Company Overview

September, 2024
©AGC Inc.

1

Contents

1. Corporate Information

P.3

2. Overview of AGC GroupP.9

3. Medium-term Management Plan AGC plus-2026

P.15

4. Toward the Realization of Vision 2030

P.25

5. Outlook for FY2024

P.52

6. Shareholder Return

P.56

Appendix

P.59©AGC Inc.

2

1. Corporate Information©AGC Inc.

3

Basic Information

Representative director
President & CEO

Yoshinori Hirai* As of end-December 2023.

Company name

: AGC Inc.

TSE code: 5201

Established:

Representative
director: Yoshinori Hirai

Paid-in capital: ¥90.9 billion*

Consolidated
net sales: ¥2,019.3 billion*

Consolidated no.
of employees

September 8,
1907

Shareholder notes◼ Fiscal close◼ Annual generalshareholders' meeting

No. of consolidated
194 companies:(Of which 156 are
subsidiaries
overseas)*: March of each year

◼ Date of record

Annual general: December 31
shareholders' meeting
Year-end dividend: December 31

Interim dividend: June 30◼ Shareholder registry: 56,724*: December 31

administrator◼ Number of shares perunit◼ Number of shares

outstanding:

Mitsubishi UFJ Trust andBanking Corporation: 100 shares: 217,434,681 shares©AGC Inc.

4

Business Overview
Ceramics & Others

Asia

83.4 billion
Life Science

ArchitecturalGlass

126.8 billion

476.3 billion
Chemicals

Essential Chemicals

402.8 billion

574.1
billionElectronic Materials

Europe &Americas

316.3 billion

FY2023
Net sales¥2,019.3
billion

Performance Chemicals

166.9 billion

158.4 billion

Electronics

Automotive

499.7 billion

313.2 billion

151.3 billion

Displays160.7 billion* As net sales by business are before the deduction of eliminations, the sum of net sales by business does not equal Companywide net sales.
Sales to external customers are used for subsegment sales©AGC Inc.

5

Global Operation◼
◼

Business spans over 30 countries and regions
Approx. 70% of sales are generated outside Japan, and ratio of non-Japanese subsidiary employees
is about 70%
Net sales¥2,019.3 billion

Operating income

EuropeNet sales
Operatingincome::Employees :Group employees approx.

Japan & Asia

¥526.7 billion¥33.5 billion
16,600Architectural Glass
Automotive Glass
Fluorochemicals◼ Life Science◼
◼
◼

¥128.8 billion

Net sales
OperatingincomeEmployees :Architectural Glass
Automotive Glass
Display Glass◼ Electronic Materials◼
◼
◼

Americas: ¥1,273.4 billion:¥152.6 billion
35,400◼
◼
◼
◼

Chlor-alkali & Urethane
Fluorine & Specialty
Life Science
Ceramics* Because the figures for sales and profits by region are before eliminations and common regional expenses,
the sum of sales and profits by region does not correspond to the total sales and profits of the Company.

56,700Net sales:

Operatingincome:Employees :¥219.1 billion-¥9.9 billion
4,700

Automotive GlassElectronic Materials
Fluorochemicals◼ Life Science◼
◼
◼

(FY12/2023)©AGC Inc.

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AGC's position◼

Commands the top-ranking share in many products worldwide
Float glass

Top share*

Glass substrates
for TFT-LCD/OLED*Based on AGC’s estimates as of January 2024

Caustic soda and
PVC

No.2 Worldwide*

No.1 in *Super-thin soda lime
glass for electronics

Fluorinated resins(Fluon® ETFE)

Worldwide

No.1 Worldwide*

No.1 Worldwide*

Car-mounted CoverGlass

EUV lithography
photomask blanks

No.1 Worldwide*

Fluoropolymer
resin for on-site
coatings

No.2 Worldwide*

No.1 Worldwide*

Worldwide

Automotive glass

Top share**Based on fiscal 2024 estimates by AGC

Southeast Asia

Mountain of salt used
as a raw material©AGC Inc.

7

Changes in profit structure
Operating Profit by Business Segment (100 million JPY)

Ceramics/
Other
Ceramics/
Other

Life Science
Chemicals

ChemicalsElectronics

Electronics

Automotive

Glass

Architectural
Glass* In accordance with the change in reporting segments from FY2023, the following segments are disclosed from FY2022 onward.
* JGAPP in 2005 - 2011, and IFRS in 2012 - 2023e©AGC Inc.

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2. Overview of AGC Group©AGC Inc.

9

AGC Group Vision “Look Beyond”“Look Beyond”
Our Mission

AGC, an everyday essential part ofour world
AGC‘s unique materials and solutions
make people's lives better around theworld every day.
◼ Innovation &Our Shared
ValuesOur Spirit*私たちの使命は2015年に刷新

Operational Excellence◼ Diversity◼ Environment◼ Integrity
Never take the easy way out,
but confront difficulties.
©AGC Inc.

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Our Unique Materials and Solutions
AGC's technologicalstrengths

Unique and competitive material technologies (e.g., glass, fine ceramics, fluorine, etc.), processing technologies that enablehigh functionality, black-boxed manufacturing processes, and analytical and simulation technologies, as well as combinationof these technologies

1907

1910s

1950s

1970s

1990s

Architectural glass

Inorganic(Glass・
Ceramics)

2000s

2010s

2020s -

Energy-saving glass (insulating glass/double glazing)

Ceramics (refractories materials)(Fine Ceramics)

Automotive glass

Mobility

TFT display glass

CRT TV glass

Specialty glass(Silica glass / lenses, etc.)

Photomask blanks for EUV lithography

Complexification

Cover glass for in-vehicle displays
IR absorption glass filter

Functional chemical products (fluorine-related products)
Pharmaceutical and agrochemical intermediates and active ingredients

Bio
Common infrastructuretechnology*Quality manufacturing

Information
communication
Environment &EnergyEssential chemical products (PVC etc.)

Organic

Next-generation
areas

Next-generation bio

Biopharmaceutical CDMO
Microbial and mammalian cell cultures

Genetic recombination

Bioprocess technology

Production technology (Plant engineering, process technology) / Monozukuri* capabilities / Analysis technology /Simulation technology / DX

©AGC Inc.

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AGC Group's Value Creation Spiral◼

The AGC Group will create economic value through the creation of social value to achieve aspiral of enhanced corporate value.
Enhancement of corporate value
Pursuit of economic value (ROE 10% or higher)
AGC Group’s

Value
Creation
SpiralCreation of three social values
Blue planet

Innovation

Well-being

Realization of a sustainableglobal environment

Creation of an innovative
future society

Contribution to safe andsecure living

Key opportunities

Key opportunities◼ Addressing climate change◼ Building an info-intensive and IoT society◼ Effective use of resources◼ Achieving safe and comfortable mobility

Key opportunities◼ Developing social infrastructure◼ Facilitating better health and longevity◼ Addressing food crises©AGC Inc.

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Social Value Provided by the AGC Group◼

We will expand our business bycontributing to social and industrial
development and create threesocial values.

Blue planet
Realization of a sustainableglobal environment

Energysaving glass

Superheatinsulating
ceramics(Insulated glass /Double glazing)

Innovation
Creation of an
innovative futuresociety
We contribute to the creationof innovative future society
by providing materials andsolutions that support theworld's most advanced
technologies.

Specialty glass(Fluorine-related products)(ADAS/5G)

Nextgeneration
areas

Information
communication

Nextgeneration
areas

Mobility(Semiconductor,
optical, and high-speed
communication materials)

Environment &Energy(Hydrogen-related /Power storage materials)

Nextgeneration
areas

Ceramics(Silica glass / lenses, ezztc.)

Functional chemical
products

We contribute to the sustainabilityof the planet on which all life
depends by reducing theenvironmental impact of our
products from raw material
procurement to use by customers.

