Presentation Material (FY2018 Results) Nittobo Group

May 21, 2019

1. Summary of the Financial Results for FY2018

（2018/4～2019/3）

2

Results outline (consolidated) PL

3

• Demand for special glass remained strong. • Demand for some high value-added products

declined resulting in lower sales and net income.

Net sales 84.5 82.2 (2.2)

Operating profit 10.8 8.2 (2.6)ROS％ 12.8% 10.0% (2.9%)

Ordinary profit 11.1 8.9 (2.2)Extraordinaryincome/loss 3.4 0.8 (2.5)

Net profit attributableto owners of parent 10.3 7.9 (2.3)

EBITDA * 15.0 12.2 (2.7)

ChangeFY17 FY18Q3 forecastsPublished on'6-Feb

83.0

8.510.2%

9.0

-

7.6

-

10.8(0.6)

(0.8)(0.9) 0.9 (1.0)

(0.2)8.2

FY17 Business-foundation reinforcement

Depreciation(new investments)

Fuel and inflation Depreciationmethod change

High value-added product enhancement

Others 'FY18

（Billions of yen）

Operating income: Year-on-year change

4

Business –foundation reinforcement Total

1.4

Special glass Ultra fine yarn/ Ultra thin cloth

FY17 FY18　 　

Foreign exchange[JPY/USD] 111.2 110.7 Appreciation of 0.5 yen

Dubai crude oil [USD/BBL] 55.9 69.4 Gain of $13.5

Change

Results outline (consolidated): B/S

5

(Billions of yen)

31-Mar-2018 31-Mar-2019 Change

Current assets 73.0 72.6 (0.4)

Fixed assets 74.0 78.3 4.2

Machinery, equipment and vehicles, net 10.0 13.4 3.3

Land 14.7 12.5 (2.2)

Construction in progress 1.8 5.9 4.1

147.1 151.0 3.887.5 90.7 3.245.1 51.4 6.3

1.1 8.8 7.7

58.9% 59.4% 0.5%Equity ratio

Total assetsNet assets

Retained earnings

Net interest-bearing debt

Results outline (consolidated): C/F

6

(Billions of yen)

Operating cash flow 7.7 5.3 (2.5)

Cash flow from investments 2.5 (11.3) (13.9)

Purchase of non-current assets (4.4) (12.6) (8.2)Proceeds from sales of property, plants, and

equipment 6.3 3.7 (2.6)

Purchase of investment in securities 0.0 (3.9) (4.0)Proceeds from sales of investment in

securities 1.3 2.0 0.8

Free cash flow 10.3 (6.0) (16.4)

Cash flow from financial activities (9.4) 3.9 13.4

Changes in cash on hand and in banks 0.8 (2.1) (3.1)

ChangeFY17 FY18

Results outline (by segment)

7

*Intersegment sales included

(Billions of yen)

Net sales* Operating profit Net sales* Operating profit Net sales* Operating profit

Textiles 4.9 (0.4) 4.8 (0.3) (0.1) 0.1

Glass fiber yarn 35.1 6.5 32.7 3.9 (2.4) (2.6)

Glass fiber cloth 13.7 2.1 14.0 2.0 0.3 (0.1)Glass fiber for industrial materials 21.8 0.8 21.9 0.6 0.1 (0.2)

Life science 13.3 2.8 13.8 2.6 0.6 (0.2)

Others 3.8 (0.1) 3.4 0.2 (0.4) 0.4

Adjustments (8.4) (0.9) (8.7) (0.8) (0.3) 0.1

Total amount 84.5 10.8 82.2 8.2 (2.2) (2.6)

ROS% 12.8% 10.0% (2.9%)

ChangeFY17 FY18

Although demand for women’s cloth remained steady in H1, a severe environment continued affected by bad weathers and a relatively warm winter in H2. Meanwhile, profitability improved due to the penetration of price hikes and the production transfer from China to Japan.

Textiles business: Results Interlining

Raw yarn

Sales of core spun yarn (CSY) for casual wear were sluggish.

8

(Billions of yen)

Net sales Operating profit Net sales Operating profit Net sales Operating profit

Textiles 4.9 (0.4) 4.8 (0.3) (0.1) 0.1

FY17 FY18 Change

Glass fiber yarn

Glass fiber cloth

Glass fiber business: Results

Glass fiber for industrial materials

Net sales declined mainly due to composite materials for reinforced plastics and glass fiber yarns for electronic materials (both mainly high-value added products) sales decreased impacted by the production adjustment of smartphone. In addition, large-scale facility repairs implemented in Q1 reduced the profit.

Although demand for special glass remained favorable, damages of typhoon for Nittobo Macau Glass Weaving Co., Ltd. impacted the profit.

Sales of glass fiber cloths for facilities and construction materials remained stable. As for insulation for housing, impact by the large-scale facility repairs in the first quarter under review and cost increase such as distribution costs, material costs, and fuel costs in addition to the stagnant market conditions reduced the profit.

