Management Overview Briefing

May 27, 2024
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Central Glass Co., Ltd.
Management Overview Briefing
Date: 27 May, 2024
Presenter: Representative Director, President & CEO
Held via Zoom Webinar

Kazuhiko Maeda

01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business(1) Medi-Chemicals(2) Electronic Materials(3) Energy Materials(4) Applied Chemicals(5) Fertilizers(6) Glass(7) Glass Fiber

AGENDA
04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns(1) Major Research & Development Products(2) Research & Development Topics(i) Etching Gas (ii) SiC Wafers (iii) Circuit Pattern Collapse Prevention Agent

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Thank you very much for attending today's management overview briefing of Central
Glass Co., Ltd.
This will be our first management overview briefing, and we have prepared easy-tounderstand materials on the current and future status of our business as well as otherinitiatives. Thank you in advance for your cooperation.
First, I would like to explain VISION 2030, which we announced on May 10. Next, I will
present an overview of our business, including Results by Segment for FY2023,
followed by “Current Status and Future Vision in Seven Businesses,” “Research andDevelopment Initiatives,” “Promotion of Human Capital Management,” “Response toEnvironmental Issues,” and “Shareholder Returns,” in that order.

2

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

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3

Become a Specialty Materials Company
contributing to the realization of a sustainable society
ROE

Operating profit

Numerical targets(Highest earnings on record)

Business strategies

Expansion of specialty products• Creation of new value• Creation of a strong business model

Strengthening of essential products• Strengthening of earning capacity• Creation of high added value

Optimization of business portfolio

Promotion of human capitalmanagement

Response to environmental issues• Promotion of diversity, equity and inclusion• Increasing engagement• Promotion of health and productivity management• Initiatives for the reduction of GHG emissions• Initiatives for the realization of a recycling-oriented
society• Initiatives for the reduction of environmental impact

Promotion of utilization of digitaltechnology• Improvement of efficiency of operations• Enhancement of management foundations• Digital human resource development aimed at DX

Strengthening of business foundations through ESG management
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VISION 2030 is shown here. Our vision is to Become a Specialty Materials Company
contributing to the realization of a sustainable society. Our numerical targets are“operating profit of 20 billion yen,” which is the highest earnings on record, and “ROE ofat least 10%.”4

Business Strategies▌Expansion of specialty products▪ Creation of new value (R&D, innovative ideas)▪ Creation of a strong business modelSpecialty products
New value creation targets
Semiconductors andpower semiconductors

Reference

Batteries

R&D expenses
portfolio
FY2024

Life sciences

Lifestyle, environment
and food

3 advantages
Technologicaladvantage
Products using unique technology
such as intellectual property

Originality
Products that have established aunique and powerful business model

Sustainability▌Strengthening of essential products▪ Strengthening of earning capacity▪ Creation of high added value

Essential products

Products contributing to social andenvironmental issues

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5

Next, I will explain what is meant by specialty products and essential products in our
VISION.
Specialty products refer to products with which we operate with a high degree ofcompetitiveness with respect to one or more of the three “advantages,” meaning
technological advantage, originality, and sustainability.
As typical examples, electronic materials are a business with a technological advantage,
the anesthetic agent sevoflurane has originality in terms of the business model, andelectrolytes address sustainability.
Essential products are a group of products that by no means have a highly competitive
advantage, but for which there is a compelling social need, such as glass, glass fiber,
fertilizer products, and some chemical products. We will work to strengthen earning
capacity and create high added value for these products as well.
We have presented the expansion of research and development as a means of moving
forward with the “expansion of specialty products.” We will find highly profitable products
by acquiring intellectual property rights through innovative ideas from R&D, and by firmly
establishing business models and supply chains through contracts and other means. As
a result, we will expand or introduce specialty products in the fields of “semiconductors
and power semiconductors,” “batteries,” “life sciences,” and “lifestyle, environment andfood” as shown here. We are not satisfied with our current level of advantage, and weare committed to continuing to raise the level of our advantage.

Roadmap to the Operating Profit Target of 20 Billion Yen
We aim to reach 20 billion yen by doubling the operating profit of specialty products▌Operating Profit

Expansion of specialty products

Specialty productsEssential products(billion yen)

200
20

TargetSpecialty product groups

Semiconductors andpower semiconductors

Etching gases, cleaning gases, SiC
wafers, next-generation display materials,
etc.

Batteries

Electrolytes, next-generation battery
materials, etc.

Life sciences

Pharmaceutical products (inhalation
anesthetics, etc.)

100
10Lifestyle, environment
and food

Low GWP materials, environmentallyfriendly coated fertilizers, PFAS-freematerials, high value-added glass products,
etc.

Strengthening of essential products
Essential products

0
FY2023

FY2024FY2030Strengthening of earning capacity andcreation of high added value

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6

This slide illustrates the roadmap to achieving our VISION. It also lists specific productsin the four fields described on the previous slide. Our specialty products alreadyrepresent a significant portion of profit, all of which have the track record of being
products that are the result of our research and development. Most recently, electrolytes
are such products. In addition, several new initiatives currently under development are
just about to bloom in their respective fields in the future. We will continue to focus on
research and development and increase the number of specialty products, aiming for
operating profit of 20 billion yen by 2030.

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

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We will now move on to the “Overview of Business (FY2023 Results by Segment).”

7

2Overview of Business (FY2023 Results by Segment)
After expanding into the glass business from the original soda business, the Company further expanded its businessdomain and is currently expanding earnings from the chemicals business, including semiconductor-related products.
Net sales

Chemicals Business (5 businesses)
Net sales

100.9 billion yen (62.9%)

Operatingprofit10.6 billion yen (72.9%)▌ Medi-Chemicals▪ Inhalation anesthetic APIs

▌ Electronic Materials▪ High-purity gases for semiconductor
processes (Film deposition gases, cleaninggases, etching gases)▪ Circuit pattern collapse prevention agent▪ Photoresist materials▌ Energy Materials

160.3 billion yen
62.9%

37.1%

72.9%

27.1%

Operatingprofit14.5
billion yen

Glass Business (2 businesses)
Net sales

59.4 billion yen (37.1%)

Operatingprofit

3.9 billion yen (27.1%)▌ Glass▪ Architectural glass▪ Automotive glass▌ Glass Fiber▪ Glass wool
▪ Glass fiber▪ Electrolytes for lithium-ion batteries▌ Applied Chemicals▪ Hydrofluoroolefin (HFO) products, functional
material products▌ Fertilizers▪ Chemical fertilizers, coated fertilizers* FY2023 results

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Our business consists of the Chemicals Business and Glass Business, and as you cansee from the pie chart in the center, the Chemicals Business is currently growing interms of earnings and accounts for about 72% of our total operating profit. In addition,
the Glass Business, which had been stagnant for many years, has been profitable fortwo consecutive years and has transformed into a business that provides stableearnings.
Please refer to the summary of FY2023 financial results and financial resultspresentation materials for details of the business performance.

