Agc Inc Unsp/Adr

Hello everyone, thank you for joining us today. It is now three minutes to the briefing. There are some housekeeping announcements. Please connect from one device per person. Please download the materials from our company website. Simultaneous translation in English will be provided for this briefing session. If you would like to listen in English, please press the interpretation button and select English. Please wait for a while until the briefing begins. It is time to let us get started. Welcome to the online earnings briefing of AGC Inc for fiscal 2026 second quarter. My name is Kazumi Tamaki, General Manager, Corporate Communications and Investor Relations, serving as moderator. Today's attendees are Yoshinori Hirai, President and CEO, , and Tomoyuki Shiokawa . First, CFO Takegawa will provide an overview of the financial results for the second quarter. Then, CEO Hirai will explain the progress of the growth strategy, followed by a Q&A session. We are planning to finish at 4.10pm. Your cooperation is appreciated. I now ask CFO Takegawa. Thank you. This is Takegawa, the CFO. First, please turn to page 3. Key points of the second quarter results cumulative and full year outlook. Year on year, net sales increased by 105.1 billion yen and operating profit rose by 10.6 billion yen. Net sales increased owing to foreign exchange, increased shipments in essential chemicals in Southeast Asia, integrated chemicals and electronic materials, and pricing policies in integrated chemicals and architectural glass in Operating profit benefited from the above-mentioned net sales growth factors as well as improved profitability in life science. Full-year outlook remains unchanged. Impact from the Middle East situation is expected to remain limited. Page 6 Highlights of the financial results for the second quarter. Net sales were $1,100.6 billion, up $105.1 billion, as lower shipments in architectural glass in Europe and the Americas were more than offset by impact of the yen depreciation, higher shipments in essential chemicals in Southeast Asia, integrated chemicals and electronic materials, and pricing policies effect in integrated chemicals and architectural glass in Europe. Operating profit was ¥64.7 billion up ¥10.6 billion, despite higher manufacturing costs, owing to the above-mentioned factors, as well as profitability improvement in life science. Profit before tax was 60.3 billion up 26.6 billion owing to improved operating profit as well as foreign exchange gains and non-recurrence of impairment losses in biopharmaceuticals CDMO. Profit attributable to owners of the parent increased by 21.6 billion to 35.5 billion yen. Page 7. Year-on-year comparison by business segment. Architectural Glass, Chemicals, and Life Science posted higher sales and profit, while Automotive and Electronics posted higher sales and lower profit. Page 8

Variance analysis on operating profit year-over-year. Sales volume, price, and product mix contributed 26.5 billion yen, driven by stronger shipments of essential chemicals Southeast Asia, integrated chemicals, and their electronic components, as well as pricing policies in integrated chemicals and in European architectural glass business. Negative impacts include a purchase price of fuels and materials 4.4 billion yen and costs on others 11.4 billion. Resulting in 64.7 billion yen operating profit up 10.6 billion yen. Please turn to page 9. Balance sheet. Total assets stood at 3.0063 trillion yen, an increase of 56.2 billion from end of last year. This includes positive FX impact of 32.9 billion yen. The ratio was 0.38. Page 10. Cash flow statement. Cash flow from operation was ¥104.9 billion, cash from investing was ¥- ¥94.8 billion, and the resulting free cash flow was positive ¥10.1 billion. Page 11. CapEx Depreciation and R&D Expenditure. CapEx for the first half was ¥90.1 billion, down by ¥6.8 billion year-over-year. Depreciation and amortization was 97.8 billion yen and R&D expenditure was 28.8 billion yen. The main CAPEX projects are as listed. Moving on to status of segments, please turn to page 13. Architectural glass segment. Net sales up by 18.5 billion yen to 229.3 billion yen. Operating profit rose by 5.5 billion to 8.8 billion yen. Asia, Europe and America saw an increase in net sales due to Ikaien. In Asia, shipments declined in Japan but increased in Southeast Asia. However, sales price in Southeast Asia fell and net sales in Asia rose by only 500 million yen. The net profit structure is approximately 10% Asia and 90% Asia. Europe and Americas. Moving on to automotive segment. Revenue rose by ¥24.6 billion to ¥280.3 billion. Operating profit fell by ¥1.8 billion to ¥13.3 billion. Net sales benefited from Weka Yen, and Weka Vehicle exports to the Middle East was minimal, and sales volume increased in Japan, Europe and North America. Although some factors contributed to net sales, manufacturing costs rose in Europe and Americas. Please turn to page 15, moving on to electronic segment.

