Nippon Sheet Glass : FY2016 3rd Quarter Results Summary of Key Points

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FY2016 QUARTER 3 RESULTS

(from 1 April 2015 to 31 December 2015)

29 January 2016

• Trading profit improving from previous quarters
• Challenging competitive environment in Display business
• Indications of improving outlook in Europe
• Improved performance in Japan
• Performance in North America and South East Asia remains strong
• Difficult market conditions persist in South America
• Update of FY16 forecast of profit before taxation, loss for the period, and loss attributable to shareholders

Trading profit improving from previous quarters

• Cumulative Group revenues of ¥ 479.6bn were 3% above the previous year (Q3 FY15: ¥ 466.6bn)

• Trading profit, before amortization and exceptional items, of ¥ 16.6bn (Q3 FY15: ¥ 16.7bn)

• Q3 FY16 Architectural revenue ¥ 201.4bn (Q3 FY15: ¥ 189.8bn) and profits of ¥ 16.7bn (Q3 FY15:

  ¥ 10.1bn)

• Q3 FY16 Automotive revenue ¥ 239.7bn (Q3 FY15: ¥ 232.0bn) and profits of ¥ 5.0bn (Q3 FY15:

  ¥ 5.0bn)

• Q3 FY16 Technical Glass revenue ¥ 37.8bn (Q3 FY15: ¥ 43.9bn) and profits of ¥ 0.3bn (Q3 FY15:

  ¥ 4.1bn)

  
  

  Challenging competitive environment in Display business

• Revenues and profits fell due to challenging competitive environment

  
  

  Indications of improving outlook in Europe

• Clear signs of architectural market improvement in some regions

• Growth in Western Europe automotive markets

  
  

  Improved performance in Japan

• Improved performance in Architectural

• Reduced light-vehicle sales but NSG Automotive volumes maintained

  
  

  Performance in North America and South East Asia remains strong

• Architectural markets in North America continue to show growth

• Architectural businesses in South East Asia enjoyed robust demand

  
  

  Difficult market conditions persist in South America

• Lower Architectural profits in Argentina due to cold repair

• Significant reductions in light vehicles sales

  
  

  Update of FY16 forecast of profit before taxation, loss for the period, and loss attributable to shareholders

• Trading profit forecast as announced at Q2

• Difficult market conditions being experienced by Chinese joint ventures and associates

• Increased tax charges in some regions

Extract from NSG Group FY2016 Quarter 3 financial results presentation, 29 January 2016

Cum Q3 FY2016 479.6	Cum Q3 FY2015 466.6
16.6	16.7
(6.0)	(6.3)
10.6	10.4
(3.2)	10.7
(13.7)	(13.4)
(1.0)	(0.4)
(7.3)	7.3
(12.3)	5.4
(14.1)	4.7
41.9	41.2

Consolidated Income Statement

(JPY bn)

Revenue

Trading profit

Amortization* Operating profit Exceptional items Finance expenses (net)

Share of JVs and associates Profit/(loss) before taxation Profit/(loss) for the period

Profit/(loss) attributable to owners of the parent

EBITDA

* Amortization arising from the acquisition of Pilkington plc only

7

29 January 2016 FY2016 Quarter 3 Results

Revised FY16 Forecast

Original Forecast 655	Previous Forecast 650	New Forecast 650
24	19	19
8	-	1
4	-	(6)
2	-	(8)

(JPY bn)

Revenue Operating profit Profit before taxation Profit/(loss) for the period

Profit/(loss) attributable to owners of the parent

19

29 January 2016 FY2016 Quarter 3 Results