8

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

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From here, I will explain specific initiatives for achieving VISION 2030 in each of ourseven businesses.

932030 Vision for Each Business (1) Medi-Chemicals

Life sciences

Contributing to people’s health through inhalation anesthetic APIs
As of 2024

2030 Vision▪ Manufacture and sale of inhalation anesthetic Sevoflurane▪ Maintain a position as a leading company in the supply of
inhalation anesthetic APIs

– Marketed as an inhalation anesthetic for over 30 years▪ Maintain sustainable profitability– More than 1 billion cases of usage in more than 113 countries▪ Evolve R&D into the field of regenerative medicine
Cumulative shipments of
Sevoflurane
Reached 1 billion
cases'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 ‘18'18 '20 '22

Trophy received froma customer– Maintain a position as a leading company in the supply of APIs
– Reinforcing stable supply system by building a robust supply chain

Initiatives for 2030

▪ Continuing stable supply▪ Compliance with the latest GMP*

▪ Compliance with GMP of ICH **, WHO, EU,and each country

Three principlesof GMP

1. Minimize human error
2. Prevent contamination and quality deterioration of pharmaceuticals
3. Design a system that guarantees high quality* GMP (Good Manufacturing Practice)** ICH (International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use)

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10First is the Medi-Chemicals business.
Since the late 1970s, we have promoted the development of hydrofluoric acid productswith added value and have developed many fluorinated organic and inorganic compounds.
One of these is hexafluoroacetone (HFA). As a derivative using HFA, sevoflurane bore
fruit as a business in the 1990s. We supply bulk sevoflurane, an anesthetic, topharmaceutical manufacturers, who commercialize finished goods made by us in small
batches and supply them to medical facilities, especially operating rooms. For more than
30 years since around 1990, we have been providing our products to the medical
community in more than 113 countries around the world, and they have already beenused for 1 billion patients, boasting a high share of the global market. Therefore, we haveset our vision for this business in 2030 as “contributing to people’s health throughinhalation anesthetic APIs.”
Products are manufactured in compliance with GMPs of the International Council for
Harmonisation of Technical Requirements for Pharmaceuticals for Human Use in Japan,
the U.S. and Europe, the WHO, the EU and other countries in order to be highly
responsible for quality control and to maintain a stable and safe supply. We also undergo
regular audits, for example, last year we cleared a periodic inspection by the U.S. FDA.
As a leading company in the supply of bulk sevoflurane, we will continue to ensure
thorough quality control and strengthen our supply chain for pharmaceuticals.
As for the third part of our vision, we have been engaged in drug discovery and thedevelopment of key intermediates for pharmaceuticals, but with the sale of Central Glass
Germany, we have changed our portfolio from drug discovery-related research toresearch into regenerative medical materials. Important results have already beenobtained in the area of regenerative medicine, although they are still in the research anddevelopment stage. In this way, we are focusing our efforts to bring next products tomarket in the area of life sciences.

2030 Vision for Each Business (2) Electronic Materials (1/2)

3

Semiconductors andpower semiconductors

In the Electronic Materials business, manufacture and sell high-purity gases for semiconductor processes, resist
materials, and circuit pattern collapse prevention agents.
Business Profile▌The Company’s products in the front-end process of semiconductor manufacturing2

1

Film deposition
process

3

Resist coatingprocess

4

Exposure process

Cleaning
process

5
High-purity film
deposition gases

Development
process

Photoresist materials

Film deposition gases(WF6, trimethylsilane)

Various fluorine-containing monomers and polymers with highwater repellency and high solubility in developing solution

High-purity cleaning gases
Film deposition equipment
cleaning gases(ClF3, 20% F2/N2)

Circuit pattern collapse
prevention agent
Prevents pattern collapse duringdrying in the cleaning process

High-purity etching gases
8

Resist peelingprocess

7 Doping process

6 Etching process

CEG® Series, HF and 20%F2/Ar, which have lessenvironmental impact than existing gases and issuitable for 3D devices and advanced materials

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11

Next, we move on to Electronic Materials business.
Our electronic materials are highly competitive, consisting primarily of high-value-added
materials used in the front-end processes of semiconductor manufacturing. This diagramshows the general semiconductor front-end manufacturing process, and our products areused in the four processes highlighted in red on the slide. First, in the film deposition
process, high-purity gases are produced as deposition wiring gas constituting thesemiconductor pattern, and cleaning gas for removing materials adhering to equipment
without disassembling and cleaning the equipment. We also manufacture and sell raw
materials for photoresists in resist coating and exposure processes, as well as protective
film materials required for protecting resists from water and maintaining high resolution in
immersion ArF lithography. Next is the etching process, where we produce etching gasthat uses the resist exposure pattern as a mask to etch the underlying material. We
currently sell high-performance etching agents as the CEG series, which support cuttingedge nodes at 2 nm and below.
In addition, after etching, the wafer is cleaned through doping and resist stripping
processes before proceeding to the next cycle. When doing so, problems arise causing
the manufactured circuit pattern to collapse, lowering yields. A particular issue is patterncollapse in the process of drying after immersion in the cleaning solution. We were thefirst in the world to develop a chemical solution that prevents pattern collapse duringdrying by treating the pattern surface with a water repellent, and many semiconductor
manufacturers have adopted it as a pattern collapse prevention agent (Pattern Keeper™).
This technology was originally developed through the fusion of chemical and glass
technology.