(Refractory materials)

TFT display
glass

Pharmaceutical andagrochemical intermediates
and active ingredients

Caustic soda / PVC(Industrial/Life infrastructure)

Architectural glass
Automotiveglass

Nextgeneration bio

Nextgeneration
areas

Well-being
Contribution tosafe and securelivingWe contribute to safe, secure,comfortable, and healthy
lives by providing products
necessary for daily life,
infrastructure, and healthcare
in a more stable manner.

©AGC Inc.

13

Medium to Long-term Initiatives for Value Creation
2015

2016

2017

2018

2019

2020

2021

2022 2023 2024 2025 2026 2027 2028 2029

2030

Vision 2030

Corporatetransformation
Chapter 1

Corporatetransformation
Chapter 2

By providing differentiatedDefined “Core businesses”

Clarified the direction of thematerials and solutions, AGC

and “Strategic businesses”

Group’s business portfolio

strives to help realize a sustainable

and promoted thetransformation and declaredambidextrous way of businesson the acceleration of thesociety and become an excellent

management

initiative

company that grows and evolves
continuously.

©AGC Inc.

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3. Medium-term Management
AGC plus-2026©AGC Inc.

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Steps toward Realization of Vision 2030◼

Under AGC plus-2026, we will accelerate corporate transformation (CX) andmaximize corporate value to realize Vision 2030.
2027 - Phase 3

Corporate transformation

Chapter 1 Chapter 22021- Phase 1

Evolution of "ambidextrous
strategy"
Deepening of sustainability management
Promotion of value creation DX
Strengthening of the management foundation

Vision2030

2024 - Phase 2

AGC plus-2026

Targets for Fiscal 2026
OP

Strategic Business OP

OP

Strategic Business OP

ROE

D/E Ratio

230.0 billion yen 50% or more
ROE

8% or more

D/E Ratio

0.5 or less
©AGC Inc.

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AGC plus-2026 Strategy◼ We will continue to pursue the direction of the AGC plus-2023, which has yielded certain results.
◼ To realize Vision 2030, we will accelerate corporate transformation (CX) and maximize corporate

value (achieve ROE 8% or more at an early stage) .

Evolution of"ambidextrous
strategy"
Deepening of
Sustainability
Management
Promotion of value
creation DX
Strengthening of the
management foundation

Accelerate business portfolio transformation by pursuing the use and development ofdifferentiated materials and solutions◼ Continue to strengthen the earnings base and cash generation capabilities of core businesses.
◼ Revise the scope of strategic businesses, accelerate business growth, and explore
next-generation areas◼

◼

Accelerate integrated management, including financial KPIs, by redefining the social valuethat we provide and setting sustainability KPIs.

◼
◼

Strengthen competitiveness through digital × monozukuri capabilities
Streamline and strengthen the entire supply chain

Strengthen group governance◼ Promote human capital management◼ Further strengthen the alignment between business strategy and technology platform◼

©AGC Inc.

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Medium-term Management Plan AGC plus-2026 :Financial KPIs

We will continuously grow and evolve our businesses to achieve stable ROE of 8% or higher◼

We will expand strategic businesses to account for the majority of Group-wide operating
profit by 2026.

Financial KPIs◼

2023 (Actual)2024 (Estimate)

2026

2030

OP

128.8 billion yen

130.0 billion yen

230.0 billion yen

300.0 billion yen

Strategic
Business OP

56.8 billion yen

60.0 billion yen

130.0 billion yen

190.0 billion yen

EBITDA*

304.1 billion yen

315.0 billion yen

440.0 billion yen

ROE

4.6%

-6.6%

8% or higher

D/E Ratio

0.42* EBITDA = Operating profit + Depreciation

2050

or higheror higher

10% or higher

0.5 or less
©AGC Inc.

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Medium-term Management Plan AGC plus-2026:

Sustainability KPIs◼

We will achieve sustainable growth by improving sustainability KPIs through business activities.
GHG (Scope 1 + 2) emissions [10,000 ton]*

Employee engagement score*
128

137

140 orhigher140
Employee Enablement

Sustainability KPIs

Employee Engagement

Blue planet
Shipment volume index for architectural
products contributing to GHG reductions*****

Innovation

Well-being

Total sales index for products contributing to
next-generation society (Electronics, Mobility,
Performance Chemicals)**

Shipment volume index for products contributing tosocial infrastructure development in fast-growing
regions (main chlor-alkali products)**

・・・

Index for GHG emissions reduction by lowGWP products** of Chemicals segment

・・・

・・・
Index for Life Science sales**

・・・

・・・

* Items reflected in executive remuneration. However, for GHG emissions, GHG emissions per unit of GHG emissions sales are used in the calculation of executive remuneration.
** Indexes: Figures converted from 2023 on using 2022 as a base of 100.

©AGC Inc.

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Overview of Strategies for Each BusinessCore Business

Strategic BusinessBusiness

Overview of strategies

Electronics◼ Expansion of EUV mask blanks and other high value-added products◼ Continuous creation of new businesses

Life Science◼ Early rebuilding of U.S. biopharmaceutical CDMO business◼ Return to a growth trajectory by leveraging our strengths in global operations and technological capabilities

Mobility◼ Seizing business opportunities with an eye on market changes through CASE

Performance
Chemicals◼

Architectural
Glass
Automotive
Display
Essential
Chemicals◼

Provide high-performance materials for electronics including semiconductors as well as the environment and energy fields
Capture demand in global niche markets by adding high value and expanding business areas◼ Strengthen products and technologies that help solve social challenges such as GHG reduction, and stably

generate cash

◼ Improve profitability and efficiency through pricing policy, structural reforms, and continued shift to highperformance and high value-added products◼ Improve profitability and asset efficiency through business restructuring, strengthening competitivenessthrough technological innovation, and revising pricing policies◼ Continue and strengthen the strategy of regional concentration in the growing Southeast Asian market©AGC Inc.

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Image of Performance by Segment
Net sales (Billion yen)

OP (Billion yen)

Ceramics/Others
Life Science
ChemicalsElectronics
Automotive

ArchitecturalGlass

FY2023

FY2024e

FY2026e

FY2023

FY2024e

FY2026e©AGC Inc.

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Strategic Business Performance Image
Strategic business net sales (Billion yen)
Main products & businesses
Cover glass for in-vehicle
displays◼ High value-added products
for CASE◼

Mobility

Strategic Business
Operating profit

Semiconductor-relatedmaterials◼ Optoelectronics materials◼ Next-generation high-speed
communication materials◼

Electronics

Mobility
Electronics

Life
Science

Life Science
Performance

CDMO for synthetic
pharmaceuticals andagrochemicals◼ CDMO forbiopharmaceuticals◼

Performance
Chemicals◼ High performance fluorine

products for various
industries©AGC Inc.

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ROCE of Each BusinessAnnounced February 2024
FY2023 Actual vs

ROCE

-5%

0%

Current Situation

FY2026 Projection*

10% (Group-wide target) 20%◼

Electronic Materials andPerformance Chemicals,
which are categorized as
Growth and Strategic
businesses, performed well.

◼

Other businesses
progressed roughly asplanned, including
improved profitability in the
Display business.

◼

The biggest challenge isto bring Life Sciencebusiness back on a
growth trajectory.

Architectural
Glass

Automotive

Improvement

Further growth

Electronics

Display

Electronic
Materials

Chemicals

Essential Chemicals

Performance
ChemicalsLife Science
Group-wide

Improvement

ROCE : 10%

ROCE : (OP forecast of the year) ÷ (Operating asset forecast at the year-end), Group-wide OP is after allocationof common expenses; OP for each business is before allocation of common expenses*As of February 2024

©AGC Inc.

