Nittobo Group Presentation Materialnd half forecast is mainly due to demand for some of the high value-added products declined although demand for special glass (T, NE glass) remain

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.

Presentation Material Financial results 2019/3 ｜ Second Quarter

Nov 5, 2018

Nittobo Group

Copyright (C) Nitto Boseki Co., Ltd. All Rights Reserved.

1. Summary of Financial Results for the 2nd Quarter of 2019/3

2


Results outline (consolidated) PL

3

(Billions of yen)

2018/3 2019/3

H1 H1

Sales revenue 43.1 41.5 (1.7)

Operating profit 6.2 4.4 (1.8)ROS％ 14.4% 10.6% (3.9%)

Ordinary profit 6.4 4.9 (1.6)Extraordinaryincome/loss 3.9 0.4 (3.5)

Net profit attributable toowners of parent 7.4 4.5 (2.9)

EBITDA * 8.2 6.3 (1.9)

* Operating income + depreciation and amortization

Change

(Billions of yen)

H1 forecasts

Published on'2-Aug

43.0

4.410.2%

4.5

-

3.2

-


Summary of Quarterly Financial Results

4

Quarterly performance recovered from 2018/3 4Q. Downward revision of 2nd half forecast is mainly due to demand for some of the high value-added products declined although demand for special glass (T, NE glass) remain strong.

3.1 3.1 2.9

1.7 2.12.3

2.8

21.4 21.8 21.4 19.9 20.5 21.1 22.2

0.0

5.0

10.0

15.0

20.0

25.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

'18/31Q

'18/32Q

'18/33Q

'18/34Q

'19/31Q

'19/32Q

'19/3Average of 3Qand4Q

（ forecast）

Sale

s re

venu

e(Bi

llion

s of

yen

)

Ope

ratin

g pr

ofit

(Bill

ions

of y

en)

Quarterly financial results Operating profit Net Sales

H1 H2 H1 H2


Operating income: Year-on-year change

5

6.2(0.6)

(0.4)(0.6) 0.4 (0.9)

0.34.4

'18/3 H1 Business-foundation reinforcement

Depreciation(new investments)

Fuel and inflation Depreciationmethod change

Added value enhancement

Cost reduction,etc '19/3 H1

(Billions of yen)

2018/3 2019/3H1 H1

Foreign exchange[JPY/USD] 111.2 109.5 Appreciation of 1.7 yen

Dubai crude oil [USD/BBL] 50.1 73.1 Gain of $23.0

Change

Special glass Ultra fine yarn / ultra thin cloth

Total(1.0) billion yen


Results outline (consolidated): B/S

6

(Billions of yen)

31-Mar-2018 30-Sep-2018 Change

Current assets 73.0 72.1 (0.9)

Fixed assets 74.0 79.2 5.1

Machinery, equipment and vehicles, net 10.0 13.0 2.9

Construction in progress 1.8 3.1 1.3

147.1 151.3 4.287.5 90.2 2.745.1 48.7 3.7

1.1 7.0 5.9

58.9% 59.0% 0.1%Equity ratio

Total assetsNet assets

Retained earnings

Net interest-bearing debt


Results outline (consolidated): C/F

7

(Billions of yen)

2018/3 2019/3

H1 H1

Operating cash flow 4.8 1.3 (3.5)

Cash flow from investments 4.5 (6.5) (11.1)

Purchase of non-current assets (1.4) (4.9) (3.6)Proceeds from sales of property, plants, and

equipment 6.1 0.5 (5.6)

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

securities 0.0 2.0 2.1

Cash flow from financial activities (6.0) 4.2 10.2

Changes in cash on hand and in banks 3.3 (1.1) (4.5)

Change


Results outline (by segment)

8

(Billions of yen)

Sales revenue Operating profit Sales revenue Operating profit Sales revenue Operating profit

Textiles 2.4 (0.2) 2.5 (0.1) 0.1 0.1

Glass fiber yarn 18.0 3.6 16.9 2.1 (1.1) (1.5)

Glass fiber cloth 7.1 1.2 6.8 1.0 (0.3) (0.2)Glass fiber for industrial materials 10.7 0.3 10.6 0.1 (0.1) (0.2)

Life science 7.1 1.7 7.3 1.4 0.2 (0.3)

Others 1.9 0.0 2.1 0.1 0.2 0.2

Adjustments (4.2) (0.4) (4.8) (0.4) (0.6) 0.0

Total amount 43.1 6.2 41.5 4.4 (1.7) (1.8)

ROS% 14.4% 10.6% (3.9%)

Change2018/3 2019/3

H1 H1


• Interlining products for women’s cloth in Japan and China remain strong.

