日本板硝子（5202） – FY2022 3rd Quarter Results Presentation

NSG GroupFinancial Year ending 31 March 2022Quarter 3 Results(from 1 April 2021 to 31 December 2021)Nippon Sheet Glass Company, LimitedReiko KusunoseSenior Executive Officer & CFO3 February 2022FY2022 Quarter 3 Results Presentation3 February 20222Agenda1.2.4.SummaryFinancial Year ending 31 March 2022 Quarter 3 ResultsForecast for Financial Year ending 31 March 20223. Update of Transformation Initiatives under Revival Plan 24 (RP24)3 February 2022FY2022 Quarter 3 Results Presentation31．Financial Year ending 31 March 2022 Quarter 3 Results3 February 2022FY2022 Quarter 3 Results Presentation4Consolidated Income StatementArchitectural and Technical Glass offset unfavorable Automotive. Profit remains surplus. Contribution of share of JVs and associates’ profits(JPY bn)RevenueQ3 (3 months)Cumulative (9 months)2021/32022/3Change2021/32022/3Change135.9152.316.5357.4443.0Operating profit4.81.8(3.0)8.014.5ROS: Return on sales (%)3.5% 1.2% (2.3) pt2.2% 3.3% +1.1ptExceptional items (COVID-19 related)(1.2)-1.2(14.0)-14.085.66.5Q3 revenue and operating profitreduced in Automotive. Cumulative profit reduction in Automotive was offset by Architectural and Technical Glass to continuous profit in the whole groupFinance expenses (net)(2.1)(3.2)(7.5)(9.0)(1.5)Operating profit/(loss) after COVID-19 related exceptional itemsExceptional items (Other)Operating profit/(loss) afterexceptional itemsShare of JVs and associates’ profitsProfit/(loss) before taxationProfit/(loss) for the periodNet profit/(loss) *EBITDA3.61.04.61.03.53.73.41.8(1.8)(6.0)14.520.5(0.2)(1.2)0.24.44.21.7(2.9)(5.8)18.924.72.20.71.00.0(1.1)1.2(2.8)(2.7)(3.3)(2.4)0.8(12.5)(13.5)(13.9)32.35.615.410.58.642.24.727.924.022.69.913.511.1【Operating Profit : vs PY】（JPY bn）Q3Cum.ArchitecturalAutomotiveTechnicalOthers2.5(6.2)0.10.6Grp. Total(3.0)8.9(4.9)3.3(0.8)6.5Including gain on disposal of Battery Separator businessStrong JV results especially in Brazil3 February 2022FY2022 Quarter 3 Results Presentation* Profit (loss) attributable to owners of the parent5Change Analysis – Operating profit (Cumulative)Improvement by JPY 20.5 bn with demand recovery, price increases, and cost savings offsetting input cost rises302021/3 Q32021/3 Q3Price improvement mainly in ArchitecturalUnrecovered operating and other costs arising from COVID-19 pandemic recorded as exceptional items in 2021/3Improvement in all businesses2022/3Q3Cost saving benefits including headcount reductionEnergy price rises2520151050(5)(10)OperatingprofitCOVIDexceptional ItemOperating loss after COVID exceptional*FXPriceInputCostsOtherOperatingprofit(JPY bn)8.0(14.0)(6.0)(0.2)3 February 2022FY2022 Quarter 3 Results Presentation13.1 *Operating loss after COVID-19 related exceptional items(18.8)14.5 7.8 6SalesVol/Mix18.6 Change Analysis – Operating profit (Quarter 3 only)Operating profit reduced, affected by energy, material, and other costs rises despite price increases and cost saving efforts202021/3 Q32021/3 Q3Price improvement mainly in Architectural2022/3Q3Most of unrecovered operating and other costs arising from COVID-19 pandemic recorded as exceptional items in Q1 of 2021/3Improvement in Architectural and Technical GlassCost saving benefits including headcount reduction offset by other costs including transportationOperatingprofitCOVIDexceptional ItemOperating profit after COVID exceptional*(JPY bn)4.8(1.2)3.63 February 2022FY2022 Quarter 3 Results PresentationFX0.2SalesVol/Mix3.8 PriceInputCostsOtherOperatingprofit6.2 *Operating profit after COVID-19 related exceptional items(11.3)(0.7) 