company overview - agc · company overview p.3 2. the agc group medium-term management plan “agc...
TRANSCRIPT
Company Overview
May, 2020
Contents
1. Company Overview P.3
2. The AGC Group Medium-term Management Plan
“AGC plus-2020” P.7
3. Measures for core business P. 13
4. Progress of Strategic Business P. 20
5. Shareholder Return P.28
6. Outlook for FY2020 P.30
7. Appendix P.36
©AGC Inc. 2
1. Company Overview
©AGC Inc. 3
Architectural GlassSales 352.7 bn yen
Business Overview
AGC Group (Net sales 1,518.0 billion yen, Operating profit 101.6 billion yen)
-Float flat glass-Figured glass-Polished wired glass-Low-E glass-Decorative glass-Fabricated glass for architectural use（Heat Insulating/shielding glass, Disaster-resistant/Security glass, Fire-resistant glass, etc.)
-Automotive glass-Cover glass for car- mounted displays
Automotive GlassSales 388.3 bn yen
-Polyvinyl chloride-Vinyl chloride monomer-Caustic soda-Urethane
-Fluorinated resins-Water and oil repellents-Gases-Solvents-Iodine-related products
Fluorochemicals& specialty chemicalsSales 119.9 bn yen
Chlor-alkali & urethaneSales 292.8 bn yen
-Semiconductor process materials-Optoelectronics materials-Printed circuit boat materials-Lighting glass products-Laboratory glass, etc.
DisplaySales 174.7 bn yen
Electronic MaterialsSales 90.5 bn yen
-LCD glass substrates-OLED glass substrates-Specialty glass for display applications-Display related materials-Glass for solar power system-Fabricated glass for industrial use
For the fiscal year ended December 31, 2019
-Ceramic products-Logistics and financialservices, etc.
Ceramics/OtherSales 83.2 bn yenOP 3.9 bn yen
GlassSales 742.9 bn yenOP 9.3 bn yen
ChemicalsSales 475.8 bn yen OP 63.0 bn yen
ElectronicsSales 276.7 bn yenOP 25.6 bn yen
©AGC Inc.
Life ScienceSales 61.7 bn yen
-Pharmaceutical and agrochemicalintermediates and active ingredients
(including biopharmaceuticals)
4
Net sales：1,518.0 billion yen OP：101.6 billion yen Group Employees： 55,600
-Architectural Glass-Automotive Glass-Electronic Materials-Fluorochemicals-Life science
-Architectural Glass-Automotive Glass-Fluorochemicals-Life science
-Architectural Glass-Automotive Glass -Display Glass -Electronic Materials-Chlor-alkali & Urethane-Life science-Ceramics
The AmericasSales： 172.6 bn yenOP: 5.5 bn yenEmployees： 5,300
EuropeSales： 338.7 bn yenOP: 15.1 bn yen
Employees： 17,100
Japan / AsiaSales： 1,006.7 bn yen OP: 121.7 bn yenEmployees： 33,200
Results of FY2019
Global Operation
©AGC Inc. 5
Changes in the Financial Results
6©AGC Inc.
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Net sales 13,483 13,263 12,826 14,635 15,229 15,180
Operating profit 621 712 963 1,196 1,206 1,016
Profit for the year attributable to owners of the parents 159 429 474 692 896 444
Operating profit margin 4.6% 5.4% 7.5% 8.2% 7.9% 6.7%
Dividend per share ¥90 ¥90 ¥90 ¥105 ¥115 ¥120
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
3,000
6,000
9,000
12,000
15,000
18,000
[OP
, Pro
fit for th
e y
ear a
ttribu
tab
le to
ow
ners
of th
e p
are
nt]
（100 million yen）
[Net s
ale
s]
- Dividend (per share) is adjusted to reflect the 5 into 1 share consolidation implemented on 1 July 2017.- Full-year forecast for FY2020 on financial results and dividend is subject to review due to the spread of COVID-19.