Textiles business: Results

9

(Billions of yen)


Textiles 2.4 (0.2) 2.5 (0.1) 0.1 0.1

2018/3 2019/3 ChangeH1 H1


Glass fiber yarn

Glass fiber cloth

Glass fiber business: Results

Glass fiber for industrial materials

10

• Sales of composite materials for reinforced plastics and glass fiber yarns for electronic materials declined (especially for high value-added products) mainly due to production adjustment of smartphones. Large-scale facility repairs for the furnace also reduced the profit.

• Demand for electronic materials remain strong and productivity improvement for high value-

added products carried out continuously. However, damages of typhoon for Nittobo Macau Glass Weaving Co., Ltd. impacted the profit compared to last quarter.

• Sales of glass fiber cloths for facilities and construction materials remain stable. However, sales of insulating materials for the houses declined mainly due to downturn in market conditions. Large-scale facility repairs for the furnace and increase of distribution/material/fuel cost also reduced the profit. (Billions of yen)


Glass fiber yarn 18.0 3.6 16.9 2.1 (1.1) (1.5)Glass fiber cloth 7.1 1.2 6.8 1.0 (0.3) (0.2)

Glass fiber for industrial materials 10.7 0.3 10.6 0.1 (0.1) (0.2)

2018/3 2019/3 ChangeH1 H1


Medical

Life science business: Results

Specialty chemicals

Beverage

11

• 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.

(Billions of yen)


Life science 7.1 1.7 7.3 1.4 0.2 (0.3)

2018/3 2019/3 ChangeH1 H1


2. Forecasts for the 2019/3

12


Outlook on 2019/3 financial results (overall)）

13

Sales of some high value-added products remain weak mainly due to continuous production adjustment of smartphones.

Demand for special glass (T,NE glass) continue to be strong

• Production/sales adjusted by demand of the market. • Further expansion of production capacity.

Cost for strengthening future growth (manpower, investment, and R&D) remains, to meet Mid to Long-term Business plan target.


Results outline (consolidated)

14

(Billions of yen)

YoY 2021/3

H1 H2 Fullyear

H1 H2 Fullyear

change mid-termtarget

Sales revenue 1.5[YoY change] [1.7%]

Operating profit 6.2 4.6 10.8 4.4 5.6 10.0 (0.8) 12（ROS％） 12.8% 11.6%

Ordinary profit 6.4 4.5 11.0 4.9 5.6 10.5 (0.6) 12

EBITDA 8.2 6.8 15.0 6.3 8.1 14.4 (0.6) 20

(2.0) 87.4 2.8 10.2 4.5 3.8 8.3

100

2018/3(actual) 2019/3(forecast)

43.1 41.3 84.5 41.5 44.5 86.0

Net incomeattributable to

owners of parent


Summary of Quarterly Financial Results

15

3.1 3.1 2.9

1.7 2.12.3

2.8

21.4 21.8 21.4 19.9 20.5 21.1 22.2

0.0

5.0

10.0

15.0

20.0

25.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

'18/31Q

'18/32Q

'18/33Q

'18/34Q

'19/31Q

'19/32Q

'19/3Average of 3Qand4Q

（ forecast）

Sale

s re

venu

e(Bi

llion

s of

yen

)

Ope

ratin

g pr

ofit

(Bill

ions

of y

en)

Quarterly financial results Operating profit Net Sales

H1 H2 H1 H2

Quarterly performance recovered from 2018/3 4Q. Downward revision of 2nd half forecast is mainly due to demand for some of the high value-added products declined although demand for special glass (T, NE glass) remain strong.