1.8 7Significant rise in natural gas prices in Europe151050(5)Energy Cost BreakdownCumulative significant increase in overall energy cost, due to improving volumes and higher energy input prices. Particularly driven by increasing cost of natural gas, with this now accounting for 50% of the Group’s total energy spend. Most significant impacts in Europe by region, and in Architectural by businessGroup(by Energy)2021/3 (12 months)Group natural gas(by Region) Group natural gas(by business)Costincrease+34%、Natural gas+48%Europe+83%Architectural+50%3 February 2022FY2022 Quarter 3 Results Presentation82022/3 Q3 Cumulative (9 months)Energy Price Movement2021 Dec. German natural gas price hiked 6.2x from Mar. 2021.Japanese heavy fuel oil price increased by 42% 3 February 2022FY2022 Quarter 3 Results Presentation9Energy Cost Breakdown (by region)Significant impact by natural gas price hike in Europe and heavy fuel oil price increase in AsiaEurope+64%Americas+12%Natural gasElectricityHeavy fuel oilOthers+7%AsiaLeft：2021/3 (12 months)Right：2022/3 Q3 Cumulative (9 months)3 February 2022FY2022 Quarter 3 Results Presentation10Consolidated Balance SheetImprovement in shareholders’ equity ratio above 11% with positive factors including net profit generation31 March202131 December2021Change(JPY bn)Total AssetsNon-current assetsCurrent assetsTotal LiabilitiesCurrent liabilitiesNon-current liabilitiesTotal EquityShareholders’ equity858.8597.3261.5740.7300.6440.1118.197.2825.0575.0250.0745.2287.8457.479.862.97.6%411.733.922.411.5(4.5)12.8(17.3)38.434.3Mainly increase in value of investments accounted for using the equity method and financial derivative assetsMainly increase of inventory and financial derivative assetsShift of loans in long term to short term. Decrease in payablesRecovered above 11% with net profit, positive revaluation of energy hedge derivatives, and weaker JPYDecreased with mainly increase in value of financial derivative assets11Shareholders’ Equity RatioNet Debt3 February 2022FY2022 Quarter 3 Results Presentation11.3%+3.7pt407.6(4.2)Consolidated Statement of Cash FlowsLarge improvement to inflow in cumulative free cash flows from 2021/3 with recovering profits, strict cash management, and business disposal income. Good progress for the positive in full-year(JPY bn)Net cash flows from operating activitiesincluded above: Net change in working capitalNet cash flows from investing activitiesincluded above: Purchase of property, plant and equipmentFree cash flowNet cash flows from financing activities(Decrease)/increase in cash and cash equivalentsCash and cash equivalents at the end of the periodQ3 (3 months)Cumulative (9 months)2021/3 2022/3 Change 2021/3 2022/3 Change12.56.7(5.8) 4.721.116.42.00.0(2.0) (4.6) (8.7) (4.1) (6.9) (4.2) 2.6(33.3) (20.1) 13.2(7.8) (5.7) 2.1(30.5) (26.0) 4.55.62.4(3.2) (28.6) 1.129.6(2.6) (0.1) 2.628.3(12.0) (40.2) 3.02.3(0.6) (0.3) (10.9) (10.6) Significant year-on-year improvement with increased profit and strict cash managementInventory increased in AutomotiveProceeds from Battery Separator business disposal (JPY 6.2 bn)Significant improvement from 2021/3 to cumulative cash inflow41.344.63.23 February 2022FY2022 Quarter 3 Results Presentation12Segmental Information2020/3 Q3 Cum.2021/3 Q3 Cum.2022/3 Q3 Cum.ChangeRevenue％Revenue％Revenue％Operating profitOperating profitOperating profit after COVID*Operating profitRevenueOperating ProfitArchitectural180.143%14.0156.144%11.55.8206.947%20.48.9Automotive214.650%5.3173.649%(1.1) (9.4) 