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Capital Allocation Policy
Strategic allowance will be set at 200 billion yen for proactive investment in strategic andgrowth businesses.
◼ Regarding shareholder returns, stable dividends will be maintained with a target of approx.
3% Dividend on Equity (DOE), and share buybacks will be determined based on acomprehensive consideration of investment projects, cash position and other factors.
◼

(Unit: Billion yen)Previous MTMP period (FY2021-FY2023)
Repayment of debt,
etc.
Share buybacks
Shareholder returns

Asset sales(Cross-shareholdings, idle
assets, etc.)

Investment instrategic businesses
Operating cash flow
Core businesses &common investments

FY2024–FY2026
Asset sales

Shareholder returns(Excluding Share buybacks )(Cross-shareholdings, idle
assets, etc.)

or moreStrategic allowance
Investment instrategic businesses

Operating cash flow
or moreCore businesses &common investments

Breakdown

Sourceof funds

Breakdown

Sourceof funds©AGC Inc.

24

4. Toward the Realization of Vision 2030
◼ Business Portfolio Transformation◼ Promotion of Sustainability Management－ Environment－ Social⚫ "AGC People: the driver of our growth!"⚫ Human Rights in the Supply Chain－ Governance©AGC Inc.

25

Business Portfolio Transformation
Vision 2025 formulated in Feb. 2016
Defined “Core businesses” and “Strategic businesses” andpromoted the ambidextrous way of business management

Vision 2030 formulated in Feb. 2021
Clarified the direction of the Group’s business portfolio transformation anddeclared on the acceleration of the initiative©AGC Inc.

26

Direction of the Business Portfolio Transformation◼

Through the practice of ambidextrous management, we aim to build a business portfoliothat is resilient to market fluctuations and has high asset efficiency, growth potential, andcarbon efficiency.

Resilient tomarketfluctuations

High asset
efficiency

Highgrowth rate

High carbon
efficiency©AGC Inc.

27

Direction of the Business Portfolio Transformation(Carbon Efficiency・ROCE）

Direction of theBusiness PortfolioHigh

Grow/ExpandCore Businesses

Electronic
Materials

Performance
Chemicals

ROCE *1

Strategic Businesses

Essential
ChemicalsArchitectural
Glass

20%

10%

Automotive

0%

Life
Science

Display-10%

Low

Carbon Efficiency*2

High

ROCE : (OP of the year) ÷ (Operating asset at the year-end),
Group-wide OP by business is after allocation of common expenses; OP for each business is before allocation of common expenses*1 : Created based on FY2023 results*2 : Based on 2022 emissions per 2023 sales©AGC Inc.

28

4. Toward the Realization of Vision 2030
◼ Business Portfolio Transformation◼ Promotion of Sustainability Management－ Environment－ Social⚫ "AGC People: the driver of our growth!"⚫ Human Rights in the Supply Chain－ Governance©AGC Inc.

29

Risks◼

Net Zero Carbon Target (FY2050)

Mid- to long-term GHG emissions reduction targets was set in 2021, making steady progress

Net zero carbon emissions
in 2050
FY2020

FY2030milestone（Scope 1+2）

FY2050

FY2030
Scope 1

GHG emissions

Scope 2

GHG emissions per unit of sales

Scope 3

GHG emissions(from the 2019 figure)（Scope 1+2 emissions）（Scope 1+2emissions/sales）（Total of Scope 3 emissions in categories 1, 10, 11, and 12）*The electricity CO₂ emissions factor for 2030 is based on the figures set based on the Sustainable Development Scenarios (SDS) published by the IEA.

30% reduction
50% reduction
30% reduction©AGC Inc.

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RisksGHG Emissions Reduction (Scope 1+2)◼

Results in 2023 were 14% lower than in 2019, mostly in line with the plan for the 2030 milestone.

◼

To achieve the milestone, we will work on technological innovation of the glass melting process,conversion to renewable energy as a source of electricity for the chlor-alkali business, and use of
biomass fuel for in-house heat energy generation, etc.

Scope 1+2
emissions andper unit of sales
reductions(2019-2023)

Scope1+2 emissions(千t-CO2-e)

Per unitof sales

-34%

0.77

0.51

Thousandt-CO2-e /100mn JPY

Thousandt-CO2-e /100mn JPY

11,694-14%
Business portfoliotransformation

2019（Base year）

Increase/decrease inproduction

Renewable Energy
Conversion・ Energy
Saving Measures

Improvement in GHG
emissions coefficientof electricity

10,0192023
Result©AGC Inc.

31

RisksTechnology Roadmap for Reducing GHG Emissions in
Float Glass Melting Process◼ By 2023：Progress in fuel conversion, electric booster installation, clean fuel demonstration,

carbon recycling, and cullet recycling development◼ By 2030：Implement priority measures in line with regional characteristics(Europe & Americas: electrification, Asia: energy saving)◼ By 2050：Combining multiple technologies focusing on electrification
2019
Europe &AmericasLargefurnaces(Architecturaland Automotive
glass)

Asia

Small &
Mid-sizefurnaces(Displays, etc.)

Fuelconversion
fromHeavy oil to
Natural gas

2023
Installation ofelectric booster *1

OxygenCombustion
Installation ofelectric booster *1

Introduction and deploymentof hybrid furnaces *3

Start of demonstration tests,
introduction, anddeployment of clean fuel *2

Utilization ofcarbon recycling,cullet recycling,technology, etc.

Introduction and deployment ofenergy-saving technologies
Start of demonstration tests, introduction,and deployment of electric melting
furnace*1 : Energized auxiliary heating *2 : Ammonia, Hydrogen etc. *3 : Energy sources are provided by a combination of electricity and fuelToward carbon-neutral
glass production,
combining andoptimizing each element

Electrification⚫ Energy Saving⚫ Clean Fuel
⚫ Carbon recycling⚫ Cullet recycling⚫

©AGC Inc.

32

Risks◼

GHG Emissions Reduction (Scope 3)

GHG emissions reduction by strengthening supplier engagement activities and switching toalternative fluorocarbon products with lower global warming potential

GHG emissions reduction (Scope3)

41% reduction

10.3 MM tons*

Strengthening supplierengagement activities,etc.

6.1 MM tons*
Purchased goods andservices

Switching to alternative
fluorocarbon productswith lower global
warming potential, etc.

2019*Sum of Scope 3 emissions in categories 1, 10, 11, and 12

Processing, use, andend-of-life treatmentof sold products

2023©AGC Inc.

33

Opportunities

GHG Emissions Reduction from Buildings◼

The European Commission targets a 55% reduction in GHG emissions in Europe by 2030*1.
（32% reduction as of 2022）◼

Buildings account for about 36% of GHG emissions*2 .

◼

It is important to improve energy consumption efficiency and insulation of buildings.
Europe GHG emissions
reduction targets*1
55%

reduction

100%

reduction

1990

2030

Proportion of GHG
emissions*2

Building energy
consumption breakdown*3

Buildings
approx.

36%

2050*1: Renovation Wave Strategy and Green Deal by the European Commission*2: EC, EU Energy Figures – “Statistical Pocket Book 2021” and Glazing Potential – Energy Savings & CO2 Emissions Reduction, Glass for Europe*3: Based on section “2.5.3 Final Energy Consumption BY SECTOR” in file ‘EU energy in figures - Statistical pocketbook 2021’©AGC Inc.

34

Opportunities◼

GHG Emissions Reduction Effects of High-Performance
Window Glass

AGC high-performance window glass products help reduce GHG emissions from buildings.

Progress of window glass insulation performance
Thermal transmittance ratio [W//m2・K]
Thermal transmission rate

1980～

Current

Amount of heat passing per 1 ㎡ for
1 hour at a 1 ℃ temperature difference
between inside and outside.

Approx.

Amount of heatW/m2・K

90% reduction

Cold
side

Warm
side
the temperature
difference is 1℃*1 3mm float glass *2 transparent double glazing with a 12mm hollow layer

Single glass*1

2
Double1 複層ガラス*
Low-E
Low-E
Low-E Low-E
Low-E
Low-E
1枚ガラス*
2
glazing*
Double glazing
Double複層ガラス
glazing Triple
glass
複層ガラス
トリプルガラス（ガス入り）（ガス入り）(without（ガス無し）
gas)
(with
gas)
(with
gas)

©AGC Inc.