2. The AGC Group Medium-term management plan“AGC plus-2020”
©AGC Inc. 7
AGC Group’s long-term strategy
“Vision 2025”
Establishing long-term, stable sources of earnings through the portfolio
management
・Architectural glass・Automotive glass (existing)・Essential chemicals・Performance chemicals・Display glass・Ceramics
Establishing highly profitable businesses through expansion of high
value-added businesses
・Mobility
・Electronics
・Life science
Core businesses Strategic businesses
The AGC Group’s Core Businesses will serve as solid sources of earnings, and Strategic Businesses will become growth drivers and lead further earnings growth.The AGC Group will continue being a highly profitable, leading global material and solution provider.
©AGC Inc. 8
AGC plus-2020
◼ Develop high-value added businesses that do not
get affected by market fluctuations
◼ Promote growth strategies for strategic businesses
◼ Concentrate management resources in growth
regions/where we can win
◼ Achieve sustainable growth through strategic
M&As
AGC plus-2020 serves as the cornerstone toward 2025
©AGC Inc. 9
©AGC Inc. 10
Achievement towards management target
OP
ＲＯＥ
Strategic business
contribution ratio
D/E
FY2025 target
Long-term plan
FY2018 FY2020 targetFY2020 forecast
10.0％ or
more
40% or more
0.5 or less
229.2billion yen or more
(record high)
8.0％ or
more
25％ or
more
0.5 or less
160.0billion yen or more
7.7％
17％
0.43
120.6billion yen
6.0％
29％
0.5 or less
120.0billion yen
FY2017
6.1％
10％
0.38
119.6billion yen
Mid-term management plan AGC plus-2020
◼ OP of strategic business expanding successfully◼ Active investments with maintaining healthy D/E ratio
Subject to
review*
*With many uncertain factors that will affect business results due to the spread of COVID-19, the figures FY2020 will be subject to review.
Major investment plans and timing of profit generation
©AGC Inc. 11
China：Relocation of furnace for G11 TFT glass substrates
Japan：Drastically enhance supply system for EUV mask blanks
Brazil：Launch second furnace
Europe：Improve productivity and fuel efficiency through cold repairing
Morocco: Launch new plant for automotive glass
China: Launch new plant for cover
glass for car-mounted displays
Glass
Electronics
Chemicals
2019 2020 2022～
Demark：Enhance production capacity for biopharmaceutical
Japan：Enhance GMP compliant synthetic pharmaceutical capacity
Indonesia：Enhance PVC production capacity
USA：Enhance production capacity of biopharmaceutical
2021
China：Enhance production capacity for G11
Thailand：Enhance electrolysis capacity
Indonesia：Launch new coating facility for architectural glass
◼ Investment effect generating from 2020, and gaining momentum from 2021
Japan：Enhance fluorochemical production capacity
Business portfolio management
©AGC Inc. 12
10% 20%
ROCE (FY2020 forecast)
Glass
Electronics
Chemicals
Electronic materials
Life Science
Chlor-alkali & Urethane
Display glass
Architectural glass
Automotive glass
◼ ROCE target: 10% or more
AGC Group consolidated
AGCGroup
Expand business scale while maintaining/improving asset efficiency
Improve profit and/or
improve asset efficiency by reducing operating capital employed
0%
Fluorochemicals& Speciality
- ROCE : (OP forecast for FY2020)/(FY2020 year end operating capital employed(Trade receivables＋Inventory –Trade payables ＋Fixed assets)).Corporate expense is not allocated to OP forecast of each sub-segment.
- Calculated as of February 2020.
©AGC Inc. 13
3． Measures for core business
Architectural glass：Integration of architectural glass business in Japan
©AGC Inc. 14
Source：chart made by AGC, based on the data of Japan’s Ministry of Economy, Trade and Industry
Architectural Glass shipment in Japan
◼ In order to adapt to shrinking demand in Japan, AGC and Central Glass Co., Ltd. have concluded a MOU to consider and discuss the integration of architectural glass businesses in Japan
◼ Aiming for business integration by end of 2020
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1990 95 2000 5 10 15 20 25
（thousand unit）
Architectural Glass shipments in Japan
Shipments of architectural glass in Japan is decreasing
gradually, 1-2% annually
Number of facility and plantsfor architectural glass in Japan
AGC Central Glass
Furnace for architectural glass1 1
Coating facilities2 2
Furnacefor figured/polished glass １ 2
Basis for processed glass such as multi-layered glass 16 5
Basis for distribution32 27
Automotive Glass：strengthen profitability
©AGC Inc. 15
◼ Shift to high-value added products, and improve productivity in each region.