203.346%(5.9)29.7(4.9)66.371.742.190.751.172.830.25.124.01.10.916%17%10%21%12%17%7%1%6%0%0%60.658.337.272.143.458.14.621.20.81.117%16%10%20%12%16%7%1%6%0%0%84.264.757.986.444.472.55.924.00.92.019%15%13%20%10%16%7%1%5%0%0%50.823.66.420.814.31.014.44.21.32.70.11.0Technical Glass5.426.64.54.330.87.83.3(6.7) (6.9) (6.7) (7.7)(0.8)425.8100%18.0357.4100%8.0(6.0) 443.0100%14.585.66.53 February 2022FY2022 Quarter 3 Results Presentation*Operating profit/(loss) after COVID-19 related exceptional items13(JPY bn)EuropeAsiaAmericasEuropeAsiaAmericasEuropeAsiaAmericasOtherTotalArchitectural (Cum. Rev , Profit : Q3 Rev , Profit )Significantly improved revenue continued in all regions reflecting strong demand. Solid profit exceeding 2020/3, with prices increase and cost saving efforts offsetting higher energy pricesJPY bn2021/3 Q32022/3 Q3206.920.4 84.264.7 57.9156.160.658.3 37.211.5 5.8 EuropeAsiaAmericasOperating profitOP after COVIDEurope (Cum. Rev , Profit : Q3 Rev , Profit )• Improved sales volume and prices with demand above capacity• Less profitability in Q3 with higher energy, raw materials, and logistics costs, exceeding price improvement, strong operational performance and cost saving effortsAsia • Sales volume and price recovering in Japan. Good performance (Cum. Rev , Profit : Q3 Rev , Profit )maintained in other countries• Robust demand for solar energy glass（JPY bn）RevenueEuropeAsiaAmericasOPOP after COVID*Q3(3 months)Cumulative(9 months)Cum.(9 months)2020/3180.1 57.022.420.514.14.23.966.3 71.7 42.1 14.0 14.0 2021/3 2022/3 Change 2021/3 2022/3 Change50.874.8 17.8 156.1 206.923.6 84.229.3 60.6 6.9 6.4 64.724.5 58.3 4.0 20.8 6.9 21.0 57.937.2 8.9 2.5 11.5 20.4 6.8 14.620.45.82.96.8Americas (Cum. Rev , Profit : Q3 Rev , Profit )• Sales volume increased, although shipments constrained due to cold repair and shortages of transportation capacity in North America. • Continued strong sales of solar energy glass• Higher shipment volumes reflecting strong demand in South 3 February 2022FY2022 Quarter 3 Results Presentation*Operating profit/(loss) after COVID-19 related exceptional items14AmericaAutomotive (Cum. Rev , Profit : Q3 Rev , Profit )Q3 Revenue decreased, affected by constrained vehicle build due to component parts shortage. Q3 profit reduced with the negative impact of higher energy and material cost, despite cost saving efforts. Leading to cumulative profit reduction.JPY bn2021/3 Q32022/3 Q3173.6(1.1)72.143.458.1(5.9)(9.4)203.386.444.472.5 EuropeAsiaAmericasOperating profitOP after COVID（JPY bn）RevenueEuropeAsiaAmericasOPOP after COVID*Cum.(9 months)Q3(3 months)Cumulative(9 months)2020/32021/3 2022/3 Change 2021/3 2022/3 Change214.6 68.328.817.621.91.30.5 90.7 51.1 72.8 5.3 5.3 68.1 27.3 16.4 24.4 (4.9)(4.9)(0.2) 173.6 203.3 29.7 14.3 (1.5)1.0 (1.2)14.4 2.5 (4.9)(6.2)3.5 (5.4)72.1 43.4 58.1 (1.1)(9.4)86.4 44.4 72.5 (5.9)(5.9)3 February 2022FY2022 Quarter 3 Results PresentationEurope(Cum. Rev , Profit : Q3 Rev , Profit )Asia(Cum. Rev , Profit : Q3 Rev , Profit )Americas (Cum. Rev , Profit : Q3 Rev , Profit )• Q3 sales volume reduced in Europe and Asia including Japan, impacted by constrained vehicle build due to shortage of component parts such as semiconductors• Q3 profit reduced as a whole, impacted by higher energy and material cost, despite cost saving efforts*Operating profit/(loss) after COVID-19 related exceptional items15Technical Glass (Cum. Rev , Profit : Q3 Rev , Profit )Improved revenue and profit, with continuous generally favorable market conditions, recovering from COVID-19 impact in 2021/3 (like-for-like basis without battery separators disposed in September)JPY bn2021/3 Q32022/3 Q3Technical Glass• Further improvement in fine glass based on continued cost reduction efforts and better sales mix• Continued volume improvement of printer lenses by work from home and school from home demand• Strong demand for glass cord particularly in China. Signs of recovery in Metashine® demand for cosmetic applications30.826.67.8RevenueOperating profitOP after COVID4.54.3（JPY bn）OPCum.