Slide 1: Corning Incorporated Facility Visit
Investors & Analysts CORNING Corning Incorporated Facility Vistt Ke Ann Nicholson ice President, Investor Relations CORNING 9/23/2024
Slide 2: Rules & Reminders
9/23/2024 Rules & Reminders • No photography or recording at any time • Badge must be worn and visible at all times © 2024 Corning Incorporated © 2024 Corning Incorporated 2
Slide 3: Forward-Looking and Cautionary Statements
9/23/2024 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,” “
Slide 4: Display Springboard Highlights
9/23/2024 Display Springboard Highlights • Our Display Springboard plan is centered on maintaining stable USD net income • We are raising Display glass prices • Our price actions, in combination with the hedges we have in place through 2026, are expected to deliver: – Net income of $900-$950M in 202
Slide 5: Optical Communications Springboard Highlights
9/23/2024 Optical Communications Springboard Highlights • Our Optical Communications Springboard plan is about revenue growth, as cyclical and secular trends converge • We recently achieved several major milestones: – Strong demand for our Gen AI products drove outperformance in Q2 – We now expect E
Slide 6: Our Springboard Plan
9/23/2024 Our Springboard Plan © 2024 Corning Incorporated Springboard Opportunity $9 Incremental Annualized Sales Run-Rate vs. Q4’23 $8 Incremental Annualized Sales vs. Q4’23 ($B) $7 $6 $5 $4 $3 $2 $1 $0 Q4'23 Q4'24 Q4'25 Q4'26 Q4'27 Q4'28 © 2024 Corning Incorporated 6
Slide 7: Springboard Opportunity – Not Risk Adjusted
9/23/2024 Springboard Opportunity – Not Risk Adjusted $9 Incremental Annualized Sales Run-Rate vs. Q4’23 $8 $8B Incremental Annualized Sales vs. Q4’23 ($B) New MAP $7 Emerging Growth Life Sciences Vessels $6 $5B MCE $5 Automotive Display $4 $3 Optical $2 $1 $0 Q4'23 Q4'24 Q4'25 Q4'26 Q4'27 Q4'28 © 2
Slide 8: Springboard Opportunity – High-Confidence Plan
9/23/2024 Springboard Opportunity – Not Risk Adjusted $9 Incremental Annualized Sales Run-Rate vs. Q4’23 $8 Incremental Annualized Sales vs. Q4’23 ($B) First, we are focusing down on the $7 next three years – through the end of 2026 $6 $5B $5 $4 $3 $2 $1 $0 Q4'23 Q4'24 Q4'25 Q4'26 Q4'27 Q4'28 © 2024
Slide 9: We're off to a strong start on Springboard
9/23/2024 We’re off to a strong start on Springboard © 2024 Corning Incorporated 9
Slide 10: Springboard: Display
9/23/2024 Display & Mobile Consumer Electronics © 2024 Corning Incorporated Springboard: Display $6 Incremental Annualized Sales Run-Rate vs. Q4’23 Incremental Annualized Sales vs. Q4’23 ($B) $5 $4 $3 Display $2 $1 $0 Q4'23 Q4'24 Q4'25 Q4'26 © 2024 Corning Incorporated 10
Slide 11: Our Display Springboard plan is to maintain stable USD net income
9/23/2024 Our Display Springboard plan is to maintain stable USD net income • Actions we are taking: – Implementing a currency-based price adjustment – Maintaining our market, technology, and cost leadership – Capturing low-single digit volume growth • Outcomes we expect: – Net income of $900-$950M
Slide 12: Our latest Gen 10.5 assets deliver significant productivity and cost advantage
9/23/2024 Our latest Gen 10.5 assets deliver significant productivity and cost advantage 3370 mm Gen 10.5 Gen 10 Gen 10.5 65” Displays 2940 mm Gen 8.5 Gen 8 Gen 7.5 Gen 7 3370 mm 96% Glass UT Gen 6 Gen 5 2940 mm Gen 4 Gen 3 Gen 2 Gen 10.5 75” Displays 96% Glass UT © 2024 Corning Incorporated Our pro
Slide 13: Expect display glass market to grow low-single digits over the next few years
9/23/2024 Expect display glass market to grow low-single digits over the next few years, driven by screen size 65’’+ TV Penetration Average TV Screen Size +1” per year 31% 21% ≥ 65” 10% 2019 2023 2028 Expect mix of 65” and above TVs Consumers’ continued preference for larger TVs to reach >30% by 202
