AGC : Materials for the 101st Ordinary General Meeting of Shareholders (Matters omitted from paper-based documents delivered)

March 4, 2026

Dear Shareholders:

Materials for the 101stOrdinary General Meeting of Shareholders (Matters omitted from paper-based documents delivered)

Status of Employees 1

Main Lenders 1

Matters Concerning Stock Acquisition Rights of the Company 2

Outline of Liability Limitation Contracts 3

Outline of Directors' and Officers' Liability Insurance Contracts 3

Matters Concerning Outside Officers 3

Matters Concerning Accounting Auditors 6

Corporate Policy over Internal Control and the Operational Status of Internal Control 7

Consolidated Statements of Changes in Equity 11

Notes to the Consolidated Financial Statements 12

. 28

Balance Sheets 33

Statements of Operation 35

Statements of Changes in Net Assets 36

Notes to the Non-Consolidated Financial Statements 37

Reference (Overview of Consolidated Statements of Cash Flows) 48

Note: The number of employees of the Company is 8,122 persons.

Note: The outstanding balance of debt includes the debt from overseas local entities, etc. of the lenders.

1. Outline of Stock Acquisition Rights Held by the Officers (as of December 31, 2025)

   The outline of the stock acquisition rights held by the officers is as follows:

   Issue Date	Issue Price per Share	Exercise Price per Share	Term to Exercise the Rights	Officers' Status of Holding	Type and Number of Shares Envisaged
   July 1, 2009 (Stock Compensation-type Stock Option)	JPY 2,435	JPY 1	July 2, 2009 through July 1, 2039	Director: 18 for 1 person	Company's ordinary shares: 3,600 shares
   July 1, 2010 (Stock Compensation-type Stock Option)	JPY 3,100	JPY 1	July 2, 2010 through July 1, 2040	Directors: 25 for 2 persons	Company's ordinary shares: 5,000 shares
   July 1, 2011 (Stock Compensation-type Stock Option)	JPY 3,100	JPY 1	July 2, 2011 through July 1, 2041	Directors: 30 for 2 persons	Company's ordinary shares: 6,000 shares
   July 2, 2012 (Stock Compensation-type Stock Option)	JPY 1,265	JPY 1	July 3, 2012 through July 2, 2042	Directors: 110 for 3 persons	Company's ordinary shares: 22,000 shares
   July 1, 2013 (Stock Compensation-type Stock Option)	JPY 1,775	JPY 1	July 2, 2013 through July 1, 2043	Directors: 65 for 3 persons	Company's ordinary shares: 13,000 shares
   July 1, 2014 (Stock Compensation-type Stock Option)	JPY 1,940	JPY 1	July 2, 2014 through July 1, 2044	Directors: 73 for 3 persons	Company's ordinary shares: 14,600 shares
   July 1, 2015 (Stock Compensation-type Stock Option)	JPY 2,590	JPY 1	July 2, 2015 through July 1, 2045	Directors: 97 for 3 persons	Company's ordinary shares: 19,400 shares
   July 1, 2016 (Stock Compensation-type Stock Option)	JPY 1,710	JPY 1	July 2, 2016 through July 1, 2046	Directors: 137 for 3 persons	Company's ordinary shares: 27,400 shares
   July 3, 2017 (Stock Compensation-type Stock Option)	JPY 3,555	JPY 1	July 4, 2017 through July 3, 2047	Directors: 102 for 3 persons	Company's ordinary shares: 20,400 shares

   Note: As Outside Directors do not hold the Company's stock acquisition rights, the Directors in the table above do not include Outside Directors.

2. Total Number of Stock Acquisition Rights, etc. (as of December 31, 2025)

   The total number of the stock acquisition rights, etc. at the end of this business year, are as follows.

   1. Total number of the stock acquisition rights: 1,579

   2. Type and number of the shares envisaged by the stock acquisition rights: Company's ordinary shares: 315,800 shares

The Company has executed a contract with each Outside Director and each Audit & Supervisory Board Member to limit their liability arising under Article 423, Paragraph 1, of the Companies Act to the sum of the amounts prescribed in each Item of Article 425, Paragraph 1, of the Companies Act.

The Company has executed a liability insurance contract (an insurance contract stipulated in Article 430-3, Paragraph 1, of the Companies Act) with an insurance company naming the Company's Directors, Audit & Supervisory Board Members and Executive Officers as insureds that covers liabilities borne by the insureds concerning the performance of their duties or from claims received regarding the pursuit of such liabilities. Insurance premiums are fully borne by the Company.

1. Status of Important Concurrent Positions Held by Outside Officers in Other Companies and the Relationships Between these Companies and the Company (as of December 31, 2025)

   Category	Name	Important Concurrent Positions
   Outside Director	Hiroyuki Yanagi	Outside Director, Kirin Holdings Co., Ltd. Outside Director, Japan Airlines Co., Ltd. Outside Director, Mitsubishi Electric Corporation
   	Keiko Honda	Professor, Graduate School of Commerce, Waseda University Outside Director, Mitsubishi UFJ Financial Group, Inc. Outside Director, Recruit Holdings Co., Ltd.
   	Isao Teshirogi	Representative Director, President and CEO, Shionogi & Co., Ltd. Outside Director, Japan Exchange Group, Inc. Outside Director, Sumitomo Mitsui Financial Group, Inc.
   	Koji Arima	Member of the Board, Chairman, DENSO CORPORATION Outside Audit & Supervisory Board Member, KDDI CORPORATION
   Outside Audit & Supervisory Board Member	Isamu Kawashima	Outside Director, JAPAN PURE CHEMICAL CO., LTD. Outside Director, Sansei Technologies, Inc.
   	Tatsuro Ishizuka	Outside Director, K&O Energy Group Inc. Outside Director, Tadano Ltd.
   	Haruka Matsuyama	Partner, Hibiya Park Law Offices Outside Director, Tokio Marine Holdings, Inc. Outside Director, Mitsubishi Electric Corporation

   Notes:

   1. Among the important concurrent positions of the outside officers listed above, the Company has a business relationship in connection with pharmaceutical active ingredients and intermediates with Shionogi & Co., Ltd., where Mr. Isao Teshirogi is Chairman of the Board, Representative Director, President and CEO; however, the transaction amount accounts for less than 0.1 percent of the Company's net sales.

   2. Except for the company described in note 1 above, the Company has no special relationship with the entities in which outside officers hold concurrent positions.

