Corning Incorporated : Q2Presentation2021 (opens in new window)

Second-Quarter 2021 Investor Call

Corning Reports Outstanding Second-Quarter 2021 Results, Expects Continued Growth in Third Quarter

Second-quarter core sales of $3.5B grew 35% from Q2 2020 and 17% from Q2 2019

Core EPS grew 112% year over year to $0.53 on higher sales and expanded margins

Free cash flow of $471M grew $186M, or 65%, year over year

July 27, 2021

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Forward-Looking and Cautionary Statements

The statements in this presentation that are not historical facts or information and contain words such as "will," "believe," "anticipate," "expect," "intend," "plan," "seek," "see," "would," and "target" and similar expressions are forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include estimates and assumptions related to economic, competitive and legislative developments. Such statements relate to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements relate to, among other things, the Company's future operating performance, the Company's share of new and existing markets, the Company's revenue and earnings growth rates, the Company's ability to innovate and commercialize new products, and the Company's implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the Company's manufacturing capacity. These statements are subject to change and uncertainty which are, in many instances, beyond our control. There can be no assurance that future developments will be in accordance with management's expectations. Actual results could differ materially from those expected by us, depending on the outcome of various factors. We do not undertake to update forward-looking statements.

Although the Company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, current estimates and forecasts, general economic conditions, its knowledge of its business, and key performance indicators that impact the Company, actual results could differ materially. The Company does not undertake to update forward-looking statements. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to: the duration and severity of the COVID-19 pandemic, and its impact across our businesses on demand, operations and our global supply chains; the effects of acquisitions, dispositions and other similar transactions; global business, financial, economic and political conditions; tariffs and import duties; currency fluctuations between the U.S. dollar and other currencies, primarily the Japanese yen, new Taiwan dollar, euro, Chinese yuan and South Korean won; product demand and industry capacity; competitive products and pricing; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; the amount and timing of our cash flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; possible disruption in commercial activities due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; unanticipated disruption to equipment, facilities, IT systems or operations; effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; rate of technology change; ability to enforce patents and protect intellectual property and trade secrets; adverse litigation; product and components performance issues; retention of key personnel; customer ability, to maintain profitable operations and obtain financing to fund ongoing operations and manufacturing expansions and pay receivables when due; loss of significant customers; changes in tax laws and regulations; the impacts of audits by taxing authorities; the potential impact of legislation, government regulations, and other government action and investigations; and other risks detailed in Corning's SEC filings.

For a complete listing of risks and other factors, please reference the risk factors and forward-looking statements described in our annual reports on Form 10-K and quarterly reports on Form 10-Q.

© 2021 Corning Incorporated

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Use of Non-GAAP Financial Information

Corning has included non-GAAP financial measures in this presentation to supplement Corning's consolidated financial statements presented on a GAAP basis. In managing the Company and assessing our financial performance, we adjust certain measures provided by our consolidated financial statements to exclude specific items to arrive at core performance measures.

In managing the Company and assessing our financial performance, certain measures provided by our consolidated financial statements are adjusted to exclude specific items to report core performance measures. These items include gains and losses on our translated earnings contracts, acquisition- related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment losses, and other charges and credits, certain litigation-related expenses, pension mark-to-market adjustments and other items which do not reflect on-going operating results of the Company or our equity affiliates. Corning utilizes constant-currency reporting for our Display Technologies, Environmental Technologies, Specialty Materials and Life Sciences segments for the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and the euro. The Company believes that the use of constant-currency reporting allows investors to understand our results without the volatility of currency fluctuations and reflects the underlying economics of the translated earnings contracts used to mitigate the impact of changes in currency exchange rates on earnings and cash flows. Corning also believes that reporting core performance measures provides investors greater transparency to the information used by the management team to make financial and operational decisions.