Net sales increased by $6.2 billion to $174.4 billion while operating profit decreased by $5.7 billion to $18.7 billion. In display, sales prices for LCD glass substrates increased while shipments of specialty glass for displays declined due to the planned business exit resulting in flat growth in net sales. Net sales for electronic materials increased by 5.9 billion as, while shipments of EUV mass blanks are in recovery trend, other semiconductor-related materials and optoelectronic materials increased. The yen depreciation also contributed. Segment operating profit decreased despite the above-mentioned positive factors due to an increase in manufacturing costs as well as the negative impact of the yen depreciation on display. The breakdown of operating profit was displayed 30%, electronic materials 70%, page 16. Chemical segment. Net sales increased by 46.2 billion to 322 billion and operating profit rose by 5.6 billion to 28.2 billion. The yen depreciation has a positive impact on net sales at both the Integrated Chemicals and Essential Chemicals Southeast Asia. Net sales of integrated chemicals increased by $19.8 billion owing to higher sales prices and increased shipments of products for semiconductor and other electronic applications. Net sales of essential chemicals Southeast Asia were up $27.7 billion on increased shipments following capacity expansion in Thailand. Operating profit increase despite higher oil material and fuel prices owing to the above-mentioned positive factors. Operating profit breakdown was integrated chemicals 80%, essential chemicals Southeast Asia 20%. Page 17. Life science segment. Net sales increased by 8.8 billion to 72.3 billion and operating loss improved by 5.9 billion at 6.1 billion. Net sales increased despite a decrease in contract orders for small molecule pharmaceuticals and agrochemicals thanks to the yen depreciation and the growth in contract orders for biopharmaceuticals . Operating profit and loss improved on fixed cost reduction from the closure of the biopharmaceuticals CDMO Colorado sites and improved contract orders and productivity at the Copenhagen site. Page 18. Strategic businesses. Overall net sales rose by ¥28.7 billion year on year to ¥264.4 billion, while operating profit increased by ¥12 billion to ¥35 billion. Overall net sales improved year-on-year with increased sales in all strategic businesses, while improvement in operating profit was driven by performance chemicals growth and life science improvement. Operating profit of strategic businesses accounted for 54% of the group total. Page 20. Before discussing the full year outlook, I would like to comment on the impact of the situation in the Middle East. During Q2, we maintained stable supply by securing the necessary fuels and raw materials from diversified procurement sources. To offset rising costs of crude oil, natural gas, and others, we implemented price adjustments and managed to limit the overall impact. While foreseeing the situation from Q3 onward is difficult, we expect the impact on full year earnings to remain limited. To counter impact on fuels, raw materials procurement, manufacturing and sales, appropriate measures will be implemented to ensure stable supply. Current situation and prospect for the second half are as follows. Fuels and raw materials prices remain at elevated levels, but sufficient supplies of ethylene, propylene and other materials are secured for the time being. Procurement efforts will continue. Production is adjusted in some chemical products, but the impact on sales volume is limited. Sales price adjustments in accordance with cost increases are ongoing, mainly in architectural glass and chemicals. In the second half, we will continue such measures as diversifying procurement sources, cost reductions, appropriate production level adjustments, and price optimization. Page 21. Update on the Sessional Chemicals Southeast Asia which feels larger impact of the Middle East situation. Facilities in Thailand expanded to meet steady growth in demand in Southeast Asia began full-scale operation this year. Raw material supplies are secured as explained earlier and operations remain largely stable. Impact on the caustic soda market has been minimal. PVC ethylene price spread improved in the second quarter. We aim to continue improving profitability through sales strategy that leverages the advantages of regional production. Page 22.