2018/3 2019/3H1 H1

Foreign exchange[JPY/USD] 111.2 109.7 Appreciation of 1.5 yen

Dubai crude oil [USD/BBL] 55.9 71.6 Gain of $15.7

Change

Operating income: Year-on-year change analysis

16

10.8(0.8)

(1.1)

(0.9) 0.9

0.60.5

10.0

'18/3 Business-foundation reinforcement

Depreciation(new investments)

Fuel and inflation Depreciationmethod change

High value-added product enhancement

Cost reduction,etc '18/3

（Billions of yen）


Special glass Ultra fine yarn / ultra thin cloth


Results outline (by segment)

17

(Billions of yen)2018/3(actual) Change

Full year(a） H1 actual Full year（ｂ）（ｂ）-（a）Sales revenue (based on

external sales) 84.5 41.5 86.0 1.5

Textiles 4.9 2.5 5.3 0.4Glass fiber yarn 29.1 13.6 29.0 (0.2)Glass fiber cloth 13.7 6.8 15.0 1.3

Glass fiber for industrial materials 21.6 10.5 22.0 0.4Life science 12.9 7.1 13.6 0.6Adjustments 2.0 0.8 1.1 (0.9)

Operating profit 10.8 4.4 10.0 (0.8)

Textiles (0.4) (0.1) (0.2) 0.3Glass fiber yarn 6.5 2.1 5.3 (1.3)Glass fiber cloth 2.1 1.0 2.5 0.4

Glass fiber for industrial materials 0.8 0.1 0.6 (0.2)Life science 2.8 1.4 2.8 (0.1)Adjustments (1.0) (0.3) (1.0) 0.1

2019/3(forecast)


Operating Profit 2019/3 1st Half 2nd Half

18

4.4

(0.9) 0.5

1.5

0.15.6

'19/3 H1 Business-foundationreinforcement

High value-addedproduct enhancement

Cost reduction,etc Impact of repairs '19/3 H2

(Billions of yen)



Textile business

19

(Billions of yen)

Operating profit 2018/3（actual）

2019/3(forecast) Change

Textile (0.4) (0.2) 0.3

• Improve capacity utilization rate by optimization of the production in Japan and China while expand sales in China market.

• Development of new functional products.

• Enter industrial materials field by collaborating with Glass Fiber Division.


Glass fiber yarn / Glass fiber cloth

Glass fiber business

Glass fiber for industrial materials

20

• Demand for special glass continued to be strong. While meeting steady demand for datacenter servers and base stations, will supply products for 5G which support high capacity and high speed communication.

• Increase sales by accelerating collaboration with Baotek Industrial Materials Ltd. (Taiwanese company acquired by TOB in August ‘18) from productivity improvement of high value-added products and production capacity expansion.

• Increase profit by improving productivity despite distribution/material costs increase.

• Focus on development of new customers as well as overseas customers in the glass fiber cloth for industrial application.

(Billions of yen)



Glass fiber yarn 6.5 5.3 (1.3)Glass fiber cloth 2.1 2.5 0.4

Glass fiber for industrial materials 0.8 0.6 (0.2)


Medical

Specialty chemicals

Life science business

Beverage

21

• Enhancement of R&D and sales structures. • Improve productivity for the future expansion of production capacity. • Enhance product development and supply capabilities by further strengthening

the integrated structure from raw materials to finial products. • Expand global distribution route.

• Expand both domestic and oversea sales by enhancing sales structure.

• To ensure stable earnings by improvement and reinforcement of production system.

• New product development.

(Billions of yen)



Life science 2.8 2.8 (0.1)


3. Progress of the Mid-term Business Plan

22


Progress of mid-term business plan

23

Earnings targets Billions of yen

'18/3 '21/3 '24/3Actual H1 actual

Sales revenue 84.5 41.5 86.0 100.0 150.0Operating profit 10.8 4.4 10.0 12.0 15.0Ordinary profit 11.0 4.9 10.5 12.0 15.0

Net income attributableto owners of parent

10.2 4.5 8.3 8.0 10.0

EBITDA 15.0 6.3 14.4 20.0

Capital expenditures and R&D

R&D expenses 1.5 - 1.7 At least 2.0 R&D expenses to sales ratio 1.9% - 2.0% At least 2.0%Capital expenditures 7.0 - 10.5 55.0 4 years, cumulative

Inflation assumptions

Foreign exchange rate 111.2 109.5 109.7 100Oil price 55.9 73.1 71.6 60

'19/3 forecast


1.21.4

1.51.7

1.5% 1.7%1.9% 2.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0.00.20.40.60.81.01.21.41.61.82.0

'16/3 '17/3 '18/3 '19/3(forecast)

The

ratio

n of

R&

D sp

endi

ng to

sal

es

Billi

on y

en

Changes in R&D spending

Capital expenditures, depreciation & amortization and research & development expenses

Planning to spend 55.0 billion yen for capital expenditure during Mid-Term Business Plan (4 years cumulative). About 60% of the budget has already been decided.

