Supplementary Material for Consolidated Financial Result for the Six Months Ended September 30, 2023

October 27, 2023

NGK INSULATORS, LTD.

〔After inter-segment elimination〕

April Announcement

FY2022

FY2023

1st half

1st half

Results

Ratio

Results

Ratio

YOY

Bln. yen

Bln. yen

Net Sales

275

100%

265

283

100%

＋3%

<211>

77%

<221>

78%

＋5%

Operating Income

39

32

-16%

25

14%

11%

Environment Business

153

180

56%

166

64%

＋17%

（"EN"Business）

Operating Income

26

26

32

＋23%

17%

18%

Digital Society Business

88

66

32%

64

23%

-25%

（"DS"Business）

Operating Income

14

0

1

-95%

16%

1%

Energy & Industry Business

33

37

12%

35

13%

＋11%

（"E&I"Business）

Operating Income

(1)

(1)

(1)

( - )

( - )

Ratio

Ratio

YOY

Ordinary Income

35

29

13%

23

10%

-16%

Net Income Attributable

27

18

10%

16

6%

-31%

to Owners of the Parent

R O E

-

-

E P S

85.06yen

59.35yen

Dividend per share and

33yen

25yen

Dividend Payout Ratio

Foreign Exchange Rate (Yen/US$)

133

141

Foreign Exchange Rate (Yen/Euro)

139

154

Capital Expenditures

20

7%

23

8%

＋18%

Depreciation Costs

27

10%

28

10%

＋5%

R&D Expenses

12

4%

15

5%

＋22%

April Announcement

FY2022

FY2023

Full-Year

Full-Year

Results

Ratio

Forecast

Ratio

YOY

Bln. yen

Bln. yen

559

575

100%

565

100%

＋3%

<430>

77%

<450>

78%

＋5%

67

62

-7%

56

12%

11%

321

351

57%

335

61%

＋9%

51

60

51

＋18%

16%

17%

163

140

29%

147

24%

-14%

18

2

5

-89%

11%

1%

75

84

13%

83

15%

＋12%

(2)

0

0

( - )

0%

Ratio

Ratio

YOY

66

58

12%

53

10%

-12%

55

39

10%

39

7%

-29%

9.0%

6.1%

177.47yen

128.26yen

66yen,37.2%

50yen,39.0%

135

141

141

152

44

8%

66

56

10%

＋28%

54

10%

56

10%

＋4%

57

26

32

5%

31

6%

＋22%

The points for the consolidated financial results for the first half of FY 2023

    • An increase in sales and a decrease in income year on year
  • Summary of business results by segment

【EN Business】

-

Increases in sales and income

・Automotive related

Both sales and income increased due to a rise in demand resulting from higher sales quantities

of trucks in China in addition to a recovery in automotive production against the background of

an easing of component shortages including semiconductors.

【DS Business】

- Decreases in sales and income

・SPE related ※

Both sales and income decreased due to lower demand caused by the stagnation of investment

in semiconductors.

・Electronics components

Sales decreased due to a fall in demand for piezoelectric elements for HDDs resulting from

the stagnation of investment in data centers.

【E&I Business】

- Sales increased; losses decreased

・Insulators

Sales increased due to steady demand in U.S. in addition to sales price revisions.

・Industrial Processes

Sales increased due to a rise in demand for Industrial heating systems for Lithium-ion

battery cathode materials.

  • Exchange Rate Effects Sales increased 9.4 billion yen and operating income increased 2.6 billion yen year on year (133 yen/ USD and 139 yen/ Euro in the first half of FY2022.
    141 yen/ USD and 154 yen/ Euro in the first half of FY2023.)
  • SPE related…Products for semiconductor manufacturing

The points for the full-year forecasts for consolidated financial statements

- An increase in sales and a decrease in income year on year

The April announcement is revised upward, and Sales are reaching record-high

  • Summary of forecasts by segment

【EN Business】 - Increases in sales and income

・Automotive related Both sales and income are expected to increase mainly due to a recovery in automotive production coupled with an easing of component shortages which continued from the first half of the fiscal year, higher sales volumes of trucks in China and the positive effect of the weaker yen.

【DS Business】 - Decreases in sales and income

・SPE related Both sales and income are expected to decrease due to a decline in demand as reduced investments in semiconductors will continue and market recovery will be delayed further than assumed at the beginning of the fiscal year. Demand is forecast to recover on a full-scale basis from the next fiscal year onwards.

・Electronics components Sales are expected to decrease and the business will fall into the red due to lower demand as investments in data centers will reduce, sluggish sales of smartphones will continue,

and the timing of recovery will be delayed further than assumed at the beginning of the fiscal year.

【E&I Business】 - Higher sales, breakeven as a deficit decreases

・InsulatorsBoth sales and income are expected to increase due to steady demand underpinned by plans

for expanding and reinforcing transmission networks in U.S. in addition to revisions of sales prices.

・Energy Storage

The deficit is expected to stay mainly due to a rise in material prices despite increasing inquiries

globally.

② Exchange Rate Effects

Sales to increase 13.8 billion yen and operating income to increase 3.9 billion yen year on year

・Year-on-year

(135 yen/ USD and 141 yen/ Euro in FY2022.

141 yen/ USD and 152 yen/ Euro in FY2023.)

(Assumed exchange rates in the second half of FY2023 : 140 yen/ USD and 150 yen/ Euro)

・Effects of a yen change in exchange rates in 2nd half

USD : Sales 0.5 billion yen and operating income 0.16 billion yen

③ Dividend Forecast

Euro : Sales 0.3 billion yen and operating income 0.0 billion yen

An interim dividend of 25 yen (resolved), a year-end dividend of 25 yen (planned),

total dividend will be 50 yen.

  • Sustainable Finance Ninth Series of NGK INSULATORS, LTD. Unsecured Straight Bonds are scheduled to be issued.

Issuance amount ：10 billion yen

Issuance date：November, 2023 onwards Maturity：5 years

  • Acquisition of treasury shares

Up to 8.5 million shares or Up to 15 billion yen Acquisition method：Market purchases

Acquisition period：From October 30, 2023 to February 29, 2024

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NGK Insulators Ltd. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 08:11:18 UTC.