2. Status of Main Activities in this Business Year

1. Outside Directors

   Name	Attendance at Board of Directors Meetings	Status of Comments at the Board of Directors Meetings Outline of Duties Performed Concerning the Roles Expected to be Fulfilled
   Hiroyuki Yanagi	13 out of 14 times	By applying abundant experience concerning overall corporate management, such as branding strategies and the use of digital technology, Mr. Yanagi raised questions precisely and provided recommendations from his professional viewpoint at the Board of Directors meetings. Thus, he duly fulfilled his management monitoring role. In addition, he served as the chairperson of the Board of Directors and contributed to enriching the Company's corporate governance by, among others, leading discussions at the Board of Directors meeting.
   Keiko Honda	14 out of 14 times	By applying abundant experience concerning management and sustainability of enterprises and global organizations, Ms. Honda proactively raised questions and provided recommendations from her professional viewpoint at the Board of Directors meetings. Thus, she duly fulfilled her management monitoring role. In addition, she served as the chairperson of the Nominating Committee and contributed to enriching the Company's corporate governance by, among others, enhancing objectivity concerning the appointment of the Directors, Audit & Supervisory Board Members and Executive Officers.
   Isao Teshirogi	14 out of 14 times	By applying abundant experience concerning overall corporate management as an incumbent Representative Director, President and CEO of a drug discovery-oriented pharmaceutical company, Mr. Teshirogi proactively raised questions and provided recommendations from his professional viewpoint at the Board of Directors meetings. Thus, he duly fulfilled his management monitoring role. In addition, he served as the chairperson of the Compensation Committee and contributed to enriching the Company's corporate governance by, among others, enhancing objectivity concerning the compensation of the Directors and Executive Officers.
   Koji Arima	11 out of 11 times	By applying abundant experience in overall corporate management as Member of the Board, Chairman of a global company that provides advanced technologies, systems and products, Mr. Koji Arima proactively raised questions and provided recommendations from his professional viewpoint at the Board of Directors meetings. Thus, he duly fulfilled his management monitoring role. In addition, as a member of the Nominating Committee and the Compensation Committee, he contributed to enriching the enhancement of the Company's corporate governance by, among others, offering opinions and recommendations regarding officer appointments and officer remuneration.

   Note: Mr. Koji Arima was appointed as a Director on March 28, 2025; accordingly, the number of Board meetings he was eligible to attend differs from that of the other Directors.

2. Outside Audit & Supervisory Board Members

1. Name

   KPMG AZSA LLC

2. Amount of Compensation, etc.

   Amount of compensation, etc. as the Accounting Auditor regarding this business year		JPY 158 million
   	(of which the amount of compensation, etc. for services that do not fall within Article 2, Paragraph 1, of the Certified Public Accountants Act)	(JPY 2 million)
   Total amount of monetary or other economic benefit to be paid by the Company and its subsidiaries to the Accounting Auditor		JPY 248 million

   Notes:

   1. The Audit & Supervisory Board checks the contents of Accounting Auditor's audit plan, its status for performance of duties, the basis of calculating compensation estimates, etc. and as a result of comprehensive review gives consent to the Accounting Auditor's compensation, etc. in accordance with Article 399, Paragraph 1, of the Companies Act.

   2. In the audit agreement between the Company and the Accounting Auditor, the amount for audit based on the Companies Act and audit based on the Financial Instruments and Exchange Act are not separated; thus, the above amount contains the compensation, etc. for audit based on the Financial Instruments and Exchange Act.

   3. The Company pays compensation to the Accounting Auditor for procedural services that have been entrusted and agreed upon as services other than those under Article 2, Paragraph 1, of the Certified Public Accountants Act (i.e., non-audit services).

   4. Some of the important overseas subsidiaries of the Company are audited by audit firms other than the Company's Accounting Auditor.

3. Policy on Decisions to Dismiss or not Reappoint the Accounting Auditors

The Audit & Supervisory Board, by unanimous agreement, will dismiss the Accounting Auditor if it is deemed that the Accounting Auditor falls under the grounds stipulated in Items of Article 340, Paragraph 1, of the Companies Act and merits dismissal.

In addition, when considered necessary after taking comprehensive account of the Accounting Auditor's independence, performance status of its duties, etc., the Audit & Supervisory Board will determine the contents of the proposal concerning the removal or non-reappointment of the Accounting Auditor to be submitted to a General Meeting of Shareholders.

The contents of the Board of Directors' resolution on the corporate policy over internal control and the outline of the operational status of internal control are as follows.

1. Corporate Policy over Internal Control (as of December 31, 2025)

   The Group Philosophy "Look Beyond" of the AGC Group provides that all members of the AGC Group are expected to adopt and follow the four shared values of "Innovation & Operational Excellence", " Sustainability for a Blue Planet", "One Team with Diversity" and "Integrity & Trust", which shall serve as the basis for every action they take.

   In addition to the above, the AGC Group declares its corporate social responsibility in the form of "AGC Group Charter of Corporate Behavior", which is intended to lead the group members properly toward realization of the Group Philosophy "Look Beyond".

   Systems to ensure fair and legal business transactions are as follows.

   1. System to ensure compliance with the relevant laws and the Articles of Incorporations (Compliance Program)

      The AGC Group defines "Integrity & Trust" as one of the most important shared values in its Group Philosophy "Look Beyond" and establishes and strengthens its compliance program based thereon.

      More specifically, the President & CEO of the Company (hereinafter referred to as the President & CEO) nominates, among executive officers, the Chief Compliance Officer (abbreviated to CCO) who shall be responsible to control over the establishment and promotion of the AGC Group's compliance program under the authorization of the President & CEO. Further, the Company establishes the Compliance Committee as a professional body for legal compliance and corporate ethics. Chaired by a Global Compliance Leader, this Committee shall plan, formulate and execute a compliance program. It shall establish global common compliance rules and country/region specific rules in the Code of Conduct (AGC Group Code of Conduct) and establish the compliance system as AGC Group as well as promote educational activities therefore to ensure business conduct based on laws and corporate ethics.

      In order to handle whistle-blowing and consultation on compliance, the AGC Group sets up contact points (compliance hotline). All the corporate officers and employees of the Company and executives of subsidiaries are obligated to submit the personal certificate.

      Actual status of compliance and usage of whistle-blowing and consultation system on compliance of the AGC Group shall be reported to the Board of Directors of the Company (hereinafter referred to as the Board of Directors) periodically.

      The Company shall also establish a legal administration system of the AGC Group to grasp information on important legal issues, which shall be reported to the Board of Directors periodically.

      With regard to internal audit of the AGC Group, the Internal Audit Division and the internal audit staff in each region shall audit managerial and operational systems as well as legality and rationality of execution of business process, pursuant to an annual auditing plan. Results of such internal audits shall be timely reported to the President & CEO and further to the Board of Directors periodically.

      In accordance with "Financial Instruments and Exchange Act" in Japan, the AGC Group shall establish "AGC Group Internal Control over Financial Reporting Implementation Regulations" and form the compliance system for financial reporting.

   2. Information Retention and Management System with respect to business operations of the AGC Group (Information retention / management system)

      Retention and management of important business documents and information shall be made pursuant to the applicable laws and the relevant internal rules of the AGC Group.

      Confidentiality and security of important business documents and information shall be maintained in accordance with the applicable procedures provided in the Information Security Policy to be made available through the Company.

   3. System to control risk of damage of the AGC Group (Risk Management System)

      The AGC Group shall establish "AGC Group Enterprise Risk Management Basic Policies" and form the risk management system and crisis management system.

      According to the relevant internal rules, important risk factors for the AGC Group shall be specified and control of these factors shall be discussed and monitored periodically at the Management Committee of the Company (hereinafter referred to as the Management Committee) and the Board of Directors. As for the risks associated with business activities of the AGC Group, each Corporate Division, in-house Company and SBU analyzes the risks of individual operations and projects and discusses necessary countermeasures. If necessary and appropriate, the Management Committee and the Board of Directors deliberate the matters as well.

      Each responsible division provides and announces a respective guideline over those risks associated with compliance, environment, accidents and product quality etc. of the AGC Group and conducts training sessions and/or internal audits if necessary and appropriate.