(9 months)2020/3Q3(3 months)Cumulative(9 months)2021/3 2022/3 Change 2021/3 2022/3 ChangeRevenue30.2 10.1(1.0) 26.6 30.8 4.2 9.12.12.00.15.4 5.4 4.5 4.3 7.8 7.8 3.33.5 OP after COVID*2.1 2.1 0.0 3 February 2022FY2022 Quarter 3 Results Presentation*Operating profit/(loss) after COVID-19 related exceptional items162．Forecast for Financial Year ending 31 March 20223 February 2022FY2022 Quarter 3 Results Presentation17Assumptions for 2022/3 revised ForecastGroupRevenue in full-year forecast revised upward reflecting Q3 results. Operating profit downward due to restricted vehicle build, and higher energy and material costs. No revision of profit for the period and net profit, representing progress with the keyinitiative “Restoration of financial stability” in RP24• Continuous large input cost push due to higher energy and other prices anticipated • Continued business environment uncertainties especially in Automotive• Strong share of JVs and associates’ profits Architectural Continued favorable demand and supply situation, while impacted by higher energy costassumed especially in Europe• Europe : price improvement reflecting tighter demand and supply balance continues, but less profitability affected by higher natural gas prices• Asia : volume and price improving in Japan and robust results continues • NA : sustained recovery in domestic market with reopening of economySA : continued tight demand and supply• Solar energy glass: volume increase assumedAutomotiveAffected by component shortage and higher input costs, despite strong vehicle demand • Anticipating continued strong vehicle demand and car inventory replenishment, still uncertain as to when component shortages should be resolved• Aiming for profitability improvement with additional cost reductionTechnical GlassOverall business environment continues to improve• Continued cost reduction efforts and better sales mix contribute in fine glass• Demand for printer lens to remain robust with working from home demand3 February 2022FY2022 Quarter 3 Results Presentation18Forecast for Financial Year ending 31 March 2022Revenue revised upward. Operating profit downward due to restricted vehicle build and higher input costs. No revision of profit for the period and net profit with support by strong share of JVs and associates’ profit, representing progress with the key initiative “Restoration of financial stability” in RP242022/32022/32022/32021/3(JPY bn)Q3 Cum. ActFull year FcstFull year FcstFull year ActRevenueOperating profitOperating profit after COVID-19related exceptional itemsExceptional items (Other)Operating profit after exceptional itemsFinance expenses (net)Share of JVs and associates’ profitsProfit before taxationProfit for the periodNet profit *(Previous)(Revised)443.014.514.54.418.9(9.0)5.615.410.58.6560.0 24.0 24.0 5.0 29.0 (13.0)3.0 19.0 12.0 10.0 590.020.0(13.0)20.04.024.07.018.012.010.0499.2 13.1 (3.0)(5.3)(8.3)(11.0)2.1 (17.2)(16.3)(16.9)3 February 2022FY2022 Quarter 3 Results Presentation*Profit attributable to owners of the parent193．