Nippon Sheet Glass Co., Ltd. Head Office: 5-27, Mita 3-chome, Minato-ku, Tokyo 108-6321 Japan Telephone: +81 3-5443-9477 www.nsg.com Oct. 2015 Three Business Lines We operate three worldwide business lines: Architectural, supplying glass for the world’s buildings and for solar energy applications; Automotive, producing glass and glazing systems for vehicles worldwide; and Technical Glass, operating in the display, office equipment and glass fiber sectors. Architectural Automotive Technical Glass Glass for the world’s buildings Supplying every major vehicle World leader in thin display and solar energy applications manufacturer in the world glass and optical devices for office machinery 40% 50% 10% Contribution to Group sales* Contribution to Group sales Contribution to Group sales Main products Main products Main products • Thermal insulation glass • Solar control glass • Thin LCD glass • Fire protection glazing • Glazing systems • Copier/printer lenses • Solar control glass • Laminated glass • Glass cord • Glass for solar energy • Toughened glass • Battery separators • Noise control glazing • Security glazing • GLASFLAKE • Safety and security glazing • Lightweight glazing • METASHINE® • Aesthetic glazings Making windows better at Developing value-added Supplying ultra-thin glass for small saving energy vehicle glazing LCD applications Our thermal insulation products combine unrivalled We play a leading role in the development of value- Our Ultra Fine Flat Glass products are used in the thermal insulation with high light transmittance and lower added vehicle glazing, delivering greater functionality growing touch panel market, particularly in mobile phones refl ectance for a more neutral appearance. They provide to address Sustainability issues, such as CO2 reduction, and computers and now expanding into use in vehicles. thermal insulation and passive solar heat gain, helping solar control, lighter and more aerodynamic glazing, demand for more energy-effi cient windows. vehicle end-of-life issues and recycling. *Financial year ending 31 March 2015 01 02 Our Global Operations Our operations support a worldwide customer base. We have principal operations in 28 countries, employing around 27,000 people and marketing Architectural Automotive Technical Glass our products in over 130 countries. Manufacturing Manufacturing Manufacturing World leader in float glass Supplying the world’s Producing the world’s technology and coatings leading vehicle manufacturers thinnest float glass Principal operations in 18 countries. Principal fabrication facilities in 14 Major fabrication facilities in Japan, Overall, the Group manages, or has a stake countries. Major presence in Europe, China and Europe. in, 47 float lines around the world (some Japan, North America, of which are dedicated to Automotive and South America and China. Technical Glass production). Global spread Global spread Global spread Major presence in Europe, Japan and Leading share of the global Original World leader in thin display glass, optical North America. Also present in China, Equipment (OE) and Specialized devices for office machinery and glass South America and South East Asia. Transport markets. Largest player fiber products. globally in Automotive aftermarket glazing distribution and wholesale. • Argentina Europe Japan • Austria 12,000 employees 4,500 employees • Belgium • 10 float lines • Four float lines • Brazil • Two rolled plate furnaces • One rolled plate line • Canada • Chile • Automotive OE plants in • Architectural downstream • China five countries network • Czech Republic • Architectural downstream • Automotive OE plants and • Denmark in 8 countries AGR network • Finland • Extensive AGR network • Technical Glass operations • France • Technical Glass operations • Germany in UK • Hungary • India • Italy • Japan North America South America • Malaysia 4,400 employees 2,700 employees • Mexico • Five float lines • Seven float lines • Netherlands • Automotive OE in US, • Architectural downstream • Norway Canada and Mexico operations • Poland • Extensive AGR network • Automotive OE in Brazil • Romania in US and Mexico and Argentina • Russia • Spain • Technical Glass operations • AGR network • Sweden in Canada • United Kingdom • United States • Vietnam Well-balanced exposure S & SE Asia China 2,000 employees 1,800 employees NSG Group Business Weight • Five float lines • 16 float lines by Geographical Destination FY2013 • Two Automotive plants • Two Automotive plants North &South Japan & Asia • Technical Glass operations • Technical Glass operations America 30% • Rolled glass for 35% photovoltaics 35% Europe Calculated by adding the share of JV&A sales to consolidated sales by geographical destination. (As of March 2015) 03 04 Our Marketplace Glass is