24

Straight line method Fixed rate method

No. of person in charge 70

4.4

2.0

7.0

10.5

4.0

0.02.04.06.08.0

10.012.014.016.0

'16/3 '17/3 '18/3 '19/3（ forecast）

Billi

on y

en

Changes in Capital Expenditure (based on acceptance)

14.54.6

4.1 4.14.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

'16/3 '17/3 '18/3 '19/3(forecast)

Billi

on y

en

Depreciation & Amortization

80 97 54

0% 20% 40% 60% 80% 100%

Progress of the Mid-term Capital Expenditure Plan (approval basis)

'18/10 '19/3（forecast）

'20/3-'21/3(forecast）

→Acquisition of Baotek


Glass fiber business (Main measures)

25

Glass fiber yarn

Glass fiber cloth

Glass fiber for

industrial materials

Increase production capacity for glass fiber yarn. ・Expansion for the capacity of special glass (T, NE glass) (～ April 2018) Further expansion (production starts: 1st half 2019) ・Expansion for the capacity of fine count yarn Overseas: Nittobo Asia Glass Fiber (operation starts after 2nd half 2019)

Introduction of high-end chopped strand Domestic: Fuji Fiber Glass Co., Ltd. (operation starts after June 2018)

Increase production capacity for glass fiber cloth

Domestic: Fukushima No. 2 Factory/Improvement of weaving machines and processing capacity (operation starts after 2nd half 2018)

Acquisition of Baotek Industrial Materials Ltd (Taiwan) (August 2018)

Increase production capacity for Glass Wool (GW) Increase production capacity for non-formaldehyde GW


Life Science business & R&D headquarters(Main measures)

26

Medical

R&D headqua

rters

Increase capacity and productivity of the production both in Japan and US.

Construction of new factories

・ Final products production: Koriyama-shi, Fukushima (¥3 billion, to be completed in August 2020)

・ Raw materials production: California, U.S. (¥1.2 billion, to be completed in February 2020)

Enhance R&D function and production capacity

・ Investment to Rimco Corporation which develops and produces raw materials of diagnostic drugs using transgenic silkworms (August 2018)

Enhance R&D organizations

・ Construction of new building: Koriyama-shi, Fukushima (2.7 billion yen, to be completed in April 2020)

・ Construction of new R&D function “NI-Tech”

Establishment of new satellite lab at Kawasaki Institute of Industrial Promotion Innovation Center of NanoMedicine (July 2018)


14

0

5

10

15

20

25

30

'19/3(Expected） '21/3(target) '24/3(target）

EBITDA Growth Story

27

( Billions of Yen)

Annual Basis

(2nd half EBITDA 8bil x 2）

Approx. 16.0

Approx. 20.0

Improve earning power by investing for the future growth ・Glass Fiber business

Domestic: Investments on T and NE glass Overseas: Investments on fine count yarn Strengthening the integrated production system for glass fiber

yarn and cloth Common: Further improvement of production capacity for special glass

・Medical Business Further strengthening Japan-U.S. integrated production system, strengthen overseas expansion

Graph1

'19/3(Expected）'19/3(Expected）'19/3(Expected）

'21/3(target)'21/3(target)'21/3(target)

'24/3(target）'24/3(target）'24/3(target）

EBITDA（上期）

EBITDA

EBITDA（下期）

14

12.2

14

16

20

24

EBITDA (2)

償却方法ショウキャクホウホウ定率テイリツ定額テイガク

減価償却ゲンカショウキャク4746412421.74.1642.96.3

営業利益エイギョウリエキ891091116.23611.14.8644.410.8376.613.715

計ケイ135.77154.9615216.47215.113.72812.2141620.024

売上ウリアゲ861.99833.24431.72850418.28438.07900461.311000

EBITDA/売上ウリアゲ18.0%18.2%1.9%1.8%1.6%1.4%1.6%1.8%1.8%2.0%

2014年度ネンド2015年度ネンド2016年度ネンド2017年度ネンド2018年度ネンド2019年度ネンド2020年度（目標）ネンドモクヒョウ2021年度ネンド2022年度ネンド2023年度ネンド

