Slide 1: First-Quarter 2022 Investor Call
First-Quarter 2022 Investor Call Corning’s Strong First-Quarter Sales and Improved Profitability Highlight Outstanding Start to 2022 April 26, 2022 1
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements The statements in this Quarterly Report on Form 10-Q, in reports subsequently filed by Corning with the SEC on Forms 8-K, and related comments by management that are not historical facts or information and contain words such as “will,” “believe,” “anticipate
Slide 3: FX Hedge Accounting
Q1 GAAP EARNINGS FX Hedge Accounting Recorded unrealized, non-cash, after-tax gain of $138M in Q1 2022 on mark-to- market adjustments associated with currency-hedging contracts and foreign debt – Translation hedges reduce our economic exposure to currency fluctuations, providing higher certainty for
Slide 4: Q1 Highlights
Q1 HIGHLIGHTS $3.7B Core Sales 15% Increase YoY FIRST QUARTER 2022 CORE PERFORMANCE “We are off to an outstanding start in 2022, driven by 36.6% broad-based strength across our businesses – led by 28% Gross Margin Expanded 80 bps YoY YoY sales growth in Optical Communications and continued favorable
Slide 5: Q1 Highlights - Hemlock and Automotive
HEMLOCK AND EMERGING GROWTH BUSINESSES Q1 Highlights - Hemlock Manufactures ultrapure polysilicon for the semiconductor and solar industries Secured multi-year take-or-pay commitments for solar, and expect demand to grow © 2022 Corning Incorporated 9 HEMLOCK AND EMERGING GROWTH BUSINESSES Q1 Highlig
Slide 6: Q1 Highlights - Life Sciences
HEMLOCK AND EMERGING GROWTH BUSINESSES Q1 Highlights - Life Sciences Our vial production was up more than 150% versus 2021, and our tubing production is expected to increase more than 25% this year as we ramp capacity Helping to create a future for pharmaceutical manufacturing that offers higher qua
Slide 7: CFO Perspective
CFO Perspective $3.7B 36.6% $0.54 $171M Q1 Core Sales Q1 Gross Margin Q1 Core EPS Q1 Free Cash Flow 15% Increase YoY Expanded 80 bps YoY 20% Increase YoY On track for another year of strong cash generation © 2022 Corning Incorporated 13 Focus on Profitability Tackling rising input costs on multiple
Slide 8: Optical Communications and Display Technologies
OPTICAL COMMUNICATIONS Strong Growth Continues Q1 Results • Q1 Sales were $1.2B, up 28% YoY, as network operators increased capital $1.2B spending Q1 Net Sales Up 28% YoY • Continued to outpace the passive optical market and capture growth, driven by increased spending on 5G, broadband projects, alo
Slide 9: Specialty Materials and Environmental Technologies
SPECIALTY MATERIALS More Corning Strategy Drives Growth Q1 Results • Q1 Sales were $493M, up 9%YoY, as a result of significant demand for its $493M premium cover materials and Advanced Optics products, driven by ongoing Q1 Net Sales strength in the underlying IT, mobile device, and semiconductor mar
Slide 10: Life Sciences and Hemlock and Emerging Growth
LIFE SCIENCES Expect Another Year of Growth Q1 Results • Q1 sales were $310M, up 3% YoY $310M • Net Income was down, primarily driven by COVID- related operational challenges Q1 Net Sales Up 3% YoY in the first half of Q1, which impacted output Observations • Expect growth going forward, with strong
Slide 11: Outlook and Key Highlights
Outlook Q2 2022 FY 2022 Expectations • Sales: $3.7B - $3.9B • Sales to exceed $15B; with growth at a high-single digit • EPS: $0.54 - $0.59 percentage • EPS to grow up to a few percentage points faster than sales • Gross Margin to expand from Q1 • Another year of strong FCF Our priorities for capita
Slide 12: Q&A Session and Investor Outreach Plans
Q&A Session Corning’s 2022 Investor Outreach Plans • Conference Plans: – May 24: JP Morgan Global Technology, Media and Communications Conference – Jun. 2: Bernstein Strategic Decisions Conference – Jun. 8: Bank of America Securities Global Technology Conference – Jun. 23: Fox Advisors Virtual Trans
Slide 13: 2022 Corporate Metrics
Appendix 2022 Corporate Metrics (as of April 26, 2022)(1)(2) Q2 2022 • Sales: $3.7B - $3.9B • EPS: $0.54 - $0.59 Full-Year 2022 • Sales: Exceed $15B; growing at a high-single digit percentage • Hemlock and Emerging Growth Businesses sales: $1.35B - $1.45B • Other income/expense: (~$265M) net expense
Slide 14: Q1 2022 Core Performance and Segment Performance
Q1 2022 Core Performance Q1 Q4 Q1 $ in millions, except EPS 2022 2021 2021 Core Net Sales $3,744 $3,714 $3,263 Core Gross Margin $1,370 $1,355 $1,167 Gross Margin % 37% 36% 36% Core SG&A $461 $472 $388 % of Sales 12% 13% 12% Core RD&E $250 $280 $220 % of Sales 7% 8% 7% Core Operating Margin $659 $60
Slide 15: Non-GAAP to GAAP Reconciliations
Adjusted Operating Cash Flow Reconciliation $ in millions Q1 2022 Q1 2021 Cash flows from operating activities $534 $723 Realized gains (losses) on translated earnings contracts $40 ($3) Translation losses on cash balances ($20) ($59) Adjusted cash flows from operating activities $554 $661 Less: Cap
Slide 16: Corning
- CORNING