Corning Incorporated : Q4Presentation2022

Full-Year 2022 Investor Call

Corning Reports Fourth-Quarter and Full-Year 2022 Financial Results

January 31, 2023

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Forward-Looking and Cautionary Statements

The statements in this presentation and related comments by management 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. 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, the Company's expected capital expenditure and the Company's implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the Company's manufacturing capacity.

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. 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: global economic trends, competition and geopolitical risks, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, and related impacts on our businesses' global supply chains and strategies; changes in macroeconomic and market conditions, market volatility, including developments and volatility arising from the COVID-19 pandemic, inflation, interest rates, the value of securities and other financial assets, precious metals, oil, natural gas and other commodity prices and exchange rates (particularly between the U.S. dollar and the Japanese yen, new Taiwan dollar, euro, Chinese yuan and South Korean won), the availability of government incentives, decreases or sudden increases of consumer demand, and the impact of such changes and volatility on our financial position and businesses; the amount and timing of any future dividends; the duration and severity of the COVID-19 pandemic and its impact across our businesses on demand, operations, our global supply chains and stock price; possible disruption in commercial activities or our supply chain due to terrorist activity, cyber-attack, armed conflict, political or financial instability, natural disasters, international trade disputes or major health concerns; loss of intellectual property due to theft, cyber-attack, or disruption to our information technology infrastructure; ability to enforce patents and protect intellectual property and trade secrets; unanticipated disruption to Corning's, our suppliers' and manufacturers' supply chain, equipment, facilities, IT systems or operations; product demand and industry capacity; competitive products and pricing; availability and costs of critical components, materials, equipment, natural resources and utilities; 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; the effects of acquisitions, dispositions and other similar transactions; the effect of regulatory and legal developments; ability to pace capital spending to anticipated levels of customer demand; our ability to increase margins through implementation of operational changes, pricing actions and cost reduction measures; rate of technology change; adverse litigation; product and component 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, regulations and international tax standards; 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.

While the Company continually reviews trends and uncertainties affecting the Company's results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document, unless required by law.

© 2023 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 arrive at our core performance measures. These items include the impact of translating the Japanese yen-denominated debt, the impact of the translated earnings contracts, acquisition-related costs, certain discrete tax items and other tax-related adjustments, restructuring, impairment, and other charges and credits, certain litigation, regulatory and other legal matters, pension mark-to-market adjustments and other items which do not reflect the ongoing operating results of the Company.

In addition, because a significant portion of our revenues and expenses are denominated in currencies other than the U.S. dollar, management believes it is important to understand the impact on sales and net income of translating these currencies into U.S. dollars. Therefore, management utilizes constant-currency reporting for Display Technologies, Specialty Materials, Environmental Technologies and Life Sciences segments to exclude the impact from the Japanese yen, South Korean won, Chinese yuan, new Taiwan dollar and the euro, as applicable to the segment. The most significant constant-currency adjustment relates to the Japanese yen exposure within the Display Technologies segment. We establish constant-currency rates based on internally-derived management estimates, which are closely aligned with the currencies we have hedged. We believe that the use of constant-currency reporting allows management to understand our results without the volatility of currency fluctuation, analyze underlying trends in the businesses, and establish operational goals and forecasts. Further, it reflects the underlying economics of the translated earnings contracts used to mitigate the impact of changes in currency exchange rates on our earnings and cash flows.

Core performance measures are not prepared in accordance with GAAP, but management believes that reporting core performance measures provides investors with greater transparency to the information used by our management team to make financial and operational decisions. 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.

© 2023 Corning Incorporated

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Q4 GAAP EARNINGS

FX Hedge Accounting and Other Charges

• Recorded unrealized, non-cash,after-tax loss of $106M in Q4 2022 on mark-to- market adjustments associated with currency-hedging contracts and foreign debt
• • Translation hedges reduce our economic exposure to currency fluctuations, providing higher certainty for our earnings and cash flow, our growth investments, and our future shareholder distributions
  • Hedge contracts settled in any given quarter substantially offset changes in earnings and cash flow due to currency fluctuations
• Incurred restructuring charges of $150M

© 2023 Corning Incorporated

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Full-Year 2022 Investor Call

Corning Reports Fourth-Quarter and Full-Year 2022

Financial Results

January 31, 2023

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- Wendell Weeks, Chairman and CEO

CEO PERSPECTIVE

Fourth-Quarter and Full-Year 2022 Core Results

"We will continue to focus on operating each of our businesses well in 2023, including adapting to global and market dynamics, while simultaneously advancing long-term growth initiatives and capabilities that will drive our success as the global economy stabilizes. Even though the pandemic- related disruptions in China are currently impacting the television, automotive, smartphone, and IT markets, we'll be ready to capture growth when consumer demand returns. We remain confident in our ability to deliver durable multiyear growth."

$3.6B	$0.47	$377M
Q4 Core Sales	Q4 Core EPS	Q4 Free Cash Flow
2% Decrease YoY	13% Decrease YoY
$14.8B	$2.09	$1.24B
FY 2022 Core Sales	FY 2022 Core EPS	FY 2022 Free Cash Flow
5% Increase YoY	1% Increase YoY
		© 2023 Corning Incorporated	7

EXTERNAL DYNAMICS

Pandemic Impacts

• Since 2020, external environment characterized by sweeping impact of the pandemic -
• • Supply chain disruptions
  • Depressed productivity
  • Swings in consumer spending
  • Inflation
• Operated with elevated staffing and higher-than-normal inventory levels to ensure we could continue delivering for our customers
• Persistent inflation added to cost of raw materials, cost to produce and ship our products, and cost of inventory we maintained

As a result, our growth in profitability and cash flow have lagged our sales growth.

© 2023 Corning Incorporated

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EXTERNAL DYNAMICS

Profitability and Cash Generation

In the fourth quarter, took multiple additional and significant actions that will improve margins and cash flow throughout 2023, including

• Raising prices again in Optical Communications and Life Sciences
• Adjusting productivity ratios
• Normalizing inventory

Expect first quarter sales to decline more than normal seasonality. In contrast, expect margins to increase sequentially due to benefits of recent actions.

© 2023 Corning Incorporated

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EXTERNAL DYNAMICS

China Impact

• In December, China shifted its approach to the pandemic, and a significant wave of COVID outbreaks ensued, resulting in
• • Lower consumer spending
  • Workforce shortages
• This impacted demand for our products, particularly in Display, Environmental, and Specialty Materials

We continue to be well positioned to capture growth and drive innovation. As our sales grow, we expect to benefit from operating leverage and our profitability to improve further.

© 2023 Corning Incorporated

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