Interim report
Page 1
– 1 – Translation Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Member of the Financial Accounting Standards Foundation October 31, 2025 CONSOLIDATED FINANCIAL RESULTS for the Nine Months Ended September 30, 2025 (Unaudited) <under Japanese GAAP> Company name: Nippon Electric Glass Co., Ltd. Listing: Prime Market of the Tokyo Stock Exchange Securities identification code: 5214 URL: https://www.neg.co.jp/ Representative: Akira Kishimoto, President and Representative Director Inquiries: Mamoru Morii, Director and Senior Vice President TEL: +81-77-537-1700 (from overseas) Scheduled date to commence dividend payments: - Preparation of supplementary material on financial results: None Holding of financial results briefing: None (in millions of yen with fractional amounts discarded, unless otherwise noted) 1. Consolidated financial results for the nine months ended September 30, 2025(From January 1, 2025 to September 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Nine months ended % % % % September 30, 2025 232,094 2.0 24,317 427.1 24,092 279.8 16,674 (45.8) September 30, 2024 227,530 8.7 4,613 - 6,343 - 30,788 - Note: Comprehensive income: For the nine months ended September 30, 2025: 9,831 million yen [(77.4)%] For the nine months ended September 30, 2024: 43,445 million yen [ -%] Basic earnings per share Diluted earnings per share Nine months ended yen yen September 30, 2025 213.41 - September 30, 2024 356.60 - Note: The year-on-year changes in comprehensive income for the third quarter of the fiscal year ended December 31, 2024 are shown as “–” since they exceeded 1,000%.
Page 2
– 2 – (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 663,473 466,607 69.8 December 31, 2024 695,163 487,559 69.6 Reference: Equity: As of September 30, 2025: 463,078 million yen As of December 31, 2024: 484,020 million yen 2. Cash dividends Annual dividends per share First quarter-end Second quarter-end Third quarter-end Fiscal year-end Total yen yen yen yen yen Fiscal year ended December 31, 2024 - 65.00 - 65.00 130.00 Fiscal year ending December 31, 2025 - 70.00 - ––– ––– Fiscal year ending December 31, 2025 (Forecast) ––– ––– ––– 75.00 145.00 Note: Revision to the forecast of cash dividends most recently announced: None 3. Consolidated earnings forecasts for the year ending December 31, 2025 (From January 1, 2025 to December 31, 2025) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Earnings per share % % % % yen Fiscal year ending December 31, 2025 310,000 3.6 32,000 422.8 32,000 157.7 23,000 90.2 294.37 Note: 1. Revision to the forecasts most recently announced: Yes 2. For the revision to consolidated earnings forecasts, please refer to “Notice Concerning Revision of Forecasts for FY 2025,” which was announced today (October 31, 2025). 3. The Company has been repurchasing its own shares in accordance with a resolution passed by the Board of Directors at a meeting held on February 5, 2025, and the repurchase was completed on September 12, 2025. “Earnings per share” in the consolidated earnings forecasts takes into account the impact of this share repurchases.
Page 3
– 3 – * Notes (1) Significant changes in the scope of consolidation during the period: None (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes Note: For more details, please refer to the section of “(3) Notes to quarterly consolidated financial statements (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements) in 2. Quarterly consolidated financial statements” on page 12. (3) Changes in accounting policies, changes in accounting estimates, and restatement (i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes (ii) Changes in accounting policies due to other reasons: None (iii) Changes in accounting estimates: None (iv) Restatement: None Note: For more details, please refer to the section of “(3) Notes to quarterly consolidated financial statements (Notes on changes in accounting policies) in 2. Quarterly consolidated financial statements” on page 12. (4) Number of issued shares (common shares) (i) Total number of issued shares at the end of the period (including treasury shares) As of September 30, 2025 89,523,246 shares As of December 31, 2024 99,523,246 shares (ii) Number of treasury shares at the end of the period As of September 30, 2025 14,294,848 shares As of December 31, 2024 18,807,549 shares (iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended September 30, 2025 78,134,131 shares Nine months ended September 30, 2024 86,339,621 shares * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None * Proper use of earnings forecasts, and other special matters The forward-looking statements, including earnings forecasts, contained in these materials are based on certain assumptions deemed to be reasonable by the Company and its subsidiaries (“the Company Group”) and include risks and contingencies. Actual business results may differ substantially due to a number of factors. For more details, please refer to the section of “(3) Information regarding consolidated earnings forecasts and other forward-looking statements in 1.Operating results and financial position ” on page 6.