      Preparing for unforeseen events that could seriously affect both operating results and financial condition of the AGC Group, in accordance with the relevant internal rules, a crisis management report line has been established so that critical information can be reported speedily and surely to the President & CEO, and further distributed and shared among the officers and the employees concerned. The Company shall establish the system where the Group Taskforce Headquarters can be set up immediately upon the President & CEO's judgment, in order to take initial measures without delay and appropriately.

   4. System to ensure efficient and effective business execution of the AGC Group (System for efficient business execution)

      As basic policy over corporate governance structure, the Company clearly distinguishes management oversight function and business execution function, aiming at realization of reinforced business oversight and quick decision making at the business execution.

      As to management oversight, in the Company the Board of Directors including outside directors shall decide on the important business matters and oversee the business performance of the AGC Group. In addition, the Nominating Committee and the Compensation Committee (both non-statutory) are established in order to warrant objectivity of evaluation/selection and compensation package with respect to directors and executive officers of the Company.

      Authorities and duties with respect to business execution are delegated to each in-house Company and SBU in accordance with a certain standard under the in-house Company System and the Executive Officer System in the Company. These business operations are managed and evaluated in accordance with specific consolidated key performance index established in line with the AGC Group's basic management policy and its performance target.

      Business transactions in the AGC Group shall be conducted in accordance with the internal decision making rules including business authorization rules and job descriptions. These operations shall be monitored and verified by internal audit periodically.

   5. System to report matters concerning business execution of executives of subsidiaries to the Company (System for reports to AGC by AGC Group companies)

      Subsidiaries shall report certain matters concerning business operations, etc. to the Company. Of such matters, important ones shall be reported to the Management Committee and/or the Board of Directors. Under the compliance system and legal administration system of the AGC Group, subsidiaries shall quickly report any important compliance issue, important legal issue, etc. of the subsidiaries to the Company. These matters shall be reported to the Board of Directors periodically.

      The internal audit division shall timely report the results of internal audit conducted over subsidiaries to the President & CEO and further to the Board of Directors periodically.

   6. Matters related to the audit system of the Audit & Supervisory Board Members
      1. Staff to the Audit & Supervisory Board Members

         The Company establishes the Staff Office of the Audit & Supervisory Board to support activities of the Audit & Supervisory Board Members.

      2. Independence of the said Staff to the Audit & Supervisory Board Members from Directors Change of Staff of the Audit & Supervisory Board and performance evaluation of such staff shall be subject to the consent of the Audit & Supervisory Board.
      3. Ensuring of effectiveness of the Audit & Supervisory Board Members' directions to the said Staff

         Staff of the Audit & Supervisory Board shall not concurrently serve as employees of other departments. Such staff shall exclusively perform duties related to the Audit & Supervisory Board and follow directions of the Audit & Supervisory Board Members.

      4. System for reports to the Audit & Supervisory Board Members by Directors and employees of the Company, Directors and employees of subsidiaries, or those who received report from them

         The Directors and employees of the Company shall report to the Audit & Supervisory Board Members any event that may violate the laws and regulations or articles of incorporation of the Company, or do substantial damage to the Company, and other matters provided in the relevant internal rules.

         Subsidiaries shall report to the Company any event that may violate the laws and regulations or articles of incorporation of the Company, or do substantial damage to the Company. Divisions to which these matters are reported shall quickly report them to the Audit & Supervisory Board Members of the Company.

      5. System to ensure that those who made reports described in the preceding item shall not receive disadvantageous treatments on the ground that they made the said report

         The AGC Group shall ban disadvantageous treatments and retaliatory action against those who made reports concerning the violation of Code of Conduct, etc. under the AGC Group Code of Conduct, and keep employees of the AGC Group well informed.

      6. Matters related to policy on procedures for reimbursement of expenses that occurred from performance of duties of the Audit & Supervisory Board Members

         The Company shall quickly handle expenses paid by the Audit & Supervisory Board Members, excluding cases where the said expenses are judged to be unnecessary for performance of duties of the Audit & Supervisory Board Members.

      7. Other system to ensure effective audit by the Audit & Supervisory Board Members

      The Audit & Supervisory Board Members shall attend at the important meeting such as the Management Committee, the Mid-Term Plan & Budget Committee, and the Monthly Performance Monitoring Meeting etc. In addition, Representative Directors shall have periodical meetings with the Audit & Supervisory Board Members.

      Meetings between the Audit & Supervisory Board Members and Internal Audit Division etc. shall be held periodically so that the Audit & Supervisory Board Members may have access to information respecting the results and the proceedings of internal audit. The Company establishes the system where the Audit & Supervisory Board Members may enhance effectiveness of its audit through exchange of views and information with the Internal Audit Division and the Accounting Auditors, etc.

2. Outline of the Operational Status of Internal Control

   The outline of the operational status of internal control is as follows.

   1. System to ensure compliance with the relevant laws and the Articles of Incorporations (Compliance Program)

      The AGC Group has established the position of Chief Compliance Officer (CCO), an executive officer to whom the President & CEO delegates authority, responsible for the overall management and promotion of the AGC Group's compliance program and reporting to the President & CEO on the status of such duties.

      The "AGC Group Code of Conduct" has been established, and all employees of the Company and executives of subsidiaries are required to submit a personal certificate pledging compliance with the Code of Conduct, and compliance with laws and regulations and corporate ethics is strictly enforced. Periodic compliance education is conducted to ensure conduct in line with laws and corporate ethics.

      A compliance hotline is set up as a contact point for whistle-blowing and consultation to prevent and detect misconduct, etc. at an early stage.

      The status of compliance in the AGC Group, the operation of the compliance hotline, and important legal matters are reported to the Board of Directors periodically.

      Internal audits of the Company and its subsidiaries are conducted pursuant to the annual audit plan, etc., and the results of audits are reported periodically to the Board of Directors.

      The "AGC Group Internal Control over Financial Reporting Implementation Regulations" have been established, and internal control over financial reporting is maintained, operated, and evaluated.

   2. Information Retention and Management System with respect to business operations of the AGC Group (Information retention / management system)

      The "AGC Group Common Information Security Policy" has been established, under which important documents and information are retained and managed.

      Periodic self-assessments on information security and education for employees are conducted to ensure rigorous information management.

   3. System to control risk of damage of the AGC Group (Risk Management System)

      In accordance with the "AGC Group Enterprise Risk Management Basic Policies," risk factors that could have a significant impact on the AGC Group's management are specified, and efforts are made to enhance and improve both the level of control to suppress risk occurrence and the level of response when risks materialize.

      A Business Continuity Plan (BCP) has been formulated in preparation for large-scale accidents and disasters. Exercises (e.g., earthquake drills) are conducted to raise awareness of the BCP, ensure thorough dissemination, and improve its effectiveness.

   4. System to ensure efficient and effective business execution of the AGC Group (System for efficient business execution)

      The Board of Directors consists of 8 members, including 4 outside directors, and is chaired by an outside director. In this fiscal year, it met 14 times to decide important matters of the AGC Group and supervise the status of business execution.

      The Nominating Committee and the Compensation Committee (both non-statutory) have been established as advisory bodies to the Board; the majority of each committee's members are outside directors and each committee is chaired by an outside director. In this fiscal year, the Nominating Committee met 13 times and the Compensation Committee met 6 times, thereby increasing objectivity in the evaluation, selection, and compensation of the Company's Directors and Executive Officers.