32030 Vision for Each Business (2) Electronic Materials (2/2)

Semiconductors andpower semiconductors

Focus on advanced semiconductor materials and power semiconductors
As of 2024
▪Market environment– Semiconductor market entering a recovery phase– Localization of customers– Needs are for low GWP*1 and PFAS-free*2▪Business conditions– Proactive activities to strengthen business• Start of new etching gas (GAS X) supply for logic applicationsat 2 nm and beyond• Construction of 20% F2/N2 plant in Taiwan• Customer-oriented R&D by Electronic Materials ResearchCenter Taiwan• Planning to co-operate with Foosung of Korea• NEDO GI Fund subsidized project moving to consider mass
production of SiC wafers• Start of customer sample work of bonding materials for power
semiconductors*1 GWP:
Global Warming Potential. The lower the value, the better the indicator of global warming prevention.
*2 PFAS-free: Environmentally friendly products and manufacturing methods that do not use PFAS (specific organic
fluorine compounds)*3 GHG:
Greenhouse gases

2030 Vision▪ Provide solutions for PFAS-free andGHG*3 reduction▪ Start mass production of SiC wafers▪ Increase net sales to 2.4 times current
level
SiC monocrystal before
wafer processing

Net sales

2.4X

47 billion yen
 New business (PFAS-free related products, etc.)
 SiC-related materials
 PFAS-free collapse prevention agents

19.5 billion yen Photoresist materials, collapse prevention agents
 Environmentally friendly high-purity gases (Gas X, etc.)
 Existing high-purity gases for semiconductor processes

2023

2030

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12

On this page, we have described our challenge for 2030 in the Electronic Materials
business.
We will continue to “focus on advanced semiconductor materials and power
semiconductors” in the future.
Currently, the market is rapidly recovering, and semiconductor manufacturers who are ourcustomers have expressed a need for localization of production, low GWP, and PFAS-freematerials. We have therefore invested the equivalent of 50% of our R&D expenses topromote aggressive research and development, and as a result, we have developed a new
etching gas (Gas X) for the cutting-edge 2nm node and beyond, and have already started
supplying it. In Taiwan, we are also moving forward with plans to invest in semiconductor
gas production facilities in a new company that has already been announced. We had
postponed the construction of the plant due to a temporary slump in the market, but wehave once again begun to consider the specific timing of the investment.
Furthermore, in order to promote customer-oriented R&D in Taiwan, we have established alocal electronic materials research center and have repeated close discussions with key
customers. Meanwhile, since customers in South Korea are also looking to localize theiroperations, we are currently discussing collaboration with Foosung, which is working on
semiconductor materials in South Korea through fluorochemicals. Please wait for further
disclosure on the details.
In addition to silicon semiconductors, we are also developing SiC wafers for power
semiconductors, which are considered essential for the future of EVs. Instead of using thesublimation method, which is the widely accepted SiC wafer manufacturing method, wechose to use a solution growth method based on our proprietary technology. Details will be
explained in the slides that follow. This development is being carried out as a projectsubsidized by the NEDO Green Innovation Fund. We have already completed basic
consideration and have moved on to consideration of mass production. In addition, we havedeveloped a unique bonding sintering material for power semiconductors that exhibits highelectrical and thermal conductivity at low curing temperatures using our proprietary
technology, and have already started sample work for our customers.

I would like to emphasize three points here about our vision for 2030. Since PFAS
was recognized as an issue, we have focused on the development of PFAS-freematerials in addition to GHG reduction, and many PFAS-free semiconductormaterial candidates have been identified as a result.
We are currently in the process of obtaining patent rights for these products. For
example, we have succeeded in the development of a PFAS-free collapse
prevention agent and the development of Gas X, which is PFAS-free andcontributes to GHG reduction. By not only introducing several new products in thisway, but also striving for new research and development, we plan to increase
sales by 2.4 times by 2030.

32030 Vision for Each Business (3) Energy Materials (1/2)

Batteries

In the Energy Materials business, manufacture and sell electrolytes and other lithium-ion battery materials for EVs and
ESS. Build an optimal global supply chain.
Business Profile▪Production of electrolytes using cost-competitive “LiPF6 electrolyte” and a proprietary manufacturing process▪Manufacture of proprietary high-performance additives that improve battery performance when added to electrolytes▌Business Locations▌Supply Chain
Manufacture of
LiPF6

China

Manufacture and sale ofelectrolytes

User

USA*

North
America

Europe(Czech)EuropeAsia(Japan,Korea,China)

Asia*Planning to establishment of supply chane in US.

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13

Next, I will explain the Energy Materials business.
The Energy Materials business manufactures and sells electrolytes used in electric vehicles(EVs) and lithium-ion batteries for energy storage, and is one of our core businesses thathas been growing rapidly in recent years. Our affiliate in China manufactures costcompetitive LiPF6 electrolyte using a proprietary process, and we also manufacture
proprietary high-performance additives in Japan and South Korea that improve battery
performance when added to electrolytes. For electrolytes, we have a competitive supply
chain with local production for local consumption through manufacturing in Japan, South
Korea, China, and the Czech Republic. In other words, we have accumulated the knowhow to reduce total costs by comprehensively controlling everything from Li raw materials
to product manufacturing and global transportation, and we have the strengths enabling us
to propose electrolytes with superior performance and cost competitiveness to our clients,
and also ensure supply stability. In the U.S., we are currently considering the establishmentof a supply chain.

32030 Vision for Each Business (3) Energy Materials (2/2)

Batteries

Environmental contribution through electrolyte business for EVs
As of 2024
▪Market environment– EV market steadily expanding– IRA bill and EU Battery Regulation– Localization of battery manufacturers▪Business conditions– Establishment of supply chain in the United States basedon IRA

2030 Vision▪Triple sales volume (100,000 metric tons)– Sales expansion in the United States– Expansion into India and ASEAN▪Commercialize next-generation battery
materials– Sodium-ion battery-related products– High-performance additives– All-solid-state battery-related products▪Target net sales of 100 billion yen
100 billion yen
Net sales

32.4 billion yen
2023

2030

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14

We have positioned our electrolyte business as a business that contributes to theenvironment, and we are actively promoting business development to contribute to carbon
neutrality. This is our vision for 2030 of “environmental contribution through electrolyte
business.”
The market for batteries used in EVs and other products had grown rapidly until FY2022,
but plateaued in the latter half of FY2023. Although our shipments have rapidly cooled
down as well due to the imbalance between supply and demand caused by thesuspension of subsidies and increased competition resulting from the increase in thenumber of players, the EV market is steadily expanding in essence. In addition, coupledwith the Inflation Reduction Act and the need to comply with battery regulations in Europe,battery manufacturers are currently increasingly localizing their production in each region.
Under these circumstances, we have set our goals for 2030 as 100,000 metric tons, threetimes the current sales scale, and 100 billion yen in sales, by taking in the United States,
India, and ASEAN as markets where we can demonstrate our strengths and where
demand is expected to grow in the future. In addition, we are rapidly researching anddeveloping next-generation battery components such as sodium-ion battery-related
products, high-performance additives, and all-solid-state battery-related products, andthrough these efforts, we intend to focus on contributing to the environment.

32030 Vision for Each Business (4) Applied Chemicals (1/2)

Essential
products

Lifestyle, environment
and food

In the Applied Chemicals business, manufacture and sell HFO products, functional material products, etc.