Slide 14: Our expertise and investment in fusion continues to pay off
9/23/2024 Our expertise and investment in fusion continues to pay off © 2024 Corning Incorporated Display Springboard Highlights • Our Display Springboard plan is to maintain stable USD net income • We are implementing a currency-based price adjustment • We expect the success of our price increases
Slide 15: Optical Communications
9/23/2024 = CORNING Optical Communications Mike O’Day CORNING 15
Slide 16: Optical Springboard Plan
9/23/2024 Optical Springboard Plan • Nearly double sales by 2026 • Competitive advantage from innovation and cost leadership • Growth from cyclical and secular trends © 2024 Corning Incorporated Optical Springboard is delivering significant value, beginning now $6 Incremental Annualized Sales Run-Ra
Slide 17: Concord: the largest, lowest cost, fiber factory in the world
9/23/2024 Optical Technology Vectors guide use of 345 Optical Technology Vectors: Density, Ease of Use, Sustainability, Cost © 2024 Corning Incorporated Concord: the largest, lowest cost, fiber factory in the world • Fiber manufacturing with a significant competitive advantage • Completely re-invent
Slide 18: Cyclical and secular trends driving Optical growth
9/23/2024 $6 Incremental Annualized Sales Run-Rate vs. Q4’23 $5 • Cyclical trend underway as carriers buy at deployment rate $4 Incremental Sales ($B) • BEAD secular trend starts in ’25 $3 • Gen AI secular trend $2 – Inside the data center has begun Optical – Inter–Data Center Interconnect $1 (DCI)
Slide 19: Corning Fiber Volume
9/23/2024 Corning Fiber Volume Corning Fiber Volume -18%, Q2’24 -30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 202
Slide 20: BEAD: Begins in '25, adds $4B market opportunity over 4-8 years
9/23/2024 BEAD: Begins in ’25, adds $4B market opportunity over 4-8 years • Progress with approval process; 35 states with preliminary approval • Three states starting bidding process (CO, LA, MT) • Corning is ready with BABA compliant products Final deployment plan approval by NTIA Vol II approved
Slide 21: Density Matters: Smaller BEAD fiber, cable, connectors, terminals
9/23/2024 Density Matters: Smaller BEAD fiber, cable, connectors, terminals Contour Fiber Contour Cable Pushlok™ Connector Evolv® Terminal 40% denser 2x denser 2x smaller 4x smaller © 2024 Corning Incorporated 21
Slide 22: New buried solutions compelling, especially for rural deployments
9/23/2024 New buried solutions compelling, especially for rural deployments Time to Install Cost to Install Splice Buried Corning Splice Buried Corning FlexNAP™ FlexNAP™ 5x faster to install 30% lower cost per with fewer skilled people home © 2024 Corning Incorporated • Cyclical trend underway as ca
Slide 23: Gen AI Data Center: 2nd network, 10x more fiber in the same space
9/23/2024 Gen AI Data Center: 2nd network, 10x more fiber in the same space Cloud Artificial Intelligence © 2024 Corning Incorporated Density Matters: Smaller Gen AI fiber, cables, and connectors Contour Fiber Contour Flow Cable MMC Connector 40% denser 2x denser 36x denser © 2024 Corning Incorporat
Slide 24: Custom innovative solutions resonate with Gen AI deployers
9/23/2024 Custom innovative solutions resonate with Gen AI deployers Value Proposition 90% Higher Density 4x Faster to Install with fewer skilled people 55% Less CO2 © 2024 Corning Incorporated • Cyclical trend underway as carriers buy at deployment rate • BEAD secular trend starts in ’25 • Gen AI s
