramics for
Cooking Appliance Top Plates

MedicalApplications

Glass Tubing for Pharmaceutical and Medical Use“LX Premium” Radiation-Shielding GlassOthers

Glass for Lighting UseGlass Making Machinery©Nippon Electric Glass Co., Ltd.

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Note regarding earnings forecasts◆ The forward-looking statements, including
earnings forecasts, contained in thesematerials are based on certain assumptions
deemed to be reasonable by the Company
at the present moment and include risks
and contingencies.
◆ Actual business results may differ
substantially from the earnings forecasts
due to a number of factors.

©Nippon Electric Glass Co., Ltd.

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©Nippon Electric Glass Co., Ltd.

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