Business Profile▌Hydrofluoroolefin (HFO) products▪ Material with low GWP with excellent environmental
and safety performance▪ Reduces GHG emissions and contributes to carbon
neutrality

Aerospace equipment

Medical equipment(Precision cleaner)(Coating solvent)High-performance heatinsulation for ZEB(Blowing agents for heat insulation)▌Functional material products▪ Functional materials utilizing the properties offluorine (heat resistance, chemical resistance,electrical properties, physiological activity, flame
resistance, etc.)

Automotive applications

Electronic materials(Cross-linking agents for fuel hoses,
etc.)(Raw materials for photoacid
generators, etc.)

Agrochemical APIs
and intermediates(C)JAXA

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15

Next, I will explain the Applied Chemicals business.
We are one of the few companies in Japan that produce hydrofluoric acid from fluorite.
In the Applied Chemicals business, we manufacture HFO products and functional
material products using hydrofluoric acid as a key material and fluorine technology as itscore technology, and sell these products in a wide range of fields.
HFO products are used in the precision cleaning of rockets, solvents used in the coatingprocess of painless needles, and blowing agents used to produce insulation thatenhances the energy-saving performance of buildings. It has an extremely low GWP
and is expected to reduce GHG emissions.
In the area of functional material products, we have developed a lineup of products thattake advantage of the unique properties of fluorine. It is used as a cross-linking agent for
automobile fuel hoses, as a raw material for electronic materials, and as a raw material
and intermediate for agrochemicals. By incorporating the properties of fluorine, such asheat resistance, chemical resistance, and physiological activity, into end products, it
contributes to higher functionality in a wide range of industries.

32030 Vision for Each Business (4) Applied Chemicals (2/2)

Essential
products

Lifestyle, environment
and food

Expansion of next-generation high-performance products
through enhancement of fluorine technology
As of 2024
▪ Market environment– HFO products• Dependent on buildings demand (major shifts in demand)– Functional material products• PFAS regulations• Intensifying competition with companies from emerging
countries

2030 Vision▪ Expand sales of HFO products– Capture needs for mandatory energy saving standards(all buildings in Japan by 2025)– Market HFO solvents worldwide– Launch new solvents (complement HFO solvents)▪ Develop functional material products and expand
net sales– Promote development of new products such as PFAS-free products

zzz
zzz

– Optimize production system▪ Net sales of 20 billion yen, mainly driven by growthin HFO products

20 billion yen
17 billion yen

 HFO
 Functional materials (raw materials)

Net sales Functional materials (agrichemicals) Basic chemicals

2023

2030

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16

Toward the year 2030, we will promote “expansion of next-generation high-performance
products through enhancement of fluorine technology.” As explained in the previous slide,
we are currently developing our business in two categories, HFO and functional material
products, both of which face challenges such as fluctuating construction demand andfuture developments in PFAS regulations, as well as intensifying competition fromcompanies in emerging countries.
As for our vision for 2030, we will continue to capture growing domestic needs for blowing
agents, propelled by the tailwind of the energy-saving standards that will become
mandatory for all buildings in Japan in 2025. As for solvents, we plan to globally market
HFO solvents and new solvents that complement the performance of HFO solvents.
Meanwhile, in the area of functional material products, in order to respond to the risk of
future regulation under PFAS regulations and intensifying competition with companies inemerging countries (China and India), we will continue to closely monitor the PFAS
regulations and submit public comments to the authorities as necessary, while promoting
the development of new PFAS-free products at the same time. I would like to add that
PFAS currently regulated in Japan are only some chemicals such as PFOS and PFOA,
and that we have no track record in manufacturing or selling them. In addition, in order tobecome more globally competitive, we intend to optimize our production system by taking
advantage of our affiliated companies’ production bases in China and other measures,
aiming for sales of 20 billion yen by 2030.

3

Lifestyle,environment
and food

2030 Vision for Each Business (5) Fertilizers (1/2)

Essential
products

In the Fertilizer business, manufacture and sell chemical fertilizers and coated fertilizers.

Business Profile▌Chemical fertilizers▌Coated fertilizers▪ Fertilizers using mainly ammonium chloride, ammonium
phosphate and potassium chloride as raw materials
Advancedchemical▪ Coated urea fertilizer▪ Fertilization according to crop growth

Cera-coat R

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Next, I will move on to an explanation of the Fertilizers business.
Currently, we manufacture and sell chemical fertilizers and coated fertilizers. Chemicalfertilizers are fertilizers using mainly ammonium chloride, ammonium phosphate andpotassium chloride as raw materials, while coated fertilizers are fertilizers that coat thesurface of urea and show fertilizing effects that match the growth of the crop, mainly
supporting Japan’s rice production.

17

3Lifestyle,environment
and food

2030 Vision for Each Business (5) Fertilizers (2/2)

Essential
products

Solving social issues in agriculture through environmentallyfriendly coated fertilizers
As of 2024
▪ Market environment– “Labor-saving” presented as a theme for solving the shortage offarm workers– Efforts toward the SDG target of “Life below water”• The National Federation of Agricultural Co-operative
Associations and domestic fertilizer suppliers made astatement to “make a shift to agriculture that does not rely oncoated fertilizers using plastic” by 2030

2030 Vision▪ Contribute to sustainable agriculture (food security)
by providing non-plastic coated fertilizers that solve
social issues▪ Ensure stable profitability
Sales volume of coated fertilizers
Coated fertilizer▪ Topic

Reduce & non-plastic
coated fertilizer– Successfully developed coated fertilizer without plastic(announced on May 23, 2024)
2024

2025

2026

2027

2028

2029

2030

Initiatives for 2030

Switch to nonplastic coatedfertilizers

Current

Market launch in 2024

Coated fertilizer

Reduced plastic coatedfertilizer

Non-plastic coatedfertilizer

Reduction of resin volume byapprox. 10%

Resin-freeUses urethane resin derived
from vegetable oil

Market launch in 2027

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18

Our vision for the Fertilizers business in 2030 is “solving social issues in agriculture
through environmentally friendly coated fertilizers.”
There are two major social issues in agriculture. The first is a shortage of agricultural
workers. Also, the key word in the solution is “labor-saving.” The second issue is “lifebelow water,” which is also a target in the SDGs. The National Federation of Agricultural
Co-operative Associations and domestic fertilizer suppliers made a statement to “make ashift to agriculture that does not rely on coated fertilizer using plastic” by 2030.
We have been working on the development of a coated fertilizer that can solve thesetwo problems, and have now succeeded in developing a coated fertilizer that does notuse plastic or resin components at all, and publicly announced it on May 23.
The history of our coated fertilizers has always given consideration to the environment.
The first products were vegetable oil-based, and the current grade also uses urethanebased on components derived from vegetable oil. However, due to using urethanebonding, the material falls under the category of plastic. Therefore, we will be replacing itwith a completely non-plastic coated fertilizer in a two-step process in the future. First, a
reduced plastic-coated fertilizer with a reduction of resin volume by approximately 10%
will be introduced to the market this fiscal year. In addition, we have established a plan
to bring a non-plastic coated fertilizer to market in 2027. In this way, we will continue tocontribute to sustainable agriculture and food security.