Update of Transformation Initiatives under Revival Plan 24 (RP24)3 February 2022FY2022 Quarter 3 Results Presentation20Transformation Initiatives under Revival Plan 24Initiatives underway for business to grow sustainably according to RP24.Transition to TSE new market segmentation “Prime Market“ decidedCost structure reform• Headcount : Consolidation/Closure of sites/production lines mainly in Automotive business in Europe and Americas. Approximately 800 reductions in 2022/3 (JPY 9.5 bn cost reduction vs 2020/3), resulting in over 2,300 since 2020/3 end (JPY 13.0 bn reduction at 2022/3 end vs 2020/3) (Severance cost provided in 2021/3)• Non headcount : Direct costs savings of JPY 3.5 bn so far and JPY 4.3 bn in 2022/3 via Kaikaku and Kakushin activities • JPY 3.2 bn cost reduction in the additional initiatives in Automotive businessThree ReformsBusiness structure reform• Contribution to profit and CO2 emission reduction by solar energy glass furnace in the USA and Vietnam• New float furnace construction in Argentina progressing for full operation in early 2023/3• Introduction of renewable electricity generated by a wind farm in Poland to reduce CO2 emissionCorporate culture reform• Progressing “Inclusion & Diversity (I&D)” activities globally by setting goals to improve manager gender diversity for each business, region, and functionRestoration of financial stability (2022/3 Q3 actual)• Continued net profit significantly improved by JPY 2 bn year-on-year. Shareholder’s equity ratio also improved above 11%• JPY 53.6 bn of cash and JPY 80.5 bn unused commitment lines at the end of Dec. 2021Two Key InitiativesTransformation into more profitable business portfolio• New development of “MAGNAVI®”, glass fiber with high elasticity and high strengthaiming for a new solution in composite material market like FRP (Fiber Reinforced Plastics)for decarbonized society3 February 2022FY2022 Quarter 3 Results Presentation RP24: https://www.nsg.com/-/media/nsg/site-content/ir/ir-presentations/mtprp24presentation2021_e02.pdf214．Summary3 February 2022FY2022 Quarter 3 Results Presentation22Summary1. Financial Year ending 31 March 2022 Quarter 3 Results•Impacted by constrained vehicle production and higher energy and material cost, but mitigated with sales price increase and cost saving efforts• Architectural and Technical Glass businesses offset unfavorable Automotive. Continued profit• Share of JVs and associates’ profits contributed• Shareholders’ equity ratio and cash flows improving further with positive factors including net profit2. Forecast for Financial Year ending 31 March 2022• Revenue revised upward, but operating profit downward.No revision of profit for the period and net profit due to strong share of JVs and associates’ profits• Architectural : continuous tighter demand and supply situation, but impacted by higher energy cost mainly in Europe• Automotive : Affected by continued component shortage and higher input costs3. Update of Transformation Initiatives under Revival Plan 24• Cost structure reform: Headcount and cost reduction initiatives progressing• Business structure reform: New float line construction in Argentina aiming for full operation in early 2023/3Introduction of renewable electricity generated by a wind farm in Poland• Transformation into more profitable business portfolio: New development of “MAGNAVI®” with high elasticity and• Transition from the 1st section to the Prime Market of TSE has been decided high strength3 February 2022FY2022 Quarter 3 Results Presentation23NoticeThe projections contained in this document are based on information currently available to us and certain assumptions that we consider to be reasonable. Hence the actual results may differ. The major factors that may affect the results are the economic and