a growth industry. Glass demand growth outstrips economic growth globally. Today’s architects and vehicle designers are using larger surface areas in their designs, increasingly with added functionality and complexity. N Volume growth in glass N Market and competitive environment Over the past 20 years, glass demand has grown more Global float demand and GDP growth Europe, China and North America together account for 75 high-quality float glass. quickly than GDP. In spite of the current recession, over 300 percent of demand for glass. Europe is the most mature There are only three glass groups with global automotive the long term, glass demand is still growing at more than 2010 +8.5% glass market and has the highest proportion of 250 glazing capability and presence. NSG Group (Pilkington 4 percent per annum. value-added products. 200 Average glass growth +4.8% pa Automotive), AGC and Saint-Gobain, together with their 2010 +3.7% Demand growth for glass is driven not only by economic 150 Four companies: NSG Group, AGC, Saint-Gobain and respective associates and strategic partners, supply 70 growth, but also by legislation and regulations. 100 Average GDP growth +2.6% pa Guardian, produce around 60 percent of the world’s percent of the world’s OE glazing requirements. Demand for value-added products is growing at a faster Index (1991 = 100) 50 rate than demand for basic glass, enriching the product 0 mix and boosting the sales line. Value-added products, 19911995 1997 1999 2003 200 7 200 9 2010 N World high-quality float glass capacities particularly coated, are delivering greater functionality in The NSG Group has 13 percent of global high-quality 35% all application areas. capacity 30% 25% 20% N Global glass usage 15% Buildings 83% 10% Special Applications 10% New buildings 40% 5% Refurbishment 40% Automotive 0% Interior 20% AGCSaint- NSG GuardianTaiwan Sisecam China PPG Others 7% Gobain Glass Southern Automotive 7% *CY2010 base Original Equipment 80% Replacement market 20% N Value growth Special Applications 10% Buildings Solar Energy 10% 83% Architectual & Energy-saving Energy-saving legislation and building regulations; reduction of energy gain and loss in buildings, decreasing the need for Other 90% Solar Energy (solar and thermal control) cooling and heating buildings. Safety/security Increasing legislative requirement for safety glass in certain applications. Requirement for transparency combined with security features. Fire protection Requirement for good light transmission and compliance with regulations on fire protection. Noise control Increasing noise levels caused by traffic, aircraft, etc., progressively backed by legislation. N Routes to market* Technical applications Increased use of glass with special properties such as conductivity, neutrality and high transmission, for displays, transparent heating or cooling devices. Solar Energy Demand for renewable energy, stimulated by government support and feed-in tariffs. Float Manufacturer Automotive Complexity Designers see glazing as a crucial element in designs to differentiate vehicles. Curvature Styling demands increase the complexity and depth of curves in vehicle glazing. Automotive Building Products Special Apps. Solar Surface tolerance Increasing depth and complexity of curvature makes surface tolerances critical, e.g. for efficient windshield wiper operation. Security Crime and vandalism increase the need for security, provided by laminated side glazings. Solar control Larger glass areas require tinted and coated glazing to reduce solar gain and air-conditioning load. Semi-finished Wholesalers O.E. Processing Glazing systems Reduced time to market and lean manufacturing require modularized glazing including trim and other fittings in one unit. Integrated systems Complex antenna arrays and electronics integrated into glazing. IGU Mfrs. Technical Glass Thinner touch screen interface Move to touch screen mobile devices requires thinner and lighter top-quality ultra-thin float glass. High-quality energy-efficient Demand for high-performance light guides and next-generation LED printers and copiers require high optical performance PV Module office machinery with low-energy usage. Vehicle Mfrs. A.G.R. Furniture Makers Manufacturers Frame Makers High-performance batteries Glass fiber battery separators help to assure improved capacity, stability and safety margins in the next generation of batteries. Efficient engine timing belts NSG Group glass cord is increasingly replacing chain in engine timing belts, enabling lifetime fitting of belts that resist stretching. Dealers Retailers Glaziers/Installers Retailers Reduction of traffic noise Glass acoustic environmental screening attenuates noise without affecting light transmission, particularly useful in