3

Lifestyle,environment
and food

2030 Vision for Each Business (6) Glass (1/2)

Essential
products

In the Glass business, manufacture and sell glass materials that are safe and secure, targeting the domestic construction
and automotive industries.
Business Profile▌Architectural glass▌Automotive glass▪ Eco-Glass, disaster-resistant safety laminatedglass, tempered glass, mirror products, etc.

▪ Windshields, door windows, rear windshields, etc.
Thermal and acoustic
insulation glass
ADAS*1 /HUD *2, defogging
glass

Glass antenna
Defogging glass

Anti-fogging mirrors
Disaster-resistant safety
laminated glass
Eco-Glass

Water repellent glass
UV/IR cut glass

Privacy glass*1 ADAS: Advanced Driver Assistance System*2 HUD : Head-up Display

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19

Next, I will explain the Glass Business. In the Glass Business, we manufacture and sellarchitectural glass used in buildings and homes and automotive glass. This slide shows
typical use cases. In architectural glass, we manufacture not only window glass but also
Eco-Glass, disaster-resistant safety laminated glass, tempered glass, and mirror
products, etc. In automotive glass, we produce thermal and acoustic insulation glass forfront windshields, door windows, and rear windshields, ADAS, HUD, defogging glass,water repellent glass, UV/IR cut glass, privacy glass, glass antenna, etc.

3Lifestyle,environment
and food

2030 Vision for Each Business (6) Glass (2/2)

Essential
products

Focus on stable revenue contribution
As of 2024

2030 Vision▪ Business conditions▪ Stable revenue contribution▪ Provide products that satisfy safety withenvironmental friendliness, security and comfort
needs– Became profitable after a long period of stagnation through“structural improvement” and “business restructuring”

Operating Profit
Stable growth
Return to profit

FY2021

FY2022

FY2023Next-generation HUD

FY2030Initiatives for 2030
▪ Promote business mainly
in domestic market▪ Implementing various initiatives for growth▪ Development and sales of market-driven and environmentallyfriendly products (Eco-Glass)▪ Challenge to develop specialty products▪ Implement the plan for carbon neutrality▪ Promoting business reform through digitalization

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

20

Our vision for the Glass Business is “stable revenue contribution.”
Until recently, the Glass Business had been struggling for many years due to changes inthe business environment. However, the transfer of our glass operations in Europe and the
U.S. and the implementation of fundamental structural reforms in our domestic
architectural glass business, specifically the consolidation of architectural glass sales
offices and processing facilities, the shutdown of our figured glass furnace and Sakai float
glass furnace, and the implementation of measures to correct unprofitable transactions andprice revisions, have resulted in a significant improvement in earning power and a return toprofitability in FY2022.
Subsequently, we integrated our domestic architectural glass and automotive glassbusinesses, and in April 2023, we started new business operations as Central Glass
Products Co., Ltd. The Glass Business has been transformed into a business that can be
expected to generate a certain level of revenue for the Group, with significant growth inperformance in FY2023. We will continue to strengthen our management base and achieve
stable revenue contribution.
Meanwhile, because the environment surrounding the Glass Business is extremely severe
due to soaring raw materials and fuel costs, logistics costs, and labor costs, and it isunlikely that domestic demand will expand in the future, we intend to take on thechallenges of developing specialty products that leverage our strengths and realizing new
business models. Since the Glass Business currently accounts for the majority of theCentral Glass Group’s total GHG emissions, we will implement plans to achieve carbon
neutrality such as by switching to non-fossil fuels, promoting the use of renewable energy,
and implementing various energy-saving measures.

3Lifestyle,environment
and food

2030 Vision for Each Business (7) Glass Fiber (1/2)

Essential
products

In the Glass Fiber business, manufacture and sell glass fiber, a material that combines the heat resistance,
nonflammability, and durability of glass with the flexibility of fiber and is used in a variety of applications.
Business Profile▌Glass fiber▌Glass wool
▪ Soundproofing and thermal
insulation materials▪ Composite reinforcement▪ Milled fiber(High market share in the area of soundabsorbing materials for automobiles)(electronic material applications)▪ Glass cord for rubber
reinforcement(Timing belt applications)

Precision equipment(Smartphones and PCs)

Timing belts

Under hood soundproofing andthermal insulation materials

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

21

Next, I will explain the Glass Fiber business.
This business consists of two divisions: the glass fiber business, which handles glass
fiber used as a reinforcing material for composite materials, and the glass wool business,
which handles glass wool used mainly as a soundproofing and heat insulation material
for vehicles, each targeting a wide range of fields including automobiles, IT, housing,and the environment by developing glass fiber products with unique and superior
characteristics to meet the needs and demands of the world.

3

Lifestyle,environment
and food

2030 Vision for Each Business (7) Glass Fiber (2/2)

Essential
products

Increasing business value by improving profitability
As of 2024
▪ Glass fiber business

2030 Vision▪ Double earnings– Slowing and stagnation of products for resin reinforcement,
infrastructure, etc.

– Glass fiber: Increase the ratio of high-value-added products– Steady acquisition in demand for rubber coated glass cord forreinforcing rubber belts used in automobiles, semiconductor
manufacturing equipment, etc.