      The Board conducts analyses and evaluation of its own effectiveness.

      With respect to business execution, substantial authority is delegated to Executive Officers, including the President & CEO, to accelerate decision-making.

   5. System to report matters concerning business execution of executives of subsidiaries to the Company (System for reports to AGC by AGC Group companies)

      A reporting system from subsidiaries to the Company has been established, under which important matters relating to subsidiaries (certain matters concerning business operations, etc., compliance issues, legal issues, etc.) are reported to the Company.

      Internal audits of subsidiaries are conducted pursuant to the annual audit plan; the results are reported to the President & CEO as necessary and to the Board of Directors periodically.

   6. Matters related to the audit system of the Audit & Supervisory Board Members

1. Staff to the Audit & Supervisory Board Members

   The Staff Office of the Audit & Supervisory Board has been established to support the Audit & Supervisory Board Members.

2. Independence of the said Staff to the Audit & Supervisory Board Members from Directors Under internal rules, personnel changes, evaluations, etc. of staff of the Staff Office of the Audit & Supervisory Board require the consent of the Audit & Supervisory Board.
3. Ensuring of effectiveness of the Audit & Supervisory Board Members' directions to the said Staff

   Staff members of the Staff Office of the Audit & Supervisory Board are assigned exclusively and perform duties in accordance with directions from the Audit & Supervisory Board Members.

4. System for reports to the Audit & Supervisory Board Members by Directors and employees of the Company, Directors and employees of subsidiaries, or those who received report from them

   Reports to the Audit & Supervisory Board are made in accordance with internal rules.

5. System to ensure that those who made reports described in the preceding item shall not receive disadvantageous treatments on the ground that they made the said report

   Under the "AGC Group Code of Conduct," disadvantageous treatment and retaliatory action against

   whistle-blowers are prohibited and well informed to employees.

6. Matters related to policy on procedures for reimbursement of expenses that occurred from performance of duties of the Audit & Supervisory Board Members

   Expenses paid by the Audit & Supervisory Board Members for business are promptly handled.

7. Other system to ensure effective audit by the Audit & Supervisory Board Members

   The Audit & Supervisory Board Members attend important internal meetings such as the Board of Directors and the Management Committee and express opinions as necessary.

   The Audit & Supervisory Board Members hold periodic meetings, etc. and exchange views with the Representative Directors and the Internal Audit Division, etc., to enhance the effectiveness of audits.

   Reference: Status of Corporate Governance

   For details on the Company's approach to corporate governance, including the "AGC Group Corporate Governance Basic Policy," please visit the Company's website below:

   https://www.agc.com/en/company/governance/index.html

   Consolidated Statements of Changes in Equity

   101st Fiscal Year (from January 1, 2025 to December 31, 2025)

   (Unit: millions of yen)

   	Equity attributable to owners of the parent
   	Share capital	Capital surplus	Retained earnings	Treasury shares	Other components of equity
   					Remeasurements of defined benefit plans	Net change in revaluatio n o f financial assets measured at FVTO CI (No te)
   Balance as of January 1, 2025	90,873	95,781	744,766	(26,767)	23,921	18,687
   Changes in equity Comprehensive income Profit for the year Other comprehensive income	-	-	69,162	-	-	-
   	-	-	-	-	(14,792)	3,493
   Total comprehensive income for the year	-	-	69,162	-	(14,792)	3,493
   Transactions with owners
   Dividends	-	-	(44,586)	-	-	-
   Acquisition of treasury shares	-	-	-	(15)	-	-
   Disposal of treasury shares	-	-	(224)	459	-	-
   Changes in ownership interests in subsidiaries that do not result in loss of control	-	0	-	-	-	-
   Transfer from other components of equity to retained earnings	-	-	3,796	-	-	(3,796)
   Share-based payment transactions	-	83	-	-	-	-
   Others (business combinations and others)	-	-	-	-	-	-
   Total transactions with owners	-	83	(41,014)	444	-	(3,796)
   Balance as of D ecember 31, 2025	90,873	95,864	772,913	(26,323)	9,128	18,384

   	Equity attributable to owners of the parent				Non-controlling interests	Total equity
   	Other components of equity			Total
   	Cash flow hedges	Exchange differences on translation of foreign operations	Total
   Balance as of January 1, 2025	(497)	489,023	531,134	1,435,787	235,909	1,671,697
   Changes in equity Comprehensive income Profit for the year Other comprehensive income	-	-	-	69,162	10,308	79,470
   	(1,204)	36,964	24,459	24,459	3,916	28,375
   Total comprehensive income for the year	(1,204)	36,964	24,459	93,621	14,224	107,846
   Transactions with owners
   Dividends	-	-	-	(44,586)	(6,993)	(51,579)
   Acquisition of treasury shares	-	-	-	(15)	-	(15)
   Disposal of treasury shares	-	-	-	235	-	235
   Changes in ownership interests in subsidiaries that do not result in loss of control	-	-	-	0	(21)	(21)
   Transfer from other components of equity to retained earnings	-	-	(3,796)	-	-	-
   Share-based payment transactions	-	-	-	83	-	83
   Others (business combinations and others)	-	-	-	-	3,475	3,475
   Total transactions with owners	-	-	(3,796)	(44,282)	(3,539)	(47,821)
   Balance as of D ecember 31, 2025	(1,702)	525,987	551,798	1,485,126	246,595	1,731,722

   (Note) FVTOCI: Fair Value Through Other Comprehensive Income

   Notes to the Consolidated Financial Statements

   1. Significant Accounting Policies

      1. Accounting standards of consolidated financial statements

         The consolidated financial statements of AGC Inc. ("the Company") and its consolidated subsidiaries (the "AGC Group" or the "Group"), which comprise the consolidated statements of financial position, the consolidated statements of profit or loss and the consolidated statements of changes in equity, have been prepared in accordance with International Financial Reporting Standards ("IFRSs") and in compliance with Article 120-1 of the Ordinance of Company Accounting. The latter part of Article 120-1 of the Ordinance of Company Accounting prescribes the omission of certain disclosures required by IFRSs.

      2. Scope of consolidation

         Number of consolidated subsidiaries: 175 Major subsidiaries:

         AGC Techno Glass Co., Ltd., Ise Chemicals Corporation, AGC Glass Europe and AGC Flat Glass North America, Inc.

         Due to liquidation and other events, 11 companies were excluded from the scope of consolidation in the fiscal year ended December 31, 2025.

      3. Application of equity method

         Number of companies using equity method: 21

         Major investments accounted for using equity method: Asahi India Glass, Ltd. and Schott-Flat Glass B.V.

      4. Accounting standards

         1. Changes in Accounting Policies

            The material accounting policies adopted for the Group's Consolidated Financial Statements

            are the same as those for the Consolidated Financial Statements for the fiscal year ended December 31, 2024.

         2. Valuation of non-derivative financial assets

            1. Financial assets measured at amortized cost:

               Financial assets are classified as financial assets measured at amortized cost if the following two conditions are met:

               • The foregoing financial assets are held within a Group business model whose objective is to hold the assets in order to collect contractual cash flows from the assets; and

               • The contractual terms of the foregoing financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

            2. Financial assets measured at fair value through other comprehensive income:

               The Group designates equity instruments as financial assets measured at fair value through other comprehensive income when an irrevocable election has been made on initial recognition to measure the gains and losses arising from change in the fair value of such instruments in other comprehensive income, and when such instruments are not classified

               as financial assets measured at amortized cost.