【Japan】
Improve product efficiency and reduce production cost.Expand sales of high-value added products.
【Asia】
Maintain the flexible operation system in response to demand fluctuations.
Measures
Install new facility by watching and responding to demand trend for high value added products, and for improving productivity.
Focusing on structural improvements, such as rationalization of production facilities and cost reduction, rather than expanding market share.
Europe
NorthAmerica
Japan/Asia
Region
Display：Enhancing capacity for G11 production
©AGC Inc. 16
◼ Correspond to demand increase in China for G11. Enhance total capacity by expanding the G11 polishing facility. Total number of furnace is managed to be the same.
Source：AGC’s estimation
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019 2020e 2021e 2022e
China26%
66%50%
TFT glass substrates demand（by region）
million ㎡/year
others
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019 2020e 2021e 2022e
22%
G10-11
TFT glass substrates（by
generation)million ㎡/year
others
AGC capacityImport
Chemicals：Cholor-alkali business in Southeast Asia(1）
©AGC Inc. 17
◼ CAGR 4% growth for Chlor-alkali products in Southeast Asia◼ Enhancing capacity in Southeast Asia where robust demand
growth is expected and regional capacity is lacking.
Caustic soda market in Southeast Asia PVC market in Southeast Asia
Source：chart made by AGC, based on HIS data.
＊Includes Australia and New Zealand.＊Excludes Australia and New Zealand.
Supply in the regionAGC capacityImport Supply in the region
0
1,000
2,000
3,000
4,000
2015 16 17 18 19e 20e 21e 22e 23e 24e 25e
Acquisition of Vinythai
Capacity enhancement
in Vinythai
850
1,050
1,4201,640
Capacity of AGC
thousand ton/year
Caustic soda demand2015-2025eCAGR 4%
Demand *
0
1,000
2,000
3,000
4,000
2015 16 17 18 19e 20e 21e 22e 23e 24e 25e
thousand ton／year
1,200
1,760
1,000
700
400
Acquisition
of Vinythai
Capacity enhancement
in VinythaiCapacity
enhancement in Indonesia
PVC demand2015-2025eCAGR 4%
Demand *
Capacity of AGC
0
200
400
600
800
1000
1200
2015.1Q
2Q 3Q 4Q
16.1Q
2Q 3Q 4Q
17.1Q
2Q 3Q 4Q
18.1Q
2Q 3Q 4Q
19.1Q
2Q 3Q 4Q
0
200
400
600
800
1,000
1,200
1,400
1,600
2015.1Q
2Q 3Q 4Q
16.1Q
2Q 3Q 4Q
17.1Q
2Q 3Q 4Q
18.1Q
2Q 3Q 4Q
19.1Q
2Q 3Q 4Q
Chemicals：Cholor-alkali business in Southeast Asia(2）
©AGC Inc. 18
◼ Stable profitability of chlor-alkali business in Southeast Asia.Decline of caustic soda market price is balanced by price decline of ethylene, which is PVC’s raw material.
Source：chart made by AGC, based on Bloomberg data
Caustic Soda Market
(US$/t)
Southeast Asia Caustic Soda Market(SE Asia Caustic Soda CFR price Weekly)
※PVC-ethylene spread = PVC market price - (ethylene market price×0.5)
PVC・Ethylene Market
(US$/t)
Southeast Asia Ethylene Market（SE Asia Ethylene CFR Spot Price Weekly）
Southeast Asia PVC market（SE Asia PVC CFR price Weekly）
PVC-ethylene spread※
Annual average
PVC-ethylene spread is in the trend of expansion.
Chemicals：Capacity Enhancement of fluorochemical
©AGC Inc. 19
◼ Enhancing capacity in response to demand growth for semiconductor, next-generation high-speed communications, and transportation related applications.
◼ Phase-based capacity enhancement from raw materials to various product groups, such as fluoro resins and low-GWP refrigerant/foaming agent.