154期キ155期キ156期キ2017年度ネンド2017年度ネンド2017年度ネンド2018年度(予）ネンドヨ'19/3(Expected）2018年度(予）ネンドヨ2020年度（目標）ネンドモクヒョウ'21/3(target)2020年度（目標）ネンドモクヒョウ2023年度(目標) ネンドモクヒョウ'24/3(target）2023年度(目標) ネンドモクヒョウ

157期上期キカミキ157期下期キシモキ158期上期キカミキ158期下期キシモキ160期キ

上カミ下シモ上カミ下シモ

売上ウリアゲ43.17243.17243.80746.131100

営業利益エイギョウリエキ6.2364.8644.46.613.7

減価償却ゲンカショウキャク221.72.96.3

EBIITDA8.2366.8646.19.520

OPマージン14.4%11.3%10.0%14.3%13.7%

EBITDAマージン19.1%15.9%13.9%20.6%20.0%

EBITDA (2)

EBITDA（上期）

EBITDA

EBITDA（下期）

EBITDAマージン

EBITDA

売上ウリアゲ86,19983,32485,00090,00010,000

償却方法ショウキャクホウホウ定率テイリツ定額テイガク

減価償却ゲンカショウキャク554.120402017462963

営業利益エイギョウリエキ91111.162.3611148.644411066137150

計ケイ13.57715.49615.2164.72151137.28122156190200

売上ウリアゲ861.99833.24431.72850418.28438.07900461.311000

OPマージン14.4%13.1%11.6%10.0%12.2%14.3%

EBITDA/売上ウリアゲ1.8%1.8%19.1%17.8%16.4%13.6%17.3%21.1%18.7%20.0%

2014年度ネンド2015年度ネンド2016年度ネンド2017年度ネンド2018年度ネンド2019年度ネンド2020年度（目標）ネンドモクヒョウ2021年度ネンド2022年度ネンド2023年度ネンド

154期キ155期キ156期キ157期キ上期年率カミキネンリツ158期キ1下期年率シモキネンリツ160期キ161期キ162期キ163期キ

157期上期キカミキ157期下期キシモキ158期上期キカミキ158期下期キシモキ160期キ

上カミ下シモ上カミ下シモ

売上ウリアゲ431.72431.72438.07461.311000

営業利益エイギョウリエキ62.3648.644466137

減価償却ゲンカショウキャク2020172963

EBIITDA82.3668.646195200

OPマージン14.4%11.3%10.0%14.3%13.7%

EBITDAマージン19.1%15.9%13.9%20.6%20.0%

下期年率イメージ

EBITDA（上期）

EBITDA

EBITDA（下期）

180

EBITDA

EBITDA

EBITDA

EBITDA

EBITDAマージン

資本施策

2011年度ネンド2012年度ネンド2013年度ネンド2014年度ネンド2015年度ネンド2016年度ネンド2017年度ネンド2018年度ネンド20192020202120222023

2011年度ネンド2012年度ネンド2013年度ネンド2014年度ネンド2015年度ネンド2016年度ネンド2017年度ネンド2018年度（予想）ネンドヨソウ2019年度ネンド2020年度（目標）ネンドモクヒョウ161期キ162期キ163期キ

1株当たり配当カブアハイトウ252525253035401株当たり配当（円）カブアハイトウエン配当性向ハイトウセイコウ総還元性向ソウカンゲンセイコウ

配当金額ハイトウキンガク9.969.969.969.9611.9513.7915.522011年度ネンド2569.5%70.5%

配当性向ハイトウセイコウ69.5%35.1%25.8%21.7%21.3%18.4%15.1%2012年度ネンド2535.1%35.5%

自社株買金額ジシャカブカキンガク0.130.120.290.240.1517.427.802013年度ネンド2525.8%26.6%

総還元性向ソウカンゲンセイコウ70.4%35.5%26.6%22.2%21.6%41.7%22.7%2014年度ネンド2521.7%22.2%

当期純利益トウキジュンリエキ14.3328.4038.5845.8855.9874.79102.5375.61002015年度ネンド3021.4%21.6%

総還元額ソウカンゲンガク10.110.110.310.212.131.223.32016年度ネンド3518.6%41.7%

ROE2.6%5.0%6.3%6.8%7.6%9.8%12.5%9.3%8%10%2017年度ネンド4015.2%22.7%

自己資本比率ジコシホンヒリツ42.0%44.8%45.9%49.6%52.3%55.2%58.8%61.3%60%70%2018年度（予定）ネンドヨテイ4020.2%-