competitive environment in major markets, product supply and demand shifts, currency exchange and interest rate fluctuations, changes in supply of raw materials and fuel and changes and laws and regulations, but not limited.Nippon Sheet Glass Company, Limited3 February 2022FY2022 Quarter 3 Results Presentation24AppendicesFinancial Year ending 31 March 2022 Q3 Results• Consolidated Income Statement – Quarterly Trend• Revenue & Operating Profit – Quarterly Trend• Segmental Information by Quarter• Revenue & Operating Profit – by Region• Exceptional Items• Foreign Currency Exchange Rates and Sensitivity• Depreciation & Amortization, Capital Expenditures, R&D Expenditures3 February 2022FY2022 Quarter 3 Results Presentation25Consolidated Income Statement – Quarterly Trend（JPY bn）Revenue2020/32021/32022/3Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3147.1141.5137.2130.491.9129.6135.9141.8147.7143.0152.3Operating profit/(loss)8.86.13.13.2(0.6)3.84.85.17.25.51.8Operating profit margin (%)6.0% 4.3% 2.3% 2.5%－ 2.9% 3.5% 3.6% 4.9% 3.9% 1.2%Exceptional items (COVID-19 related)ーーー(2.2)(11.5)(1.3)(1.2)(2.1)ー－ーOperating profit/(loss) after COVID-19 related exceptional items 8.86.13.11.0(12.1)2.53.63.07.25.51.8Exceptional items (Other)(0.6)(1.6)(2.2)(17.4)0.0(0.8)1.0(5.5)(0.2)4.7(0.2)Finance expenses (net)(3.5)(2.8)(3.2)(3.0)(2.1)(3.5)(2.9)(2.9)(3.2)Operating profit/(loss) after exceptional itemsShare of JVs and associates’ profitsProfit/(loss) before taxationNet profit/(loss) *EBITDA8.24.50.9(16.4)(12.1)1.74.6(2.5)7.010.21.7(2.3)(0.1)(2.4)(0.4)0.40.2(1.9)(18.8)(14.9)(1.1)0.32.0(1.0)(0.7)(20.1)(16.4)(0.9)0.55.23.12.91.03.53.73.41.3(4.7)(2.8)(3.0)1.45.52.82.51.99.26.76.12.20.71.00.017.514.211.511.86.112.713.514.516.514.611.1*Profit (loss) attributable to owners of the parentProfit/(loss) for the period(0.7)(0.5)(19.4)(16.5)(0.7)3 February 2022FY2022 Quarter 3 Results Presentation2659.9 14.3 22.4 23.2 76.8 17.4 Revenue & Operating Profit – Quarterly TrendArchitecturalAmericasAsiaEuropeOperating profit59.8 13.1 5.7 60.4 14.7 4.2 24.6 4.1 24.7 22.1 21.0 53.6 13.1 19.7 20.8 3.3 44.9 9.7 19.2 16.0 2.7 4.6 20.5 4.2 18.9 4.2 57.0 14.1 59.4 15.9 22.4 24.6 54.2 13.4 18.6 22.2 66.6 24.0 15.9 26.7 (JPY bn)67.5 7.5 19.5 21.0 27.1 64.374.821.0 6.824.529.368.124.416.464.5 17.4 6.1 19.3 27.8 70.9 24.6 15.1 31.2 20/3 Q120/3 Q220/3 Q320/3 Q421/3 Q121/3 Q221/3 Q321/3 Q422/3 Q122/3 Q222/3 Q3AutomotiveAmericas25.9 4.0 AsiaEuropeOperating profit33.5 71.4 24.8 17.2 29.4 66.4 66.4 1.2 0.1 22.1 16.5 27.8 0.8 21.3 16.0 29.1 38.7 12.2 9.9 16.6 (2.9)68.3 21.9 71.6 22.9 0.5 17.6 1.3 17.2 2.9 1.3 23.612.9(2.3)28.8 31.5 27.927.3(4.9)20/3 Q120/3 Q220/3 Q320/3 Q421/3 Q121/3 Q221/3 Q321/3 Q422/3 Q122/3 Q222/3 Q3Technical Glass10.1 10.1 10.0 9.9 8.1 8.4 10.1 10.2 11.4 10.32.99.11.9 1.7 1.4 1.1 2.0 2.2 2.8 2.1RevenueOperating profit1.8 1.7 20/3 Q120/3 Q220/3 Q320/3 Q421/3 Q121/3 Q221/3 Q321/3 Q422/3 Q122/3 Q222/3 Q33 February 2022FY2022 Quarter 3 Results Presentation27Segmental Information by Quarter2020/32021/32022/3Q1Q2Q3Q4Cum.Q1Q2Q3Q4Cum.Q1Q2Q3Cum.Revenue: Architectural59.959.860.453.6233.744.954.257.059.4215.564.567.574.8206.9Operating profitOP after COVID*Revenue: Automotive(JPY bn)EuropeAsiaAmericasEuropeAsiaAmericasEuropeAsiaAmericasOperating profitOP after COVID*Operating profitOP after COVID*Revenue: OtherOperating profitOP after COVID*Revenue: TotalOperating profitOP after