               When the foregoing financial assets measured at fair value through other comprehensive income are derecognized from transactions such as sales, the cumulative gains or losses are reclassified from other components of equity to retained earnings.

            3. Financial assets measured at fair value through profit or loss:

            The Group measures financial assets at fair value and recognizes any changes in the fair value of such assets as profit or loss, unless the foregoing financial assets are classified as financial assets measured at amortized cost or financial assets measured at fair value through other comprehensive income.

         3. Valuation of non-derivative financial liabilities

            The Group recognizes the following as non-derivative financial liabilities: trade payables, other payables, and interest-bearing debt (borrowings, commercial paper, corporate bonds, bonds with subscription rights to shares (excluding share subscription rights)), among other items.

            The foregoing financial liabilities are initially recognized at fair value less directly attributable transaction costs. After initial recognition, non-derivative financial liabilities are measured at amortized cost using the effective interest method.

            The Group derecognizes financial liabilities when the obligation specified in the contract is exempted, cancelled or expired.

         4. Valuation of derivative financial instruments

            The AGC Group holds derivative financial instruments to hedge foreign exchange risk, interest risk and commodity price risk.

            The Group initially recognizes derivative financial instruments at fair value, with the related transaction costs recognized in profit or loss when incurred. After initial recognition, derivative financial instruments are measured at fair value, with changes in fair value accounted for as follows, depending on whether or not derivatives qualify for hedge accounting:

            • Derivatives not qualifying for hedge accounting

              Changes in the fair value of derivative financial instruments which do not qualify for hedge accounting are recognized in profit or loss.

            • Derivatives qualifying for hedge accounting

              The effective portion of gains or losses on hedging instruments is recognized in other comprehensive income. The amounts recognized in other comprehensive income are reclassified to profit or loss in the reporting periods when the cash flows of the hedged items affect profit or loss. The ineffective portion of changes in the fair value of hedging instruments is recognized in profit or loss.

         5. Valuation of inventories

            Inventories are measured at the lower of cost or net realizable value. The cost of inventories is measured based on the moving average method and includes costs of purchase and costs of conversion (including fixed and variable manufacturing overheads). Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

         6. Depreciation and amortization of assets

            1. Property, plant and equipment (including Right-of-use assets):

               Depreciation of property, plant and equipment is computed by the straight-line method.

            2. Intangible assets (including Right-of-use assets):

            Amortization of intangible assets is computed by the straight-line method.

         7. Basis for recognizing provisions

            A provision is recognized when the AGC Group has a reasonably estimable legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of the time value of money is material, the estimated future cash flows are discounted to the present value using a pre-tax rate that reflects the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance costs.

         8. Employment benefits

            Post-employment benefit plans comprise defined benefit plans and defined contribution plans.

            1. Defined benefit plans

               The obligations for defined benefit plans are recognized as the present value of defined benefit obligations less the fair value of any plan assets. If the defined benefit plans have a surplus, the net defined benefit assets are limited to the present value of any future economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

               The present value of defined benefit obligations is calculated annually by qualified actuaries using the projected unit credit method. The discount rates are based on the market yields of high quality corporate bonds at the end of each reporting period that have terms consistent with the discount period, which is established as the estimated term of the post-employment benefit obligations through to the estimated dates for payments of future benefits in every fiscal year.

               Actuarial gains and losses are recognized immediately in other comprehensive income when incurred, while past service costs and gains or losses on settlement are recognized in profit or loss.

            2. Defined contribution plans

            Expenses related to post-employment benefits for defined contribution plans are recognized as an expense at the time of contribution.

         9. Revenue

            The Group adopts IFRS 15 "Revenue from Contracts with Customers", and revenue is recognized based on the following five-step model.

            Step 1: Identify the contract with a customer

            Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price

            Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the entity satisfies a performance obligation

            The Group sells a range of products including architectural glass, automotive glass, glass substrates for displays, electronic materials, essential chemicals, performance chemicals, and life science products. For the sales of these products, revenue is recognized upon delivery of these products as its performance obligation is satisfied when customers obtain control over these products at the time of delivery. For revenue associated with construction works such as the installation of architectural glass and contract development and manufacturing services for biological active pharmaceutical ingredient (API), revenue is recognized according to the progress toward completion of the performance obligation. Progress toward completion is measured in the input method based on the costs incurred, etc. Also, revenue is measured at the consideration promised in contracts with customers, less discounts, rebates, returned products, and other items.

         10. Operating profit and Business profit

             "Operating profit" in the Group's consolidated statements of profit or loss is an indicator that facilitates continuous comparisons and evaluations of the Group's business performance. Main items of "other income" and "other expenses" are foreign exchange gains and losses, gains on sale of non-current assets, losses on disposal of non-current assets, impairment losses and expenses for restructuring programs. "Business profit" includes all income and expenses before finance income, finance costs and income tax expenses.

         11. Translation into Japanese yen of foreign currency denominated assets or liabilities

             Foreign currency transactions are translated into the respective functional currencies by applying the rates of exchange prevailing at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rates at the reporting date. Exchange differences are recognized as profit or loss. Exchange differences for any gains or losses on the assets and liabilities recognized in other comprehensive income are recognized in other comprehensive income.

             Non-monetary assets and liabilities are translated at the exchange rate at the date of the transaction.

             Assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on the acquisition of foreign operations, are translated into Japanese yen at the exchange rates prevailing at the reporting date. Income and expenses of foreign operations are translated into Japanese yen at the average exchange rate for the period.

         12. Hedge accounting method

             1. Hedge accounting method: Cash flow hedges

             2. Hedging instruments and hedged items:

                Hedging instruments: commodity swap contracts, forward exchange contracts Hedged items: Raw materials and fuel, foreign currency transaction etc.

             3. Basic rules and policies for hedging:

                The Group uses derivative financial instruments to reduce their exposure to market risks from fluctuation in commodity prices and in foreign exchange rates that may occur in the ordinary course of business.

             4. Assessment of hedge effectiveness:

             In applying cash flow hedges, the Group evaluates at the inception whether the hedge will be effective. After that, the Group also evaluates continuously whether the derivative will be highly effective in offsetting the effects of changes in future cash flows of the hedged item.

         13. Goodwill

             After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Impairment test of goodwill is performed annually, regardless of any indication of impairment. Impairment loss for goodwill is not reversed in subsequent periods.

         14. Others

             1. Application of Japanese Group Relief System

                The Company and some consolidated subsidiaries apply the Japanese Group Relief System.

             2. Amounts concerning financial statements Amounts below one million yen are rounded down.

   2. Notes to accounting estimates

      The following is a list of items for which the amount was recorded in the consolidated financial statements for the fiscal year ended December 31, 2025 based on accounting estimates, and which may have a significant impact on the consolidated financial statements for the following fiscal year.