Total investment approximately 70 billion JPY.
Profit contribution starting from FY2021 onward.
Examples of AGC’s high performance fluorochemical products
＜Fluon® ETFE＞ ＜AMOLEA® 1224yd＞ ＜Fluon+TM EA-2000＞
• superior moldability• heat resistant, chemical resistant• high light transmittance
• GWP value 1 or less• meeting environmental regulations• same performance as HFCs
• having adhesive and dispersible properties while maintaining characteristics of fluoro resin, such as electrical properties and durability
• very low transmission losses
©AGC Inc. 20
4．Progress of strategic business
Strategic Businesses Highly profitable businesses with growth potential
Mobility Electronics Life Science
Arrival of IoT era Longer life expectancy
Evolution of transportation infrastructure Increase of global population
Building new eco-system Greater safety, security, comfort
【Changes in the macroscopic environment】
Connected cars/ Automated driving,Evolution of information display, Lighter-weight transportation means
Arrival of IoT/AI era, Next-generation high-speed communications/ Automated driving, Use of novel devices
Safe & secure medical care, Longer life expectancy, Increase of global population
Strategic Businesses
©AGC Inc. 21
©AGC Inc. 22
OP(strategic business) 120 210 265 300 900
Contribution ratio 10％ 17％ 26％ - 40%
(100m JPY)
Mobility
Electronics
Life Science
Sales of Strategic business
Life Science
・Cover glass for car-mounted
displays・New materials for mobility,
including 5G communications
・Semiconductor-related
products・Optoelectronics materials・Next-generation high-speed
communication related products
・Fluorinated products for
electronics
・Synthetic pharmaceutical
and agrochemical・Bio CDMO
Electronics
Mobility
Major products
& businesses
*
＊ The figures have been revised from those announced on February5, 2020.
Profit contribution of Strategic Business
◼ Limited impact from spread of COVID-19, OP growing steadily
100 million JPY
*
Expansion of Strategic Business
©AGC Inc. 23:FY2019
EUV mask blanks
Other semiconductor-
related materials
100 200 300
Sales (100m JPY）
Mobility
Electronics
Lifescience
CMP slurry
Fluorochemicals for electronics
Cover glass for car-mounted displays
Bio pharmaceutical
synthetic pharmaceutical and
agrochemical
Resin for fuel cell
CCL
EUV mask blanks
synthetic pharmaceutical and
agrochemical
Bio pharmaceutical
CCL
:FY2021(forecast):FY2017
◼ All business areas expanding sales
synthetic pharmaceutical and
agrochemical
Biopharmaceutical
4000
Optoelectronics materials
Optoelectronics materials
Cover glass for car-mounted display
©AGC Inc. 24
Used in New Lexus RX series released in 2019
New production site in China
◼ Establish new production site in China for large size/complex-shaped cover glass for car-mounted display
- mass production starting from FY2022◼ Expanding business as being the market leader for luxury car
market.
New
AGC Yokohama
Technical Center
Semiconductor processing materials and EUV mask blanks
©AGC Inc. 25
◼ Sales expanding in the semiconductor market, mainly in high-end consumables, in line with advances in IoT and semiconductor technologies.
◼ EUV mask blanks
- market size expanding significantly from FY2021, as further development for memory, as well as logic going forward.
- target sales for EUV mask blanks is 40 billion JPY or more in FY2025, and 50% market share.
Low-power
minisize
High efficiency
High durabilityTech
nolo
gy t
ren
d
AG
C’s
solu
tion
Synthetic quartzlens materials
Jig for semiconductor manufacturing equipment
Through Glass Vias
EUV mask blanksCMP slurry Glass substrate for semiconductor package
15.4 16.4 17.6 18.7 20.0 21.4 22.8
3.84.1
4.44.8
5.25.6
6.0
19.220.5
2223.5
25.226.9
28.8
2016 2017 2018 2019e 2020e 2021e 2022e
total 7%
Life science
©AGC Inc. 26
Sales of AGC’s Life Science Business
367 449
617
750
1,000
FY2017 FY2018 FY2019 FY2020e FY2025e
（1 billion USD）
Worldwide pharmaceutical CDMO market
◼ Aim for high growth that outstrips market growth through M&As and active capacity increase.