1株当たり当期純利益（円）カブアトウキジュンリエキエン36.071.396.8115.2140.5188.6264

BPS276.11297.69313.91363.32374.50396.00

営業利益エイギョウリエキ59666589109111108108150

Net有利子負債残高ユウリシフサイザンダカ2662972511831479112561000

8%8%8%8%8%8%8%8%8%8%

自社株買い比ジシャカブガヒ

158期上下0.91%

営業利益44661100.42%

償却費1729460.75%

EBITDA61951560.52%

年率1221900.27%

23.29%

7.61%

太田甫:太田甫:各年度の短信サマリー参照

資本施策

ROE目標8%以上

ROE

営業利益

当期純利益

Sheet3

自己資本比率

Net有利子負債残高

自己資本比率とNet有利子負債残高

Sheet1

単位：億円

配当金額

自社株買金額

株主還元実績

2017年度ネンド

財源ザイゲン用途ヨウト

営業CF エイギョウ9847設備投資セツビトウシ

22株主還元カブヌシカンゲン

80NET有利子負債削減ユウリシフサイサクゲン

土地売却トチバイキャク67

政策保有株売却セイサクホユウカブバイキャク13

178149

2018年度（予測）ネンドヨソク

財源ザイゲン用途ヨウト

営業CF エイギョウ98138設備投資セツビトウシ

資産売却シサンバイキャク15

NET有利子負債増ユウリシフサイゾウ44

14株主還元カブヌシカンゲン

157152


End

28

Copyright (C) Nitto Boseki Co., Ltd. All Rights Reserved. 29

'08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '16/3 '17/3 '18/3

ROS

ROA

ROE

Equity ratio 47.3% 37.2% 41.2% 42.4% 42.0% 44.8% 45.9% 49.6% 52.3% 55.2% 58.8%

Payout ratio 16.7% － 74.1% 35.5% 69.5% 35.1% 25.8% 21.7% 21.4% 18.6% 15.2%Total return ratio 17.1% － 276.9% 36.3% 70.5% 35.5% 26.6% 22.2% 21.6% 41.7% 22.7%

Key financial data

7.5% 2.2% 2.5% 7.7% 13.4% 12.8%

6.4% 1.6% 1.0% 4.7% 4.2% 4.9% 4.8% 6.1% 7.6% 8.1% 7.7%

7.2% 8.1% 7.6% 9.8% 12.6%

7.2

12.5%

0.5 11.5 28.4 1.9 5.7 4.8 2.1 1.2 0.9 0.8 0.1

5.0% 6.3% 6.8% 7.6% 9.8%8.2% -14.2% 2.5% 5.2% 2.6%

Net interest-bearing debt tooperating cash flow ratio

Net income per share

Dividend per share

264.0

4.0 4.0 4.0 5.0 5.0 5.0 5.0 5.0 6.0 7.0 40.0

14.3 19.4 23.0 28.1 37.724.0 -38.3 6.4 14.1

The Company conducted a 5-to-1 common share consolidation as of October 1, 2017. For ‘18/3, based on the assumption that the said reverse share split was conducted at the beginning of the term, net income per share and a dividend per share are calculated.


Textiles business: Product highlights Business Principal product

category Characteristics Product photograph

Raw yarn Core spun yarn (CSY) Nittobo’s CSY is a yarn product made by twining short fiber such as cotton around a polyurethane filament before covering it. CSY, being a pioneer of stretch fabric, represents a combination of core and cover materials, something made possible by our multi-layer-structure yarn making technique. CSY serves to aid idea generation for products based on a combination of functionality, such as for moisture absorption and heat generation, quick drying and cold sensitivity and light weight, as well as a sense of touch.

Dishcloth The Nittobo Dishcloth, being superior in water absorption and quick drying features and not prone to picking up fluff, is a long-seller item, which the Company developed over five decades ago, jointly with kurashi-no-techo co., ltd. The Nittobo Dishcloth was honored with the Good Design Long Life Design Award 2015.