Page 4
– 4 – (Attached Documents) INDEX 1. Operating results and financial position ................................................................................................... 5 (1) Overview of operating results ............................................................................................................. 5 (2) Overview of financial position............................................................................................................ 6 (3) Information regarding consolidated earnings forecasts and other forward-looking statements ......... 6 2. Quarterly consolidated financial statements ............................................................................................. 8 (1) Quarterly consolidated balance sheet ................................................................................................ 8 (2) Quarterly consolidated statement of income (cumulative) and quarterly consolidated statement of comprehensive income (cumulative) ................................................................................................ 10 (3) Notes to quarterly consolidated financial statements ........................................................................ 12 (Notes on matters related to going concern assumption) ................................................................. 12 (Notes on significant changes in the amount of shareholders’ equity) ............................................. 12 (Notes on changes in accounting policies) ................................................................................12 (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements) .......................................................................................................................... 12 (Notes to quarterly consolidated statements of cash flows) ............................................................. 12 (Notes to segment information) ........................................................................................................ 12
Page 5
– 5 – 1.Operating results and financial position (1) Overview of operating results During the nine months ended September 30, 2025 (January 1 to September 30, 2025), net sales increased from the same period of the previous fiscal year (January 1 to September 30, 2024) due to strong performance in the electronics business and steady performance in the displays business. Operating profit and ordinary profit increased significantly year on year due to expanded sales of high-value-added products and improved productivity. Profit attributable to owners of parent decreased year on year due to the absence of a large amount of extraordinary income recorded in the same period of the previous fiscal year due to the sale of the former Fujisawa Plant. (Billions of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Change (%) Net sales 227.5 232.0 2 Operating profit 4.6 24.3 427 Ordinary profit 6.3 24.0 280 Profit attributable to owners of parent 30.7 16.6 (46) Note: Amounts less than 100 million yen are omitted. (Sales by products) Reporting segment Segment Nine months ended September 30, 2024 Nine months ended September 30, 2025 Change billions of yen (%) billions of yen (%) billions of yen (%) Glass Business Electronics and Information Technology 118.7 52 127.1 55 8.3 7 Performance Materials 108.7 48 104.9 45 (3.8) (4) Total 227.5 100 232.0 100 4.5 2 Note: Amounts less than 100 million yen are omitted. Electronics and Information Technology: In the displays business, net sales increased year on year due to continued steady demand and rising sales prices. In the electronics business, net sales increased year on year due to strong demand for products for semiconductors and data centers. Performance Materials: In the composites business, net sales fell below those of the same period of the previous fiscal year due to sluggish sales in a persistently severe competitive environment. In the medical care, heat- resistance, and architecture businesses, net sales were on par with the same period of the previous fiscal year.
Page 6
– 6 – (Profit/loss) Operating profit significantly exceeded that of the same period of the previous fiscal year due to an increase in net sales in the electronics business, an increase in selling prices in the display business, an improvement in productivity, and a decrease in logistics costs. In non-operating income and expenses, ordinary income increased significantly year on year, supported by an increase in operating income, despite foreign exchange losses due to the revaluation of receivables and payables related to borrowings of overseas subsidiaries. Profit attributable to owners of parent decreased year-on-year due to the absence of extraordinary income from the sale of the former Fujisawa Plant, which was recorded in the same period of the previous fiscal year, and the recording of extraordinary losses as business restructuring expenses associated with structural reforms in the composites business during the nine months ended September 30, 2025. (2) Overview of financial position (Assets) Total assets at the end of the third quarter of the fiscal year were 663,400 million yen, a decrease of 31,600 million yen from the end of