▪ Establish an environmentally friendly system fromraw materials to manufacturing in an integrated
manner▪ Glass wool business– Strong demand for sound-absorbing materials due to recovery of
automobile production▪ Responding to rising energy costs– Glass wool: Develop new applications– Reduce CO2 and other emissions through fuel conversion– Enhance recycling– Automate facilities, promote DX▪ Target net sales of 10 billion yen

10 billion
8.2 billion
Net sales

yen

yen

 Glass wool business Glass fiber business

2023

2030

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

22

Our vision for the Glass Fiber business in 2030 is to “increasing business value by
improving profitability.” In the glass fiber business, demand continues to be sluggish due
to a lack of recovery in major applications such as plastic reinforcement, infrastructure,and electronic materials, but we are maintaining profitability by focusing on developing
various new products and strengthening the supply system for glass cord for rubber
reinforcement, a priority product for automobiles and equipment.
In the glass wool business, we are working to ensure stable business operations into the
future by introducing new products that respond to the spread of EVs and establishingrecycling technology, while focusing on capturing the growing need for soundproofing
materials for automobiles in response to stricter regulations on exterior noise emissions.
In addition, as part of our ESG-related efforts, we have worked to improve yield andpromote energy conservation, and also to reduce GHG emissions by switching fromheavy fuel oil to LNG and LPG as fuels used in glass furnaces, and improving
combustion efficiency by introducing oxygen combustion and electric melting.
Aiming for 2030, we will continue to increase the ratio of high-value-added products inglass fiber and develop new applications for glass wool, while introducing melting
technology that contributes to further GHG reduction and energy efficiency improvement,
as well as promoting the establishment of recycling technology to contribute to an
environmentally friendly, recycling-oriented society.

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

Now I will move on to “Research and Development Initiatives.”23

4

Research and Development Initiatives (1) Main R&D Products

Field

Semiconductors and power
semiconductors

Diverse R&D products with high growth potential

Etching gases(Gas X)PFAS-free circuit patterncollapse prevention agent(PFAS-free Pattern Keeper )PFAS-free liquid repellent bank material
PFAS-free resistrelated products

SiC wafers

TM

Batteries

High performance additives

Bonding materials for
power semiconductors

Sodium ion batteryrelated products

Cell sheet

Life Sciences

Lifestyle, environment andfoodAll-solid-state batteryrelated products

Anti-fouling andanti-fogging mirrors

PFAS-free blowing agent, solvent
Next-generation HUD
Non-plastic coated fertilizer

Market launch timing （image）
Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

24

As an R&D-oriented company, we aim to expand our earnings and solve social issues by
2030, and have a lineup of a variety of R&D targets with high growth potential in the four
fields shown here. Since the details of development are highly confidential, only some of
the themes that should be conveyed are shown in the figure to give an idea of the timingof market launch.
In “semiconductors and power semiconductors,” we are proceeding to develop a new
etching agent Gas X, and PFAS-free collapse prevention agents, liquid repellent bankmaterials, resist materials, and other materials for SiC and power semiconductors. In“batteries,” in addition to high-performance additives for current lithium-ion batteries, weare focusing on research and development of future products related to sodium-ion
batteries and all-solid-state battery-related products. In addition, as a new initiative in “lifesciences,” we are focusing on research and development of cell sheets for development
related to regenerative medicine. Other fields of focus in “Lifestyle, environment and food”
include research and development of anti-fouling and anti-fogging mirrors, PFAS-freeblowing agents and solvents, non-plastic coated fertilizers, and next-generation HUDs forautomotive glass.
Today, I will delve into three of these fields: (ⅰ) etching gases, (ⅱ) SiC wafers, and(ⅲ) PFAS-free circuit pattern collapse prevention agent.

4

Research and Development Initiatives (2) R&D Topics (i) Etching Gas

Semiconductors andpower semiconductors

Developed etching gases (2nm node and beyond) that can be used in cutting-edge semiconductor manufacturing.

Necessary Elements for Next-Generation
Etching Materials▪ Improvement of etching accuracy (selectively removing only the material
to be processed)▪ Improvement of etching process throughput (processing speed)▪ Low GWP and PFAS-free materials▪ Materials targeting transistors (GAA, CFET) for miniaturizationand integration of semiconductors▪ Predicts material performance andimproves development efficiency

CFET

Miniaturization

2nm

< 1nm

5X or more

▪ Rapid evaluation system establishedto evaluate developed materials within-house equipment▪ Etching accuracy is improved morethan 5 times compared to existingmaterials

Etchingamount (measured)[nm]
エッチング量(実測) [nm]GAA▌Development system

Existing material

Gas X▌Advanced simulation technology

Changes in the transistor structure ofadvanced semiconductors

Fin-FET

Development of Next-Generation Etching Material (Gas X)▪ Inferring reaction models andverifying mechanisms offunctional expression

20

Gas X

15
10

Development
material B
Existing material

5
0
0

5

10

15

20

Etchingamount (calculated)[nm]
エッチング量(計算)[nm]

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

25

The first is etching gas. The structures of cutting-edge semiconductor devices arechanging to achieve higher density, especially in the 2nm node and beyond, which
requires more complex structures such as GAA and CFET. In addition, etching materials
are required to have higher etching accuracy and throughput, as well as having low GWP
and being PFAS-free. We have succeeded in developing a next-generation etching gas,
Gas X, that meets these requirements.
Our development system, including for Gas X, is designed to swiftly conduct research anddevelopment by building equipment capable of evaluating material properties in-house.
Gas X improves etching accuracy by a factor of five compared to existing materials.
Development is also supported by computational science. In the development of Gas X,
we predict the etching characteristics of various materials to promote efficient material
selection, and perform verification using in-house evaluation equipment. The actual
etching characteristics obtained are verified by simulation analysis to verify themechanism of function expression and fed back to the prediction of etching characteristics
to improve their accuracy.
In summary, Gas X is an environmentally friendly high-performance etching gas
developed through an “original evaluation system” and “utilization of computational
science.”4

Research and Development Initiatives (2) R&D Topics (ii) SiC Wafers

Semiconductors andpower semiconductors

Established “solution growth method,” which is a new manufacturing technology, and entered the SiC wafer business for
power semiconductors.
Features of Our Manufacturing Technology (Solution Growth Method)▌Low defects and low cost compared to othercompanies’ manufacturing methods
SiC
monocrystal

Competitor method(sublimation method)▌R&D policy

Our method(solution growth method)

Up to
2300℃

SiC powder

Manufacturing cost

▌ 6-inch prototype
crystal using thesolution growthmethodEnhancement of the original
solution growth method
technology
Development of mass
production technology using
computational science

Sublimation

Technologicaldevelopment
Number of defects(quality)

Research and Development Policy and Progress

Si +Metal solvent

19002100℃

Leading development

Later development

Difficult to reduce

Easy to reduceHigh

Low (low temperature, fast
growth)Crystal using thesolution growth method

Slicing

Demonstration of devices
using SiC wafers based on
the solution growth method▌Progress▪ Achieving both high quality and low cost
▪ Large diameter technology (8 inches)▪ Determination of optimal conditions using
machine learning▪ Process automation▪ Standardization of SiC wafers based on thesolution method▪ Utilization of NEDO Green Innovation Fund
Sublimation method