COVID*66.4281.066.668.371.6245.270.968.1203.320.819.713.13.32.729.116.021.30.89.92.07.70.21.71.60.587.191.455.217.316.7119.867.194.16.14.740.17.131.71.37.17.01.416.019.29.72.7(2.2)38.716.69.912.2(2.9)(9.3)8.11.36.50.31.41.20.222.218.613.44.64.126.715.924.00.58.41.46.80.21.11.00.4(0.6)22.420.514.14.23.828.817.621.91.30.41.97.90.32.02.10.524.618.915.94.23.431.517.222.92.91.71.88.10.32.22.20.685.277.253.115.79.1103.660.681.01.8(7.8)36.86.429.31.16.76.51.7(2.6)(2.7)(9.3)(9.4)(1.8)(1.8)(2.4)(2.0)(2.7)(2.7)(4.2)(4.3)(11.1)(10.8)-(0.6)23.222.414.35.7-76.833.517.425.94.0-1.78.00.41.8—22.124.613.14.1-71.429.417.224.81.2-1.87.90.41.7—21.024.714.74.2-66.427.816.522.10.11.68.10.31.9—0.30.20.4(2.7)(0.9)(3.1)(2.3)(4.9)(5.9)27.819.317.46.1-31.215.124.61.3-2.19.00.32.8—27.121.019.47.5-64.327.912.923.61.88.20.32.9—-29.324.521.06.8-27.316.424.4-9.12.06.80.32.1—84.264.757.920.4-86.444.472.5-30.85.924.00.97.8—0.90.80.32.0(3.1)(2.5)(2.2)(7.7)147.1141.5137.2130.4556.291.9129.6135.9141.8499.2147.7143.0152.3443.08.86.13.13.21.021.219.0(0.6)(12.1)3.82.54.83.65.13.013.1(3.0)7.25.51.814.5Revenue: Technical10.110.110.010.110.211.410.33 February 2022FY2022 Quarter 3 Results Presentation*Operating profit/(loss) after COVID-19 related exceptional items28Revenue & Operating Profit – by Region2021/3 Q3 Cum.2022/3 Q3 Cum.Change(JPY bn)Revenue％Revenue％Operating profit/(loss)Operating profit/(loss)RevenueOperating profit/(loss)EuropeAsia137.3122.9Americas96.11.1Other *Total38%34%27%0%2.48.34.2176.5133.1131.4(6.9)2.040%30%30%0%(1.5)15.78.0(7.7)39.210.235.31.085.6(3.9)7.43.8(0.8)6.5357.4100%8.0443.0100%14.5* Revenue and Operating loss of Other Operation are not split by geographical regions.3 February 2022FY2022 Quarter 3 Results Presentation29Exceptional Items(JPY bn)COVID-19 related items *Government supportSuspension and other costsRestructuring costsGain on disposal of businessSettlement of litigation mattersGain on disposal of subsidiaries and joint venturesCOVID-19 related itemsgovernment supportOthers2021/32022/3Q3 CumulativeQ3 Cumulative(14.0)2.3 (16.3)(4.0)-3.40.7 -0.1—–(0.1)4.40.4(0.3)4.4Exceptional items – net(13.8)* In 2021/3 the Group recorded the direct costs and also unrecovered operating costs arising from the COVID-19 pandemic as exceptional items, together with any related income from governments. Such costs include payments to employees not engaged in productive activities due to the COVID-19 pandemic, costs of maintaining idle facilities, and direct costs such as the deep cleaning of facilities to promote a safe operating environment. 3 February 2022FY2022 Quarter 3 Results Presentation30Foreign Currency Exchange Rates and SensitivityAverage rates usedClosing rates usedQ114112410928.04.70Q113712310828.32.53GBPEURUSDBRRARSGBPEURUSDBRRARS2020/32021/32022/3Q2137121109Q3138121109Q4138121109Q1133118107Q2135121106Q3136123106Q4139124106Q1153132109Q2152131109Q315313111227.627.226.419.919.819.719.720.620.820.7Closing rates are applied – hyperinflation2020/32021/32022/3Q213311810826.01.88Q314412210927.11.82Q413311910820.81.68Q113212110719.91.53Q213512410518.71.38Q314112710319.81.22Q415213011119.11.20Q115313211122.31.16Q215012911220.61.13Q315613111620.41.12SensitivityIncrease (decrease) if the value of the yen appreciates by 1% – all other things being equal2021/3EquityJPY (3.1) billionLoss for the periodImprove by JPY 0.1 billion3 February 2022FY2022 Quarter 3 Results Presentation31Depreciation & Amortization, Capital Expenditures,R&D Expenditures(JPY bn)Depreciation & AmortizationCapital expendituresOrdinaryStrategic projects and otherR&D expendituresArchitecturalAutomotiveTechnical GlassOther2021/32022/32022/3Q3 CumulativeQ3 CumulativeFull-year Forecast26.327.735.029.09.025.69.715.96.61.81.80.72.315.313.41.96.11.81.80.71.83 February 2022FY2022 Quarter 3 Results Presentation32