the previous fiscal year. In current assets, cash and deposits decreased due to purchase of treasury shares, payment of dividends, repayment of borrowings, etc. In non-current assets, property, plant and equipment and investments and other assets decreased due to the progress of depreciation, disposal of non-core assets in accordance with the Medium-term Business Plan “EGP2028,” and reduction of cross-shareholdings, despite capital investment. (Liabilities) Total liabilities at the end of the third quarter of the fiscal year decreased by 10,700 million yen from the end of the previous fiscal year to 196,800 million yen. In current liabilities, short-term borrowings decreased due to the repayment of borrowings. (Net assets) Total net assets at the end of the third quarter of the fiscal year were 466,600 million yen, a decrease of 20,900 million yen from the end of the previous fiscal year. While profit attributable to owners of parent was recorded, the Company purchased treasury shares and paid dividends. In addition, foreign currency translation adjustment decreased due to the appreciation of the yen against major currencies. As a result, the equity ratio was 69.8% (69.6% at the end of the previous fiscal year). (3) Information regarding consolidated earnings forecasts and other forward-looking statements (Consolidated earnings forecasts for the year ending December 31, 2025) (Billions of yen) Year ending December 31, 2025 Change (B – A) Change (%) Previous forecasts (A) Revised forecasts (B) Net sales 310.0 310.0 ‐ ‐ Operating profit 27.0 32.0 5.0 19 Ordinary profit 24.0 32.0 8.0 33 Profit attributable to owners of parent 17.0 23.0 6.0 35 Note: Amounts less than 100 million yen are omitted. In the fourth quarter of the fiscal year ending December 31, 2025 (from October 1, 2025 to December 31, 2025), the Group expects the economic environment to remain stable, despite uncertainties regarding policy trends in various countries. In terms of sales, in the “Electronics and Information Technology” field, we expect stable demand in the display business. In the electronics business, sales of products for semiconductors and data centers are expected to remain steady. In the “Performance Materials” field, the competitive environment in the composites business is expected to remain severe. Solid demand is expected to continue in the medical care, heat-resistance, and architecture businesses. In terms of profitability, the displays business and the electronics business are expected to drive operating profit. In light of the financial results for the nine months ended September 30, 2025 and the above
Page 7
– 7 – outlook, the Group has revised its full-year consolidated earnings forecast announced on July 30, 2025 as shown in the above table. The direct impact of the U.S. tariffs on the Group's business performance is immaterial. In addition, the indirect impact of this measure is not included in the financial results forecast because it is not possible to calculate it quantitatively. The earnings forecasts contained in this document are based on certain assumptions deemed reasonable by the Group and involve risks and uncertainties. Please note that actual results may differ significantly from the forecasts due to various important factors. Factors that may affect actual results include, but are not limited to, economic conditions in global markets, trade and other regulations, sharp fluctuations in product supply and demand in major markets, large fluctuations in market prices in capital markets, financial conditions such as large fluctuations in exchange rates and interest rates, rapid technological changes, and epidemics.
Page 8
– 8 – 2.Quarterly consolidated financial statements (1) Quarterly consolidated balance sheet (Millions of yen) As of December 31, 2024 As of September 30, 2025 Assets Current assets Cash and deposits 123,964 109,642 Notes and accounts receivable - trade, and contract assets 58,732 61,099 Electronically recorded monetary claims - operating 1,043 898 Merchandise and finished goods 51,620 47,106 Work in process 1,025 1,351 Raw materials and supplies 42,598 39,867 Other 6,700 6,961 Allowance for doubtful accounts (189) (191) Total current assets 285,495 266,736 Non-current assets Property, plant and equipment Buildings and structures, net 63,112 59,610 Machinery, equipment and vehicles, net 263,243 255,866 Other, net 27,499 28,282 Total property, plant and equipment 353,854 343,759 Intangible assets 4,357 3,932 Investments and other assets Other 59,868 57,815 Allowance for doubtful accounts (8,412) (8,771) Total investments and other assets 51,456 49,044 Total non-current assets 409,668 396,736 Total assets 695,163 663,473
Page 9