Interlining

Interlining Nittobo Interlining is a low-profile function material product that is intended to be attached to the inner side of a garment to keep its shape and size stability. This product accentuates the stylish look of the silhouette by tapping the texture of the outer fabric of the garment. Nittobo Interlining boasts the top market share in Japan, among domestic female interlining products.

Adhesive tape Nittobo’s adhesive tape products are used for reinforcing garment connection parts such as collar, sleeve and pocket, spots that are difficult to be attached with interlining, and for raising stitching work efficiency. The Company’s adhesive tape product lineup caters for any shape and is composed of tapes made of fabric identical to each outer garment fabric.

Liner material (liner) Nittobo’s liner material, being a product made by applying its ultra-thin fabric attachment technique of excellence, is enabled to be used as a liner as well. For example, this product was adopted as the material for a sports wear item using a moisture-permeation laminated waterproof film.

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Business Principal productcategory Characteristics Product photograph Main uses

Roving A product consisting of strands ofuntwisted glass fiber.

Prefabricated bath unitSeptic tank

Chopped Strand A product made by chopping glassfiber into fine pieces

Body of smartphone andPCComposite materials forautomobile

Yarn A product made of twisted glassfiberGlass cloth

Glassfibercloth

Glass cloth A product made by turning yarninto cloth Printed circuit board

Glass cloth A product made by turning yarninto cloth

Anti-vibration materialsTent filmRoad reinforcementmaterials

Glass wool A product made by turning shortglass fiber woolHomes and non-residentialbuildings

Glassfiber for

industrialmaterials

Glassfiberyarn

Glass fiber business: Product highlights

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Sheet1

BusinessPrincipal product categoryCharacteristicsProduct photographMain uses

Glass fiber yarnRovingA product consisting of strands of untwisted glass fiber.Prefabricated bath unitSeptic tank

Chopped StrandA product made by chopping glass fiber into fine piecesBody of smartphone and PCComposite materials for automobile

YarnA product made of twisted glass fiberGlass cloth

Glass fiber clothGlass clothA product made by turning yarn into clothPrinted circuit board

Glass fiber for industrial materialsGlass clothA product made by turning yarn into clothAnti-vibration materialsTent film Road reinforcement materials

Glass woolA product made by turning short glass fiber woolHomes and non-residential buildings

Sheet2

Sheet3


Life science business: Product highlights Segment Characteristics Product photograph Main uses

Medical

Provides in-vitro diagnostic drugs in biochemistry, hematology and serum-immunology areas, and excels in immunological reagents and osteoporosis.

・Measurement of liver function, cholesterol and neutral lipid ・Measurement of inflammation, autoimmune disorders and nutrition conditions

Specialty chemicals (SC) Develops new polymer materials by using special polymerization techniques, expanding various uses such as for metal scavenger.

・Metal processing aid agent ・Pharmaceutical raw materials ・Water processing agent ・Paper making aid agent ・Deodorant ・Hard coat and surface protection agent

Beverage Produces soft drink products and plastic bottle-based beverage items. Excels in high-mix low-volume production mainly for private-brand names.

・Tea-based beverages ・Sports drinks ・Fruit juice-containing beverage ・Baby drinks ・Leading supermarkets ・Drug stores

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Presentation Material�Financial results 2019/3 ｜ Second Quarter1. Summary of Financial Results for �the 2nd Quarter of 2019/3Results outline (consolidated) PLSummary of Quarterly Financial ResultsOperating income: Year-on-year changeResults outline (consolidated): B/SResults outline (consolidated): C/FResults outline (by segment)Textiles business: ResultsGlass fiber business: ResultsLife science business: Results2. Forecasts for the 2019/3Outlook on 2019/3 financial results (overall)）Results outline (consolidated) Summary of Quarterly Financial ResultsOperating income: Year-on-year change analysisResults outline (by segment)Operating Profit 　2019/3 1st Half 2nd HalfTextile businessGlass fiber businessLife science business3. Progress of the �Mid-term Business PlanProgress of mid-term business planCapital expenditures, depreciation & amortization and research & development expensesGlass fiber business (Main measures)Life Science business & R&D headquarters(Main measures)EBITDA Growth StoryEndスライド番号 29Textiles business: Product highlightsGlass fiber business: Product highlightsLife science business: Product highlights

Documents

Nittobo Group Presentation Materialnd half forecast is mainly due to demand for some of the high value-added products declined although demand for special glass (T, NE glass) remain