INTEGRATED REPORT - nsg.com

1 NSG INTEGRATED REPORT 20182018 FISCAL YEAR ENDED 31 MARCH 2018 INTEGRATED REPORTN ippon Sheet Glass Company LimitedThe NSG Group is one of the world s largest manufacturers of glass and glazing products for the Architectural, Automotive and Technical Glass around 27,000 permanent employees, we have principal operations in 27 countries and sales in over PolicyThis is the NSG Group's first " INTEGRATED REPORT " to replace the "Sustainability REPORT " and "Annual REPORT " each of which has been published separately. The new INTEGRATED REPORT is aimed at describing to our stakeholders how our stated goal of transforming into a VA Glass Company would enable sustainable growth through the expansion of glass products and service based on our unique technology and core strength.

2 Specific financial and non-financial data can be found in the Annual Consolidated Financial Statements, Sustainability Data Book and Guidelines GRI Sustainability Reporting Guidelines NSG Group INTEGRATED REPORT 2018 01 CONTENTSO verviewFinancial and Non-financial Highlights 02 NSG Group Corporate History 04 CEO Message to Our Stakeholders 06 Financial Strategy and Review 10 Value Creation Process of the NSG Group 12 Our BusinessBusiness Overview 14 COO Review of Business 16 Architectural 18 Automotive

3 20 Technical Glass 22 Corporate GovernanceMessage from Chairman of the Board 24 Corporate Governance 26 SustainabilitySustainability 36 Targets 38 Approach to Sustainability 40 Corporate InformationCorporate Data 43 Forward-Looking Statements 43 Further Information 43 Our Vision Making a Difference to our World through Glass Technology Our Mission To be the global leader in innovative high-performance glass and glazing solutions, contributing to the conservation and generation of energy, working safely and ethically Our ValuesPeople are our most important asset.

4 We value: Trust and mutual respect Integrity and professionalism Teamwork and mutual support Open communication Initiative and creativity Passion and resilience Individual and social responsibility SustainabilityOur Guiding PrinciplesWe will achieve success by: Ensuring that all our actions add value and make our company sustainable Being obsessed with safety, in the belief that all accidents are preventable Following the highest standards of social and environmental responsibility in everything we do Developing the potential, motivation and commitment of every individual Achieving defined quality standards to satisfy all our customers Staying ahead by constantly developing advanced technologies.

5 Innovative products and applications Making decisions based on data, facts and analysis, working closely with operations, development and commercial teams Exploiting synergies and eliminating waste, to ensure competitiveness Striving for continuous improvement - in all our activities02 NSG Group INTEGRATED REPORT 2018 FINANCIAL HIGHLIGHTS*1 Operating profit before the amortization of intangible assets arising on the acquisition of Pilkington plc*2 Trading profit*3 Effective as from 1 October 2016, the Company conducted a share consolidation in which every ten common shares were consolidated into one share.

6 The per-share data has been adjusted retrospectively to reflect the share consolidation for all periods of YenRevenue201820172016201520140200,00040 0,000600,000800,000580,795603,852(FY)Tra ding pro t*1 Return*2 on salesMillions of Yen%20182017201620152014010,00020,00030, 00040, , ,694(FY)Net debtNet debt / EBITDAM illions of YenTimes201820172016201520140100,000200, 000300,000400, ,254306, (FY)Shareholders' equityShareholders' equity ratioMillions of Yen%20182017201620152014051015202505,000 10,00015,00020,00025,000124,146134, (FY)Earnings per share* (FY)5,6056,130 Pro t attributable to owners of the parentMillions of Yen20182017201620152014-50,000-40,000-30 ,000-20,000-10,000010,000(FY)Return on (FY)790,192791,882 Total assetsMillions of Yen201820172016201520140200,000400,00060 0,000800,0001000,000(FY) , value per share*3 Yen20182017201620152014(FY)

7 05001,0001,5002,0002,500 OverviewOur businessFinancial performanceCorporate informationFinancial statements NSG Group INTEGRATED REPORT 2018 03 NON-FINANCIAL HIGHLIGHTS*4 Indicates total amount of glass and non-glass landfill waste*5 Supplier Code of ConductMtCO2 engagement2017201620152014%7276(FY)02040 6080100 Operational waste to land ll*4Kt010203040201720162015201420132422 Energy usagePJ0204060201720162015201420134543 SCoC*5 acceptance rate%020406080201820172016201520146171(F Y)Recycling (not glass) Kt0102030405060201720162015201420134947 Water usageMm305101520252017201620152014201320 18 Supplier sustainable assessment 010020030040020182017201620152014350370( FY)Signi cant injury rate (SIR) (FY) Additional sustainability assessments for key suppliers1910192019301940195019601970198 019902000201004 NSG Group INTEGRATED REPORT 2018In 2018, the NSG Group will mark the 100th anniversary.

8 Since its foundation in 1918, the NSG Group has continued to evolve. While sharing the 400-year-old Sumitomo Spirit, we are operating in markets around the world where our products have established a major presence in architectural, automotive and technical glass Plant in Fukuoka, JapanFirst piece of float glass ever made in AsiaMaizuru Plant in Kyoto, Japan1918 America Japan Sheet Glass Co., Ltd. was established in Osaka, glass production begun in Fukuoka, Company name was changed to Nippon Sheet Glass Co., Company started the first float glass production in Asia, with the technology licensed from Pilkington.

9 (Inventor of float process)1950 The Company listed its shares on the Tokyo and other stock exchanges in expanded in line with domestic glass demand growth. New capacity added at the Futajima plant in 1920s. A new plant was built in Yokkaichi, Mie, in Company increased the production capacity and expanded into the Automotive business. A new plant was built in Maizuru, Kyoto, in 1951. A new plant was built in Chiba in GROUP CORPORATE HISTORYO verviewOur businessFinancial performanceCorporate informationFinancial statements191019201930194019501960197019 80199020002010 NSG Group INTEGRATED REPORT 2018 05 Vietnam Float Glass Co.

10 , Ltd. Lathom site, UKThe SELFOC is still core technology in NSG Foundation was established to commemorate the 60th anniversary of the Company moved its registered headquarters from Osaka to Company revealed the NSG Group Sustainability Policy and established NSG Group Sustainability Company revised the NSG Group Code of May 2014, the Company announced the Long-term Strategic Vision and launched the Medium-term Plan (MTP).2012 The Company participated in the UN Global a thorough review, the Company redefined the MTP and began MTP Phase 2 covering the three-year period from FY2018 to Company adopted the governance structure with "Three Committees" in 2008.