– 9 – (Millions of yen) As of December 31, 2024 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 39,444 35,424 Short-term borrowings 45,777 25,875 Current portion of bonds payable － 10,000 Income taxes payable 6,353 5,056 Other provisions 67 56 Other 31,363 33,481 Total current liabilities 123,007 109,894 Non-current liabilities Bonds payable 20,000 10,000 Long-term borrowings 45,488 54,491 Provision for special repairs 6,242 8,791 Other provisions 2 3 Retirement benefit liability 1,541 1,604 Other 11,321 12,080 Total non-current liabilities 84,597 86,971 Total liabilities 207,604 196,865 Net assets Shareholders' equity Share capital 32,155 32,155 Capital surplus 34,279 33,901 Retained earnings 411,024 385,524 Treasury shares (60,007) (48,068) Total shareholders' equity 417,452 403,514 Accumulated other comprehensive income Valuation difference on available-for-sale securities 17,299 16,739 Deferred gains or losses on hedges (68) (64) Foreign currency translation adjustment 49,336 42,889 Total accumulated other comprehensive income 66,568 59,564 Non-controlling interests 3,539 3,528 Total net assets 487,559 466,607 Total liabilities and net assets 695,163 663,473
Page 10
– 10 – (2) Quarterly consolidated statement of income (cumulative) and quarterly consolidated statement of comprehensive income (cumulative) Quarterly consolidated statement of income (cumulative) (Millions of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Net sales 227,530 232,094 Cost of sales 185,839 174,114 Gross profit 41,690 57,979 Selling, general and administrative expenses 37,076 33,662 Operating profit 4,613 24,317 Non-operating income Interest income 650 638 Dividend income 976 689 Subsidy income 987 1,929 Other 1,456 1,051 Total non-operating income 4,070 4,309 Non-operating expenses Interest expenses 842 891 Foreign exchange losses － 2,440 Other 1,498 1,201 Total non-operating expenses 2,340 4,534 Ordinary profit 6,343 24,092 Extraordinary income Gain on sale of non-current assets 25,892 5,191 Gain on sale of investment securities 8,713 4,205 Other 2 62 Total extraordinary income 34,607 9,459 Extraordinary losses Business restructuring expenses 14 3,571 Loss on related accident － 3,032 Other 514 694 Total extraordinary losses 529 7,297 Profit before income taxes 40,422 26,254 Income taxes 9,323 9,418 Profit 31,099 16,835 Profit attributable to non-controlling interests 310 160 Profit attributable to owners of parent 30,788 16,674
Page 11
– 11 – Quarterly consolidated statement of comprehensive income (cumulative) (Millions of yen) Nine months ended September 30, 2024 Nine months ended September 30, 2025 Profit 31,099 16,835 Other comprehensive income Valuation difference on available-for-sale securities (435) (560) Deferred gains or losses on hedges 384 3 Foreign currency translation adjustment 12,306 (6,280) Share of other comprehensive income of entities accounted for using equity method 91 (166) Total other comprehensive income 12,346 (7,004) Comprehensive income 43,445 9,831 Comprehensive income attributable to Comprehensive income attributable to owners of parent 43,135 9,670 Comprehensive income attributable to non- controlling interests 310 160
Page 12
– 12 – (3) Notes to quarterly consolidated financial statements (Notes on matters related to going concern assumption) Not applicable (Notes on significant changes in the amount of shareholders’ equity) The Company cancelled 10,000,000 treasury shares on January 31, 2025, pursuant to a resolution at a meeting of its Board of Directors held on July 29, 2024. As a result of the cancellation of treasury shares, the balance of other capital surplus became a negative value; therefore, other capital surplus was set to zero and the negative value was reduced from other retained earnings. As a result of the above, retained earnings at 385,524 million yen, and treasury shares at 48,068 million yen at the quarterly of the fiscal year ending September 30, 2025. (Notes on changes in accounting policies) (Application of “Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules”) “Practical Solution on the Accounting for and Disclosure of Current Taxes Related to the Global Minimum Tax Rules” (ASBJ PITF No. 46, on March 22, 2024) is applied from the beginning of the quarterly of the fiscal year ending December 31, 2025. Current taxes related to the global minimum tax rules are not booked in the quarterly consolidated financial statement because ASBJ PITF No. 7 is applied. (Notes to accounting treatment specific to the preparation of quarterly consolidated financial statements) (Calculation of tax expenses) Tax expenses are calculated by reasonably estimating the effective tax rate after applying tax effect accounting to profit before income taxes for the fiscal year, including the current quarterly consolidated accounting period, and multiplying quarterly profit before income taxes by the estimated effective tax rate. However, if the calculation of tax expenses using such estimated effective tax rate would significantly lack rationality, tax expenses are calculated using the statutory tax rate. (Notes to quarterly consolidated statements of cash flows) The quarterly consolidated statement of cash flows for the third quarter of the current fiscal year has not been prepared. Depreciation expenses for the nine months ended September 30, 2025 (including amortization expenses for intangible assets excluding goodwill) are as follows. Nine months ended (September 30, 2024) Nine months ended (September 30, 2025) Depreciation 21,513 million yen 17,744 million yen (Notes to segment information) <Segment information> The Group (the Company and its consolidated subsidiaries) operates in a single segment, the glass business. Accordingly, segment information is omitted.