Slide 1: First-Quarter 2024 Investor Call
First-Quarter 2024 Investor Call Corning Reports First-Quarter Financial Results April 30, 2024 1
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements The statements contained in this presentation and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “seek,” “see,” “would,” “target,” “estimate,”
Slide 3: Q1 GAAP Earnings: FX Hedge Accounting
Q1 GAAP EARNINGS FX Hedge Accounting • Recorded realized gains and unrealized, non-cash mark-to-market losses on currency hedging contracts for a net after-tax gain of $30M – Translation hedges reduce our economic exposure to currency fluctuations, providing higher certainty for our earnings and cas
Slide 4: First-Quarter 2024 Core Performance; Framework for Strong Returns
CEO PERSPECTIVE First-Quarter 2024 Core Performance “Our first-quarter results were at the high end of our guidance. Importantly, we’re seeing encouraging signs of improving market conditions. We continue to expect that the first quarter will be the low quarter for the year.” - Wendell Weeks, Chairm
Slide 5: Improvement from First Quarter; $3 Billion Dollar Opportunity
CEO PERSPECTIVE Improvement from First Quarter Optical Communications • Order book expected to grow as carrier inventory returns to more normal levels and customers resume purchasing to support deployment rates • Expect carrier sales to increase from first-quarter levels • Expect recent wins for AI
Slide 6: $3 Billion Dollar Opportunity: Optical Communications and Automotive
CEO PERSPECTIVE $3 Billion Dollar Opportunity OPTICAL COMMUNICATIONS • Fiber shipments expected to return to trend – adds more than 40% to overall Optical Communications sales • Carrier customers reinforced commitment to increasing fiber deployments in 2024 and beyond • BEAD-related projects for net
Slide 7: $3 Billion Dollar Opportunity: Mobile Consumer Electronics and Display
CEO PERSPECTIVE $3 Billion Dollar Opportunity MOBILE CONSUMER ELECTRONICS • Sales have consistently outpaced the market over the last decade and expect that to continue going forward – Advancing the state of the art for cover materials – “More Corning” adding more content per device • Strong innovat
Slide 8: $3 Billion Dollar Opportunity: New Platforms; Powerful Incrementals
CEO PERSPECTIVE $3 Billion Dollar Opportunity NEW PLATFORMS • New product platforms capture opportunities in new categories – Automotive glass solutions – Localization of U.S. solar supply – Pharmaceutical packaging © 2024 Corning Incorporated 15 CEO PERSPECTIVE Powerful Incrementals • Since the fou
Slide 9: CEO Summary; First-Quarter 2024 Results
CEO Summary • First-quarter results show encouraging signs of improving market conditions • Expect first quarter to be the low quarter for the year • Established higher profitability and cash flow base • Opportunity to increase annualized sales by more than $3B with powerful incrementals © 2024 Corn
Slide 10: Segment Recap: Optical Communications and Display Technologies
SEGMENT RECAP Optical Communications Q1 Results • Q1 Sales of $930M, down 17% YoY – reflecting temporarily lower carrier demand as customers continue to draw down inventory $930M • Q1 Net income of $100M, down 37% YoY – reflecting lower volume Q1 Net Sales Down 17% YoY Observations • Signs of improv
Slide 11: Yen Update; Specialty Materials
CFO PERSPECTIVE Yen Update • Most significant hedge contracts are for the Japanese Yen – support Yen Core Rate at ¥107 through the end of 2024 • Goal is to maintain appropriate return on Display business through combination of currency hedges and industrial solutions, such as price increases • Activ
Slide 12: Segment Recap: Environmental Technologies and Life Sciences
SEGMENT RECAP Environmental Technologies Q1 Results • Q1 Sales of $455M, up 6% YoY – driven by increased gasoline particulate filter adoption in China, which more than offset a decline in heavy-duty diesel in North $455M America Q1 Net Sales • Q1 Net income of $105M, up 28% YoY – driven by higher vo
Slide 13: Hemlock and Emerging Growth Businesses; Outlook
SEGMENT RECAP Hemlock and Emerging Growth Businesses Q1 Results • Q1 Sales of $311M, down 19% YoY $311M • Q1 Net Loss of $10M Q1 Net Sales Down 19% YoY Observations • First-quarter year-over-year sales reflect – Lower pricing for solar-grade polysilicon – Lower sales in pharmaceutical technologies f
Slide 14: Capital Allocation and Financial Strength; Q&A Session
CFO PERSPECTIVE Capital Allocation and Financial Strength • Prioritize investing for organic growth opportunities • Capital investment expectations for 2024 reflect capabilities and capacity already in place to add more than $3B in annualized sales with minimal investments • Strong and efficient bal
Slide 15: Appendix: Corning's 2024 Investor Outreach Plans
Corning’s 2024 Investor Outreach Plans • May 2 – 2024 Annual Meeting of Shareholders • May 21 – J.P. Morgan 52nd Global Technology, Media and Communications Conference • Management visits to investor offices in select cities © 2024 Corning Incorporated 29 Appendix 15
Slide 16: 2024 Corporate Metrics; Q1 2024 Core Performance
2024 Corporate Metrics (as of April 30, 2024)(1)(2) Q2 2024 • Core Sales: ~$3.4B • Core EPS: $0.42 - $0.46 • SG&A and RD&E: ~$700M • Other income/expense: (~$75M) expense • Gross equity earnings: $6M - $10M • Adjusted Free Cash Flow: Grow by ~$300M versus first quarter of 2024 Full-Year 2024 • Hemlo
Slide 17: Q1 2024 Operating Performance by Segment; Adjusted Free Cash Flow Reconciliation
Q1 2024 Operating Performance by Segment Core performance measures are non-GAAP measures. Definitions and reconciliations are provided on our website. © 2024 Corning Incorporated 33 Adjusted Free Cash Flow Reconciliation Core performance measures are non-GAAP measures. Definitions and reconciliation
Slide 18: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Core performance measures are non-GAAP measures. Definitions and reconciliations are provided on our website. © 2024 Corning Incorporated 35 18