◼ Target sales of 100 billion JPY is expected to be achieved earlier than FY2025
or more
Synthetic pharmaceutical and others 7%
Bio pharmaceutical 9%
2017-2022 CAGR （100 million JPY）
Source: Chart made by AGC based on the data from EvaluatePharma® World Preview 2017, Outlook to 2022
Business related to Next-generation high-speed communications
©AGC Inc. 27
◼ Expand business base by 5G related materials and solutions
For buildings/ Glass antenna for base stationsWAVEATTOCHTM
For automotive/5G glass antenna
Fluon+™EA-2000/Fluoro resin for printed-circuit board
ＣＣＬ※
Development stage
2018 2019 2020
Develops a synthetic fused silica glass antenna for 5G
Acquired CCL business of Park Electrochemical
Acquired CCL business of Taconic
Capacity expansion announced
Develops flexible antenna design technology for
millimeter wave with ultra-low transmission loss
Achieved communications with 28GHz band
compatible antenna with a fast-moving vehicle
World’s first product to add cellular base station
functions to windows3.5GHz(LTE) band
Achieved communications with 28GHz band
compatible antenna with a moving vehicle in the city
Completion of development for 5G
(Sub6) glass antenna
Starting of service for 5G (Sub6) glass antenna (plan)
※CCL: Copper Clad Laminate
AGC’s solution examples（released）
5. Shareholder Return
©AGC Inc. 28
Shareholder’s return
©AGC Inc. 29
◼ The current policy to be continued.
Specifically, we will maintain the consolidated total return of 50% or more, including share buyback. While dividend payment is to be not less than the current annual payment per share.
Dividend pershare/year
90 JPY 90 JPY 105 JPY 115 JPY 120 JPY
Consolidated total return ratio 49% 65% 56% 51% 60%
Dividend ratio 49% 44% 35% 29% 60%
Share buyback
（100m JPY）
Dividend
- With many uncertain factors that will affect business results due to the spread of COVID-19, the dividend forecast of FY2020 will be subject to review.
6. Outlook for FY2020
©AGC Inc. 30
FY2020erevised
1st half full-year 1st half full-year 1st half
7,375 15,180 7,500 15,500 6,500
415 1,016 500 1,200 250
762 1,070
Dividend (JPY/share) 60 120 65 130 ー
FOREX(Average) JPY/USD 110.1 109.1 107.0
JPY/EUR 124.3 122.1 117.6
Crude oil (Dubai, average) USD/BBL 65.4 63.5 40.0
FY2019 FY2020eAs of Feb 5, 2020
444
110.0
120.0
60.0
690attributable to owners of the parent
Profit for the year
Net sales
Operating profit
Profit before tax
FY2020 Outlook
31©AGC Inc.
◼ With many uncertain factors that will affect business results due to the spread of the novel coronavirus disease (COVID-19), the figures of business results forecast and the dividend forecast announced on February 5, 2020 will be under review.
◼ Forecast will be announced once reasonable estimation can be made.
◼ Based on currently available information, the forecast for the fist half of FY2020 is as follows.
Under review
2Q Outlook by Segment
32©AGC Inc.
（100 million yen）
Net salesOperating
profitNet sales
Operating
profitNet sales
Operating
profit
Glass 3,752 74 2,800 ▲ 215 ▲ 952 ▲ 289
Electronics 1,246 60 1,400 170 + 154 + 110
Chemicals 2,285 262 2,200 280 ▲ 85 + 18
Ceramics/Other 404 20 400 15 ▲ 4 ▲ 5
Elimination ▲ 312 ▲ 1 ▲ 300 0 + 12 + 1
Total 7,375 415 6,500 250 ▲ 875 ▲ 165
FY2019 FY2020Change
1-2Q 1-2Qe
◼ Business activity in China and Architectural glass processing operations in Europe are recovering.◼ In several businesses other than the aforementioned, shipments are expected to decline, impacted
by demand and production adjustment by customers.◼ The impact on the Glass business is particularly significant, with a significant downward trend in
earnings.
Current situation for Each Business (As of May 18, 2020)
33©AGC Inc.