      1. Impairment losses on non-financial assets

         The amount recorded in the consolidated financial statements for the fiscal year ended December 31, 2025

         Property, plant and equipment 1,652,885 million yen

         Goodwill 52,100 million yen

         Intangible assets 55,430 million yen

         For non-financial assets other than inventories and deferred tax assets, the AGC Group assesses at the end of each fiscal year whether there is any indication of impairment for each asset or the cash-generating unit to which the asset belongs. An impairment test is performed if there is any indication of impairment. Goodwill is tested for impairment once a year, regardless of whether

         there is any indication of impairment. The recoverable amount of an asset or cash-generating unit is calculated based on the higher of its value in use or its fair value less costs of disposal. In calculating the value in use, the estimated future cash flows are discounted to the present value using a pre-tax rate that reflects the time value of money and the risks specific to the asset. In calculating the fair value less costs of disposal, cost approach or market approach, etc. are used. If the recoverable amount of property, plant and equipment, goodwill, and intangible assets recorded in the Group's consolidated statement of financial position falls below the book value due to a decline in profitability or other reasons, an impairment loss may be recognized, which may have a significant impact on the amount of property, plant and equipment, goodwill, and intangible assets in the Group's consolidated financial statements for the following fiscal year.

      2. Estimates of the useful lives and residual values of property, plant and equipment and intangible assets

         The amount recorded in the consolidated financial statements for the fiscal year ended December 31, 2025

         Property, plant and equipment 1,652,885 million yen

         Intangible assets 55,430 million yen

         Property, plant and equipment, except for land and other non-depreciable tangible fixed assets, are depreciated using the straight-line method over their estimated useful lives, based on the maximum depreciable amount, which is the acquisition cost minus the residual value. Intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives. Estimated useful lives and residual values are reviewed at the end of each fiscal year and revised as necessary. Due to changes in the business environment and other factors, it may be necessary to revise useful lives and residual values, which may have a significant impact on the amounts of property, plant and equipment and intangible assets in the consolidated financial statements for the next fiscal year.

      3. Recoverability of deferred tax assets

         The amount recorded in the consolidated financial statements for the fiscal year ended December 31, 2025

         Deferred tax assets 42,971 million yen

         Deferred tax assets are recognized for all deductible temporary differences, tax loss carryforwards and tax credit carryforwards to the extent that it is probable that taxable income will be available against which the deductible temporary differences can be utilized, and are reviewed at the end of each fiscal period to determine whether deferred tax assets are recognized only to the extent that it is probable that tax benefits will be realized. The recoverability of such assets is determined by taking into account future taxable income plan and tax planning. Estimates of future taxable income may be affected by a decline in profitability and other factors, which may have a significant impact on the amount of deferred tax assets in the consolidated financial statements for the following fiscal year.

      4. Actuarial assumptions for defined benefit plans

         The amount recorded in the consolidated financial statements for the fiscal year ended December 31, 2025

         Prepaid pension cost (Note) 57,679 million yen

         Liabilities for retirement benefits 50,147 million yen

         (Note) Prepaid pension cost is included in "Other current assets" or "Other non-current assets" in the consolidated statement of financial position.

         The amount of obligation for defined benefit pension plans is recognized as the present value of the defined benefit obligation less the plan assets. The present value of the defined benefit obligation and service cost, etc. are calculated based on actuarial assumptions. Actuarial assumptions require estimates and judgments about various variables such as discount rates. Actuarial assumptions may be affected by consequences of uncertain economic conditions changes in the future or by the revision or promulgation of related laws and regulations. If a review becomes necessary, it may have a significant impact on the amount of defined benefit obligations in the consolidated financial statements for the following fiscal year.

   3. Notes to the Consolidated Statements of Financial Position

      1. Allowance for doubtful accounts directly deducted from assets:

         Trade receivables: 3,658 million yen

         Other financial assets: 1,301 million yen

      2. Accumulated depreciation and impairment losses on property, plant and equipment:

         3,324,638 million yen

   4. Notes to the Consolidated Statements of Profit or Loss

      1. Other Income

         （Unit: millions of yen）

         Foreign exchange gain	793
         Gains on sale of fixed assets	26,225
         Others	6,934
         Total	33,953

         (Note) Gains on sale of fixed assets includes a gain of 16,880 million yen from the sale of land the Company owned in Koto-ku, Tokyo.

         2. Other Expenses
         	（Unit: millions of yen）
         Losses on disposal of fixed assets	(7,494)
         Impairment losses	(9,687)
         Expenses for restructuring programs	(10,205)
         Others	(3,352)
         Total	(30,741)

         (Note)

         In the fiscal year 2025, AGC Biologics, Inc., a contract developer and manufacturer of biopharmaceutical APIs included within the Life Science segment, saw a significant decrease in terms of its forecast for future orders and operations and have decided to proceed with structural reforms regarding the Boulder site and the Longmont site in Colorado, USA. Accordingly, the cash-generating units to which property, plant and equipment and intangible assets belonged were classified, resulting in the cash-generating unit showing signs of impairment. As a result of an impairment test, we recognized an impairment loss of ¥7,724 million, since the recoverable amount based on the fair value minus the disposal costs, was lower than the book value of the cash-generating unit.

         The total amount of impairment losses included in expenses for restructuring programs was 2,773 million yen.

   5. Notes to the Consolidated Statements of Changes in Equity

      1. Type and number of outstanding shares

         Number of outstanding shares as of December 31, 2025: Ordinary share: 217,434,681 shares

      2. Dividends

         1. Dividend payments

            Date of approval	Type of shares	Total amount of dividends	Dividends per share	Record date	Effective date
            March 28, 2025 Ordinary General Meeting of Shareholders	Ordinary shares	22,289 million	105.00	Decemb er 31, 2024	March 31, 2025
            August 1, 2025 Board of Directors meeting	Ordinary shares	22,297 million	105.00	June 30, 2025	Septem ber 8, 2025

            *The year-end dividend includes dividend payment of 33 million paid for the shares held by the Board Incentive Plan (BIP) Trust.

            *The interim dividend includes dividend payment of 32 million paid for the shares held by the BIP Trust.

         2. Dividends whose record date is attributable to the year ended December 31, 2025 but to be effective after the said year

            An agenda will be submitted, as follows, concerning the year-end dividends in the appropriation of retained earnings for approval at the Ordinary General Meeting of Shareholders to be held on March 27, 2026. Total amount of dividends includes dividend payment of 32 million paid for the shares held by the BIP Trust.

            Total amount of dividends: 22,298 million yen Resource of dividends: Retained earnings

            Dividends per share: 105.00 yen

            Record date: December 31, 2025

            Effective date: March 30, 2026

      3. Share subscription rights

         1. Share subscription rights are presented as a part of capital surplus.

         2. Number of shares subject to the share subscription rights

            Category	Share subscription rights issued	Type of shares	Numb er of shares as of Decemb er 31, 2025
            The Company	Share subscription rights issued in July 2009 (Comp ensation-Type Stock Option)	Ordinary shares	3,600 shares
            	Share subscription rights issued in July 2010 (Comp ensation-Type Stock Option)	Ordinary shares	5,000 shares
            	Share subscription rights issued in July 2011 (Comp ensation-Type Stock Option)	Ordinary shares	6,000 shares
            	Share subscription rights issued in July 2012 (Comp ensation-Type Stock Option)	Ordinary shares	43,800 shares
            	Share subscription rights issued in July 2013 (Comp ensation-Type Stock Option)	Ordinary shares	26,400 shares
            	Share subscription rights issued in July 2014 (Comp ensation-Type Stock Option)	Ordinary shares	49,800 shares
            	Share subscription rights issued in July 2015 (Comp ensation-Type Stock Option)	Ordinary shares	42,000 shares
            	Share subscription rights issued in February 2016 (Compensation-Type Stock Option)	Ordinary shares	5,200 shares
            	Share subscription rights issued in July 2016 (Comp ensation-Type Stock Option)	Ordinary shares	75,800 shares
            	Share subscription rights issued in March 2017 (Compensation-Type Stock Option)	Ordinary shares	23,600 shares
            	Share subscription rights issued in July 2017 (Comp ensation-Type Stock Option)	Ordinary shares	34,600 shares

            *The shares are calculated based on the number of shares after the share consolidation (5 shares for 1 share) effective from July 1, 2017.