Core performance measures are not prepared in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"). We believe investors should consider these non-GAAP measures in evaluating results as they are more indicative of our core operating performance and how management evaluates operational results and trends. These measures are not, and should not be viewed as a substitute for GAAP reporting measures. With respect to the Company's outlook for future periods, it is not possible to provide reconciliations for these non-GAAP measures because the Company does not forecast the movement of foreign currencies against the U.S. dollar, or other items that do not reflect ongoing operations, nor does it forecast items that have not yet occurred or are out of the Company's control. As a result, the Company is unable to provide outlook information on a GAAP basis.

© 2021 Corning Incorporated

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Q2 2021 GAAP Details

Q2 GAAP net income was $449M however GAAP EPS was a loss of $0.42 due to a GAAP accounting treatment

• On April 5, 2021, Samsung Display Co.(SDC) converted 2,300 shares of Preferred Stock into 115 million shares of Corning Common Stock and Corning immediately repurchased 35 million shares of Common Stock from
  SDC
• The common shares were never traded on the open exchange therefore GAAP requires a special accounting treatment of the repurchase as an extinguishment of the original preferred shares and records the difference between the repurchase price and the original book value in Retained Earnings. This adjustment to Retained Earnings is also removed from net income available to common shareholders when calculating GAAP Earnings per Share

FX Hedge Accounting

• Recorded unrealized, non-cash,after-tax loss of $2M in Q2 2021 on mark-to- market adjustments associated with currency-hedging contracts and foreign debt

© 2021 Corning Incorporated

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Second-Quarter 2021 Investor Call

Corning Reports Outstanding Second-Quarter 2021 Results, Expects Continued Growth in Third Quarter

Second-quarter core sales of $3.5B grew 35% from Q2 2020 and 17% from Q2 2019

Core EPS grew 112% year over year to $0.53 on higher sales and expanded margins

Free cash flow of $471M grew $186M, or 65%, year over year

July 27, 2021

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Second-Quarter 2021

Core Performance

"Corning had an outstanding second quarter. We are growing faster than our underlying

markets and achieved a revenue milestone of $3.5 billion, establishing a strong sales run rate.

We are performing well as we continue to build a stronger, more agile company that's

consistently delivering meaningful and important contributions, Corning's deep commitment to life-changing innovation and our people's unwavering dedication continue to drive us forward."

- Wendell Weeks, Chairman and CEO

		$
$3.5B	$0.53	$471M
Q2 Core Sales	Q2 Core EPS	Q2 Free Cash Flow
35% Increase YoY	112% Increase YoY	65% increase YoY

© 2021 Corning Incorporated

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Focusedused andandCohesiveCohesivePortfPortfoliolio

Foundation for Sustained Growth

Focus >80% of resources on opportunities that leverage
capabilities from at least two of three columns	© 2021 Corning Incorporated	8

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Value Creation Model

• Focus 80% of our resources on significant opportunities
• Create new-to-the-world products
• • Ceramic Shield, Gorilla Glasses, auto-grade glass, Corning Valor® Glass packaging, Gen 10.5 display glass, innovative passive optical solutions
• Build state-of-the-art plants
• • Manufacture products at scale, locate these plants near our customers, de-risk these investments with customer commitments
• Extend our leadership and create new innovations
• • Reapply insights, repurpose assets, and improve capabilities

© 2021 Corning Incorporated

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Q2 2021 Highlights

Mobile Consumer Electronics

• Apple awarded Corning an additional $45 million from its Advanced Manufacturing Fund - recognizing the two companies' strong history of partnering to "accomplish the impossible"
• Corning® Gorilla® DX and Corning® Gorilla® Glass DX+ composites enable high-quality image capture through a unique combination of advanced optical performance, superior scratch resistance, and durability
• Samsung is the first adopter

Automotive

• Addressing a combined $100-per-car content opportunity across emissions, precision-glass products, and auto-glass solutions, driven by the More Corning growth strategy
• Entered a new product category Corning® Curved Mirror Solutions, being deployed in Hyundai Mobis' head-up display system, featured in the Hyundai IONIQ 5, to deliver an enhanced driving experience

© 2021 Corning Incorporated

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