AGC : Notice regarding Revision to First Half and Full Year Consolidated Financial Forecasts and Dividend Forecasts for Fiscal Year Ending December 31, 2021

April 12, 2021

Corporate Name: AGC Inc. President & CEO: Yoshinori Hirai (Code Number: 5201; TSE 1st section)

Contact: Kazumi Tamaki, General Manager, Corporate Communications & Investor Relations Division (Tel: [phone])

Notice regarding Revision to First Half and Full Year Consolidated Financial Forecasts and

Dividend Forecasts for Fiscal Year Ending December 31, 2021

AGC Inc. ("the Company") has revised its first half and full year consolidated financial forecasts and dividend

forecasts for the fiscal year ending December 31, 2021, which were announced on February 5, 2021.

1. Revision to the consolidated financial results forecast

1. Revision to the first half consolidated financial results forecast [January 1 through June 30, 2021]

(Unit: Millions of yen; %)

					Profit for the
				Profit for the	period	Basic earnings
	Net sales	Operating profit	Profit before tax	attributable to
	period	per share (Yen)
				owners of the
					parent
Previous forecast announced	750,000	45,000	－	－	－	－
on February 5, 2021 (A)
Revised forecast (B)	800,000	85,000	－	－	－	－
Change (B - A)	50,000	40,000	－	－	－	－
Change (%) (B - A)/A	6.7	88.9	－	－	－	－
(Reference)
Actual results for First Half of	654,545	20,579	16,456	13,262	11,440	51.70
FY2020

1. Revision to the FY2021 consolidated financial results forecast
   [January 1 through December 31, 2021]

(Unit: Millions of yen; %)

					Profit for the
				Profit for the	period	Basic earnings
	Net sales	Operating profit	Profit before tax	attributable to
	period	per share (Yen)
				owners of the
					parent
Previous forecast announced	1,530,000	100,000	87,000	65,000	56,000	253.02
on February 5, 2021 (A)
Revised forecast (B)	1,650,000	160,000	142,000	105,000	83,000	375.02
Change (B - A)	120,000	60,000	55,000	40,000	27,000	122.00
Change (%) (B - A)/A	7.8	60.0	63.2	61.5	48.2	48.2
(Reference)	1,412,306	75,780	57,121	41,164	32,715	147.84
Actual results for FY2020

(3) Reasons for the Revision of Consolidated Earnings Forecasts

The AGC Group's net sales, operating profit, profit before tax, profit for the period and profit for the period attributable to owners of the parent for the first half of the fiscal year ending December 31, 2021 are expected to exceed the forecast which was announced on February 5, 2021. This exceed is due to factors such as the recovery of architectural glass and automotive glass businesses in the Glass segment, which is picking up at a speed faster- than-expected; as well as an increase in the selling price of polyvinyl chloride resin in the Chemicals segment.

Based on the first half consolidated financial forecast, the Company has also made an upward revision to the net sales, operating profit, profit before tax, profit for the period and profit for the period attributable to owners of the parent for the full year ending December 31, 2021.

2. Revision to the dividend forecasts

(1) Revision to dividend forecasts for the FY2021

		Dividend per share (yen)
	Interim	Year-End	Year-total
Previous forecast	60.00	60.00	120.00
(Announced on February 5, 2021)
Revised forecast	70.00	70.00	140.00
Actual payment for FY2021	－	－	－
Actual payment for FY2020	60.00	60.00	120.00

(2) Reason for revision of dividend forecasts

With regards to the return of profit to shareholders, the Company will maintain stable dividends with a target consolidated dividend payout ratio of 40% while comprehensively considering such factors as consolidated business performance in the fiscal year under review and future demand for funds.

As there was an upward revision to the consolidated forecasts for the fiscal year ending December 2021, in line with the dividend policy, the Company has decided to revise the interim and year-end dividend forecasts by increasing 10 yen per share from the previous forecast of 60 yen per share, to 70 yen per share. Accordingly, the annual dividend forecast will be 140 yen per share.