35

Opportunities

Growing Demand for High-Performance Window Glass

EuropeJapan

Mandatory retrofitting is enforced for some lowperformance buildings under the Energy Performance
Rating System for Buildings*1. Subsidies and preferential
interest rates are implemented for renovations.

Energy-saving performance labeling becomesmandatory*2. “Advanced Window Renovation Subsidy”
will continue in 2024 with an expanded budget.

Subjects

Building energy performance evaluation
High

Window renovation

Energyconsumption

Reduction of energy
consumption
GInterior
window

F

E

D

C

Low
Low

Interior window
installation

Energy Performance

B

A
High

*1: Energy Performance of Buildings Directive (EPBD) *2: Energy-saving performance indication system

Supplementar
y budgetExterior window
replacement

Glass
Replacement

Existing
sash

2023: 1,000 、2024: 1,350 (100million JPY)
©AGC Inc.

36

Opportunities

Expand Introduction of Renewable Energy◼

Securing locations for solar panel installation in urban areas is a key issue.

◼

Building Integrated Photovoltaics enable energy generation through windows andreduce installation site constraints.

◼

It realizes both energy generation performance and design flexibility and contribute to therealization of a carbon-neutral society.

Building Integrated Photovoltaics (BIPV)AIST International
Research Center for
Zero Emissions
Entrance Canopy

New Punggol
Campus ofSingapore Instituteof Technology©AGC Inc.

37

Opportunities◼

Increased Demand for High Value-Added Products with
Expansion of EV and FCV Markets

Demand for high value-added
automotive glass will increase alongwith the expansion of the EV/FCV market
toward a carbon-net-zero society.
Low-emissivity glass

High solar control and insulation properties
reduce air conditioner load and improve fuelefficiency

In addition to improving comfort,
contributes to extending the cruising
range of EVs and reducing CO2 emissions

Panorama Sunroof
Demand forecast
1,000

800
600

(AGC’s estimate)Light control glass

Providing new value for panoramic sunroofs,
which are enjoying growing demand due to theintroduction of EVs

Further improved comfort andopenness and an advanced cabin

400
200
0

24e

25e

26e

27e

28e

29e

30e

Sound insulation glass

In addition to the windshield glass,the side window glass is laminated to further
improve sound insulation

A quiet and comfortable cabin space iscreated in EVs, which are free of engine
noise©AGC Inc.

38

Opportunities

Expansion of Hydrogen-related Markets◼

As products become more functional with the expansion of the hydrogen market, thespecifications required for materials are becoming more sophisticated.

◼

Developing new products and technologies with fluorine technology cultivated over many years to
respond to customer requirements.
Fluorinated Ion Exchange
Membrane for Water Electrolysis

Fluorinated Electrolyte Polymers
for Fuel Cells

Integrating electrolyte technologies for fuel cells and ion
exchange membrane technologies for chlor-alkali
electrolysis

High power generation performance and durability achievedby differentiated technology⇒ Established an overwhelming No. 1 position⇒ Supplying electrolyte membranes for waterelectrolysis with the world's highest efficiency
and safety performance

Hydrogen
DemandTrends*1

Million tons

Ammonia production
Synfuel production
Industry
Buildings
Transport
Power[Unit: Thousand]

200

Fuel Cell
VehicleProduction
Trends*2

Refining

160
120
80
40
0

2019 ’20‘21’22 ’23e ’24e ’25e ’26e ’27e ’28e ‘29e ‘30e

Hydrogen-related: including ammonia and synthetic fuels derived from methanation processes*1: Ministry of Economy, Trade and Industry Future Hydrogen Policy Issues and Directions for Response (2021)*2: Based on S&P Global data

©AGC Inc.

39

Opportunities

Expansion of Next-Generation Coolants
and Solvents Market◼

Accelerated conversion from existing coolants to new eco-friendly, next-generation coolants
and solvents with low global warming potential (GWP*) from 2025 onward toward a net-zerocarbon society.

◼

Low-GWP coolants market will expand to about 2.2 times its 2022 level by around 2030*4.
Target market*2

Coolants for turbo freezers
Areas that can besubstituted by
AMOLEA™ 1224yd

GWP

1,030

R245fa *3

Others1 or less

Thermalurethane

AMOLEA™
1224ydTurbo freezer

GWP

1,430
1 or less

R134a *3

AMOLEA™
1234yfResidential
Lowpressure
coolants

Global coolants
gas market
approx.

Coolants for Car air conditioners
Areas that can besubstituted by
AMOLEA™ 1234yf

Coolants for houses,
stores, and buildings

Car air
conditioners

Midpressure
coolants

780 billion JPY

Underdevelopment

Highpressure
coolants

Foodrefrigeration

Areas that can besubstituted by
AMOLEA™ 1123 blends

For stores
For buildings*1：GWP (Global Warming Potential ) is a coefficient that expresses the greenhouse effect as a multiple of that of CO 2.
*2：2020 AGC estimates*3：Existing products *4 Based on TCFD scenario analysis©AGC Inc.

40

Net Sales and Operating Profit of Products Contributing to theEnvironment and Energy Field◼

Net sales of products contributing to the environment and energy fields account for about 10% of
the Group’s total sales.

◼

While seizing opportunities for market expansion, AGC Group will continue to leverage its
technological capabilities to contribute to further GHG emissions reductions and business growth.

Overview of Business
Performance Contributionof Products Benefiting theEnvironment and Energy
Fields（Unit: 100 million yen）
Net Sales*Before allocation of common costs

300

380

170

220

2,260

2,680

2,890

2,180

2,490

2022

2023

2024e

2025e

2026e

190

Operating Profit©AGC Inc.

41

4. Toward the Realization of Vision 2030
◼ Business Portfolio Transformation◼ Promotion of Sustainability Management－ Environment－ Social⚫ "AGC People: the driver of our growth!"⚫ Human Rights in the Supply Chain－ Governance©AGC Inc.

42

Strengthening the Management Foundation:

Promoting Human Capital Management◼

At AGC, we will unlock the unique strengths and abilities of each individual. We foster a culture ofcontinuous learning, professional development and support embracing new challenges. The collective
growth of each individual creates a highly engaged and resilient organization, which enhances our
corporate value, enabling us to fulfill our mission.

"AGC People:
Driving our
Growth!"Achieving Our
Mission◼ Boosting
Corporate Value

Self-initiated growthby individuals

Diverse Talent◼

High
Engagement©AGC Inc.

43

Human Resource Development Strategy◼

Focus on developing human resources with diverse abilities as a strategy to develop human resourcesthat will contribute to business portfolio expansion and higher profitability.

Cultivatehumanresources withdiverse abilities

Examples of measures
Data Scientist Training Program「Data Science Plus」

Cultivate “two-skilled human resources” who combine
business knowledge in material development, production,
sales, and logistics with advanced data analysis skills.
2020

Advanced
Basic /
Intermediate
level
Entry-level

Solving problems in own division
through data science
Mastery of data science
methods and programming
languages
General education indata science

39

2023

82

2025

100

peoplepeoplepeople

1,735

4,300

5,000

peoplepeoplepeople(Global)©AGC Inc.

44

Promotion of Diversity Policies◼

The Diversity Council was established in 2022 to build an environment where diverse people
can make the most of their individual abilities. Accelerate diversity promotion measures by
sharing information across divisions.
Diversity Council
CFO

CEO

CTO

Chairperson

CEO
CFO,

CTO,
Participants

General manager of
HR Division,
In-house company
presidents

Generalmanager of
HR Division*Measures at AGC Inc.