   6. Notes to the Revenue

      1. Disaggregation of revenue

         The Group has five reportable segments: Architectural Glass, Automotive, Electronics, Chemicals and Life Science.

         Net sales are broken down by product group and region.

         The reconciliations of the disaggregated revenue with the Group's sales components are as follows.

         1. Disaggregation by product groups

            (Unit: millions of yen)

            Architectural Glass		438,811
            Automotive		520,324
            Electronics	Display	184,712
            	Electronic Materials	168,514
            	Subtotal	353,227
            Chemicals	Essential Chemicals	383,363
            	Performance Chemicals	196,124
            	Subtotal	579,487
            Life Science		129,420
            Ceramics/Others		37,560
            Total		2,058,832

         2. Disaggregation by geographical segments

            (Unit: millions of yen)

            	Architectural Glass	Automotive	Electronics	Chemicals	Life Science	Ceramics /Others	Total
            Japan/Asia	153,546	260,548	305,745	514,594	27,005	37,560	1,299,000
            Americas	29,807	114,574	46,515	34,541	18,567	-	244,006
            Europe	255,457	145,201	966	30,351	83,847	-	515,825
            Total	438,811	520,324	353,227	579,487	129,420	37,560	2,058,832

            Note: Sales by region are based on the location of each company, and "Brazil" is included in "Americas."

            In the Architectural Glass segment, the Group sells architectural figured glass, architectural processing glass, etc., and primarily sells globally to residential and office building-related companies. Additionally, in certain regions, the Group delivers and installs related products.

            In the Automotive segment, the Group supplies automotive glass, automotive display cover glass, etc. Main customers are domestic and overseas automobile manufacturers.

            In the Electronics segment, the Group delivers glass for display such as Glass substrates for TFT-LCD/OLED, Specialty Glass for displays, Materials for semiconductor, Optical materials. Main customers are domestic and overseas electronics companies.

            In the Chemicals segment, the Group supplies essential chemicals, performance chemical products, etc., and sells them globally, mainly through wholesalers such as trading companies,

            as well as the sales bases of the Group, etc.

            In the Life Science segment, the Group performs contract development and manufacturing globally for synthetic pharmaceutical and agrochemical intermediates and active ingredients, biopharmaceuticals, etc. Main customers are pharmaceutical and agrochemical-related companies.

            These are accounted for in accordance with the policies described in "4. Accounting Standards" under "I. Significant Accounting Policies". The consideration for performance obligations is mainly recovered within one year after performance obligations are satisfied. In addition, the consideration for performance obligations does not include a significant financing component.

      2. Contract balances

         Information on contract assets and liabilities arising from contracts with customers is as follows:

         (Unit: millions of yen)

         	FY2025 (as of January 1, 2025)	FY2025 (as of December 31, 2025)
         Contract Assets	5,322	4,757
         Contract Liabilities	48,390	36,577

         Contract assets primarily relate to the Group's rights to receive consideration for performance obligations that have been completed, but not yet billed for, as of the reporting date. Contract assets are reclassified as receivables when the Group's right to payment becomes unconditional. Contract liabilities mainly relate to consideration received from customers before the Group delivers products to them, based on receivables management and other considerations. The revenue recognized during the fiscal year ended December 31, 2025, included balance of contract liabilities at the beginning of the fiscal year of ¥25,153 million.

      3. Transaction price allocated to the remaining performance obligations

         The Group applies the practical expedients for exemption on disclosure of information on remaining performance obligations that have original expected duration of one year or less. The Group has no significant transactions with original expected duration exceeding one year. In addition, there are no significant amounts in consideration from contracts with customers that are not included in transaction prices.

      4. Assets recognized from the costs of obtaining or fulfilling contracts with customers

         There are no assets recognized from the costs of obtaining or fulfilling contracts with customers as of the year ended December 31, 2025. In addition, if the amortization period of the assets that the Group otherwise would have recognized is one year or less, the Group applies the practical expedient of recognizing the incremental costs of obtaining the contract as an expense when incurred.

   7. Notes to Financial Instruments

      1. Status of financial instruments

         1. Policy for financial instruments

            The AGC Group manages funds using only safe financial assets with high liquidity and implements stable and low-cost fund procurement by utilizing the capital market such as taking out borrowings from financial institutions or issuing corporate bonds. The Group uses derivative transactions only to evade risks accompanying its business activities, including exchange-rate fluctuation risks, interest-rate fluctuation risks and product price fluctuation risks, and does not enter into derivative transactions for speculative purposes.

         2. Details of financial instruments, their risks and their risk management system

            Trade notes and accounts receivable, which are operating receivables, are exposed to the credit risks of customers. To manage these risks, the Group performs due date controls and balance controls for each customer and identifies and mitigates risks regarding the collection of receivables caused by factors such as deterioration of financial conditions at an early stage, in accordance with credit management rules.

            Other receivables are accounts receivable, etc.

            Among other financial assets, equity instruments, which are financial assets measured at fair value through other comprehensive income, and debt instruments, which are financial assets measured at fair value through profit or loss, are mainly shares of companies with which the Group has business relationships, and are exposed to the risk of market price fluctuations. The Group exams trend of market values and business needs as appropriate.

            Most of the Group's trade notes and accounts payable, which are operating payables, are due within one year.

            Other payables are other miscellaneous payables and others.

            Borrowings, corporate bonds and the other interest-bearing debts are exposed to liquidity risks. The Group manages these risks by diversifying fund procurement methods, establishing commitment lines with various financial institutions, and keeping an appropriate balance between direct and indirect fund procurements and a proper mixture of short-term and longterm borrowings and corporate bonds. Floating-interest rate borrowings are exposed to interest-rate fluctuation risks.

            For some long-term floating-rate borrowings, the Group uses interest rate swap transactions to avoid the interest-rate fluctuation risks and convert the floating rates into fixed rates.

            Moreover, the AGC Group operates businesses globally, and is therefore exposed to currency risks associated with transactions undertaken in currencies other than individual functional currency. To manage currency risk, the Group hedges currency risk with forward exchange contracts and currency swap agreements.

            Derivative transactions are executed and managed in accordance with the internal rules that stipulate the authority of transactions. Outstanding derivatives and the position of gain or loss on derivatives are regularly reported to the top management. In those derivative transactions, the Group uses only creditworthy financial institutions to reduce credit risks.

         3. Supplementary explanation about fair values of financial instruments

            The fair values of financial instruments include values based on market prices and reasonably calculated values if market prices are unavailable. As variable assumptions are incorporated into the calculation of said values, they may vary if different assumptions are used.