Glass
Architectural Glass• Japan & Asia: There is nearly no impact in Japan. Decrease in demand is being seen in Asia due to effect of
economic stagnation.• Americas: After bottoming out in April, we expect shipments to gradually recover from May. South America
continues to adjust its operations.• Europe: With a significant decrease in demand, we drastically adjusted operations. We expect operations to
gradually recover from May onwards, with the gradual lifting of the lockdown in European countries from May.Automotive Glass• China: Operations are starting to recover and are at pre-Chinese New Year level in May.• Japan & Asia (ex. China): In Japan, we started to adjust operation in late April and is still ongoing. In
Thailand and Indonesia, we started to adjust operation drastically in April and is still ongoing.• Europe and Americas: In April, all facilities underwent a major operation adjustment, and in May, some
facilities resumed operations.
Electronics
• LCD glass substrates: shipment has not been significantly affected until now.• Specialty glass for display applications: shipments are expected to recover from 2Q as customers' operations
in China recover.• Semiconductor-related products, and optoelectronic materials: no impact on shipments and operations.
Chemicals
• Chlor-alkali & Urethane: Shipments and sales prices are falling due to the impact of the lockdown in Asian countries
• Fluorochemicals & Specialty Chemicals: Shipments of some products, such as for automotive, aircraft, and construction are down.
• Life science: Demand is strong and there is no significant impact on both shipments and operation.
Response to Spread of COVID-19
34©AGC Inc.
1. Measures to prevent disease infection ⚫ Priority on safety of the AGC Group’s stakeholders, including employees and their
families, and business partners, etc.⚫ Thoroughly implement measures to prevent disease infection at sites where
production activities continue.
2. Ensure liquidity in hand⚫ Adequate cash has been secured through bank loans, etc. by end of April.
Approximately 200 billion JPY cash has been accumulated compared to end of Dec. 2019.
3. Reduction of investment and expenses⚫ Continue to invest in growth business with a focus on strategic business.⚫ In other areas, try to reduce investments and cost as much as possible.
Response to Spread of COVID-19
35©AGC Inc.
4. Business activities
Life science
⚫ CDMO contract for Leronlimab developed by CytoDyn, which clinical trials as a COVID-19 treatment have been commenced in the United States. The company is also partnering with AdaptVac for development and manufacture of a COVID-19 vaccine. Further CDMO contracts related to COVID-19 are in progress for multiple contracts.
⚫ AGC Biologics has joined the European COVID-19 vaccine development consortium.
Other
⚫ Supply of sodium hypochlorite used in disinfectants and drinking water disinfectant.⚫ Enhance supply of polycarbonate resin for partitions to prevent splash infection, etc.
5. Local communities ⚫ Supply of protective equipment to medical institutions in Japan and overseas, as local
community activities.
7. Appendix
©AGC Inc. 36
Our Shared Values
AGC, an everyday essential part of our world
-AGC’s unique materials and solutions make people’s lives better around the world every day-
◆ Innovation & Operational Excellence◆ Diversity◆ Environment◆ Integrity
“Never take the easy way out, but confront difficulties”OurSpirit
OurMission
Group Vision "Look Beyond"
©AGC Inc. 37
：Outside directors or outside Audit & Supervisory Board Members who satisfy Company’s “Standardsfor independence of outside officers”
CEO
CFO CTO& CCO
3 outside Audit & Supervisory
Board Members
3 outside directors
Chairman of the Board of Directors
1 director who does not serve as an Executive