In-housecompany
presidents

Frequency

2 times/year

AgendaDiversity & Inclusion
promotion

Established

2022

Diversity promotion measures
Fosteringorganizational
cultureIncreased opportunities for communication by top
management and executives to spread thesignificance of diversity promotion throughout theorganization

Recruitment

Increase ratio of women in new graduates and midcareer hires*

Talentdevelopment

Strengthening the development of key talent in the
mid-tier and young-career groups who will become
candidates for executive positions

Improvementof working
environment

Continue to promote the concept of “Smartworking” as a way work style that AGC aspires toand continue to improve the environment that leads
to enhanced corporate value *©AGC Inc.

45

4. Toward the Realization of Vision 2030
◼ Business Portfolio Transformation◼ Promotion of Sustainability Management－ Environment－ Social⚫ "AGC People: the driver of our growth!"⚫ Human Rights in the Supply Chain－ Governance©AGC Inc.

46

Initiatives Related to Human Rights Due Diligence in the Supply Chain◼

Implementing procurement activities under the AGC Group Purchasing Policy, which aims fora socially and environmentally responsible supply chain, including responsible mineralprocurement◼

In 2024, the survey on sustainable procurement will be expanded to more than 400
companies. If there are issues, conduct hearings and work on improvement.
Scope of questionnaire
Major AGC
parentsuppliers

Top global
suppliers

High risk
mineralsuppliers

Average questionnaire score
Major
suppliers atsites of each
Company213’23-’24
Target score

4’20-’210’22-’23’23-’245’23-’24
Achieved target score
Expanded scope of the questionnaire©AGC Inc.

47

4. Toward the Realization of Vision 2030
◼ Business Portfolio Transformation◼ Promotion of Sustainability Management－ Environment－ Social⚫ "AGC People: the driver of our growth!"⚫ Human Rights in the Supply Chain－ Governance©AGC Inc.

48

Sustainability Committee◼

Positioned equivalent with the Management Committee◼

Held four times a year, reporting to the Board of Directors twice a year
Agenda for the 2023 Sustainability Committee
meeting

Board of Directors

ExamplesSustainability Committee
An Organization that deliberates on anddetermines the basic policies and measures forsustainability management initiatives
Chairperson of Committee: CEO
Attendees : CFO, CTO, Audit & Supervisory Board members,
and all heads of In-house company/ SBU andcorporate division
Secretariat : Sustainability DivisionCorporate divisions

Management
Committee⚫ Internal carbon pricing system operational Review⚫ GHG emissions reduction
Scope 1, 2, 3 reduction roadmap
Emissions reduction results⚫ Initiatives to address human rights issues

In-house companies,
and SBUs

Sites(plants and subsidiaries etc.)

Identification of salient human rights issues and establishment of humanrights policies
Supply chain human rights due diligence⚫ Matters related to worker safety⚫ Employee engagement surveys and improvement©AGC Inc.

49

Environmental Response Meeting◼

Renewed the structure in 2024 to discuss not only GHG emissions reduction but also theenvironment in general.

◼

Establish global and cross-business thematic projects in order to address issues

Board of Directors
Sustainability Committee
Environmental Response Meeting
Advisory body on environmental sustainability management issues
Attendees: GM of EHSQ General Div., GM of Sustainability Div., general managers of each corporate division involvedin sustainability management strategy planning, and sustainability and CSR managers of business divisions

AGC
Group
EHS
Committee

Projects by theme©AGC Inc.

50

GHG Emissions Reduction Strategies that Take into Account Carbon
Cost◼

Reviewed the Internal Carbon Pricing System*.

Reflecting the policy landscape of each country and region in the carbon cost for climatechange, future carbon costs are calculated based on both regional and time Axis.
⚫ Consider social and economic value and apply them to investment decisions⚫

Projected carbon prices by regionin 2030

Carbon price
High

Low

*Applied globally from 2022

Time
axis

Projected carbon price trends
by region

Carbon priceRegional
axis

2024

2050
©AGC Inc.

51

5. Outlook for FY2024©AGC Inc.

52

FY2024 Outlook(100 million JPY)

Net sales（First half）

Operating profit（First half）

Profit before tax
Profit for the year attributable to owners of the parent
Dividend (JPY/share)
Operating profit margin
ROE
1 USD
FOREX (Average)
1 EUR
USD/BBL
Crude oil (Dubai, Average)
Ethylene (CFR SEA)
USD/MTFY2023
20,193
9,853
1,288
643
1,228
658
210
6.4%
4.6%
JPY 140.6
JPY 152.0
82.1
889* ROE of FY2024e is calculated using the figures of total equity attributable to owners of the parent as of Dec. 31, 2023

FY2024e

21,000

10,152

1,300

567

-420
-950
210

6.2%
-6.6% *
JPY 151.0
JPY 163.0
85.0
980©AGC Inc.

53

Outlook breakdown by Segment (Net sales and Operating profit)(100 million JPY)

FY2023 (a)Net sales

FY2024e (b)OperatingOperatingprofitprofitNet sales

Change (b)-(a)OperatingOperatingprofitprofitOperatingOperatingprofitprofitNet sales

Architectural Glass

4,763

328

4,600

230

- 163

- 98

Automotive

4,997

218

5,100

230

+ 103

+ 12

Electronics

3,132

184

3,500

450

+ 368

+ 266

Chemicals

5,741

648

6,200

600

+ 459

- 48

Life Science

1,268

- 124

1,300

- 240

+ 32

- 116

834

33

900

30

+ 66

-3

Elimination

- 542

1

- 600

0

- 58

-1

Total

20,193

1,288

21,000

1,300

+ 807

+ 12

Ceramics/Other©AGC Inc.

54

Outlook of CAPEX, Depreciation and R&D(100 million JPY)

Full year

Full year

FY2023

FY2024eDepreciation

1,753

1,850

Architectural
Glass

244

250

Automotive

319
532
501
139
21
-2

340
550
530
170
10
0

FY2023

FY2024e

2,317

2,500

Architectural Glass

Architectural
Glass

247

350

Architectural Glass

Automotive

263
514
877
399
18
-1

200
400
1,160
370
20
0

CAPEX

Electronics
ChemicalsLife Science
Ceramics/Other
Elimination

Electronics
ChemicalsLife Science
Ceramics/Other
Elimination

Full year
R&D

FY2023

FY2024e573

600

Main projects for CAPEX◼ Capacity enhancement for chlor-alkali in Southeast Asia (Chemicals)◼ Capacity enhancement for fluorochemical-related products (Chemicals)◼ Capacity enhancement for biopharmaceuticals CDMO (Life Science)◼ Capacity enhancement for electronic materials (Electronics)

etc.
©AGC Inc.

55

6. Shareholder Return©AGC Inc.

56

Change in Shareholder Return Policy (1)◼

In order to further strengthen our existing stance of maintaining stable dividends, we willchange the index used for shareholder return from consolidated dividend payout ratio tothe dividend on equity ratio (DOE), which is less affected by single-year operating results.

Current
policy◼

Maintain stable dividends with a consolidated dividend payout
ratio of 40%◼

Flexibly conduct share buyback

Maintain stable dividends with a target of approx. 3% dividend on
equity ratio (DOE)◼ Share buyback decisions are based on comprehensive
consideration of investment projects, cash position, and otherfactors◼

New
policy©AGC Inc.

57

Change in Shareholder Return Policy (2)◼

In 2024, the dividend amount will be the same as 2023.

Dividend per share（JPY）

50

Special dividend

80

105

105

105

45

45

55

60

60

60

45

50

55

60

60

80

105

105

105

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023e

FY2024e

Share buyback (100 million JPY)

ー

100

150

200

ー

ー

ー

ー

500

TBD

Consolidated total return ratio

48%

65%

56%

51%

60%

81%

38%

ー

144%

ー

Consolidated payout ratio

48%

44%

35%

29%

60%

81%

38%

ー

69%

ー

Dividend on equity ratio (DOE)

1.9%

1.9%

2.1%

2.2%

2.3%

2.3%

3.8%

3.4%

3.2%

3.1%

Year-end dividendInterim dividend

Shareholder return policy

45

Total return ratio of 50% or higher, flexibly
conduct share buyback

Maintain stable dividends with aconsolidated dividend payout ratio of 40%,
flexibly conduct share buyback

Maintain stable dividends with a target of approx. 3% dividend on equity ratio (DOE),
share buyback will be judged comprehensively* The Company consolidated its common shares at a ratio of 5 shares to 1 share on July 1, 2017, and per-share data is recalculated.