      2. Fair values of financial instruments

         The carrying amounts and fair values of financial instruments as of December 31, 2025 are as follows:

         (Unit: millions of yen)

         	Carrying amount	Fair value
         Cash and cash equivalents	94,671	94,671
         Trade receivables	324,396	324,396
         Other receivables	20,299	20,299
         Other financial assets
         Financial assets measured at FVTOCI (*1)	35,484	35,484
         Financial assets measured at FVTPL (*1)	7,000	7,000
         Others	17,161	17,161
         Trade payables	210,036	210,036
         Other payables	151,210	151,210
         Interest-bearing debts (short-term, long-term)
         Borrowings	454,391	452,928
         Commercial paper	12,981	12,981
         Corporate bonds	99,789	94,505
         Derivatives (*2)	5,210	5,210
         Other current liabilities	462	462
         Other non-current liabilities	2,682	2,682

         (*1) FVTO CI: Fair Value Through O ther Co mprehensive Inco me / FVTP L: Fair Value Thro ugh P ro fit o r Lo ss

         (*2) Receivables and payables arising from derivative transactions are presented in net values. Amou nts in parentheses indicate payables.

         (Note) Calculation method for the fair values of financial instruments

         The fair value of financial instruments is categorized into three levels based on inputs used to measure fair value, as follows:

         Inputs include stock prices, exchange rates, and interest rates as well as indexes related to commodity prices, etc.

         • Level 1: Quoted prices in active markets

         • Level 2: Observable prices other than quoted prices included within Level 1

         • Level 3: Inputs not based on observable market data

         1. Financial assets and liabilities measured at fair value.

            The fair value of financial assets and financial liabilities is determined as follows.

            (Derivatives)

            Foreign exchange contracts are mainly based on forward exchange rates and prices quoted by financial institutions with which contracts are concluded. Interest rate contracts are mainly based on prices quoted by financial institutions with which contracts are concluded.

            Commodity contracts are mainly based on prices quoted by counterparties with whom contracts are concluded. In each case, the financial instruments are classified as Level 2 in the fair value hierarchy.

            (Financial assets measured at fair value through other comprehensive income)

            The Group measures financial assets at fair value when market values are available, and classifies such assets as Level 1 in the fair value hierarchy. The Group estimates fair values of financial instruments whose market values are unavailable using either the discounted future cash flows method, third-party appraisal, or another appropriate measurement technique. Such financial instruments are classified as Level 3 in the fair value hierarchy.

            (Financial assets measured at fair value through profit or loss)

            The Group measures financial assets at fair value when market values are available, and classifies such assets as Level 1 in the fair value hierarchy. The Group estimates fair values of financial instruments whose market values are unavailable using either the discounted future cash flows method, third-party appraisal, or another appropriate measurement technique. Such financial instruments are classified as Level 3 in the fair value hierarchy.

         2. Financial assets and liabilities measured at amortized cost

         The fair value of financial assets and liabilities measured at amortized cost is determined as follows.

         (Financial assets measured at amortized cost)

         Each receivable is categorized by period, and its fair value is the present value of future cash flows discounted by an interest rate that reflects time to maturity and credit risk.

         (Loans payable)

         As short-term loans payable is settled on a short-term basis, their fair values approximate their carrying amounts.

         The fair values of long-term loans payable are calculated by the total sum of the principal and interest discounted by the interest rates that would apply if similar borrowings were conducted anew. For long-term loans payable at floating interest rates, however, the fair values approximate the carrying amounts because the interest rates are adjusted regularly at fixed intervals.

         (Corporate bonds)

         Fair values of corporate bonds are calculated based on market prices.

         (Financial liabilities measured at amortized cost other than the above)

         Each payable is categorized by period, and its fair value is the present value of future cash flows discounted by an interest rate that reflects time to maturity and credit risk.

         Financial assets and financial liabilities measured at amortized cost are classified as Level 2 in the fair value hierarchy.

      3. Fair value hierarchy

         The following table is an analysis of financial instruments measured at fair value by valuation methods.

         (Unit: millions of yen)

         	Level 1	Level 2	Level 3	Total
         Derivative financial assets	-	12,924	-	12,924
         Derivatives not designated as hedges	-	12,859	-	12,859
         Derivatives designated as hedges	-	65	-	65
         Equity instruments	25,033	-	10,450	35,484
         Financial assets measured at FVTOCI(Note)	25,033	-	10,450	35,484
         Debt instruments	-	-	7,000	7,000
         Financial assets measured at FVTPL(Note)	-	-	7,000	7,000
         Derivative financial liabilities	-	7,713	-	7,713
         Derivatives not designated as hedges	-	5,719	-	5,779
         Derivatives designated as hedges	-	1,933	-	1,933

         Note: FVTO CI: Fair Value Thro ugh Other Co mprehensive Inco me / FVTPL: Fair Value Thro ugh Pro fit or Lo ss

         The presence of any financial instruments subject to significant transfers between fair value hierarchy levels is determined at the end of every period. There were no financial instruments subject to significant transfers between the fair value hierarchy levels during the fiscal year ended December 31, 2025.

         There were no significant changes in "Financial assets measured at fair value through other comprehensive income" classified as Level 3 during the fiscal year ended December 31, 2025.

         Derivative financial assets are included in "Other current assets" and "Other financial assets" in the consolidated statements of financial position.

         Equity instruments and debt instruments are included in "Other financial assets" in the consolidated statements of financial position.

         Derivative financial liabilities are included in "Other current liabilities" and "Other non-current liabilities" in the consolidated statements of financial position.

         Changes in financial instruments categorized within Level 3 of the fair value hierarchy during the year are as follows:

         (Unit: millions of yen)

         Balance as of January 1	14,115
         Purchases	4,154
         Sales	(489)
         Other comprehensive income	(314)
         Other changes	(14)
         Balance as of December 31	17,450

   8. Notes to Per Share Information

      1. Equity attributable to owners of the parent per share 7,003.63 yen

      2. Basic earnings per share 326.20 yen

   9. Notes to Business Combinations

      There are no significant transactions to disclose.

   10. Notes to Significant Subsequent Events There are no items to disclose.

Independent Auditor's Report

February 4, 2026

To the Board of Directors of AGC Inc.:

KPMG AZSA LLC

Tokyo Office, Japan

Noriaki Habuto

Designated Limited Liability Partner

Engagement Partner Certified Public Accountant

Tsutomu Ogawa Designated Limited Liability Partner

Engagement Partner Certified Public Accountant

Takahiro Kajiwara Designated Limited Liability Partner

Engagement Partner Certified Public Accountant

We have audited the consolidated financial statements, which comprise the consolidated statement of financial position, the consolidated statement of profit or loss, the consolidated statement of changes in equity and the related notes of AGC Inc. ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group"), as at December 31, 2025 and for the year from January 1, 2025 to December 31, 2025 in accordance with Article 444-4 of the Companies Act.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position and the results of operations of the Group for the period, for which the consolidated financial statements were prepared, in accordance with the latter part of Article 120-1 of the Ordinance of Company

Accounting that prescribes some omissions of disclosure items required by International Financial Reporting Standards.

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan (including those that are relevant to audits of the financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The other information comprises the business report and its supplementary schedules. Management is responsible for the preparation and presentation of the other information. Audit & Supervisory Board and its Members are responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the reporting process for the other information.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the latter part of Article 120-1 of the Ordinance