Summary of AGC (OTCPK:ASGL.Y) ESG Briefing - September 26, 2025 Company Overview - **Company**: AGC (Asahi Glass Company) - **Industry**: Glass and Chemicals - **Global Presence**: Operations in over 30 countries with approximately 54,000 employees [5][4] Key Business Segments - **Sales Breakdown**: - Glass-related business: 45% - Chemicals: 25% - Electronics: 20% - Life Science and Ceramics: 10% each [4][3] Value Creation Model - **Purpose**: AGC aims to be an essential part of everyday life, focusing on long-term social issues and materiality [15][13] - **Management Strategy**: The company emphasizes a value creation model that connects external environmental changes with its purpose [15][22] - **Social Values**: Focus on sustainable global environment, innovation, and well-being [21][22] Sustainability and Innovation - **Sustainability Objectives**: Addressing climate change and resource efficiency while maximizing opportunities through products and technologies [17][18] - **Technological Advancements**: Emphasis on developing unique materials and solutions to solve social issues [21][24] - **Carbon Neutrality Goal**: AGC aims to achieve carbon neutrality by 2050 through various technologies, including recycling and alternative fuels [32][34] Intellectual and Human Capital - **Intellectual Capital**: Focus on evolving technologies, particularly in organics and glass, with a strategic approach to patent applications [24][42] - **Human Capital Development**: Initiatives to enhance employee engagement and develop future management talent, including a focus on diversity [46][49][81] Research and Development Focus - **Key Technology Fields**: Seven identified fields for future growth, including performance chemicals and mobility solutions [29][71] - **Open Innovation**: Collaboration with external partners and academia to accelerate product development [40][41] Financial Performance and Licensing - **Patent Growth**: Increase in patent applications and licensing revenue, particularly in strategic business areas like electronics and life sciences [72][74] - **Revenue Generation**: More than half of revenue is expected to come from strategic businesses [74] Challenges and Future Outlook - **Management Development**: Continuous efforts to enhance the talent pool, including female and non-Japanese candidates, are ongoing [81][79] - **Market Adaptation**: AGC is adapting to technological changes and market demands, particularly in automotive and energy sectors [71][70] Conclusion - AGC is committed to sustainability, innovation, and enhancing its value creation model while focusing on human capital development and strategic growth areas. The company aims to leverage its strengths in glass and chemicals to meet future challenges and opportunities in the market [91][90]

Investment Rating - The report assigns a "Buy" rating to Mitsubishi Electric (MELCO) [2][14][17]. Core Insights - Mitsubishi Electric is undergoing significant management changes aimed at shifting from a Japan-centric approach to a more global and innovative strategy. The management is committed to qualitative changes and enhancing corporate value over the medium to long term [2][14]. - The company has a strong financial position, highlighted by a net cash position and a recent ¥100 billion share buyback to reduce its cost of capital. However, it recognizes the need for a robust growth strategy, including a ¥1 trillion M&A budget to encourage business divisions to leverage their strengths [2][3][14]. - MELCO aims to achieve a market capitalization of ¥10 trillion, which it believes cannot be accomplished with its current approach. The company is focused on becoming more innovative and willing to take risks [8][14]. Summary by Sections M&A Strategy - MELCO has set a ¥1 trillion M&A budget to pursue opportunities in the digital transformation field, acknowledging the high valuations in this sector. The company is also looking to consolidate its software business around ICONICS, which it acquired in 2019 [3][14]. Business Restructuring - The company plans to significantly reduce headcount in its factory automation (FA) business and is reviewing businesses with combined annual sales of ¥1.3 trillion, including exiting low-margin businesses and downsizing overseas production facilities [1][6][14]. - MELCO is considering restructuring its automotive business, which generates around ¥700 billion in annual sales, and is also reviewing its core FA business [9][14]. Digital Strategy - The FA solutions division has developed a cloud-based system for data updates, allowing customers to monitor equipment status via smartphones. Each business division has been tasked with finding ways to leverage the Serendie digital platform [7][14]. Financial Performance - The report projects revenue growth for MELCO, with expected revenues of ¥5,521.7 billion for FY3/25, increasing to ¥6,161.0 billion by FY3/28. Operating profit is also expected to rise from ¥391.9 billion in FY3/25 to ¥590.6 billion in FY3/28 [17].