©AGC Inc.

58

Appendix©AGC Inc.

59

Sensitivity to FOREX / Market Impacts
Impact on Operating Profit

Exchangerate

600 million yen* gain
if yen depreciated by 1%*Impact when all currencies fluctuate at thesame proportion against JPY

Crude
oil

280 million yen* loss
if increased by 1 dollar
per barrel*excluding impact of oil hedging

Chemicals
market1

Caustic soda

$1 million gain if theInternational market risen by $1
2

PVC spread$1.2 million gain* if
increased by $1*PVC spread: PVC market – (ethylene market×0.5)©AGC Inc.

60

Business Performance (1)(100 million JPY)

Architectural Glass
Net sales

Asia
Europe & Americas(Inter Segment)
Operating profit

1Q FY2023

2Q FY2023

3Q FY2023

4Q FY2023

1Q FY2024

2Q FY2024

1,205

1,192

1,150

1,216

1,103

1,144

93

93

83

59

42

60

373
831
1

386
802
5

401
745
4

424
785
7

352
746
5

386
750
8

Automotive

1Q FY2023

2Q FY2023

3Q FY2023

4Q FY2023

1Q FY2024

2Q FY2024

Net sales

1,184

1,223

1,255

1,335

1,242

1,277

48

54

59

56

48

58

Automotive(Inter Segment)
Operating profit

Electronics
Net sales

Display
Electronic Materials(Inter Segment)
Operating profit

1,183
1

1,221
1

1,255
1

1,335
0

1,240
1

1,278
-1

1Q FY2023

2Q FY2023

3Q FY2023

4Q FY2023

1Q FY2024

2Q FY2024

702

717

835

878

825

868

19

11

69

85

72

128

358
341
4

425
290
2

418
414
3

406
468
4

428
394
3

473
391
4

©AGC Inc.

61

Business Performance (2)(100 million JPY)

Chemicals

1Q FY2023

2Q FY2023

3Q FY2023

4Q FY2023

1Q FY2024

2Q FY2024

Net sales

1,410

1,418

1,428

1,486

1,436

1,468

172

137

170

169

136

140

1Q FY2023

2Q FY2023

3Q FY2023

4Q FY2023

1Q FY2024

2Q FY2024

332

348

238

350

325

311

6

-1

-83

-46

-63

-79

Essential Chemicals
Performance Chemicals(Inter Segment)
Operating profit

Life ScienceNet salesLife Science(Inter Segment)
Operating profit

1,009
391
9

321
11

999
407
13

346
2

1,002
414
12

235
3

1,018
457
11

337
13

1,005
421
10

309
16

1,006
453
8

307
4

©AGC Inc.

62

Market trend
Trend of shipment and price

2023
1Q

2Q

2024
3Q

4Q

1Q

2Q

YoY comparision
Architectural

Japan & Asia

shipment-high single-digit-10%-low single-digit+mid single-digit-mid 10% range+high single-digit

price+high 20% range+low 30% range+high 20% range+mid 20% range+mid single-digit-mid single-digit

shipment-mid 10% range-mid 10% range-low single-digit-mid single-digitflat+high single-digit

price+high 20% range-low 10% range-low 40% range-40%-mid 30% range-30%

volume

+13%

+27%

+13%

+12%

-13%

-5%

volume

+10%

+15%

+8%

+6%

+2%

+1%

Europe*volume

+25%

+16%

+5%

+6%

-3%

-5%

Global

area

-14%

+5%

+11%

-4%

+10%

+3%

（ AGC）Glass

Europe*3

Automobile
production*1
Electronics

Display panel
demand*2

Japan
North America
3*1 Source ： S&P global data as of July 8, 2024.
2* Source： Omdia-Display Long-Term Demand Forecast Tracker – 4Q23 Pivot
Results are not an endorsement of AGC Inc. Any reliance on these results is at the third-party’s own risk.
*3 Excluding Eastern Europe©AGC Inc.

63

Financial index
IFRS
19/12

20/12

21/12

22/12

23/12

Net sales

Million JPY

1,518,039

1,412,306

1,697,383

2,035,874

2,019,254

Operating profit

Million JPY

101,624

75,780206,168

183,942

128,779

6.7

5.4

12.1

9.0

6.4

44,43432,715

123,840-3,15265,798

％

3.9

2.9

10.2

-0.2

4.6

Return on assets（ROA） *2

％

4.4

3.1

7.9

6.7

4.5

Equity ratio
D/E（Interest-bearing debts・Net assets）

％

50

44

49

49

49

times

0.47

0.63

0.41

0.41

0.42

CF from Operating Activities/Interest-bearing debt
Earnings per share(EPS）

times

0.32

0.29

0.54

0.33

0.31

JPY

200.85147.84559.11-14.22304.73

Cash dividends per share

JPY

120

120

210

210

210

Million JPY

231,857

208,459

383,226

253,209

315,965

JPY/USD

109.05106.82109.80131.43140.56

JPY/EUR

122.07121.81129.89138.04152.00OP margin
Profit for the year attributable to owners of theparentReturn on equity（ROE） *1

EBITDA *3
Exchange rates（average）%
Million JPY*1 Profit for the year attributable to owners of the parent/Total equity attributable to owners of the parent(average) *2 Operating profit/Total assets(average)*3 EBITDA（Earnings Before Interest, Taxes, Depreciation and Amortization）＝ Profit before taxes + Depreciation + Interest expenses
For other financial indicators, please see here.

https://www.agc.com/ir/pdf/data_all.pdf©AGC Inc.

64

AGC Group’s Ambidextrous Management
Overall Strategy

Leveraging the core businesses and the strategic businesses as two wheels, wewill shift to an optimal business portfolio and continuously create economic
and social value.
Core Businesses

Strategic Businesses

Establishing long-term, stable sources of earnings
by increasing competitiveness of each business

Create and expand highly profitable businesses
that will become future pillars by using AGC’s
strengths in high-growth fields

Architectural
Glass

Essential
Chemicals

Automotive(existing)Ceramics

Display

Electronics* Comparison with resins currently mainly used as core substrate materials for semiconductor packages

MobilityLife Science

Performance
Chemicals©AGC Inc.

65

Architectural Glass Business Environment◼

Amid demand for environmental responsiveness, renovation demand and demand forenvironmentally friendly products are increasing.

◼

With a focus on high value-added products that lead to energy saving & creation, AGC aims
to build businesses that are less susceptible to economic fluctuations.
Architectural Glass Demand Outlook*1

Environmentally Friendly Products (examples)

K ton

South
America

Japan
/Asia
EuropeWarm-edge highly
insulated double
glazing*1 : AGC‘s estimate (only regions where AGC operates) *2 : PV glass to be installed at Singapore Institute of Technology

Vacuum insulated
Glass

BIPV module*2©AGC Inc.

66

Automotive Business Environment◼

◼

Lower the break-even point and strengthen the resilience against market fluctuations by review of pricing
policy, realigning its manufacturing structure, converting facilities to those with higher efficiency andpromoting DX initiatives
Increase the percentage of high value-added products such as CASE-related applications to improve theprofitability
Automobile Production (by region) *AGC’s High value-added products (%)
Mobility products * *Million unit

Other products

30%

Other
North America
Other Asia
China

2030e

Japan
Europe*: Based on S&P global **: Car mounted Display Glass, sensor, antennas, products with added functions and values such as Low-E, light control etc.

©AGC Inc.