Diameter(mm)▪ Made rapid progress in crystal diameter200
expansion
150▪ Demonstrated low defects (high quality)▪ Moving to demonstration of devices using 100
wafers based on the solution growth method
50▪ Manufacturing process optimization using
machine learning▪ Adopted by NEDO Green Innovation Fund

Solution growth method

8” 8 8”
6”
3”

2”

4”
2”

2000

3”

2010

6”
4”
2020

2030

The transition of the crystal
diameter expansion

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

26

Next, I will explain SiC wafers. As we aim to enter the SiC business for power
semiconductors, we plan to be the first in the world to practically implement a new
manufacturing technology called the “solution growth method.” All SiC currently on themarket is manufactured by a method called sublimation, but balancing quality and cost is
still an issue. In contrast, our solution growth method is a crystal production method
boasting low defects and low cost, and it is expected to have a highly competitive
advantage if put into practical use.
As shown in the figure, the solution growth method is a production method in which SiC
single crystals are grown in a silicon melt in which carbon is dissolved. This is the same
production method from the liquid phase that is used to produce single-crystal siliconwidely available today, but the difference is that silicon and carbon must be grown
regularly and with high quality, which makes the technology difficult to develop. The
solution growth method has many more process parameters than the sublimation method.
While this has the disadvantage of making it difficult to find optimal conditions, it also has
the advantage of enabling control according to objectives such as diameter expansion andlengthening as understanding of these conditions’ advances. In addition to a decade ofaccumulated technology and know-how, we were able to achieve diameter expansion in ashort period of time by utilizing computational science to derive optimal conditions.
We are currently proceeding with the development of 6-inch and 8-inch SiC and areaccelerating development such as being selected as a NEDO Green Innovation Fund
Project in 2022. Going forward, we intend to further enhance our technology and promote
the development of mass production technology utilizing computational science tocontribute to the realization of a carbon-neutral society.

Semiconductors and
4 Research and Development Initiatives (2) R&D Topics (iii) Circuit Pattern Collapse Prevention Agent power
semiconductors

Developed a revolutionary circuit pattern collapse prevention agent (PK agent) for semiconductor-wafer cleaning processes, andadopted by many logic and memory manufacturers.
Promoting development of PFAS-free Pattern KeeperTMfor cutting-edge semiconductors.

Features of the Circuit Pattern Collapse Prevention Agent▌ Developed through a fusion of the chemical andglass technologies we have accumulated•

Combining the ultra-high purification technology (chemistry)required for semiconductor materials with surface treatment
technology to make the circuit pattern surface water-repellent,
aim to prevent circuit pattern collapse during the drying process▌R&D policy▪ Finding new Pattern Keepers through collaboration with
cutting-edge research institutions and customers– Higher performance: Ultrafine structure, 3D structure– Versatile: Different substrate materials
TM▌Cooperation system

Normal semiconductor cleaning process
Force to cause collapse:
large

Research and Development Policy and Progress

Collapses
Dryingimec(Belgium)

Electronic Materials
Research Center Taiwan

Semiconductor pattern

When using the circuit pattern collapse prevention agent
Water repellent surface

Force to cause collapse:
almost zero

DryingDoes not collapse

Applied Chemical Research Center

National Cheng Kung
University (Taiwan)

Semiconductor and equipment
manufacturers(Japan, USA, Taiwan,
South Korea)▌Progress▪ Develop PFAS-free products with the same performanceas current products

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

27

Third, I will explain circuit pattern collapse prevention agent.
As circuit patterns in leading-edge semiconductors become increasingly miniaturized, theproblem of pattern collapse due to the surface tension of the cleaning solution during thedrying process after pattern cleaning is becoming more pronounced. Focusing on the factthat pattern collapse can be prevented by treating the pattern surface to make it water
repellent, we have developed a pattern collapse prevention agent with excellent water
repellency by combining our technologies in glass, where we specialize in SiO2 for water
repellency treatment of glass, and in chemicals, where we specialize in high-purity
production and precision analysis. This product is currently used by many semiconductor
manufacturers. Also, we have recently succeeded in developing a PFAS-free Pattern
Keeper™ that does not contain PFAS. As shown on the slide, these developments are theresult of collaboration between our research institute in Japan and a research team in
Taiwan, in cooperation with imec in Belgium and National Cheng Kung University in
Taiwan, as well as with semiconductor manufacturers and semiconductor equipment
manufacturers.

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

From here, I would like to explain “promotion of human capital management” and“response to environmental issues” as part of strengthening the foundation of “ESG
management,” which is a priority for Central Glass.
I will begin with “promotion of human capital management.”28

5

Promotion of Human Capital Management
Supporting our human resources from three perspectives to enhance our corporate value over the medium to long termGroup HR Strategy
Securing of Four Elements

Increasing engagement▪Securing of acceptability ▪Securing of equity

Promotion ofhealth andproductivity
management
Promotion of diversity,
equity and inclusion▪Securing of a place tobelong▪Securing of fairness

Establishment of a health and productivity
management promotion organization▪Led by management▪Promotion of mental health and healthpromotion activities▪Clarification of health issues through theuse of health management systems

Promotion of human capital management that supports the activities of
the Group Members who support manufacturing and continues to enhance value
Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

29

Our corporate philosophy is “Creating a Better Future Through Monozukuri.” Based on
the recognition that monozukuri is supported by our employees (Group members), we
aim to maximize the value of the members, who are our “human assets,” from the threeperspectives of “increasing engagement,” “promotion of diversity, equity, and inclusion,”and “promotion of health and productivity management,” and aim to enhance ourcorporate value over the medium to long term. In other words, as a group HR strategy,
with the slogan of securing the four elements of “acceptability,” “a place to belong,”“equity” and “fairness,” we would like to ensure the psychological safety of ouremployees. In the area of “promotion of health and productivity management,” we haveestablished an organization to strongly promote health and productivity management sothat all employees can work with a “smile” and be physically and mentally active. With
this organization as the driving force, and with deep involvement by management, we
will promote various initiatives to ensure that our employees are always healthy, both
physically and mentally.
We will support the improvement of employees’ “well-being” and promote initiatives toenable the Group members, who support monozukuri, to work with a high level ofmotivation and job satisfaction.

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

30

Next, I will explain the second aspect of strengthening the foundation of “ESG management,”
which is our “response to environmental issues.”

6

Response to Environmental Issues (1) Initiatives Aimed at Carbon Neutrality
Achieved GHG emissions milestone reduction targets for FY2030 ahead of schedule through structural improvementsin the domestic glass business.
Reduction targets for FY2035 are being formulated.
GHG Emissions

 Scope 1
 Scope 2

748,000 metric tons*
148k

Our targets wereachieved ahead ofschedule
2030 reduction targets

332,000 metric tons
600k

449,000

metric tons
(40% reduction compared to FY2013 levels)

118k
214k

FY 2013 Results

FY 2022 Results*Structure-adjusted base year emissions (GHG emissions minus GHG emissions in the base year of the transferred European and U.S. automotive glass operations, etc.)