Officer
General meeting of shareholders
Audit & Supervisory Board; 4 auditors
1 internal Audit &
Supervisory Board Member
Report
Board of Directors;
7 directors
Nominating Committee;
5 directors
3 outside directors2 internal directors
Chairman of the committee
Compensation Committee;
5 directors
3 outside directors2 internal directors
Chairman of the committee
Mutu
al coopera
tion
Internal Audit Division
Accounting Auditor
Report
Group Corporate CSR Committee
Management Committee
Executive Officers
Compliance Committee
Information Management Council
Security Trade Control Headquarters
In-House Companies/Strategic Business Units(SBUs)
Man
ag
em
en
t overs
igh
tB
usin
ess
execu
tion
Gro
up
corp
ora
te
fun
cti
on
Bu
sin
ess
opera
tion
s f
un
cti
on
：Internal directors or internal Audit & Supervisory Board Member
Corporate Governance StructureAs of March 27, 2020
Consolidated Performance Trend（100million yen）
©AGC Inc. 39
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
13,483 13,263 12,826 14,635 15,229 15,180
621 712 963 1,196 1,206 1,016
▲ 181 148 ▲ 275 ▲ 57 19 ▲ 256
440 859 688 1,139 1,225 760
▲ 29 ▲ 14 ▲ 13 5 59 2
412 845 676 1,144 1,284 762
▲ 207 ▲ 382 ▲ 142 ▲ 351 ▲ 264 ▲ 207
205 463 534 793 1,020 555
159 429 474 692 896 444
46 34 59 101 124 111
4.6% 5.4% 7.5% 8.2% 7.9% 6.7%
1.4% 3.9% 4.3% 6.1% 7.7% 3.9%
JPY/USD 105.9 121.1 108.8 112.2 110.4 109.1
JPY/EUR 140.4 134.3 120.3 126.7 130.4 122.1
63.569.4
ROE
FOREX
(Average)
$/BBL （Dubai)Crude Oil
(Average)96.5 50.9 41.5 53.2
Operating profit margin
Operating profit
Other income (expenses)
Business profit
Finance income (costs)
Net sales
Profit before tax
Income tax expenses
Profit for the year
Profit for the year attributable to
owners of the parent
Profit for the year attributable to
non-controlling interests
Performance by Business Segment （100million yen）
©AGC Inc. 40
Sales FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Glass 6,863 6,929 6,800 7,351 7,575 7,429
Electronics 3,197 2,886 2,581 2,624 2,526 2,767
Chemicals 3,172 3,185 3,166 4,376 4,844 4,758
Ceramics/Other 808 681 708 754 790 832
Elimination ▲ 557 ▲ 418 ▲ 429 ▲ 470 ▲ 506 ▲ 606
Consolidated total 13,483 13,263 12,826 14,635 15,229 15,180
Operating profit FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Glass ▲ 2 130 318 271 225 93
Electronics 362 290 250 273 240 256
Chemicals 241 305 400 637 711 630
Ceramics/Others 11 ▲ 16 ▲ 2 14 28 39
Elimination 2 1 ▲ 3 1 0 0
Consolidated total 621 712 963 1,196 1,206 1,016
Consolidated Statements of Cash Flows
（100million yen）
©AGC Inc. 41
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
412 845 676 1,144 1,284 762
1,372 1,374 1,218 1,282 1,217 1,434
36 110 121 ▲ 150 ▲ 270 ▲ 166
▲ 461 ▲ 457 22 ▲ 242 ▲ 338 ▲ 111
1,358 1,872 2,036 2,035 1,893 1,919
▲ 1,088 ▲ 1,160 ▲ 1,136 ▲ 2,096 ▲ 1,945 ▲ 1,826
270 712 900 ▲ 61 ▲ 52 93
▲ 789 ▲ 151 ▲ 238 314 544 113
▲ 162 ▲ 208 ▲ 208 ▲ 219 ▲ 249 ▲ 266
4 5 ▲ 18 ▲ 283 ▲ 209 ▲ 20
▲ 947 ▲ 354 ▲ 465 ▲ 187 87 ▲ 173
46 ▲ 6 ▲ 11 39 ▲ 64 ▲ 17
▲ 630 352 425 ▲ 209 ▲ 29 ▲ 97
Effect of exchange rate changes on
cash and cash equivalents
Net increase(decrease) in cash and
cash equivalents
Cash flows from investing activities
Free cash flow
Cash flows from financing activities
Changes in interest-bearing debt
Dividends paid
Others
Cash flows from operating activities
others
Increase (decrease) in working capital
Depreciation and amortization expense
Profit before tax
END
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■We ask that you exercise your own judgmentin assessing this material. AGC is notresponsible for any losses that may arise frominvestment decisions based on the forecastsand other numerical targets contained herein.
Copyright AGC Inc.
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