67

Display Business Environment◼ Demand in China will continue to expand further

Demand for LCD Glass （by region）
Million ㎡/year

Demand for LCD Glass （by generation）
Million ㎡/year

G10-11

China
Approx.

25%

Other

Approx.

70%

25%

Approx.

80%

G8

55％

Other

Source: AGC’s estimate©AGC Inc.

68

Essential Chemicals Business Environment◼

The undergoing expansion of our plant in Thailand will further enhance AGC's position inSoutheast Asia.

Chlor-alkali production capacity inSoutheast Asia
Vs 2022+15%

Vs 2022+31%(Unit: 10,000 tons)

Market share based on production capacity inSoutheast Asia* (after expansion)

Vs 2022+33%* Market share based on production capacity: Caustic soda does not include Australia/NZ
in the region, PVC includes Australia/NZ in the region©AGC Inc.

69

Performance Chemicals Business Environment◼
◼

◼

Growing business with high asset and carbon efficiency.
Highly rated in global niche markets requiring high technical characteristics.
Aiming for sales of 300 billion yen or more by 2030.

Positioning in the Business Portfolio

Global Niche Top Strategy

Positioned as a growth business with high ROCE andcarbon efficiency

Strengths in technological developmentusing the properties of fluorine

High

Worldwide No.1*3 Share

Grow/Expand

ROCE *1

Performance
ChemicalsCore Business

Strategic Business

3,000
or more20%
10%

Carbon Efficiency *2（unit：100 million JPY）

Fluoropolymer resin ETFE

Electronic
Materials

0%Life
Science

Low

Performance chemicals*4 sales trend

Electrolyte polymer forfuel cells
Fluoropolymer resinfor on-site coatings

-10%

High

*1: Created based on FY2023 results *2: Based on 2022 emissions per 2023 sales*3: AGC’s estimate as of Jan 2024
©AGC Inc.

70

Performance Chemicals | Main Demand Sectors◼ About 60% of the demand is in the sectors of transportation equipment and architecture;

where the products are mainly applied in electronics, automobiles, aircraft, etc.
◼ The remainder consists of diverse and specialized sectors

Sales ratio by application (2022)

Electronics

Transport
Equipment

Architecture©AGC Inc.

71

Life Science | Global Service Deployment (1)◼

We have established a highly integrated cGMP system in Japan, the U.S., and Europe, andprovide the same high standard of development and manufacturing services in a wide
range of fields from any of these regions.

Seattle (US)
Mammalian,
Microbial

Colorado(US)
Mammalian, Others

Heidelberg(Germany)

Copenhagen(Denmark)

Microbial,
pDNA,
mRNA

Mammalian,
Microbial

Fukui (Japan)
Synthetic
pharmaceuticals
and agrochemicals

Milan (Italy)

Malgrat(Spain)Synthetic
pharmaceuticals

Gene/cell therapy,
Viral vectors,
ExosomesR&D (Biopharmaceuticals, Synthetic
pharmaceuticals and agrochemicals)＋

Under construction

Mammalian, Microbial,
pDNA、Synthetic
pharmaceuticals andagrochemicals

Mammalian,mRNA,
Cell therapy
Small molecule pharmaceuticals and agrochemicals

Biopharmaceuticals

Small molecule pharmaceuticals and agrochemicals/ Biopharmaceuticals©AGC Inc.

72

Life Science | Global Service Deployment (2)Site location

Small molecule
pharmaceuticals
andagrochemicals

2018

2019

2020

2021

2022

2023

2024

2025

2026

Enhancement

Enhancement

Microbial/Mammalian/
Cell and gene therapy

Biopharmaceuticals

Japan

Chiba/Fukui

EuropeMalgrat

Japan

Chiba

EuropeHeidelberg

2016
Acquisition

EuropeCopenhagen

2017
Acquisition

Enhancement

Enhancement

US

Seattle2017
Acquisition

Enhancement

Enhancement

EuropeMilan

Acquisition

US

Boulder

Acquisition

US

Longmont

Japan

Yokohama

M&A* Based on the start of operation

Enhancement

Acquisition

Enhancement

Enhancement
pDNA Enhancement
pDNA Enhancement ＋
mRNA Establishment

Enhancement
Start ofoperation
Acquisition

Enhancement
Enhancement

Under consideration©AGC Inc.

73

Life Science | Strength (1)◼

Addresses a wide range of production scale needs that vary in accordance with the progress of thedevelopment phase of the drug product
Small molecule pharmaceuticals

We have both pilot facilities suitable for small-volume production in the early stages of development andlarge reactors for commercial phase.

Biopharmaceuticals

AGC is a pioneer in the introduction of SUBs, which enable flexible production of small- to medium-scale
production, and has the industry's top-class production capacity*. Large-scale SUS was introduced in2020 to accommodate large-scale commercial production.

Bioreactors used for biopharmaceutical production

Scope of AGC’s services in the biopharmaceutical CDMO business

The main bioreactors used for biopharmaceutical production
are ”SUB” and ”Large-scale SUS.”

Combination of SUB and large SUS to meet a wide range of
production scale and development phase.

SUB (Single-use bag)

Scale of production

A bioreactor that uses
single-use bags, which aredisposable containers. Since
no washing of the bioreactor
is required, it is highly
efficient and suitable for small- to mediumscale multi-product production.

Large-scale SUS
Large stainless steel
bioreactors
Suitable for large scalecommercial production

Scale of production
2,000L* AGC estimates

12,000L

20,000L

Key targets oflarge-scale CDMOs

Large-scale
SUS

Scope of AGC's
servicesSUB

Key targets of small to
medium-sized CDMOs

Early-stageLate-stage
development development

Commercial
phase

Development phase©AGC Inc.

74

Life Science | Strength (2)◼

Based on many years of business experience, we have gained a wealth of manufacturing andauthority inspection track record, as well as the trust of our customers. Increased orders forcommercial and late-stage development projects requiring higher level of cGMP management.
The more track records are accumulated, the more orders are received, leading to a virtuous cycle.
商用
Percentage
of biopharmaceutical CDMO
contracts (value)

Percentage of contracted biopharmaceutical
API* (%)

Commercial
Late-stage
development(Phase III)
Early-stage
development(Pre-clinicalPhase II)

Mid- to long-term growth is expected to continue by thecycle of nurturing the projects together with the clientfrom the early stage of development to the commercial
stage where the contract is stable.

Top 10 API contract
manufacturers,
including AGC, accountfor approx. 70% of
contracted items* Source: Our calculations based on Globaldata (Apr2024)©AGC Inc.

75

Life Science | Biopharmaceutical CDMO manufacturing
capacity (mammalian cells only)（kL）

Expansion of SUB bioreactors
at Copenhagen site

Establishment of SUB bioreactors
at Yokohama site

©AGC Inc.

76

Electronics | Semiconductor-related Materials
Market environment◼ The semiconductor market, AGC's target

market, showed negative growth in 2023
compared to 2022, but the mediumterm growth trend remains unchanged.
◼ Demand and AGC product shipments are

expected to remain strong over the
medium term, as leading-edge major
semiconductor manufacturers continue
to invest at high levels.

Semiconductor market

Unit:
Billiondollars

Growth drivers
toward 2030

• Expansion of AI-related
technologies• Growing demand for in-vehicle
applications

900
800
700
600
500
400
300
200
100
0

'2022
Source: Gartner

23

24e

25e

26e

27e
©AGC Inc.

28e

77

Electronics | EUV Mask Blanks
The sole blanks manufacturer in the world that covers the whole production process from glass materials to polishingand deposition◼ Strengths include flexibility to customer requests, technical proposals and support to customers◼

Strengths

Continue to invest intensively in line with market growth◼ Securing competitive advantage in the next generation area with AGC's high technological capabilities◼

Strategy

Cumulative number of EUV lithography equipment*

Net sales of EUV mask blanks of AGC

Machines

May be achieved
ahead of schedule40

billion yen
or moreOver
1.5 times
About
1.5 times

2019
Source: The number of EUV exposure equipment is based on material published by ASML.

'20

'21

'22

'23

'24e
©AGC Inc.