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

31

First, as for our efforts aimed at carbon neutrality, we have already achieved our GHG
reduction target for 2030 of 449,000 metric tons for Scope 1 and Scope 2 combined, ora 40% reduction from the FY2013 result of 748,000 metric tons, ahead of schedule in
FY2022. Therefore, we are currently formulating new emission reduction targets through2035.
In order to prevent global warming, our Group, including domestic and overseas
affiliates, will continue to make efforts to reduce our environmental impact such as bypromoting initiatives to reduce GHG emissions.

6

Response to Environmental Issues (2) CDP Score
Obtained a “B-” rating in the areas of “Climate Change” and “Water Security” from CDP, an international non-profit
organization that evaluates environmental initiatives
About CDP
▌Overview▪ Established in the UK in 2000

▪ An international non-profit organization that evaluatesenvironmental initiatives▌Evaluation methods▪ Working with more than 740 investors holding over USD136
trillion in assets▪ Questions are presented to companies and local governments
regarding business strategies, GHG emissions, andmanagement of water intake and wastewater discharge, etc.

Evaluation of Central Glass▌Factors in the FY2023 rating▪ Due to setting specific targets for environmental initiatives andestablishing a system to reduce GHG emissions, water
usage, etc.

▌Future initiatives▪ Promote efforts to reduce environmental impact in theenvironmental field by responding to the requests of diverse
stakeholders in a consistent and transparent manner▪ 8 levels (A, A-, B, B-, C, C-, D, D-) of scores are assigned
using proprietary scoring criteria

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

32

Next, I would like to explain our score from CDP, a non-profit organization that evaluates
our responses to environmental issues and initiatives to address them. In FY2023, wehave reorganized the mechanisms and details of our efforts to reduce our GHG emissions
and water consumption, which had been underway for some time. In recognition of these
efforts, the company received a score of “B minus” from the CDP, a significant increase
from our previous score.
I would like to reiterate that we will continue to promote efforts to reduce our environmental
impact in the future.

AGENDA01

VISION 2030

02

Overview of Business (FY2023 Results by Segment)

032030 Vision for Each Business04

Research and Development Initiatives

05

Promotion of Human Capital Management06

Response to Environmental Issues

07

Shareholder Returns

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

Finally, I would like to explain our approach to shareholder returns.

33

7

Shareholder Returns
Maintain a total payout ratio of 30% or more and DOE of 3.6% during the current Medium-Term Management Plan (until
FY2024).
Consider expansion during the next Medium-Term Management Plan.
(Yen)

Annual dividend per share
Dividend per share
Commemorative dividend

159

170

115

45

FY201450

FY201555

FY2016

75

75

75

75

FY2018FY2019FY2020

FY202150FY2017

FY2022

FY2023

FY2024* Due to the reverse stock split of 5 shares into 1 share performed on October 1, 2017, dividend amounts prior to that date have been adjusted to reflect the reverse stock split.
* A commemorative dividend of 5 yen per share was paid in FY2016.

Copyright (C) Central Glass Co., Ltd. All Rights Reserved.

34

We have continued to pay stable dividends, and significantly increased the annual
dividend to 159 yen per share for the fiscal year ended March 31, 2024 from 115 yen per
share in the previous year.
For the fiscal year ending March 31, 2025, we plan to pay a dividend of 170 yen per
share, in order to reach the target index of DOE of 3.6% under the current Medium-Term
Management Plan as we did in the previous fiscal year, and we aim to further increase
the dividend.
We will consider our policy for shareholder returns beyond that in the next Medium-Term
Management Plan, which is scheduled to be announced in May of next year.
This concludes the presentation of the Management Overview Briefing.

[Q&A Summary]
Q1: What is your strategy for energy materials that have seen a drop in demand?
A: Our direction of supplying high-performance electrolytes combined with ourproprietary additives remains unchanged. We would like to meet our customers’ needs
for increasing battery performance.

Q2: Is the fact that competitive concentrates are sourced from China a bottleneck inadvancing the electrolyte business in the U.S.?
A: The Inflation Reduction Act could have an impact. In light of this situation, we areconsidering alternative procurement routes and supply chains. The U.S. market islarge, and considering the target volume for 2030, we believe that the sales
composition will be centered on the U.S., Europe, Japan, and South Korea.

Q3: What percentage of the energy-related sales target of 100 billion yen in 2030 isaccounted for by next-generation battery components?
A: Considering the timing of the market launch of next-generation products, we believethat the percentage will not yet be significant.

Q4: Looking at the Fertilizers business to date, there doesn’t appear to be any potential
for development. Will non-plastic fertilizers make the business profitable by 2030?
A: Fertilizers are important products for agriculture, but it is difficult to raise prices andincrease profits significantly in some respects. After launching the newly developed
non-plastic coated fertilizer, we will first aim to increase our market share in Japan, andwill also consider overseas expansion.

Q5: What are the strengths of the SiC wafers in development and what is your view of
future strategy and contribution to profits?
A: SiC wafers are being developed using the solution growth method, a process thathas not been commercialized by other companies. Compared to the common
manufacturing method (sublimation method), we believe it produces fewer defects andoffers cost advantages due to the characteristics of the manufacturing method, andfirst we plan to launch 6-inch products as power semiconductor materials in 2027. Dueto a combination of capital investment and other factors, we do not expect to see a fullscale increase in volume until after that.

Q6: How different are the cost and quality aspects of products produced by the solution
growth method compared to existing products?
A: I would like to discuss more detailed information and data once research has
progressed a little further.

Q7: Will specialty gases and resists for semiconductors grow a little more?
A: Semiconductors are entering a phase in which their structure itself will undergo
major changes, and we see this as a great opportunity for our company. The target for2030 is a 2.4-fold increase, and we expect further expansion after 2030.

Q8: What new product groups do you have in the Electronic Materials business?
A: Products that meet the needs for PFAS-free and environmentally friendly materials
that contribute to GHG reduction are in demand, and we would like to offer productsthat meet those needs.

Q9: What are the essential products in the Chemicals segment? What measures are
you taking to strengthen the profitability of these?
A: We believe that HFO 1233E, a blowing agent, is one example that falls into thatcategory. We will work to increase our market share, and at the same time, we areconsidering transitioning to products with specialty characteristics through researchand development.