Slide 25: Gen AI inter-DCI: Power hungry GPUs limit cluster size per site
9/23/2024 Gen AI inter-DCI: Power hungry GPUs limit cluster size per site Large clusters between City A sites require very high fiber count cable connections over long distances. City B City C © 2024 Corning Incorporated 25
Slide 26: Lumen inter-city network optimal for Hyper inter-DCI network need
9/23/2024 Lumen inter-city network optimal for Hyper 4 inter-DCI network need Of the 10 to 12 conduits installed, fiber will be placed initially in only one conduit, allowing for future expansion or to meet increased customer demand. Fiber Optics Online, January 14, 1999 Recovery ’04+ Source: Lumen
Slide 27: Optical Springboard: nearly doubling sales with capacity in place
9/23/2024 $6 Incremental Annualized Sales Run-Rate vs. Q4’23 Incremental Annualized Sales vs. Q4’23 ($B) $5 • Nearly doubling sales with capacity in place $4 • Growth driven by cyclical and secular trends $3 • Competitive advantage from $2 innovation, cost leadership, Optical and trusted partnership
Slide 28: Display Key Takeaways
9/23/2024 Display Key Takeaways • Raising glass prices to ensure we maintain stable U.S. dollar net income • Majority of yen exposure hedged for 2025 and 2026 • Do not plan to recast 2024 financials because price increases offset weaker yen in hedges • Expect to deliver 2025 net income of $900M-$950
Slide 29: Optical Communications Key Takeaways
9/23/2024 Optical Communications Key Takeaways • Enterprise business expected to grow at a 25% CAGR over the next 4 years and expect year-over-year sales growth in Q3 to be more than 40% • Reached agreement with Lumen Technologies for a new generative AI fiber and cable solution – reserves 10% of gl
Slide 30: Reiterating Q3 Guidance
9/23/2024 Reiterating Q3 Guidance Sales: ~$3.7B EPS: $0.50 - $0.54 © 2024 Corning Incorporated Springboard Sales Opportunity $9 Incremental Annualized Sales Run-Rate vs. Q4’23 $8 Incremental Annualized Sales vs. Q4’23 ($B) $7 $6 $5B Not Risk Adjusted $5 $4 $3 $3B High-Confidence Plan Q3F $2 $1.7B $1
Slide 31: Q2 run-rate ahead of plan
9/23/2024 Q2 run-rate ahead of plan… $9 Incremental Annualized Sales Run-Rate vs. Q4’23 $8 Incremental Annualized Sales vs. Q4’23 ($B) $7 $6 $5B Not Risk Adjusted $5 $4 $3 $3B High-Confidence Plan Q3F Q2 $1.7B $2 $1.3B $1 $0 Q4'23 Q4'24 Q4'25 Q4'26 Q4'27 Q4'28 © 2024 Corning Incorporated … and expec
Slide 32: Operating Margin Target
9/23/2024 Operating Margin Target • Set an operating-margin target of 20% by the end of 2026 – Capacity and technical capabilities in place to add more than $3B in annualized sales through 2026; cost and capital already reflected in our financials – Target leads to an improving return profile, with
Slide 33: Capital Allocation Priorities
9/23/2024 Capital Allocation Priorities Invest for organic growth opportunities • Capacity and technical capabilities in place to service $3B+ sales opportunity Maintain strong and efficient balance sheet • One of the longest debt tenors in S&P 500 – current average debt maturity is ~23 years • ~$1B
Slide 34: © 2024 Corning Incorporated © 2024 Corning Incorporated
9/23/2024 © 2024 Corning Incorporated © 2024 Corning Incorporated 34
Slide 35: Our 3-4-5 Approach
9/23/2024 © 2024 Corning Incorporated Our 3-4-5 Approach Focus >80% of resources on opportunities that leverage capabilities from at least two of three columns © 2024 Corning Incorporated 35
Slide 36: CFO Summary
9/23/2024 CFO Summary • Key milestones in Springboard plan – Display price increases – Cyclical and secular trends driving growth in Optical Communications – Operating-margin target of 20% by end of 2026 © 2024 Corning Incorporated 36