AGC (5201) IR Day 2024 Day 1 summary

Group strategy and financial targets

• Aims to improve ROE to 8% by 2026, addressing persistent underperformance and PBR below 1.

• Focus on accelerating portfolio transformation, boosting profitability, and maximizing high-performing segments.

• Strategic investments prioritized for growth businesses, with over JPY 1 trillion in operating cash flow targeted and a 200 billion yen investment budget.

• If attractive investments are lacking, funds may be allocated to share buybacks; stable dividends with a DOE of approximately 3% are maintained.

• 2026 targets: ROE ≥8%, EBITDA ≥JPY 440 billion, operating profit ≥230 billion yen, debt-to-equity ratio ≤0.5, as milestones toward 2030 goals.

Automotive business strategy and outlook

• Shifting focus from sales volume to value enhancement, especially in high value-added and mobility products.

• Three key measures: repricing, structural reforms (notably in Europe/US), and expanding high-functionality products.

• Targeting 30% of sales from mobility products by 2030, with ongoing improvements in asset efficiency and profitability.

• Regional profitability gaps addressed by reforms, aiming for convergence with Asia/Japan levels.

• High value-added products expected to double and drive profit growth, with continued pricing flexibility.

Architectural glass Asia strategy and performance

• Asia architectural glass accounts for about a third of segment sales, with stable profit and asset efficiency post-reforms.

• Focus on high value-added, energy-saving products, leveraging robust supply chains and regional market knowledge.

• Environmental initiatives include GHG reduction and glass recycling, tailored to regional needs.

• Demand in Japan expected to remain stable due to renovation and non-residential sectors, while Asia sees growth in new builds.

• No major structural reforms planned currently; profitability seen as sustainable.