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(Billions of yen)

Net sales Operating profit Net sales Operating profit Net sales Operating profit

Glass fiber yarn 35.1 6.5 32.7 3.9 (2.4) (2.6)Glass fiber cloth 13.7 2.1 14.0 2.0 0.3 (0.1)

Glass fiber for industrial materials 21.8 0.8 21.9 0.6 0.1 (0.2)

FY17 FY18 Change

Medical

Life science business: Results

Specialty chemicals

Beverage

Profit declined mainly due to the cost incurred for enhancement of R&D and Sales function (for the future growth), while focusing on sales of invitro diagnostic in the immunology field for both domestic and overseas markets.

High value-added products have been steadily supplied for both domestic and overseas markets.

While focusing on production of a variety of small lot products to meet the demand, raw materials and distribution costs increased.

10

(Billions of yen)

Net sales Operating profit Net sales Operating profit Net sales Operating profit

Life science 13.3 2.8 13.8 2.6 0.6 (0.2)

FY17 FY18 Change

2. Forecasts for the FY2019 （2019/4～2020/3）

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Business environment We acknowledge that business environment will be harsher due to the trade friction between the U.S. and China, slowdown of the Chinese economy, Brexit, a hike in consumption tax, etc. Electronic materials market (Special glass) Expansion of application of 5G high-capacity and high-speed telecommunications ・Increase in demand for base stations ・Increase in demand for high-performance servers at datacenters (Fine count yarn) ・High-performance of smartphones, clear channel inventories

The Company’s measures ・Special glass production capacity expansion (contributes to profit from H2) ・Continues to promote reinforcement of bases of Glass Fiber business and Medical Business

Forecast for FY2019

12

Forecast outline (consolidated)

13

(Billions of yen)

YoY FY20

H1 H2 Fullyear H1 H2 Full

yearchange mid-term

targetNet sales 7.7

[YoY change] [9.4%]

Operating profit 4.3 3.8 8.2 3.0 5.5 8.5 0.3 12.0（ROS％） 10.0% 9.4%

Ordinary profit 4.9 4.0 8.9 3.1 5.7 8.8 (0.1) 12.0

EBITDA 6.3 5.9 12.2 5.9 8.0 13.9 1.7 20.0

Net incomeattributable to

owners of parent

100.0

FY18(actual) FY19(forecast)

41.5 40.7 82.2 42.0 48.0 90.0

(1.8) 8.04.5 3.4 7.9 2.2 4.0 6.2

6.24.6 4.3 3.8

3.0

5.5

43.241.4 41.5 40.7 42.0

48.0

20.0

30.0

40.0

50.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

FY171H

FY172H

FY181H

FY182H

FY191H

（Forecast）

FY192H

（Forecast）

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Operating profit

Net Sales

Summary of Quarterly Financial Results

FY17 FY18 FY19

14

8.2

(2.1)

(1.3)

(1.1)

3.6

1.2

8.5

FY18 Business-foundation reinforcement

Depreciation(new investments)

Fuel and inflation Added value enhancement

Others FY19(Forecast)

(Billions of yen)

Operating income: Year-on-year change analysis

15

FY18 FY19　 　

Foreign exchange[JPY/USD] 110.7 108 Appreciation of 2.7 yen

Change

Business –foundation reinforcement Total

(3.4)

Forecast outline (by segment)

16

(Billions of yen)FY18

(Actual) Change

Full year(a）

H1(Est)

H2(Est)

Full year（ｂ）

（ｂ）-（a）

Net sales (based onexternal sales) 82.2 42.0 48.0 90.0 7.7

Textiles 4.8 2.0 2.0 4.0 (0.9)Glass fiber yarn 26.4 13.0 16.0 29.0 2.6Glass fiber cloth 14.0 9.0 11.0 20.0 6.0

Glass fiber for industrial materials 21.7 10.0 11.0 21.0 (0.8)Life science 13.6 7.5 7.5 15.0 1.3Adjustments 1.4 0.5 0.5 1.0 (0.5)

Operating profit 8.2 3.0 5.5 8.5 0.3

Textiles (0.4) (0.1) 0.0 (0.1) 0.3Glass fiber yarn 3.9 1.0 2.4 3.4 (0.5)Glass fiber cloth 2.0 1.0 1.8 2.8 0.8

Glass fiber for industrial materials 0.6 (0.1) 0.3 0.2 (0.4)Life science 2.6 1.5 1.5 3.0 0.4Adjustments (0.7) (0.3) (0.5) (0.8) (0.1)

FY19(Forecast)

Note on the handling of this document

Numerical forecasts contained in this document were created

on the basis of information available to the Company as of the

date of the announcement. This document is not intended to

provide any promise or guarantee on the achievement of future

financial results and measures.