'25e
78

Electronics | CMP Slurry
Technological development capabilities that enable integrated production from raw material abrasive
powder to slurry◼ Providing high-quality slurry and solutions to meet customers' design rules and processes◼

Strengths

Maintains leading position in ceria slurry◼ Expanding sales to new applications (3D mounting, etc.)◼

Strategy

Business environment: Ceria slurry market

Million USD

Expansion

400

Front-end
process

300

Building
semiconductor
chips on wafers

200
100
0

Use case of CMP slurry in semiconductor
manufacturing process

2020

'21

'22

'23

'24e

'25e

'26e

Element formation
Wire formation

Used in planarization
process within theelement/wire formation
process

Wafer characteristics
inspection

Post-process

Assembly

Packaging the chipInspection©AGC Inc.

79

Electronics | Optoelectronic Materials
Market environment◼ The smartphone market, thetarget for AGC's main product,
IR-cut filters, showed negative
growth in 2022-2023 due to theeconomic slowdown.
◼ However, this market isprojected to grow again in 2024
and beyond.

Smartphone shipments

Number of image sensors
for cameras

2,000

10,000

Units in millions

1,800

9,000

1,600

8,000

1,400

7,000

1,200

6,000

1,000

5,000

800

4,000

600

3,000

400

2,000

200

1,000

00

Units in millions

0

'2021
2021 '22 '2023'23 '24e'2025e'25e '26e'2021
2021 '22 '2023'23 '24e '2025'25e '26e©AGC Inc.

80

Electronics | IR-cut Filters◼

Realize spectral characteristics that are challenging to achieve by combining glass, disposition and opticaldesign technologies, contributing to a better image quality for cameras◼

Build strong partnerships with influential customers by leveraging our advanced technological capabilities◼

Aiming for even higher added value as mobile camera units become more advanced

Strengths

Strategy

Glass filter to match image sensor sensitivity tohuman visual sensitivity

IR-cut filter
for the
CMOS/CCDN
sensorCMOS/
CCD
sensorProduct use cases

Cameras for
smartphones

SLR cameras

In-vehicle cameras©AGC Inc.

81

Mobility | Business Overview (1)◼

◼

With the expansion of EVs, demand for sunroofs utilizing heatinsulating and light control glass and sound-insulation glass is
expected to grow in addition to existing high-value-added products*.

Panorama Sunroof
Demand forecast(AGC’s estimate:
10,000 units)

Demand for sunroofs is expected to grow, particularly in Europe and
China

Low-emissivity glass

Light control glass

Sound insulation glass

Apply special metal coating to glass to block
solar radiation heat in summer and keep
heat in winter. Also contribute to extending
the travel distance of EV and reducing CO2
emissions.

Insert a special film between two sheets ofglass to control transmission of light so thatthe optimal amount of light falls into the car.

Insert a special sound insulation membrane
between two sheets of glass to reduce noisefrom outside vehicles. Realize a comfortablein-vehicle environment without increasing
the weight (thickness) of glass.

* Products with added functions and value such as IR cut and HUD©AGC Inc.

82

Mobility | Business Overview (2)◼

Focusing on market changes through CASE to ensure that business opportunities are seized◼

Cover glass for car-mounted displays are used in over 100 models, mainly for European
luxury cars

Providing not only materials but also solutions through the conversion of glass into displays and the
addition of communication functionality
Automotive glass
Radio wave transmission

AM/FM/TV antenna

Sensor/Camera/V2X antenna

Cover glass for carmounted display

Glass antenna fornext-generation
automobiles
Antenna installation position

Heating,
solar control,and soundinsulation

HUD

Transparent
screenWorld’s top share thanks toadoption for LEXUS RX
released in 2019, etc

Succeeded in 5G
communication with glassintegrated 5G antenna,jointly with NTT DoCoMo andEricsson©AGC Inc.

83

Initiatives to Achieve PBR of 1x or Higher
1

Improve andstabilize ROE(First, to the 8% level during theterm of the new medium-term
management plan)2

Improve PER(Realize growth expectations throughportfolio transformation)

3 Strengthen the managementfoundation to support
transformation and approach tocapital markets

1. Accelerate portfolio transformation through "ambidextrous
strategy"
2. Carefully select investments and implement structuralreforms at an early stage
3. Continuously improve asset efficiency, including the sale ofcross-shareholdings
1. Achieve steady growth in strategic businesses
2. Accelerate structural reforms in core businesses
1. Strengthen governance and further pursue sustainability
management
2. Implement appropriate shareholder return measures©AGC Inc.

84

Changes in Cross-shareholding Balance◼

In principle, all available cross-held shares are subject to sale.

◼

The cross-held shares in 2023 was 70 issues, accounting for 92.5 billion JPY. Going forward,
we will proceed with further reduction of the cross-held shares.

Changes in cross-shareholding balance* (100 million JPY)
2,749

2,717

2,804
2,161
1,768

FY2015FY2016FY2017*Balance at end of period including retirement benefit trusts

FY2018FY20191,628

FY20201,476

FY2021

1,024

925

FY2022

FY2023©AGC Inc.

85

AGC’s Corporate Governance Structure©AGC Inc.

86

Pursuit of value creation DX◼

We will enhance the competitiveness of each business by combining the digital technology
developed since 2017 with AGC's capabilities in monozukuri.
Transformationof business modelPursuingof Value
Creation

Strengthening
competitiveness
Capabilities inmonozukuri

Transforming businessprocesses across the
supply chain, etc.

Quality
traceability

Material andproduct
development

Changes incommercial
distribution andlogistics, etc.

Productivity
innovation

Cost
reduction

Lead time
reduction, etc.

◼

Building a data
infrastructure linked withcustomers◼

Transforming operations
with generative AI◼

Sharing of digital assets
between regions andbusinesses◼

Stable operations andoptimization throughdigital twin technology

PHASE 1 (2017～)

PHASE 2 (2020～)

PHASE 3 (2022～)

PHASE 4 (2024～)

Building a foundation
for DX realization

Full-scale DX initiatives

Innovation throughdigital technology

DX in steady orbit©AGC Inc.

87

External evaluations
FTSE4Good Index Series

SBTi “WB2°C” GHG Reduction
TargetFTSE Blossom Japan Index

4 stars awarded in the 7th
Nikkei "Smart WorkManagement" survey

FTSE Blossom Japan Sector
Relative Index

Highly rated by EcoVadis in
Sustainability Evaluations

S&P/JPX Carbon Efficient Index

Clarivate Top 100 Global
Innovator 2023

CDP Climate Change Report
2023 “A-”DX Brand 2024
in recognition of digital transformation efforts©AGC Inc.

88

AGC Group’s
BrandStatement

Never take the easy way out, but confront difficulties
Trust is the best way to inspire people
Strive to develop technologies that will change the world
A sense of mission leads us to advanceFor more than a century, AGC has been guided by thesefounding spirits. Our unique materials, solutions andreliable partnerships have facilitated leading innovations
across diverse industries and markets.
Today, by working with others to combine knowledge
and advanced technology, we help make ever greaterachievements possible, and bring bolder ideas to life

©AGC Inc.

89

Disclaimer:◼

This material is solely for information purposes and should
not be construed as a solicitation. Although this material(including the financial projections) has been preparedusing information we currently believe reliable, AGC Inc.
does not take responsibility for any errors and omissions
pertaining to the inherent risks and uncertainties of thematerial presented.

◼

We ask that you exercise your own judgment in assessing
this material. AGC Inc. is not responsible for any losses that
may arise from investment decisions based on theforecasts and other numerical targets contained herein.

◼

Copyright AGC Inc.
No duplication or distribution without prior consent of
AGC Inc.

©AGC Inc.

90